A peculiar tourist season is shaping up this year in Turkey, with inflation that has soared, creating an unfavourable economic environment, turning travellers – local and foreign – to more affordable alternatives. In this context, travellers are turning their backs on popular Turkish holiday destinations such as Cesme, Bodrum and Antalya, opting for Egypt, Tunisia, Morocco and the Greek islands.
The neighbouring country’s coastal resorts are recording a significant decrease in tourist activity this summer, compared to other years due to rising prices.
The once busy streets and restaurants and fully occupied hotels are now quieter, both by locals and international tourists.
The main reason for the decline is attributed to inflation, which has significantly increased the cost of accommodation and dining. Annual inflation was 75.45% in May, the highest recorded since November 2022, and fell to 71.6% in June.
Speaking to news website Habertürk, Kıvanç Meriç, president of the Izmir branch of the Turkish Travel Agents Association of Turkish Travel Agencies (TÜRSAB), noted that Turkey’s competitive advantage has historically been its affordability, but he said recent economic conditions have undermined this advantage.
“Turkey’s main growth point was its price advantage, which we have lost in the last two years, resulting in a 30 to 35 % difference compared to our competitors. As a result, we are losing power against countries such as Egypt, Tunisia, Morocco and even Greece,” Meriç said.
The Greek islands are the benchmark
The Greek islands appear to be among the preferred choices for both Turkish and international travelers, who praise them for their free public beaches. However, Turkish tourism professionals and operators dispute claims that they are cheaper, highlighting differences in service quality.
The president of the Cesme Hotel Owners’ Association (CESTOB), Yakup Demir, pointed out that accommodation on the Greek islands is often older and less luxurious, and, he said, most houses and hotels have not received limited renovations, while there are no four and five-star hotels.
According to him, the hospitality industry on the Greek islands is largely made up of family-run businesses, which lack the appropriate professional staff found in Turkish resorts.
“Most hotels and restaurants are modest, family-run, with no extra staff. If Turkish hoteliers did the same and there was the slightest problem with service or cleanliness, tourists would object thousands of times over,” he said.
Still, he said, Turkish tourists appear satisfied with the simpler offerings of the Greek islands, particularly enjoying the free beaches. “They do one thing very well: the beaches are free!” he added.
Comparison of costs between Turkey and Greece
Murat Akbal, chairman of the board of Akbaldan Tourism, argued that the Greek islands are not a direct substitute for Turkish coastal resorts. “In economics, there is something called ‘substitution’, replacing something with another of equal value,” explained Akbal, who reportedly visits Rhodes, Symi and Lesvos frequently for business purposes.
Although, he said, the Greek islands are beautiful and valuable in their own right, they cannot be compared to the coast of Turkey because the substitute is not the Greek islands.
Akbal discussed the disparity in cost between Turkish and Greek resorts, using Marmarida and Rhodes as examples. “For a three-night stay with breakfast in a five-star hotel in Marmarida, the cost is 45,000 Turkish liras, while the corresponding package in Rhodes is 64,750 Turkish liras,” he said.
He highlighted the operating costs faced by Turkish businesses, including rent, workers, insurance and taxes, which contribute to higher prices, and concluded: “People go to the Greek islands because it’s fashionable. Otherwise, the difference in quality and service is significant.”
Turkey’s Minister of Culture and Tourism, Mehmet Nuri Ersoy, attributed the decline in the number of tourists at holiday resorts to Euro 2024. He said 10,000 people travelled abroad to watch the games and these people were potential customers of Turkish holiday resorts. He, he said, spoke of a “revival” of visitors to the coast after the championship.”
Prices on beaches and restaurants in Turkey strongly increased
Entrance fees to private beaches and restaurants have increased significantly. To get into a middle-class beach, one has to pay between 120 and 150 dollars, while at high-class beaches, this amount can reach 240 to 300 dollars.
Similarly, restaurant prices have skyrocketed. For example, a lahmachun starts from $9 and can go up to $28.50 in upscale venues. This high cost seems to act as a “barrier” for both local and foreign tourists from Turkey’s tourist resorts.
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 led many hotels and restaurants in popular destinations to struggle with low occupancy rates and fewer bookings.
Foreign tourists, particularly from Russia, are also put off by high costs. The Association of Russian Tour Operators (ATOR) has seen a significant drop in demand, with July occupancy in Antalya hovering around 60%, compared to the usual 100%.
Hotels were forced to cut prices to attract tourists, but this was not enough to make up the shortfall. Speaking to news website Dünya, ATOR vice president Taras Kobishchanov said that some hotels had raised prices for July and August but faced a crash in demand, which led to a decrease in prices even compared to June.
Bodrum has recorded a 20% decrease in local tourists and a 13% increase in foreign tourists this year. Hotels that usually achieve absolute occupancy during the summer are struggling to fill 70 to 80% of their rooms. TÜRSAB chief consultant Hamit Kuk told Dünya that high prices have driven away local tourists, leaving a significant deficit in hotel occupancy during the peak season.
The tourism sector is “struggling” with rising costs and inflation, making it difficult to maintain profitability. The president of the Alanya Tourism Business Association (ALTİD), Burhan Sisli, said hoteliers are trying to make do with conventional rates without reducing them, but this is likely to lead to a serious drop in profitability by the end of the year.
Amid these economic pressures, Turkish holidaymakers are shifting their travel preferences towards off-peak seasons and more affordable international destinations. Travel agency Jolly reported a 70% increase in holiday package sales for September and October, which are around 40% cheaper than the high summer season.
Speaking to news website Daily Sabah, Jolly chairman Mete Vardar stressed the need for more reasonable prices to sustain the longer tourist season and contribute significantly to the national economy. He also highlighted the growing demand for international travel, with a 50 per cent increase in applications for international travel packages compared to the previous year.
Tourism professionals are concerned that if current trends continue, destinations such as Cesme and Bodrum will continue to lose their customer base, both domestically and internationally.
TÜRSAB’s Kıvanç 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 what 2025 will be like. That should scare us,” he said, stressing the need for immediate action to address these issues.
