High inflation in the country pushes prices to levels that threaten the country’s competitiveness. While inflation has been falling for several months. This started to rise again in July to 47.83% over one year, or +9.6% over one month, the largest increase in eighteen months, according to official data. Destination specialists could reduce all-inclusive packages.
The price of rooms has risen sharply
The daily price of hotel rooms in Antalya increased by 37.4% to an average of 110 euros compared to the previous year. In the economic metropolis of Istanbul, the average price of a hotel room is 138 euros. The European average is barely higher, around 140 euros. This has consequences. The industry’s ambitious goals of making $56 billion this year are no longer achievable.
There are fewer Russians in Türkiye
According to the Ministry of Tourism, only $21.7 billion was collected in the first six months of the year.
Russians and national vacationers are not there.
On the one hand, the traditionally important ruble is in decline. After 5.2 million Russians in 2022, only 4 million are expected this year because prices are too high.
Domestic tourism is less important
Turkish domestic tourism is also weakening. While the fall of the Turkish lira favors tourists from the euro zone and curbs the rise in prices, the inflation rate of more than 50% is having an impact on Turks who once frequented seaside destinations.
Clean all-inclusive package concepts?
Compared to its competitors like Egypt, Turkey is losing ground. Some destination professionals would like to review the “all-inclusive” formula, particularly widespread on the Turkish Riviera. This would involve offering cheaper basic packages. These could, for example, contain no alcohol or contain only beer and wine. After all, alcoholic beverages are expensive in the country due to high taxes, and prices for foreign spirits are particularly high. German customers would be sensitive to these changes. On the other hand, French customers look more at the quality of meals and a little less at alcoholic drinks.