Positive Outcomes Reported by Turkey During First Semester of 2025
In the vibrant landscape of Turkey's tourism industry, a shift is underway. Despite a projected revenue of $64 billion, the sector is grappling with significant challenges, as rising costs and changing trends reshape the tourist experience.
A key trend emerging is the increase in tourist spending, driven by inflation and escalating accommodation costs. This has made Turkey a comparably expensive destination, rivalling or exceeding prices in Dubai, Spain, and Greece. This change has eroded Turkey’s traditional advantage as a budget-friendly destination, leading to a slight decline in tourist arrivals and hotel occupancy rates, particularly among domestic tourists.
Despite this, Turkey continues to attract visitors from various corners of the globe. In the first half of 2025, over 25.5 million people visited the country, with strong numbers from Russia, Germany, the UK, and notable growth from the Americas, Central Asia, and the Asia-Pacific regions.
While tourist arrivals have seen a slight dip, average daily spending has increased by 8%. Interestingly, the average length of stay has decreased by 0.9%, suggesting fewer but higher-spending visitors. These visitors are increasingly opting for last-minute purchases when prices are reduced, rather than early bookings.
One area where Turkey continues to captivate tourists is in the realm of cultural souvenirs. The most frequently purchased items by tourists are those reflecting Turkish culture, such as carpets, rugs, textile products, and traditional treats like Turkish delight.
However, the industry is not without its challenges. Reports indicate a drop in domestic tourism and a negative impact from lower foreign arrivals, contributing to uncertainties in occupancy and planning. Premium tourist complexes have managed to maintain occupancy levels, but hotels in general have seen a decrease, with July 2025 hotels only 60% full, a decrease compared to the previous year.
Industry insiders express concerns about entertainment quality and service levels amid rising costs, potentially affecting Turkey’s global appeal. Among Russian tourists, there is a growing demand for personalised service and luxury formats.
As Turkey's tourism industry stands at a crossroads, it faces the challenge of balancing rising costs with maintaining its competitiveness and attractiveness to diverse markets. Strategic actions may be needed to preserve affordability, service quality, and market share in a highly competitive international environment.
- Amidst the rise in costs and changing trends, Turkey's finance sector plays a crucial role in addressing the challenges faced by the tourism industry, as it aims to maintain the country's attractiveness to diverse lifestyle preferences, including travel.
- As travelers seek out last-minute deals in Turkey, the lifestyle sector, particularly retail, experiences a surge in sales of traditional Turkish items, demonstrating that the allure of the country's culture remains strong, despite economic adjustments.