TURKEY’S tourism industry may close this year with around $10-11 billion in losses amid a dramatic loss in Russian tourists and a sharp slash in hotel room prices across the country, according to leading sector representatives.
“Turkey’s tourism sector grew in double digit figures in the last 25 years. The sector has, however, faced tough times with the rise in Russia’s economic problems, security concerns especially after the Arab Spring in the region and the Syria crisis,” said the head of the Hoteliers’ Federation of Turkey (TÜROFED), Osman Ayık.
“The rise in the number of European tourists cannot, however, enable the sector to compensate its losses from the Russian market. In this vein, we expect a loss in income. The losses will differ across the regions, but we most probably won’t close the year with positive growth,” he noted.
Ayık said coastline hotels especially have made sharp cuts in their prices.
“We expect around $10-11 billion of loss in tourism income this year. Some $5 billion of this is caused by the decrease in tourist numbers and the remaining from the slashes in room prices at around 30 percent. A decrease in income will pave the road to cuts in employment,” he said.
Ayık said around a 3 percent drop in the number of tourists visiting the Mediterranean resort may be the case this year. Muğla province may face an eight percent loss although no loss is expected for Istanbul, he added.
He noted the sector achieved double digit growth numbers in the last 25 years, but saw a slowdown this year for the first time in the last three decades, although around 2 million decreases in tourist numbers will not constitute a big problem for the sector.
He added: “The point is to maintain a sustainable growth trend in the sector, according to him.
“If Turkey can continue to catch up with the previous trends, the sector can overcome its losses in just one year. It is, however, not likely to grow in the same manner as the sector has reached enormous figures at around 40 million tourists.”