VZCZCXRO3275
RR RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #0502/01 0571313
ZNR UUUUU ZZH
R 261313Z FEB 09
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 1887
INFO RUCNRAQ/IRAQ COLLECTIVE

UNCLAS SECTION 01 OF 03 BAGHDAD 000502 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EAIR ETRD EINV IZ IR
SUBJECT: NAJAF INTERNATIONAL AIRPORT EXPANDING RAPIDLY 
 
SENSITIVE BUT UNCLASSIFIED.  PLEASE PROTECT ACCORDINGLY. 
 
¶1.  (SBU) SUMMARY:  Najaf Airport is expanding rapidly to 
accommodate the demand from Shi'a pilgrims coming to religious 
shrines in the province.  Religious pilgrims visiting the province 
have increased dramatically over last year, and most pilgrims stay 
for at least a week.  Currently the bulk of the airport's business 
is from charter flights coming from Iran, Kuwait and Dubai. 
Issuance of visas on arrival for 10 days began in early February. 
The Governor, Investment Commission officials, and Chamber of 
Commerce representatives all seek increased investment in several 
sectors of the province, with housing and tourism infrastructure top 
priorities.  Najaf, as a Shi'a cultural center, believes it can 
attract millions more tourists in future.  However, the Office of 
the Transportation Attach notes that the first passenger flights 
began more than six months behind schedule, and that the airport has 
suffered from poor management.  END SUMMARY. 
 
--------------------------------------- 
Al Ashraf International Airport - Najaf 
--------------------------------------- 
 
¶2.  (SBU) During a visit by Senior Advisor Gordon Gray and econoff 
to Najaf on February 23, we received a tour of Al Ashraf 
International Airport Najaf.  The airport, which opened in November 
2008, was clearly growing rapidly, with construction work ongoing 
for the completion of the main terminal building.  The airport 
receives charter flights from Dubai, Beirut, Tehran, Amman, Kuwait 
and Mashad, consisting mainly of Shi'a pilgrims.  (Note: The largest 
carrier presence at Najaf is from Iran, currently 14 flights per 
week, which is expected to increase significantly.  Iran operates 
under a bilateral agreement with Iraq with scheduled frequencies 
though not a published schedule.  Najaf currently receives 
three-four flights a day.  End note.)  Sabre International, which 
manages the security contract for the airport, said that passengers 
go through seven layers of security screening.  (Note:  Sabre 
International took over security at the end of January when the 
former company, Global International, had a contract dispute with 
the airport authorities.  Although the handover has gone as well as 
can be expected, Sabre has had to get up to speed quickly.  End 
note.)  The total screening and boarding process takes about three 
hours.  Najaf Airport won the "Iraq Reconstruction" prize in 2008. 
 
 
--------------------------------------------- ------ 
Pilgrim Tourism Increasing Visa-on-Arrival Issuance 
--------------------------------------------- ------ 
 
 
¶3.  (SBU) Airport and business officials noted a dramatic increase 
in tourism over the last year.  Visitors come to visit more than 40 
Shi'a religious shrines (including the shrine of Imam Ali) in Najaf, 
during 40 special holidays and occasions.  An average of 3,000 
pilgrims visit the Imam Ali shrine each day during the week, with 
the number rising to 10,000 on Thursdays and Fridays.  Tourists may 
now receive a visa-on-arrival for up to 10 days.  Overstays are 
subject to a fine per day of overstay.  While the Ministry of 
Interior granted permission in November 2008 to issue 
visas-on-arrival, the program only started at Najaf Airport in early 
February.  Most pilgrims stay at least a week, first visiting the 
shrine of Imam Ali, then moving to other religious sites.  Airport 
officials told us that while earlier pilgrim traffic was mainly from 
Iran and the region, now Shi'a visitors are coming from Europe and 
the U.S. as well.  Najaf has recently received visitors from Iran, 
India, Pakistan, Afghanistan, the Gulf states, the U.S., the U.K. 
QIndia, Pakistan, Afghanistan, the Gulf states, the U.S., the U.K. 
and the Netherlands.  Najaf officials believe that the province has 
the potential to receive millions of tourists a year. 
 
----------------- 
Airport Expansion 
----------------- 
 
¶4.  (U) Najaf officials regard the airport as a key to the 
province's development and expressed gratitude for USG support.  The 
provincial government has spent $80 million on the airport and its 
facilities thus far.  They hope that the airport can eventually 
become a cargo center as well, but needs cold storage facilities. 
When the new terminal is completed in one-to-two months, it will add 
five additional gates and increase capacity to thirty flights per 
day.  The airport has only handled narrow-bodied jets until now, but 
airport officials hope to get wide-bodied jet capacity eventually. 
(Note: The runway is not yet approved for wide-body aircraft due to 
weight limits.  This is not expected to change in the near term. 
End note.) 
 
 
¶5.  (SBU) Sabre International representatives said that the facility 
was still "essentially a construction site, operating as an 
airport," but that it should improve soon.  Airport officials also 
told us that Najaf needs more support from the Iraq Civil Aviation 
Authority (ICAA) to obtain approvals for more flights.  (Note: While 
ICAA is supportive of additional services at Najaf, it wants to 
 
BAGHDAD 00000502  002 OF 003 
 
 
encourage such service through the usual framework of bilateral or 
multilateral aviation agreements.  Such agreements provide the ICAA 
with a better understanding of demands placed on the airport and 
also provide a vehicle for securing reciprocal rights for Iraqi 
Airways into other countries.  In addition, it is important for the 
ICAA to balance the number of additional flights with the airport's 
capability to safely support those flights.  Based on observations 
of Office of Transportation Attach staff, Najaf airport authorities 
do not have a good understanding of these agreements.  End note.) 
 
 
 
------------------------------------- 
Getting Up to International Standards 
------------------------------------- 
 
¶6.  (SBU) Iraq is a member of the International Civil Aviation 
Organization (ICAO), and Najaf Airport seeks to follow international 
standards in all areas of operations and is duly licensed by ICAO. 
Air Traffic Control uses international standard satellite 
technology, but there is still a shortage of qualified Air Traffic 
Controllers.  (Note:  ICAA has provided Air Traffic Controllers to 
support Najaf operations since the opening of the airport. 
Contracted Air Traffic Controllers failed a basic English test, 
despite airport authorities assurances that they were language 
qualified.  English is the international language of Air Traffic 
Control.  End note.)  Najaf airport is trying to recruit Air Traffic 
Controllers from abroad.  Airport officials noted that contact with 
Balad was often problematic.  The Air Traffic Control tower was 
often blind until the aircraft contacted the tower.  (Note:  Najaf 
Airport was issued a temporary operating certificate with the caveat 
that it would install navigational aids and communication with 
Balad.  To date, it has not complied.  Najaf Airport will not 
receive a full instrument flight rules certificate until both 
requirements are fulfilled.  End note.) 
 
---------------------- 
Optimism and Obstacles 
---------------------- 
 
¶7.  (SBU) Najaf officials are clearly aggressive and enthusiastic 
about airport expansion.  The Najaf International Airport is making 
progress and is a vital element of the reconstruction of Najaf and 
indeed also of southern Iraq.  However, the airport still needs the 
advice, oversight and sometimes daily badgering provided by the USG. 
 The recent security contract dispute shows that although progress 
has been made, the airport is still nascent and requires guidance. 
In addition, based on numerous on-site visits by the Office of the 
Transportation Attach, the development of Najaf Airport has been 
poorly managed from its inception.  This has resulted in delays, 
missed opportunities, poor relations with the Iraq Civil Aviation 
Authority, and lost revenue.  The Transportation Attach has 
recommended that Najaf Airport contract with a qualified airport 
management firm. 
 
---------------------------------- 
More Tourism Infrastructure Needed 
---------------------------------- 
 
¶8.  (SBU) Provincial officials want Najaf to be a key gateway to 
Iraq.  Najaf's 4,024 hotel beds only meet 54 percent of current 
demand, and demand is rapidly rising.  Hotels are only of one- to 
two-star quality.  Higher quality hotels are needed.  The price of a 
hotel room has jumped from an average of $16/night last year to 
$75/night currently to meet increasing demand.  Najaf envisions 
several 3-star hotels, along with good restaurants and 
transportation companies (buses, taxis).  Chamber of Commerce and 
 
Investment Commission representatives boasted that Najaf, as an 
Islamic cultural center, would lead the recovery of south and 
QIslamic cultural center, would lead the recovery of south and 
south-central Iraq.  They told us they were even reviewing an old 
U.K. plan from the 1950s which included a rail-link to the 
Mediterranean.  Chamber of Commerce and Investment Commission 
representatives said that they had received over 70 inquiries of 
investor interest for Najaf from the U.A.E. and other regional and 
international investors.  They requested additional assistance from 
the U.S. for training in marketing and investor outreach. 
 
---------------------------------- 
Other Sectors Also Seek Investment 
---------------------------------- 
 
¶9.  (SBU) The Najaf Construction Committee was set up in 2005 in 
part to help attract investment to the province.  During our visit, 
we received a power-point presentation with information on various 
Najaf districts and key sectors seeking investment, including the 
health sector: Najaf wants to expand its hospital beds from 1,200 to 
3,000.  Tourism is another sector targeted for expansion: in 
addition to the shrines, Najaf offers historic sites (Al Hirah and 
Al Manatherah).  Najafis want to build a resort at Abu Najim Hoor 
with an amusement park and recreation facilities.  They would also 
like to create a large mall, a floating restaurant and a children's 
 
BAGHDAD 00000502  003 OF 003 
 
 
park.  Potential industrial sectors include minerals that could be 
used for glass manufacturing and iron and steel.  The agricultural 
sector offers agribusiness and food processing opportunities, but 
has been neglected for many years. 
 
¶10.  (SBU) Individual Chamber of Commerce members noted that trading 
companies would like more access to higher-quality products from 
Gulf neighbors, Europe and the U.S.  Iranian products are easy to 
get, but of poor quality.  They requested help with a trade show for 
U.S. companies, and licensing arrangements for U.S. goods.  One 
businessman noted that he comes from an old trading family that goes 
back to the 1920s and would like more trade opportunities.  One 
representative suggested a permanent exhibition for Najaf's products 
and services.  Several representatives noted that all areas of the 
services sector needed a boost to support Najaf's tourism including 
hotel services, transportation, restaurant, banking and travel. 
Najaf is not only important to Iraq, they stressed; it is a symbol 
for the entire Shi'a world. 
BUTENIS