Turkey’s popular holiday destinations, including the coastal resorts of Çeşme, Bodrum and Antalya, are experiencing a significant decline in tourist activity this summer due to rising prices.
Once bustling streets and restaurants and fully booked hotels are now quieter as both local and foreign tourists seek more affordable alternatives.
The primary cause of the decline is attributed to inflation, which has significantly increased the cost of accommodation and dining. Annual inflation was 75.45 percent in May, the highest since November 2022. In June it fell to 71.6 percent.
Speaking to the Habertürk news website, Kıvanç Meriç, president of the İzmir branch of the Association of Turkish Travel Agencies (TÜRSAB), pointed out that Turkey’s competitive advantage has historically been its affordability but said recent economic conditions have eroded this edge.
“Turkey’s main growth point was its price advantage,” Meriç was quoted as saying. “We have lost this in the past two years, leading to a 30 to 35 percent gap compared to our competitors. As a result, we are losing strength against countries like Egypt, Tunisia, Morocco and even Greece.”
Turkey 🇹🇷 – my tourism price index is now +26% vs. 2023 season in EUR, adjusted for European inflation.
This is due to high local inflation (75.5% CPI, 87.9% in my tourism index in May), but slower Lira depreciation. pic.twitter.com/K3ki4O88W4
— Emre Akcakmak (@akcakmak) June 7, 2024
Local tourists, who previously turned to boutique hotels and guesthouses as cheaper alternatives to luxury hotel chains, are now looking for more affordable destinations abroad due to rising prices across the board. This trend has left many hotels and restaurants in popular destinations struggling with low occupancy and fewer reservations.
Foreign tourists, particularly from Russia, are also deterred by the high costs. The Russian Tour Operators Association (ATOR) noted a significant drop in demand, with July occupancy in Antalya around 60 percent, compared to the usual 100 percent.
Hotels have been forced to lower prices to attract tourists, but this has not been enough to fill the gap. Speaking to the Dünya news website, ATOR Vice President Taras Kobishchanov said some hotels had increased prices for July and August but faced a collapse in demand, leading to lower prices than in June.
Bodrum has seen a 20 percent decrease in local tourists and a 13 percent increase in foreign tourists this year. Hotels that usually reach full occupancy during the summer are struggling to fill 70 to 80 percent of their rooms. TÜRSAB chief advisor Hamit Kuk told Dünya that high prices have driven away local tourists, leaving a significant gap in hotel occupancy during the peak season.
The tourism sector is grappling with rising costs and inflation, making it challenging to maintain profitability. Alanya Tourist Operators Association (ALTİD) President Burhan Sisli told Dünya that hoteliers are trying to manage with contract prices without reducing them, but this is likely to result in a serious drop in profitability by year’s end.
Amid these economic pressures, Turkish holidaymakers are shifting their travel preferences toward off-peak seasons and more affordable international destinations. The Jolly travel agency reported a 70 percent increase in holiday package sales for September and October, which are about 40 percent cheaper than peak summer months.
Speaking to the Daily Sabah news website, Jolly’s chairperson, Mete Vardar, emphasized the need for more reasonable pricing to sustain longer tourism seasons and to contribute significantly to the national economy. He also highlighted the growing demand for international travel, with a 50 percent increase in foreign travel package requests compared to the previous year.
Tourism professionals express concern that if current trends continue, destinations like Çeşme and Bodrum will continue to lose their customer base both domestically and internationally. Meriç warned that the 2024 season serves as an indicator of what 2025 could look like, and that this should be a cause for concern.
“2024 shows us how 2025 will be. This should scare us,” Meriç said, emphasizing the need for immediate action to address these issues.