News

12/10/2016

Turkey’s Hotel Market has a difficult year

Turkey’s hotel market has experienced a very difficult summer season, as the sector saw the steepest decline in hotel occupancy rates in August, which should normally have been one of the busiest months for the sector.

Turkey was also the country that experienced the lowest hotel occupancy rates across Europe. Hotel occupancy rates declined to 53.4 percent in August, a 27.4 percent decrease compared to the same month in 2015, according to data compiled by STR Global, which was announced by the Hoteliers Association of Turkey (TÜROB). Many of the major tourist hotels have been put on the market.

The country’s hotel occupancy rates were announced at 49.7 percent, Europe’s lowest, in the first eight months of the year, a 21.8 percent decline compared to the same period of 2015, mainly due to a series of bomb attacks and the July 15 failed coup attempt. Before the bomb attacks, the tourism sector, which contributes around 4.5% to Turkey’s gross domestic product, had already been hard hit by the political problems with Moscow over a downed fighter jet, which led to Russian tourists boycotting Turkey.

Istanbul

Istanbul the major city in turkey’s hotel market was the worst affected in terms of hotel occupancy rates caused by the terror attacks across Europe. Hotel occupancy rates saw a decline of around 33.6 percent in August compared to the same month of 2015 to 50.4 percent, making the city the one with the lowest hotel occupancy rates and with the steepest decline after the bomb attacks. Istanbul’s RevPAR, also dropped 55.1 percent to 43.9 euros in August from the same month in 2015. The city’s Average Daily Rate (ADR) also dropped to 87.2 euros in August, a 32.5 percent decrease compared to the same month of 2015. Hotel occupancy rates have declined by around 30 percent in the city in the first eight months of the year.

The two other European cities who experienced similar attacks, Brussels and Paris, saw a 22 percent decline and 13 percent decline, respectively. While Istanbul’s RevPAR decreased by 45 percent in the mentioned period compared to the same period of 2015, Brussels saw a 21 percent regression and Paris 16 percent.

The Mediterranean resort of Antalya “Turkey’s tourism capital”,enjoyed some relief thanks to a rise in the number of local tourists, although hotel occupancy rates continued to decrease. Hotel occupancy rates in Antalya and its districts were reported as 64.6 percent in August, a 23.2 percent decline from the same month in 2015. This rate dropped to 53 percent in the first eight months of the year from 60.7 percent in the same period of 2015. Russian visitors decreased by 95%. The outlook for turkey’s hotel market may be brighter now that relations with Moscow have since been mended, but recovery remains slow.

Antalya was not the only coastal town affected by the slump in business. Popular resorts, such as Fethiye, Kemer or Belek, also suffered heavy losses. Many hotels and restaurants have had to make staff redundant, some did not even open their doors at all. More than 30% of hotels in Alanya remained closed for the season.  More on Turkey’s Hotel market on www.vanatis.com

Turkey

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