Turkey secures more funds for Antalya airport expansion

Imago images/Steffen Schellhorn via Reuters Connect

• Antalya handled 35m visitors in 2023
• First phase will expand terminal
• Airport seen as vital gateway to Med

An additional $463 million financing has been secured to help upgrade and expand Turkey’s second busiest airport, Antalya. 

Antalya served more than 35 million passengers in 2023 which went some way towards Turkey recording record tourism receipts.

The first phase of development will include the expansion of Terminal 2 and the construction of new general aviation and cargo terminals. It is expected to be completed in 2025.

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The new financing includes a $67 million loan to airport operator Fraport TAV from International Finance Corporation (IFC), part of the World Bank, as well as deals with the Asian Infrastructure Investment Bank, Deutsche Investitions und Entwicklungsgesellschaft, European Bank for Reconstruction and Development and 13 commercial banks.  

This follows IFC’s $161 million loan to the company last year as part of an initial $2 billion package. 

The travel and tourism sector represents about 5 percent of Turkey’s GDP and is also a significant contributor to foreign exchange inflows into the country.

According to Turkish Statistical Institute data, Turkey’s tourism revenues hit a record high of $54 billion in 2023, rising 17 percent from $46.5 billion in 2022. Turkey was Europe’s fourth most popular destination during the summer of 2023. 

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A GlobalData report published last year said the country’s leading source markets include Germany, Russia, the UK, Bulgaria and Iran.

“The ongoing investment programme will provide an essential support to the long term sustainable growth of the tourism industry in Antalya,” said Burcu Geriş, Fraport TAV Antalya board member. 

Antalya Airport is the primary gateway to the Mediterranean Sea for tourists and second only to Istanbul Ataturk Airport in passenger numbers. 

IFC said it is also supporting Fraport TAV in reducing the expansion’s carbon footprint by using renewable energy generated on site and constructing energy-efficient terminals. 

The expanded terminals are expected to achieve energy savings of at least 24 percent, it said.