Rising inflation, February earthquakes and tax hikes have had a negative impact on Turkey's tourism sector, with hotel occupancy rates in the country's resorts at 60-70%, Turkish daily Dunya reported on Wednesday, citing a tourism official
ANKARA (Pakistan Point News / Sputnik - 26th July, 2023) Rising inflation, February earthquakes and tax hikes have had a negative impact on Turkey's tourism sector, with hotel occupancy rates in the country's resorts at 60-70%, Turkish daily Dunya reported on Wednesday, citing a tourism official.
Last week, the Turkish Central Bank raised its key interest rate from 15% to 17.5% amid a fall in the national currency, the lira, and soaring prices.
The newspaper reported, citing the chairman of Turkish travel company Jolly, Mete Vardar, that as a result of inflation and the earthquakes in February, hotel occupancy rates are now 60% in the region of the Aegean Sea and 70% in the Mediterranean. The current year has not been as intense as 2022 and the sector has seen a difficult process, he said.
The official noted that the earthquakes of February 6, 2023 left a "very serious mark on the tourism industry."
"Demand (for tourism) picked up in May and continued to grow in June. We think we will close the two-month gap with the sales we made in June, July and expect to make in August in line with the intense demand, and that we will meet our annual targets. The earthquake region has been a center for cultural tours," he pointed out.
Vardar also noted a decrease in the number of overnight stays in hotels in Turkey.
"For example, the average overnight stay in the domestic market decreased from 5.7 to 4.6," he said.
The official added that it was necessary to defer taxes on the tourism industry to support the sector.
"The VAT rate of 8% in accommodation facilities has increased to 10% with the latest update. We would like these costs to be deferred until the end of the year... Apart from the increase in VAT, corporate tax and personnel costs, other costs are also increasing. We need the government's support so that we don't have to raise prices at the height of the season and so that tourists can have the vacation they deserve," he said.
Turkey has been experiencing an economic crisis since 2018, with the inflation rate peaking at 85.51% in October 2022.
