Mehmet İşler, President of the Aegean Tourist Businesses and Accommodations Association (ETİK) explained that the slowdown in reservations can be attributed to several factors: the European Football Championship, Greece’s on-arrival visa policy, the bankruptcy of the German tour operator FTI, currency suppression, and the negative impact of unregulated second homes and residences despite legal provisions.
"The sector is sounding the alarm"
İşler expressed concerns that while the target of 60 million tourists might be achievable this year, without immediate measures, the industry is at risk in the coming years. He pointed out that the trend of favoring second homes is severely damaging the industry, leading to security issues and significant tax revenue losses for the state.
He noted that Turkish tourism is currently experiencing a vacuum, attributing one of the causes to the European Football Championship, which concluded with the final on July 14. This event deterred both foreign visitors and expatriates, who chose to stay back to watch the matches or postponed their holidays to support the Turkish team. The period from late June to mid-July was notably sluggish due to the championship. Additionally, the bankruptcy of tour operator FTI negatively impacted the sector, and Greece's nine-day on-arrival visas led to an exodus of local tourists.
"Currency suppression adversely affects tourism"
Another critical issue affecting tourism is the suppression of currency values. The current exchange rates do not reflect the true market conditions, creating a significant gap between inflation rates and currency increases. This discrepancy is detrimental to the tourism sector. Even expatriates consider traveling to Greece, Croatia, or Spain instead of Turkey, as they perceive better value for their money in these countries.
"Domestic market at a standstill"
Currently, the tourism sector is almost at a halt in the domestic market, with large gaps in occupancy. Although there is a flow of reservations from international markets, these are below the peak season averages. With the end of the European Football Championship, İşler anticipates a boost in reservations and a subsequent easing of sector pressures. Historical trends following past World and European Championships suggest a possible extension of the season.
Purchasing power of white-collar workers is declining
However, İşler remains hopeful about the international market but acknowledges severe challenges in the domestic market. Particularly, white-collar workers, whose purchasing power has significantly declined in the inflationary environment, are either shortening their holidays or opting not to travel. This presents a significant disadvantage for the sector.
The tourism industry, which is crucial for foreign exchange earnings, closing the current account deficit, generating taxes, and providing employment while supporting 60 other sectors, faces well-known problems. Immediate solutions are essential to prevent significant revenue and tax losses in the coming years.
