Speaking to Tourism Days, Burhan Sili President of the Alanya Hotels Association (ALTİD), highlighted that while inflation in tourism remains high, currency appreciation has not kept pace, putting the sector in a challenging position due to rising input and labor costs.
“We absolutely need to find the right balance,” Sili said. He pointed out the delicate pricing strategy required in source markets, where inflating hotel prices above local inflation rates could potentially reduce demand for travel to Türkiye. To maintain competitiveness, businesses are sacrificing profits and opting to manage with modest rate increases.
Burhan Sili also noted the sector’s reliance on anticipated currency value increases. “Right now, we don’t have much choice but to bank on a future rise in exchange rates. We’re hoping that by the peak season, invoicing at these new rates will help us bridge our financial gaps. We believe the euro should not fall below 40 Turkish Lira; ideally, it should be between 40 and 45 TL,” he explained.
He shared optimism regarding the opening of tourist facilities, stating, “As of April, about 60-70% of our facilities have opened, and we've seen significant occupancy during the holiday period. Facilities that were open over the winter season reached occupancy rates between 80-85%. Facilities that started operating at the beginning of the season are averaging between 20-60% occupancy. By May, all our facilities will be operational.”
The fundamental issue, according to Sili, remains the costs and the currency exchange rates. He stressed that the tourism sector, which he describes as an on-site exporter, plays a significant role in addressing Türkiye’s current account deficit. The sector heavily relies on domestic products, comprising 85% of their usage, thus benefiting from a weaker domestic currency.
Sili provided insights into the local infrastructure, noting, “In Alanya alone, we have 480 facilities with a certified bed capacity of 155,000. There are also residential properties used for accommodation, which will soon be subject to stricter financial and security regulations. Approximately 50,000 residences are rented out on a daily basis, but we expect these numbers to decrease significantly due to new regulations requiring these properties to be certified.”
Looking ahead, Burhan Sili is optimistic about the tourism performance for 2024 compared to 2023, based on partnerships, agency collaborations, and incoming reservations. “If no adverse events occur, we anticipate surpassing this year’s figures. Last year, the airports in Antalya, Alanya, and Gazipaşa welcomed over 15 million passengers, a record we expect to match or exceed this year,” he added.
In summary, Alanya’s hotels target an average occupancy rate of 85% from April to October, catering to diverse markets including Scandinavia, Eastern Europe, and major markets such as Russia, Germany, and the UK, all showing continued interest and growth in the region.