The Aegean Tourism Enterprises and Accommodation Association (ETİK) has highlighted 2024 as a challenging year due to rising costs. The association warned that 2025 could become a nightmare for the tourism industry if affordable loans are not provided to the industry.
2025 could be disaster for tourism and 60 sub-sectors
ETİK Chairman Mehmet İşler pointed out that 2024 has been difficult due to high inflation, rising input costs, currency suppression, and a decline in tourist numbers. He emphasized that without accessible loans, 2025 will not only be disastrous for the tourism sector but also for the 60 related industries. İşler also noted that despite being classified as service exporters, they have not benefited from relevant applications and credits.
Işler stressed the necessity of renovating and developing tourism facilities to remain competitive on the global stage, stating that the current conditions have left the industry in a dire situation.
"Tourism industry hit hard by financial strain"
"This year, the tourism sector has been severely impacted by financial difficulties," İşler said. "To renovate and develop our facilities, we need to invest and start preparing for the new season as soon as the current one ends. This is essential for competition and growth. However, securing funds for investment is currently impossible with the prevailing interest rates. Many tourism businesses have been severely affected, with properties put up for sale. Government authorities must urgently facilitate Eximbank or external loans for the tourism sector by September or October. These funds are critical for making necessary renovations and developments during the winter so that the economy can continue to thrive, adding value and allowing the tourism sector to look forward to the new season with confidence. Without this support, the tourism industry and the country cannot develop, renew, or invest," İşler warned.
"2025 could be a nightmare for Turkish tourism"
Işler highlighted the precarious situation faced by the tourism industry: "The increase in costs without a corresponding rise in foreign exchange rates, combined with high inflation and unexpectedly low profit margins, has put the industry in a tough spot. The survival of the industry in the coming years hinges on access to low-interest loans. This support is crucial for addressing the financial gaps and ensuring a stable 2025. Without it, 2025 will be a nightmare not only for tourism but also for the 60 related sectors dependent on it."
"We are exporters, yet excluded from benefits"
Despite being classified as exporters, the tourism sector is excluded from associated benefits, İşler lamented. "According to Article 13 of the Tourism Incentive Law, certified enterprises providing a designated amount of foreign currency are considered exporters. We are certified businesses generating significant foreign currency and are recognized as service exporters. However, when it comes to benefiting from exporter applications and credits, we are excluded. This exclusion is incomprehensible. The tourism sector, which significantly contributes to foreign exchange earnings, employment, and reducing the current account deficit, now needs its own lifeline. This lifeline is accessible loans to renovate and enhance facilities, enabling competition with global counterparts," İşler concluded.
