High inflation has led to a price gap between Turkey and foreign countries to the detriment of Turkey. The price tags, which exceed even the average level in the European Union, shock tourists and force Turks themselves to go shopping abroad more and more often. Price inequality has hit tourism in Turkey, Turkish media reported.
The price of absolutely all goods and services, starting with food and clothing, and ending with accommodation, went up. At the same time, Turkey, which is not the richest, has now confidently surpassed the average level of prices in the European Union, which has made foreign shopping and even vacations more attractive, despite the growth of the lira. Turkey has become a “territory of a price gap” in the field of tourism, experts said.
As noted by BKM – the interbank credit card service center of Turkey – in the first quarter of this year, an increase in the use of their bank cards by residents abroad was recorded – the volume of purchases increased to 34 billion Turkish liras, which became an absolute historical record. At the same time, representatives of the sector are expecting another new record of spending by Turks abroad already this year.
The number of tourists coming to Turkey for shopping increased by 3.7% to 694,000 in the first quarter of this year, but their retail spending on items such as shoes, clothing, and food fell by 10% to $3.1 billion. tourists with a simultaneous decrease in their expenses indicate an increase in price sensitivity, say, experts.
Turkey has lost its tourist charm to mass tourism
The chairman of the Association of United Brands (BMD), Sinan Onjel, said that they have noticed a decrease in tourist purchases compared to last year. According to him, the reason for the decrease is the prices. “Compared to the prices in the European Union, we are losing our attractiveness for tourists. High price growth is noted in restaurants and hotels. Our competitors offer much cheaper goods and services. Imports and luxury goods have also become more expensive due to taxes. We must take action on this issue. It is possible to provide incentives for manufacturers who export a certain amount of their products, or to provide incentives for importing goods,” he said.
Exaggerated expectations
Another source, Derimod Deputy Chairman Murat Zaim, confirmed this fatal trend for Turkish tourism. He noted that the number of vacationers in Turkish resorts and weekend cities, which statistical agencies so happily report on, is not reflected in purchases, and emphasized that the increase in domestic spending in the first half of the year was the driving force, and taking into account the increase in the exchange rate, it is expected that in tourists’ spending in July increased. This also affects the traffic in shopping centers. The head of the Association of Shopping Centers and Investors, Nuri Hatchi, said that the total number of visitors has reached the pre-pandemic level of 2019, and in some shopping centers this value has been exceeded. At the same time, the number of foreign visitors turned out to be lower than expected. “Expectations for foreign visitors were high at the beginning of the year. The numbers are good again, but it is difficult to make up for 2022,” he said.
What are upsetting tourists in Turkey now?
One of the hot topics for critics in the current tourist season is the high cost of food and drink in Turkey. At the same time, the president of the Association of all restaurants and travel companies, Ramazan Bingel, said that prices have reached a normal level: “Tourists used to be able to eat for $50 for ten people. That’s over. Everything is over for both local and foreign vacationers. Turkey needs quality tourists. Perhaps it will facilitate the arrival of quality tourists. Abroad, you will not be able to eat for less than $100 in a good place. They are used to lunch for $10-20 here. We don’t want to do this hard work. If tourists cannot accept these prices, they will leave and the establishments will close,” the specialist explained.
2022 is a record year
Last year, after the restrictions due to the pandemic were lifted, a record was set for both the number of tourists arriving in the country and their spending. According to the Turkish Statistical Institute, Turkey’s tourism revenues in 2022 increased by 53.4% compared to the previous year and reached $46 billion 284 million 907 thousand, and the number of foreign tourists who left the country was 51 million 369 thousand 26 people. In the same period, tourist shopping also set a record, and the number of foreign tourists who come to Turkey only for shopping exceeded 2 million 356 thousand. However, according to the results of 2023, there may be other figures, because As the experts assured, prices in Turkey are bad for everyone, both tourists and locals.