Turkey lost its main advantage – high inflation in the country destroyed its “main competitive weapon” – the ability to keep prices low. As a result, the Turkish tourism business claims that Turkey is becoming uninteresting to European tourists, on whom the local tourism business relies heavily.
“Turkey, which for many years was the most competitive country for Mediterranean dishes in terms of price-quality ratio, has recently begun to lose this feature. The reason, of course, is the state of the country’s economy,” Turizm Guncel reports. They also add that big increases in costs, from energy to food, from natural gas to staff costs, have inevitably impacted hotel prices, with costs rising by more than a quarter, forcing them to raise prices.
As a result, “hotel prices in Turkey have become difficult for European guests, not to mention local tourists.” This is compounded by the failed early booking season, leaving Turkey in for a tough last-minute booking season with plenty of competition.
Interestingly, not only European tourists are considering whether to change Turkey for Egypt: Turks themselves can spend their vacation in a 5-star hotel of the same group in Egypt cheaper than in Antalya, and therefore show great interest in vacationing in Egypt. Also, the domestic Turkish tourist became interested in Montenegro.
Turkish experts also assessed the changes in the Russian market, where, in addition to Egypt, the UAE, and Thailand began to enjoy increased demand.
In Europe, the situation is no better. According to local tour operators, the prices of Turkey on the European market have increased by 50%. At the same time, inflation in Europe is 10-12%. This also pushes the consumer to abandon Turkey and the expected increase in the number of tourists is at risk.
“The restoration of the price balance in tourism depends on reducing inflation and ensuring price stability,” Turkish experts add. However, this is unlikely to be achieved shortly.