Despite optimistic statements from Turkish officials, hotel owners are raising concerns. According to Mehmet Ongen, Chairman of the Board at Ramada Resort Kazdağları, the summer season of 2025 turned into a true test for Turkey’s tourism industry. Revenues have dropped sharply, while hotel occupancy rates have hit critically low levels.
Ongen openly points to the main reasons: high prices for domestic tourism, declining purchasing power of the population, an unfavorable exchange rate, and excessive operational costs. In his view, these factors are placing enormous pressure on the sector. He also doubts official claims of “tourism records,” stressing that the real picture is far less optimistic.
“I have been working in tourism for 30 years,” says Ongen. “And I can confidently say this is the worst year we’ve ever experienced.” Among the key factors, he highlights rising prices, shrinking household incomes, a weak dollar and euro against the lira, and high expenses that have pushed up hotel and restaurant prices.
The surge in prices has particularly benefited competitors. Greece, for instance, has become increasingly attractive for tourists, including residents of the Aegean region and Çanakkale. “There, a tourist can enjoy dinner at a restaurant for three times less than in Turkey, with the same level of service,” Ongen explains.
Looking ahead, Ongen remains cautious: “There is no clear sign that the situation will improve in 2026. Only lower inflation and a stronger euro and dollar could be considered positive signals.”
In this context, he calls for a revision of the Tourism Development Fund, emphasizing that resources should be focused not just on local festivals but also on international promotion of Turkey’s tourism product. “We, the hoteliers, finance more than half of the fund. These resources must be used to attract foreign tourists with modern promotion tools.”
He concludes by noting that while businesses will continue to fight for survival, state support is also essential: “We are doing everything possible, but it is only fair that the government stands with us in this struggle.”
Economic Situation
Between September 2023 and July 2024, Turkey’s inflation consistently remained above 60%, peaking at 75%. In July 2025, inflation stood at 33.52%. Over the year, hotel and restaurant prices rose by 34%, while compared to December 2024, they increased by 23.5%. On average, prices over the past 12 months climbed by 48%.
Where Tourists Are Turning
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Greece – proximity, lower costs, and a favorable euro exchange rate make it a strong competitor to Turkey.
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Egypt continues to attract travelers with warm weather, affordable prices, and all-inclusive resorts.
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Southeast Asia – Thailand, Vietnam, and Indonesia draws tourists with exotic culture, developed infrastructure, and prices comparable to Turkey.
The growing interest in alternative destinations underlines the need for Turkey to revisit its tourism strategy and strengthen competitiveness in the global market.