turkish travel industry

Turkey, long celebrated for its affordability and rich cultural offerings, is now facing a tourism crisis as rising costs, particularly in the hospitality and entertainment sectors, are pushing tourists away. Once a budget-friendly favorite for vacationers, Turkey is seeing a decline in visitor numbers, creating concerns over its long-standing position as a premier travel destination and further jeopardizing the status of Europe as a top travel destination.

Rising Costs Impacting Turkish Tourism

In 2025, the Turkish tourism sector is experiencing significant difficulties. A recent report reveals that hotel bookings across popular tourist destinations in Turkey, such as Antalya, Bodrum, and Istanbul, have decreased sharply due to a combination of rising accommodation rates and higher living costs. The decrease in visitors is also compounded by poor entertainment options and a lack of value for money compared to other Mediterranean destinations like Spain and Greece.

Historically, Turkey has been a go-to vacation spot for those looking for an affordable getaway. Its combination of beautiful coastal resorts, rich history, and vibrant cities like Istanbul and Ankara made it a favorite, especially among European and Russian tourists. However, as the cost of staying in Turkish hotels increases, Turkey is rapidly losing its price advantage over rival destinations in the region.

The Impact of Inflation and Exchange Rates

The root cause of the crisis lies in Turkey’s ongoing inflation and the rising operational costs for local businesses. According to reports from the Turkish Statistical Institute (TUIK) and the Ministry of Culture and Tourism of the Republic of Turkey, accommodation rates have surged, significantly outpacing the inflation rate in many European countries. This is largely due to high taxes on essential goods such as food, energy, and cleaning products, which directly impact the hospitality sector.

Tourism experts also point to the exchange rate as a significant factor in the crisis. For years, the Turkish lira offered a favorable exchange rate for foreign tourists, making Turkey a budget-friendly destination compared to the eurozone. However, recent fluctuations in the value of the Turkish lira have diminished this advantage, with some travelers now finding that their money does not stretch as far as it once did in Turkey.

As a result, popular resorts in Turkey, such as Antalya, Bodrum, and Fethiye, are now seen as expensive compared to their competitors in Spain and Greece. A family vacation to these destinations can now cost over 150,000 Turkish lira ($3,750), a significant jump from previous years. For comparison, a similar trip to Greece would cost around $1,980–$2,490, offering better value for money.

Declining Tourist Arrivals

The effects of the rising costs are reflected in the data for 2025. According to the latest statistics from the Ministry of Culture and Tourism, tourist arrivals to Turkey have dropped by 0.15% in the first five months of 2025 compared to the same period in 2024. This might appear small on paper, but it signals a growing trend of declining visitor numbers, especially from key tourist markets such as Russia, Germany, and the United Kingdom.

The decrease in Russian visitors, once a major source of tourism revenue for Turkey, has been particularly stark. Sanctions, economic struggles, and growing unrest have caused many Russian tourists to reconsider their travel plans. The German market, another major source of tourists, has also seen a decline, as travelers increasingly turn to more affordable destinations within Europe.

In 2024, Turkey outpaced Italy as Europe’s most visited country, attracting 56.7 million international visitors. However, with the country now facing these economic challenges, experts warn that it may struggle to maintain this growth in the years ahead.

Quality Concerns and the Need for Improvement

Beyond costs, there is also growing dissatisfaction among tourists with the quality of services, particularly entertainment options. Turkey has long been known for its lively beach resorts and extensive entertainment offerings, from nightlife in Bodrum to historical sightseeing in Istanbul. However, reports from visitors indicate that many of these attractions are falling short of expectations, leaving travelers dissatisfied.

Looking Ahead: Addressing the Crisis

Industry experts are calling for immediate action to address the challenges faced by Turkey’s tourism sector or else, Turkey could face long-term damage to its reputation as an affordable, high-quality destination.

Efforts to improve the tourism experience in Turkey may include investing in infrastructure, enhancing customer service, and diversifying entertainment options to make the country more appealing to international visitors.

Turkey has historically weathered economic challenges in the tourism sector, and many believe that with the right policies in place, the country can bounce back. However, the current trajectory suggests that unless steps are taken to address the rising costs and dissatisfaction with the tourism experience, the future of Turkey’s tourism industry may remain uncertain.

Conclusion

Turkey’s tourism sector suffers in 2025, as rising costs and falling tourist satisfaction threaten the nation’s standing as a premier holiday destination. Rising accommodation costs, inflation, and falling exchange rates have all served to make Turkey a comparatively pricey destination versus peers. While Turkey remains a significant player in the global tourist marketplace, urgent reform needs to take place to ensure the nation remains a leading tourist destination in the future.