Hediye Güral Gür, Chairman of NG Hotels, discussed current tourism issues on Bloomberg HT's "Upper Management" program. Gür remarked, “The concentration of investments in a single region creates supply-demand problems. There are issues with hotel occupancy, but we believe this is temporary. It is true that we are experiencing a contraction in demand.”
"Our target for 2024 is $120 billion"
Gür pointed out that Türkiye ranks 23rd in service exports, stating, “Service exports, entirely bringing in foreign currency from abroad, consist of various sectors under one union within TIM (Turkish Exporters Assembly). Although this union is only six years old, tourism, accounting for 49.5% of total service exports, is a key sector. Additionally, logistics, IT, cultural-entertainment sectors (including TV series), healthcare, education, gastronomy, and ports also significantly contribute. While Turkey ranks 30th globally in goods exports, we are 23rd in service exports, and our share in this sector is growing daily. In 2023, we achieved $101 billion in service exports. For 2024, we aim for $120 billion. We hope to meet this target and bring in this foreign currency for our country.”
"We are facing staffing Issues"
Regarding the prominent issues in service exports, Gür highlighted staffing problems: “Our biggest issue currently is personnel. Beyond qualified staff, even starting from scratch with new employees is challenging. These issues began during the pandemic, as workers migrated to other sectors due to uncertainty about hotel reopenings.”
Gür continued, “We also have a brand perception issue. Efforts are underway to enhance this perception and attract wealthier tourists to Türkiye. Our only assurance and support come from our Ministry and the Tourism Development Agency. We are working on increasing the number of tourists from the Far East and Asia, as well as aiming for 2 million American tourists. The goal is to spread tourism across 12 months and increase per capita tourism revenue. Investment should not be confined to one region; there are many destinations suitable for cultural, faith, and highland tourism. Investments should be directed to these areas.”
"Hotel occupancy issues"
Addressing the current hotel occupancy issues, Gür said, “We all believe this situation is temporary, so we remain hopeful. We aim for 80% occupancy next year. When there is excess supply, it impacts occupancy rates.”
On Turkish tourism and visa regulations
Responding to the question, “Do Turkish tourism professionals want to stop the visa on arrival practice?” Gür commented, “There is currently a rising perception that Greek islands are more beautiful and affordable. We need to understand holidaymakers who want to take advantage of this. Recently, during the last holiday, there were reports of many people being stranded as Rhodes closed its doors. Travel agencies planning these holidays need to handle the issue sensitively. We might be losing some guests at the moment, but I believe this is temporary. Increased costs are a challenge for tourism professionals, but once we balance these, everything will fall into place.”
