Tourism in Iran has increased rapidly during the last ten years from 1968 to 1978. In 1978, it was the country's eight major foreign exchange earner. In the Philippines, it was listed as the sixth major foreign exchange earner. The main problem of this research is to survey the tourist industry in the Philippines and Iran from 1968 to 1978 to determine the critical variables which affect tourism. Emphasis is placed on the growth of tourism, its impact on the economy, and the role of the government in promoting tourism. The second objective of this study is to identify the business opportunities offered by the industry. This research is focused on two countries, Iran and the Philippines. The study of tourist industry and the critical variables which affect tourism in the Philippines and Iran is important since an effective tourist organization promotes greater prestige for both countries.