www.tehrantimes.com Iran is trying to attract Muslims to breathe life into its island resort and counter the flow of Iranians opting for holidays in neighboring countries.

"We count on the billion-strong Muslim population to vacation here and we are going to invest in attracting them," said Asghar Alizadeh, a tourism official on Kish island.

It is the first vacation on Kish for Mrs. Ebrahimi, who has already been to Britain, Dubai and Malaysia, but who says she would much prefer to spend her money at home and see her fellow Iranians become richer.

"I do not care for going to Dubai again; there is nothing cultural to do, but if they want a tourist boom here they should bring in the concerts, the water park and the exotic restaurants."

Kish was declared a free trade zone in 1992 to try to rival nearby Dubai. It became a shopping paradise drawing thousands of tourists to the mushrooming malls despite its unbearable heat and humidity.

"There are not as many visitors to spend big bucks here any more," lamented Saeed Shirazi, a taxi driver who has lived on the island for 18 years.

In a country of 70 million, Kish has an annual one million visitors, with barely any foreigners among them.

Tourists complain there is not much to do except shop, which has lost its appeal as prices are little different from the mainland, where the government reduced import tariffs in a bid to combat smuggling.

"The quality stuff is as expensive as in Tehran and the rest is fake Chinese and Thai plastic," said 27-year-old Shiva Rahmani, eyeing an imitation Diesel bag in a shop window covered with sale signs.

"The island has great potential to entertain holiday-makers searching for serenity in a safe familial environment off the beaten track," he said, citing warm winters, a vast sandy coastline, varied marine life and coral reefs.

"We are going to offer top quality service in water sports and eco-tourism as well as affordable accommodation while respecting our red lines," Gharib added, laying out plans for developing golf courses and boating clubs.

"There are plans for separate but close beaches for men and women," he said.

One of the main projects is the "Flower of the East" development, which is a 1.7 billion Euro joint venture with the German firm Dress and Sommer which began in 2004 and is expected to be finished by 2009.

The project includes a seven-star and two five-star hotels, three residential areas, villas and apartment complexes, coffee shops, luxury showrooms and stores, sports facilities and a marina for 250 boats.

A golf course is also to be developed on 155 hectares (380 acres) of land. There will be an 18-hole course to PGA standards, and a nine-hole course plus one on top of a tower.

Already entrepreneurs like Hossein Sabet have started investing in luxury hotels on the island. Named after one of Iran's ancient kings, the 200-room Dariush Grand Hotel is an ambitious sprawling compound modeled after Achaemenid capital Persepolis which opened for business about 30 months ago.

The original plan for the five-star hotel included a private beach with a variety of water sports, which is still awaiting authorization to be developed.

Hotel manager Fereydun Movafegh said that to attract foreign tourists, the island had to offer more freedom and fun.

"We have no choice but to expand this industry, it's dynamic and keeps making money, unlike oil which will run out sometime," he said.