Hotel occupancy in Turkey is falling as rising costs erode its affordability edge. Business travellers and tourists alike are turning to better-value destinations across Europe.
Turkey’s long-standing reputation as a value-driven destination for British travellers is under pressure, as a new report reveals a notable decline in hotel occupancy rates across the country. Once a go-to for affordable sunshine breaks and business stopovers, Turkey is now grappling with rising operational costs that are reshaping its appeal.
According to industry insiders, the country’s price advantage – once a key differentiator from European rivals like Spain and Portugal – is slipping away. “Turkey has lost its price advantage. Tourists are now choosing destinations where they get more value for the same money,” said a spokesperson from the tourism sector.
The impact is being felt across both leisure and business travel segments, with notable declines in visitor numbers from Russia and Germany, and a smaller but significant drop from the UK and Bulgaria. The shift comes despite Turkey’s impressive performance last year, when it welcomed 56.7 million international visitors—surpassing Italy in total arrivals.
Burhan Sili, President of the Alanya Touristic Business Owners Association (ALTID), warned that the sector must act swiftly to recalibrate its pricing strategy. “We must reconsider our price balance while maintaining quality. Otherwise, even if occupancy rates do not decrease, our profit margins may be seriously damaged. Rising costs and global competition require our sector to act more cautiously,” he told Türkiye Daily.
For business travellers, the implications are twofold: while Turkey remains an attractive destination with strong infrastructure in cities like Istanbul and Ankara, the erosion of its affordability could shift corporate travel budgets elsewhere. With cost-efficiency a growing priority for travel managers, destinations offering better value without compromising on quality may increasingly win out.
As Turkey navigates this economic crossroads, the travel industry will be watching closely to see whether it can rebalance its offering to retain its competitive edge – particularly among cost-conscious business travellers seeking both quality and value.