Left Menu
Development News Edition

Turkish tourism sector faces pressure due to higher costs, new taxes

Turkish tourism sector faces pressure due to higher costs, new taxes

Turkey's tourism industry, a key pillar of the economy, could struggle to reach visitor and revenue targets in the coming years after two new taxes come into force and sharp increases in costs continue to pressure businesses, tourism companies say.

Costs, which the industry says surged 35% last year, as well as the new taxes that will be reflected in prices, could cause Turkey to lose customers to other Mediterranean countries. Tourism is a major source of income for Turkey. It suffered a downturn in 2016-2017 after a coup attempt and a dispute with Russia but returned to some 40 million tourists last year.

The government launched a tourism strategy in September that includes a 150% hike in tourism advertising funds to $180 million in 2020. A large part of that will be paid by tourism companies to the newly founded Tourism Promotion and Development Agency. Hotels will pay 0.75% of its total revenues. In addition to that, Turkey also passed tax regulations this year introducing an accommodation tax, to be set at 1% until the end-2020 and later be increased to 2%.

Armada International Hoteliers Chairman Kasim Zoto said increases in food, alcohol, natural gas and electricity prices have already resulted in a 35-40 percent rise in total input costs and will result in higher prices for customers. "Turkey is a price-sensitive destination. Every 1 euro increase in prices lessens chances of sales in Turkey's tourism sector," he said.

Data published by the Hotel Association of Turkey (TUROB) showed that the average daily rates in Istanbul are 91 euros, rising to 98 euros in the southern province of Antalya, while they are 142 euros in Athens, 151 euros in Milan and 150 euros in Barcelona - all of which are Turkey's competitors. Turkey aims to reach 75 million tourists and $65 billion in revenues in 2023, but TUROB said it may miss its targets due to the new costs after just having recovered its competitiveness following the downturn in previous years.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.



SDG13: How you can reduce global warming by changing your food habits

The mega narratives of various international organizations give the impression that fighting global warming is only a job of government agencies. However, the European Investment Bank EIB has designed a questionnaire which besides making th...

SDG2030: Challenges of technological applications in advancing Global Goals

Application of contemporary and future information technologies may go milestones in advancing sustainable development goals SDGs provided the challenges are overcome and implementation is ensured....

Sustainable Fashion: UNDP wants you to wear properly to reduce Global Warming 

The experts have estimated that the amount of water used to prepare one pair of jeans and a T shirt is sufficient for a person to drink for 13 years....

World Economic Forum suggests 8 Education Models for Future Schools

In a report released on January 14, the World Economic Forum WEF has also picked two examples for each model from throughout the world. The WEF has emphasized that these schools systems would be crucial for Forth Industrial Revolution.&#160...


Latest News

UAE supports achieving security and stability in Libya - WAM

United Arab Emirates foreign minister Sheikh Abdullah bin Zayed said on Sunday that UAE supports achieving security and stability in Libya based on non-interference in its internal affairs, state news agency WAM reported.The minister also p...

Report: QB Rivers moves to Florida

Quarterback Philip Rivers, his wife and their nine children have left Southern California and settled in Florida, ESPN reported Sunday. Rivers has been with the Chargers organization since a draft-day trade with the New York Giants for Eli ...

Migrant caravan gathers on Guatemala border to enter Mexico en masse

Hundreds of Central Americans gathered on the Guatemala-Mexico border on Sunday, aiming to cross en masse early on Monday in what could prove a stiff test of the Mexican governments pledge to satisfy U.S. demands to curb migrant flows.Presi...

UPDATE 4-Foreign powers back Libya ceasefire as commander's forces choke oil flows

Foreign powers agreed at a summit in Berlin on Sunday to strengthen an arms embargo on Libya and shore up a shaky ceasefire, but the meeting was overshadowed by blockades on major oilfields by forces loyal to commander Khalifa Haftar. Hafta...

Give Feedback