It is not possible for the tourism industry to continue under this exchange rate pressure

The Ministry of Culture and Tourism’s numerical and revenue targets for 2024 are 60 million tourists and $60 billion. Experts consider this target to be a baseline scenario under normal conditions.

Experts evaluate the situation as follows:

There is concern in resort revenues, which play an important role in tourism income. Especially in resort areas, facilities are starting to open one by one for seasonal operations. The most important problems are increasing costs due to inflation pressure, personnel shortages, and exchange rate pressure.

Increases in costs other than accommodation expenses in package tour prices in foreign currency are being reasonably reflected. On the accommodation side, pressure continues. Low-cost facilities with weak competitiveness and facilities with cash deficits are struggling considerably.

The year 2024 started with high inflation figures, with the first three months’ inflation at 15.6 percent. The highest increases are in the food and services sectors. On the currency side, there is an increase behind inflation in exchange rates. In the first three months, the euro/TL increased by 6.19 percent, and the dollar/TL increased by 8.43 percent.

January – March 2024 (Change)
Inflation: 15.60 percent
Dollar/TL: 8.43 percent
Euro/TL: 6.19 percent

According to experts, it is not possible for the tourism industry to continue under this exchange rate pressure. In other words, they need to increase prices by at least 20 percent in net terms in foreign currency to maintain balance. Tour operators (domestic/foreign) also want to make a profit now. The question arises of how this problem will be solved.

Therefore, according to experts, while the $60 billion target is good, though it may not align with expectations.