Travel & Tourism in Turkey 2006 - a summary report issued by Euromonitor International

Executive summary

1. EXECUTIVE SUMMARY

Steady growth
The year 2005 was a turning point for tourism in Turkey. Since the September 11 attacks in New York, the rate of tourism had been in decline, until 2004. 2004 saw 29% growth in the number of arrivals. 2005, with a foreign visitor arrival growth rate of 25%, indicated a sustainable growth and stability for the Turkish tourism. Although the number of incoming tourists did not show a boom in 2005, incoming tourist receipts amounted to US$11.9 billion in 2005 compared to US$10.6 billion in 2004.

In 2005, the biggest change occurred in the number of tourists coming from non-European countries. USA, Iran, Denmark, and Syria were the countries which showed the highest growth rate in the number of arrivals to Turkey.

EU talks encourage holidays in Turkey

Over the review period, in addition to the reduced effects of the 2001 economic crises, rising purchasing power gave people the opportunity to take cheaper holidays.

Positive developments regarding Turkey’s admission to the EU membership, and the beginning of membership negotiations, brought Turkey closer to Europe. With every step towards EU membership, more people in Europe are considering the Turkish coast as an exotic option that is also close to their homelands.

Membership talks with the EU and the recovery of the Turkish economy made Turkey a favourable place to invest for both foreign and domestic investors. Reduced inflation and interest rates have started to give signs of a stable economy since 2003. In 2002 a new single party government came into power and very swiftly made radical changes in both economic and political terms. As it is the only party in the government, it promised no surprises and a stable political situation, both of which are attractive for foreign investors.

Arrivals by air still growing

Airlines was still the most popular mode of transportation preferred by incoming tourists over the review period. Air takes the lead with 72% share of all transportation for arrivals. For domestic tourism, trips by air showed a 49% increase. This was due to increasing number of charter airlines and the availability of cheap tickets offered by them.

Increasing demand for tourism triggered an increase in demand for travel by air. This also placed a downwards pressure on prices and made air travel available for more people. Schedule company THY (Turkish Airline) competed with successful charter companies, and tourists benefited from cheaper tickets.

Beaches are the most popular destinations

Both domestic and foreign visitors still prefer to go to the beach, as the climate allows for a long season that includes spring and autumn. Most tourists come to Turkey in late spring, summer and early autumn. They tend to spend their holidays in hotels, boosting the hotel sector which also grew steadily over the review period, and encouraging rising investments from both Turkey and abroad.

Internet sales are increasing

Even though internet usage is low in Turkey, internet sales of all types of tourism showed an increase. Because of the speed of the Internet, advertisement opportunities, and available discounts positively affected internet sales. Direct suppliers are larger in number but for 2005 internet sales by intermediaries show a greater rate of growth compared to direct internet sales.

Demand for tourism increases considerably during public holidays. Tourists who leave it to the last minute to arrange their holidays, find the Internet an ideal tool for booking a holiday at the eleventh hour.

Outgoing expenditure overtakes domestic expenditure

Outgoing tourism expenditure overtook domestic tourism expenditure, growing by 11% in 2005 compared to domestic growth of 9% in value. More Turkish people are going abroad for holidays, and with the strengthening of the Turkish currency, foreign trips are becoming cheaper.

Domestic tourism expenditure also continued its steady increase. However, foreign trips are slowly becoming a substitute for domestic trips. Outgoing Turkish tourism expenditure was US$2.3 billion and domestic tourism expenditure was US$5.3 billion in 2005. Incoming tourist receipts reached US$11.9 billion, up 12% on 2004.

The two top regions for both domestic and foreign tourism are Antalya and Istanbul. On the other hand Turks most prefer to go to Bulgaria and Greece, because they are close and cheap.

The trend of taking more trips within the country, and booking paid excursions in 2004 continued in 2005. Turkey’s policy of neutrality in Iraq and its strong position against terrorism positively affected the tourists' willingness of taking trips within country. Events held in Turkey like Formula 1 increased the share of other types of expenditure by tourists.

Overall in 2005 total incoming tourists receipts showed a considerable increase of 12%. On the other hand, outgoing tourism expenditure also rose by 11% in value. Positive developments in the Turkish economy and the easing of use of credit cards in foreign countries had an effect on this increase of outgoing tourism expenditure.

Turkish outbound tourism expenditure showed a growth rate of about 11% in both 2004 and 2005. Such a trend is expected to continue steadily. As Turkey gains confidence by virtue of its closer relations with the EU, if it can secure better consumer satisfaction, a tourism boom is highly probable.

 

 

 

 

 

 

 

 

 

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