The temperature dependence of ultraviolet photorefraction of iron-doped $\ensuremath{\alpha}\ensuremath{-}{\mathrm{LiIO}}_{3}$ crystals is studied. Within the temperature range of 120--220 K diffraction efficiency and two-wave mixing gain increase dramatically with decreasing temperature and become as high as 36% and $3.1{\mathrm{cm}}^{\ensuremath{-}1}$, respectively, below 120 K. The results of holographic recording experiments are compared with measurements of the dielectric susceptance, electric conductivity, and absorption of acoustic waves to establish a relationship between the change in photorefraction and the temperature dependence of the dielectric and ultrasonic behavior. Iron doping of $\ensuremath{\alpha}\ensuremath{-}{\mathrm{LiIO}}_{3}$ enhances the photorefraction considerably.