Bloomberg<\/a> report, higher hotel rates, restaurant prices and leisure costs are eroding one of Turkish tourism\u2019s biggest advantages: its value for money.<\/p>\nThe change is already being felt by British tourists, traditionally one of Turkey\u2019s largest international markets.<\/p>\n
British couple Donna and Dave Needham had visited Turkey five times with their children since 2021, attracted by the country\u2019s reputation as an affordable Mediterranean destination. This summer, however, they found that the resort they had previously stayed at had become too expensive for their budget.<\/p>\n
Even everyday holiday activities have become significantly more costly. The couple said a 15 minute jet ski ride that cost 20 Turkish lira a year earlier had risen to 90 lira.<\/p>\n
Donna Needham, who works in education and also runs a small travel agency with her husband, said Turkey is unlikely to be among their top choices for next summer.<\/p>\n
Turkey\u2019s exchange rate policy is changing the equation<\/h2>\n A key factor behind the shift is Turkey\u2019s currency policy.<\/p>\n
Turkish authorities have sought to allow the lira to depreciate more slowly than domestic inflation. While the strategy is intended to help contain inflationary pressures and control costs within the domestic economy, it has also made Turkey increasingly expensive in foreign currency terms.<\/p>\n
When domestic prices rise faster than the currency depreciates, international visitors find that their euros and pounds no longer go as far as they once did.<\/p>\n
That is particularly significant for Turkey, which built much of its international tourism appeal around offering high quality holidays at comparatively low prices.<\/p>\n
Tony Basoglu, who operates a business renting villas in the Antalya region, said visitors can still enjoy their holidays in Turkey, but the country is simply no longer as cheap as it once was.<\/p>\n
British arrivals fall 11%<\/h2>\n The changing situation is beginning to appear in tourism statistics.<\/p>\n
According to Turkey\u2019s Ministry of Culture and Tourism, total tourist arrivals fell by 3.6% year on year in May, 4% in June and a further 0.3% in July.<\/p>\n
The decline has been particularly pronounced in some European markets.<\/p>\n
British arrivals dropped by 11% in July compared with the same month a year earlier. The UK is Turkey\u2019s third largest source of foreign visitors, making the decline particularly significant for the Turkish tourism industry.<\/p>\n
British travel companies are also reporting that some demand traditionally directed toward Turkish resorts is shifting toward alternative destinations offering better value.<\/p>\n
Slovenia, Montenegro and Tunisia are among the countries benefiting from travelers looking for lower costs without sacrificing the quality of their holiday experience.<\/p>\n
Even Turkish travelers are choosing Greece<\/h2>\n The rising cost of domestic holidays is affecting Turkish consumers as well.<\/p>\n
Increasing numbers of Turkish travelers are looking overseas when they can obtain the necessary visas, with some finding that an international holiday can be cheaper than staying at popular Turkish resorts.<\/p>\n
Greece has emerged as one of the destinations benefiting from this trend, particularly its islands located close to the Turkish coast.<\/p>\n
The latest available data from Turkey\u2019s statistical authority also show that domestic holiday travel declined in 2025 compared with the previous year. It was the first such decline since the pandemic period.<\/p>\n
The development highlights an unusual challenge for Turkey: the country is not only becoming more expensive for foreign tourists, but increasingly expensive for its own citizens.<\/p>\n
Fewer tourists but higher spending<\/h2>\n Despite the decline in visitor numbers, Turkey\u2019s tourism revenues have so far remained relatively resilient.<\/p>\n
Foreign tourists who continue to visit are spending more per trip, helping to offset some of the decline in arrivals.<\/p>\n
Tourism accounted for approximately 4.1% of Turkey\u2019s GDP in 2025 and remains a crucial source of foreign currency for the economy.<\/p>\n
Tourism revenues help support Turkey\u2019s external balance and provide important support for the lira, making the performance of the sector a key part of Ankara\u2019s broader economic strategy.<\/p>\n
Rising costs squeeze hotel profits<\/h2>\n For Turkish tourism businesses, however, the main concern is not simply the number of visitors.<\/p>\n
Rising operating costs are putting pressure on profit margins, while the exchange rate policy limits the ability of businesses to benefit from a faster depreciation of the lira.<\/p>\n
Emre Narin, deputy chairman of Marti Otel Isletmeleri, which operates hotels in the Turkish Riviera, said the central issue for tourism investors is maintaining sustainable profit margins as operating costs continue to rise.<\/p>\n
Geopolitical uncertainty has added another challenge.<\/p>\n
The war with Iran broke out during the crucial early booking period, affecting the willingness of some travelers to choose Turkey and making it more difficult for tour operators to promote Turkish holiday packages as confidently as in previous years.<\/p>\n
The tourism season therefore began under considerable pressure, with industry figures reporting a meaningful improvement in activity only from July.<\/p>\n
The question now facing Turkey\u2019s tourism industry is whether the country can maintain its position as one of the Mediterranean\u2019s leading holiday destinations without the advantage that helped define its appeal for years: the image of a quality destination that was also exceptionally affordable.<\/p>\n\n\n\t\t
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