Türkiye is poised for a good tourism season, but meeting the targets for 2023 will be challenging due to the country’s high inflation and lack of affordable options for budget-conscious foreign travelers, said industry insiders.
The number of tourists visiting Türkiye in the first half of this year increased by 17 percent compared to the same period last year, reaching 22.9 million, Tourism and Culture Minister Mehmet Nuri Ersoy said on July 31 in Istanbul.
Revenues from the tourism sector reached 21.7 billion dollars in the first six months of 2023, a 27 percent uptick from the previous year.
However, despite these optimistic figures, Ersoy noted that the occupancy rates in hotels catering to higher-income segments and certain foreign traveler groups fell short of expectations.
The data confirms industry insiders’ reports that the government’s ambitious goals of achieving 60 million foreign arrivals and generating 56 billion dollars in income by 2023 might be difficult to reach.
Ersoy attributed some of the challenges to unexpected events, such as the devastating earthquakes in southeastern Türkiye in February, which coincided with the early booking period. Additionally, extended cool weather up to mid-July affected last-minute bookings.
The revenue from tourism is pivotal to the country’s economy as the Turkish government focuses on reining in the current account deficit and curbing high inflation.
However, some popular tourist areas, like Bodrum on the Western Aegean coast, have witnessed a reduction in visitor spending. With Türkiye’s inflation nearing nearly 50 percent annually, hotel prices have surged in euros and dollars, affecting the affordability factor.
Serdar Karcilioglu, chair of the Association of Hotel Managers of Bodrum, expressed concerns, revealing that the occupancy rate of Bodrum hotels has decreased to 60 percent. Karcilioglu criticized tourism officials for projecting a “rosy picture” of the sector.
He pointed out that minimum wage hikes introduced before the general elections in May and rising energy costs have further burdened hotel operations. Over two million workers are employed in the country’s tourism industry and most of them earn the minimum wage.
Recep Yavuz, from the Antalya City Council’s Tourism Working Group, also noted that the rise in room prices was a response to escalating costs, potentially deterring budget-conscious foreign visitors.
“Türkiye is still very much on the map of top tourism destinations, however some Russian customers who are suffering from a currency crisis due to the Ukrainian conflict chose other destinations such as Thailand or Egypt,” he told Xinhua.
Türkiye’s reputation for affordability has been challenged, particularly for Russian visitors who are now seeking more budget-friendly destinations, said Yavuz, adding many Russians have favored renting villas or vacation homes in Antalya, Türkiye’s largest Mediterranean tourism hub, reducing the demand for traditional resorts.
For Karcilioglu, Türkiye has lost this year over 2 million Russian customers alone, and this will have consequences for the crucial industry.
South Aegean Hoteliers Association Chairperson Mustafa Deliveli said on X social media platform, formerly known as Twitter, that besides Russians, this year the number of German and Dutch tourists dropped by around a third because of soaring prices.
“We cannot say that this is a good season for our region,” he added. ■
Source link here by Burak Akinci
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