CVK Park Bosphorus Istanbul General Manager Murat Arslan: Occupancy rates in the Taksim area have decreased by at least 15-25% compared to the previous years. CVK Park Bosphorus Murat Arslan
CVK Park Bosphorus Istanbul General Manager Murat Arslan made evaluations about the latest developments in the tourism sector, the occupancy rates of hotels in the Taksim area, and the effects of inflation on the accommodation sector.
What can you say about the occupancy rates of Taksim hotels as of 2024?
I believe that some data from previous years should be mentioned in order to understand the issue more clearly.
According to UN Tourism’s 2023 tourism data, 1.3 billion people traveled to another country worldwide. France; became the country that hosted the most tourists in the world with 100 million tourists, while Turkey; ranked fifth after Spain, the USA and Italy.
These figures alone are an indication of how valuable tourism is to our country and how vital it is to the development of the Turkish economy. The share of our country’s tourism revenue in gross national product is around 5.5%.
Based on the figures provided by our Ministry of Culture and Tourism, 51.4 million people visited our country in 2022 and 56.7 million people in 2023.
In terms of income, tourism revenues of $46.5 billion were generated in 2022 and $54.3 billion in 2023. Although it is pleasing to see that per capita spending in Turkey has increased to approximately $952 in 2023, these figures are $1,075 in Germany, $1,985 in the United Kingdom, $2,645 in the United States, and even in the Netherlands, per capita tourism revenues are over $1,000.
The target figures for 2024 by our Ministry have been determined as 60 million tourists and 60 billion dollars of income. If the increase in previous years is at similar rates this year, it is likely that the 2024 targets will be achieved. However, More important than increasing the number of tourists coming to our country is the necessity of carrying out qualified tourism activities and increasing per capita expenditures.
ISTANBUL IS EXPERIENCED ITS LOWEST JUNE, JULY AND AUGUST MONTHS IN RECENT YEARS IN BOTH OCCUPANCY AND REVENUE
Looking at the data so far in 2024, there is a general decline in the occupancy rates (Occ.), daily room rates (ADR) and therefore revenue per room (RevPar) of hotels in Taksim and its surroundings.
Last year, after the earthquake disaster and elections that occurred in our country on February 6, 2023, it took 5-6 months for business in Istanbul to recover. Even during these difficult times in 2023, the numbers were better than today. Istanbul is experiencing the lowest months of June, July and August in recent years in terms of both occupancy and revenue in terms of the number of tourists visiting our region.
This year, the decline in the number of FIT segment visitors, most of whom come from the Gulf Countries and prefer the Taksim region, and the ongoing Israeli War have caused the occupancy rates in the Taksim region to fall by at least 15-25% compared to previous years. As of September, it is anticipated that the occupancy rates in the region will increase again, especially in group segment accommodations.
IN RECENT PERIOD, WE HAVE BEEN FOCUSING ON THE CIS AND INDIA MARKETS.
As “CVK Park Bosphorus Istanbul”, we are trying to overcome this contraction in the sector by developing other markets. In recent years, we have been focusing especially on the CIS and Indian markets. We are also trying to develop business in the European and American markets with the representations we have opened abroad.
How have this year’s prices changed compared to previous years? What are the main reasons for the price increases?
Although there was a significant increase in hotel room prices in 2022 and 2023 right after the pandemic, it is possible to find room prices below 2023 this year. After the decrease in occupancy rates in the Taksim area, businesses are trying to fill their hotels with lower price policies.
It is obvious that there has been a significant increase in general spending costs for tourists since the beginning of 2024. There have been price increases in many items, from airline ticket prices to food & beverage prices, transportation costs, general needs, and textile products. The main reasons for these increases can be listed as increasing labor costs, general operating expenses, increasing energy costs, rental expenses, exchange rate fluctuations, supply chain difficulties, global economic factors and other sectoral cost changes.
How much do you think inflation affects hotel prices and the tourism sector in general?
The impact of high inflation has created both cost increases and excessive pressure on demand in the hotel sector, as in other sectors. While price increases have become necessary to meet increasing costs in the sector, careful steps should be taken to ensure that this does not negatively affect demand. In order to minimize the effects of inflation, focus should be placed on increasing operational efficiency.
Türkiye IS NOT AN EXPENSIVE DESTINATION
What are your thoughts on Turkey being perceived as an “expensive destination”?
Turkey is not an expensive destination, and I do not think it is right to create such a perception. Although such a perception has been created due to the recent high inflation, the price increases in the market, the pressure on exchange rates, and the increase in total travel expenses, it is possible to eliminate this perception in the shortest time by offering quality and unique experiences.
What do you think of the statement of the Minister of Tourism that the number of passengers arriving in the first six months broke a record?
The increase in the number of incoming passengers is an indication that Turkey still maintains its attractiveness in tourism. However, in order for this increase to be sustainable and for the accommodation sector to benefit from it to the maximum extent, unregistered accommodation must be prevented and more effective work must be done in this regard. When evaluating the number of arriving passengers, I believe that the number of our expatriate citizens entering Turkey, the number of transit passengers, and the number of entries and exits of foreign nationals living in Turkey should be evaluated separately.
How do you evaluate the impact of the Olympic games on the hospitality industry?
The Olympic Games offer great opportunities and impacts for the tourism and hospitality industry. High occupancy rates, price increases, long-term city image development and economic benefits comprehensively reflect the contributions of this major event to the industry.
Olympic games create a huge tourist flow in the city where they are held. Thousands of athletes, media members, tourists and sports lovers flock to the relevant city. This high demand significantly increases the occupancy rates of hotels. High occupancy rates directly benefit the income of businesses in the hotel sector.
The Olympic Games provide international recognition to the city in which they are held. They strengthen the image of cities and increase their future tourist appeal. They can help cities develop and modernize their tourist infrastructure. Transport, accommodation and other tourist infrastructure are often further improved in the process.
TOURISM WILL CONTINUE TO BE A LEADING SECTOR THAT DETERMINES THE FUTURE OF OUR COUNTRY
It can boost the local economy. Restaurants, cafes, shops and other local businesses benefit economically from the high tourist flow, temporary job opportunities are created. Additional staff is employed in the hotel, restaurant and transportation sectors. It can help cities attract the attention of international investors. Investors may show interest in infrastructure projects and real estate development opportunities in the city. It offers the opportunity to develop the city’s infrastructure such as transportation network, accommodation and sports facilities. These developments increase the quality of life in the city after the event.
Special events, festivals and cultural activities organized during the Olympic games enrich the tourist experience and increase overall tourist satisfaction in the city.
In the hospitality industry, it is important to maintain high service standards during major events such as the Olympic Games. This is a critical factor for the city’s overall reputation and future tourism potential.
Tourism will continue to be one of the sectors that determine the future of our country. We expect Istanbul to host the Olympic Games at the first opportunity. We fully support all efforts in this regard. I have no doubt that we will achieve new successes together.
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