This season, the business of summer, sun and beach is not going well in Turkey. In July, when the most visitors usually come, the number of tourists fell by 5%. It seems that solvent Germans and Britons have sought other destinations or have stayed at home. For Turkey, this could have unpleasant consequences not only for the important service sector, but also for the entire economy, writes in an extensive article on the subject in the German "Frankfurter Allgemeine Zeitung" (FAZ).
Last year, Turkey lagged behind in price competition with other established holiday destinations. As a result, tens of thousands of Turks preferred to holiday on the Greek islands instead of at home. In the meantime, everyone has already learned about the more expensive holidays in Turkey. Inflation, which remains high - 33.5%, high interest rates and the real appreciation of the Turkish lira are weakening not only the competitiveness of the Turkish export industry, the publication points out.
The economic giant suffers
"The economic situation in Turkey is the main reason for the problems we are seeing in tourism", say the Association of Travel Agencies in Izmir. The increase in prices in the service sector has recently slowed down - with just under 50 percent, it is the lowest since mid-2022, but it is indicative of the amount of spending in the Turkish tourism sector. And it is an important industry - Tourism generates about a tenth of the country's gross domestic product and provides employment for 5 percent of the working population, the FAC said.
In July, Turkey welcomed nearly 7 million tourists, most of whom were Germans (981,000), which is 55,000 fewer than the previous year. They were followed by Russians (954,000), British (597,000), Poles (329,000) and Dutch (260,000).
This may seem like a lot, but the number of entries into the country is decreasing for the third consecutive month. Guests from Bulgaria and Iran are also decreasing. And in total, in the first half of this year, foreign visitors were about 600,000 fewer compared to the same period last year, when their number was 29 million. In this situation, in the remaining months until the end of the year, a near miracle will have to happen to reach the annual target of 65 million visitors to Turkey, the FAS said.
The main reason for the drop in bookings in July and August is the "excessively high" prices - especially in restaurants. Bloomberg quoted a tourism manager from Marmaris: "When visitors have to pay $ 35 for a few meatballs or $ 20 for a pizza, it affects the entire industry, even the country itself."
Expensive "all-inclusive"
According to Denis Ugur, manager of the Bentur tour operator, Turkey has become a victim of its own success: guests have become accustomed to luxurious "all-inclusive" in Turkish hotels, which, however, can no longer offer such service at affordable prices. Other experts also point to the slowdown in the global economy and geopolitical uncertainty as factors that are causing people to refrain from traveling, emphasizes "Frankfurter Allgemeine Zeitung".
The average price for a flight, accommodation and transfer from the airport to the hotel is currently around 1,200 euros per person for a 9-day stay. With a statistical occupancy rate of 2.2 people per room, this means 2,600 euros.
However, Denis Ugur has another explanation for the decrease in bookings during the two strong summer months of July and August - it is not excluded that tourists refrain from holidays in Turkey because of the heat in the middle of summer. For example, there is a redirection of bookings to the more pleasant seasons in terms of climate, spring and autumn.
However, there are also regional factors. According to the industry, some destinations in Greece or Spain are already cheaper than Turkey. Egypt, where temperatures are even higher than in Turkey, is also emerging as a strong price competitor to Turkey. "Labor costs there are at the same level as they were in Turkey 10 years ago," Ugur says in this regard. In addition, the country is catching up in terms of food quality and service," he also told FAC.