Tourism is the biggest economic resource for Iraq after oil, but the industry's focus on religion in general and on Iranian pilgrims in particular has made the Iraqi tourism sector dependent on Iran’s political will and economic situation.

Iraqi Tourism and Antiquities Minister Liwa’ Smaisim said that Iraqi religious tourism has rebounded after 2003, and that tourism has become an important source of income for the Iraqi economy, which still largely depends on oil.

Recent years have demonstrated that religious tourism in Iraq is resilient. Despite a lacking security situation and poor services, the sector produces millions of dollars in income annually. The Tourism and Hospitality Association in Karbala reported that 55,000 Arabs and foreigners, as well as more than 3 million Iraqis, visited Karbala during the Shaaban holiday. During the last 40 years, Karbala has had more than 18 million visitors, including 350,000 Arab and foreign visitors from 36 countries.

Although Najaf and Karbala boast about 500 hotels, “They are no longer enough to accommodate the large numbers of visitors, especially the Iranians,” according to Smaisim.