Turkey’s main growth point was the price advantage, but we lost it. We have lost this price advantage in the last 2 years. The increase in prices in the domestic market and the lack of foreign exchange have widened the gap. There is currently a difference of approximately 30-35 percent. Therefore, we are losing power against our competitors. Due to the decrease in demand, supply needs to be pulled back, but prices are high. These prices are high due to the inflation situation in Turkey. Hoteliers and tourism operators are stuck between cost and competition rather than earning more. Inflation and High Costs Hit Tourism: Ersoy Remains Silent
The costs are clear, for example, the cost of a waiter today has reached 60-70 thousand TL. How much change can be made in the pricing policy with these costs, this is also a question mark. Regions like Çeşme and Bodrum can only make serious money for 4 months, namely June, July, August and September. I do not believe that there will be a change in the pricing policy after this time, there is no such margin.
Turkish tourism professionals have a sector that can make quick decisions in risky periods. There will definitely be a fight abroad to attract citizens with certain actions and additional suggestions. However, the real important point in 2024 is how 2025 will go. This situation should scare us.
Tourism Minister Ersoy’s silence on these concerns and the poor season further increases the uncertainty within the sector. Minister Ersoy’s silence amid claims of a cabinet change further reinforces tourism professionals’ concerns about the 2024 season.
THE INCREASE IN TOURISM COSTS DOES NOT STOP
– In 2024, sales prices in tourism are also rising as service production costs are constantly increasing.
– While inflation increased by 71.6% in the 6-month period according to TÜİK, hotel costs increased by 85% according to Tourism Databank estimates.
– In June 2024 alone, the price increase in hotels and similar places was 6.67%.
– According to Tourism Databank’s estimates, annual cost increase in hotels in June:
– 85% in F&B
– 63% in F&B+Energy
– It was around 84% in F&B+Energy+Personnel.
– On the other hand, while the annual price increase in restaurants and hotels was 90.67% according to TÜİK, it was slightly below 110% according to Turizm Databank.
Inflation and costs in hotels:
– Cost increase (%)
– F&B: 84.5
– F&B+Energy: 62.8
– F&B+Energy+Personnel: 83.9
– CPI: 71.6
WHAT HAPPENED TO ACCOMMODATION TAX?
– According to data compiled by Turizmdatabank from the Treasury, approximately 2.2 billion TL was accrued as accommodation tax from hotels in the January-May period of 2024.
– The tax paid during this period was approximately 1.75 billion TL.
During this period, the highest accommodation tax was collected from Istanbul and Antalya, followed by Ankara, Muğla, İzmir, Bursa and Nevşehir.
1 BILLION COLLECTED FROM THE SECTOR
– According to the data compiled by Turizmdatabank from the Treasury, the amount of Tourism Share received by the Tourism Development Agency (TGA) from the tourism sector increased by 115% in the 5-month period of 2024 and reached 1.25 billion TL.
– While 66 billion TL of this went to the state as tax, the rest was transferred to TGA.
HOTEL TURNOVER IN 2024
According to data compiled by Turizmdatabank from the Treasury, the turnover in hotels in Turkey in the January-May period of 2024, when foreign and domestic overnight stays increased, surpassed 3.48 billion dollars.
– The main shares in the turnover are in the provinces of Istanbul and Antalya.
CREDIT DEBT INCREASED BY 72%
According to Tourism Databank’s analysis of BDDK data, bank loans received in the field of tourism in Turkey increased by 72% in the January-May period of 2024, reaching 51.6 billion TL.
– The increase in 2023 was around 30 billion TL.
– The increase in loan debts, which increased by 4.6% with the average dollar exchange rate, approached 1.63 billion dollars.
– Non-cash loans also decreased by 33% and increased by 0.38 billion TL.
– 76% of total loans were used by hotels.
