They are ranked "according to attractiveness and competitiveness in the travel and tourism industries". Everyone's talking about how friendly the people are in different countries, but that's not what's being evaluted. It's more about government policies promoting tourism. That's why Iran is on the list. Everyone I know who has gone to Iran says they're the friendliest and most welcoming people in the world. The government? Not so much.
further adventures in Jed York being unsuited for his position