The grandiose construction of new “luxury” hotels in Antalya is planned to be organized for 50 billion Turkish lira in credit support, which was promised by Turkish President Recep Tayyip Erdogan. For this amount, it is possible to build 85 luxury luxury hotels in addition to the existing ones, which will simply “undermine tourism in Turkey” – these are the literal words of one of the local experts, who spoke so emotionally about the new prospects.
The issue is that after a meeting with business representatives, the Turkish president said that of the announced credit support of 150 billion Turkish lira, which will be provided to production and tourism, part of 50 billion will be allocated to tourism and mainly hotels. According to the president, this amount is “large enough to finance the tourism sector and investment in tourism.” It should be noted that this is not a free subsidy, but a long-term loan of 9% for “companies that provide services to earn foreign currency in the tourism sector.”
Kaihan Taner Ozen, one of the credit managers of the former Development Bank of Turkey (TKB), commented: “If this happens, 85 brand new 5-star hotels, each with a capacity of 1,000 seats, can be built with this financial support. Assuming that these hotels sell for an average of $ 70 per night per night in high season and $ 40 in low and off-season, hotels will have a net operating profit of $ 1.05 million out of a total turnover of $ 1.9 million. This gives one hotel a net operating profit of $ 6,175,000 per hotel, and there is no hotel owner who is not satisfied with that profit.”
The expert also added that if we assume that 50% of the approximate cost will be financed, and the rest will be covered by investors’ equity, the number of five-star hotels under construction will increase to 170 and capacity – up to 170,000 seats. “Given that the incoming tourist stays for an average of 10 nights, this means that in the high season, which lasts four months, will receive 2,040,000 tourists. If we calculate that our hotels sell for an average of $ 70 per night per night in high season, we will get $ 1.5 billion, and if we assume that they sell for an average of $ 40 in low season, we will see another 400 million. .dollars in circulation. Thus, the net operating profit of the new hotels will be more than a billion dollars,” the expert added.
In general, experts noted that the investment in the hotel “will provide a direct net inflow of foreign currency that will support the needs of the economy.” “Explosive incentives for tourism are expected to grow next month through new credit support,” they added.
For those who care about a healthy lifestyle, we recommend reading: “What happens to your body when you quit smoking.”