Tourism: A high-stakes summer for Turkey is beginning

With beaches largely empty and many hotels deciding whether to open, Tourism Minister Mehmet Ersoy told Reuters he hoped the world’s sixth-largest destination could attract up to half of last year’s 45 million arrivals, reported Reuters.

But much depends on talks to begin flights from Russia, Germany and Britain – also hard hit by the virus – which should reach some conclusions by early next week, he said.

The stakes are high for Turkey, where a rebound this month in COVID-19 cases has raised concerns in a country where tourism accounts for up to 12% of the economy. Foreign arrivals fell by two thirds in the first five months of the year.

To convince foreigners and their governments that travel is safe, Ankara launched a “healthy tourism” programme including health and hygiene checks, and more than 600 hotels have applied for certification. It is lobbying some 70 countries with a focus on the European Union.

Yet flights are only beginning to trickle in, including from the United States. In the Mediterranean hub of Antalya at the weekend the historic town centre was virtually empty and very few foreign tourists were seen at hotels.  Bodrum, another hot spot for  sun-and-fun loving visitors is empty, with most restaurants not yet bothering to open.

Such hotels “cannot survive with only Turkish tourists,” Ersoy said in a Friday interview. “The next 10 days will be critical as decisions are made on borders … so far it’s not clear how international traffic will start.”

Turkey hopes top tourist source Russia – which has the world’s third-highest coronavirus cases here – will start flights in mid-July. Second-place Germany has a coronavirus travel warning until the end of August but could lift it sooner.

Since a lockdown was lifted this month, new official cases doubled before settling around 1,200 per day. President Tayyip Erdogan said Turkey lost some ground.

‘LONGEST RECESSION’

Some $35 billion in tourism revenues helped briefly turn Turkey’s current account positive last year. In April, the deficit was $5 billion as revenues disappeared and empty hotel rooms this summer would drive it higher.

A growing external imbalance will put more pressure on Turkey’s lira, which hit a record low last month, and could raise more concerns over Turkey’s diminished foreign currency reserves.

“Tourism is probably the sector which will go through the longest recession” and its seasonal workers face “a very bad period,” said Seyfettin Gursel, economist at Istanbul’s Bahcesehir University.

Ankara decided to halt state funding that partially covered lost wages of formal employees, including some in tourism. Workers and a union said some hotels have begun training on hygiene and social distancing even while many have held off hiring.

Okan Osman, from Frankfurt, was one of very few tourists to arrive in Antalya, which he said was “much better and cleaner” than years past. “Of course it’s difficult for everyone and for the staff, but they seem to have been well trained and everyone is really well prepared.”

The number of foreign tourists arriving in Turkey dived by an annual 99 percent in May as the COVID-19 pandemic all but shuttered the industry.

Visitors fell to 29,812 during the month, according to Tourism Ministry data published on Monday. The decline meant that arrivals in the first five months of the year fell by 66 percent to 4.3 million. The decrease in May was identical to the drop reported for April, when 24,238 people visited.

Turkey hopes to revive tourism this summer by introducing a Safe Tourism Certification covering transport and accommodation to coincide with the start of the peak holiday period.

The scheme comes follows the country waiving visa rules for British holidaymakers.

Current UK Foreign Office rules against all but essential overseas travel combined with 14-day quarantine rules currently bar holidays abroad, however, scheduled flights between Turkey and the UK have resumed, according to TravelWeekly-UK.

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Published By: Atilla Yeşilada

GlobalSource Partners’ Turkey Country Analyst Atilla Yesilada is the country’s leading political analyst and commentator. He is known throughout the finance and political science world for his thorough and outspoken coverage of Turkey’s political and financial developments. In addition to his extensive writing schedule, he is often called upon to provide his political expertise on major radio and television channels. Based in Istanbul, Atilla is co-founder of the information platform Istanbul Analytics and is one of GlobalSource’s local partners in Turkey. In addition to his consulting work and speaking engagements throughout the US, Europe and the Middle East, he writes regular columns for Turkey’s leading financial websites VATAN and www.paraanaliz.com and has contributed to the financial daily Referans and the liberal daily Radikal.