TÜRSAB, the Association of Turkish Travel Agencies says hotels on the Black Sea and Mediterranean coasts are cutting room rates by nearly 50pc in some regions to stimulate demand, as over 200 hotels have closed due to inflation and price hikes, raising concerns about the financial viability of the industry and potential bankruptcy for more hotels if the situation continues.
In Türkiye, hotel occupancy rates have fallen below expectations during the summer season due to rising costs driven by high inflation, affecting domestic demand and leading to an increase in room rates.
The economic landscape in Türkiyey, marked by high inflation and currency fluctuations, has negatively impacted the hospitality sector, with prices nearly doubling across sectors and affecting the average daily rate of accommodations.
The depreciation of the Turkish lira has partially offset the impact of inflation for foreign visitors, but other European destinations have become more popular for tourists this summer, leading to decreased demand for Türkiye’s hotels and resorts.
Average hotel occupancy in some regions of Türkiye has fallen below expectations during its typically busy summer season, and hoteliers say inflation is to blame.
Rising costs have forced Turkish hoteliers to raise room rates, hurting domestic hotel demand.
Turkey’s economic landscape, characterised by high inflation and fluctuating value of its currency, the lira, has had mixed effects on the sector.
Tuğra Gönden of TR International said “the inflation rate, which soared to 64.8pc in early 2024, has nearly doubled prices across sectors, including hospitality. This situation has inevitably affected hotel average daily rate in Turkey, with the cost of accommodations rising in local currency terms. The depreciation of the Turkish lira partly offset the impact of inflation for foreign visitors.
Eren Turan of Liberty Hospitality Group said “the average accommodation stay of tourists has been shortened by one to two days this year compared to the previous year. The main reason for this is due to high inflation resulting in the increase of holiday package prices.”
Ömer Faruk Dengiz, president of the Bodrum Hoteliers Association said “2024 ADR and RevPAR indicators are at a good level compared to the previous year, but if we factor in the increased rates for next year, this will not reflect the reality in Antalya’s all-inclusive resort hotel sector. While flihgts have increased from Ireland and other countries, among flights from Germany, traditionally Türkiye‘s largest feeder market, there has been no change. If prices continue to increase, the prospects of further inbound demand growth which saved the Turkish hospitality industry from collapse this year look vague.”
The Turkish hospitality sector estimated at $5.58bn in 2024 and is expected to reach $6.83bn by 2029, growing at a compound annual growth rate of 4.12pc during the forecast period/
