While Minister Announces Tourism Performance Records, Istanbul’s Hotels Are in Crisis

On one hand, Turkey’s tourism revenue is breaking records. On the other, many hoteliers in Istanbul say they’re barely hanging on.

While Culture and Tourism Minister Mehmet Nuri Ersoy continues to highlight booming national tourism numbers month after month, hotel occupancy in Istanbul has quietly plummeted to levels not seen in years. The average occupancy rate across the city has dropped to just under 33%, and yet, those in the industry are hesitant to speak out — reportedly out of fear of political backlash.

The Reality Beneath the Headlines

A striking contrast to the national tourism success story emerged through a letter sent by Ahmet Yaşar, President of the Istanbul Hotel Owners Chamber and a former AK Party MP, to Mehmet Ali Şahin, a member of the Presidential High Advisory Board. In the letter, Yaşar warned of a deepening crisis in Istanbul’s hospitality sector, painting a starkly different picture from the upbeat government narratives.

According to the data shared in his letter, hotel occupancy rates across major districts of Istanbul in June 2025 were alarmingly low. In historic and heavily touristed neighborhoods like Sultanahmet and Beyazıt, occupancy was only 45%. In Laleli, it fell to a mere 23%. Beyoğlu, Sirkeci, and Aksaray all hovered around the low-to-mid 30s. The city-wide average? Just 32.8%.

Why Are Istanbul Hotels Struggling?

The underlying issue appears to be a combination of rising operational costs and declining competitiveness. As Yaşar put it, Istanbul has become an increasingly expensive destination for foreign tourists. That price pressure, combined with global inflation and changing travel preferences, seems to be pushing tourists elsewhere — even as overall visitor numbers to Turkey rise.

While other regions like Antalya and Muğla are enjoying record-breaking seasons, many of Istanbul’s hoteliers are facing half-empty rooms and mounting costs.

Calls for Action

In his letter, Yaşar urged senior officials to acknowledge the reality on the ground and take urgent steps before the crisis becomes long-term. Without targeted support or a strategy to reinvigorate demand in Istanbul, the city’s hotels — many of which depend heavily on consistent international tourist flow — risk falling into deeper financial distress.

This growing disconnect between national tourism figures and local hotel realities highlights an uncomfortable truth: the success of Turkey’s tourism industry isn’t being felt equally across its regions. And unless that imbalance is addressed, more hotel owners in Istanbul may be forced to shut their doors — quietly.