Tourism

Turkish tourism hits record highs in first quarter

May 1, 2025, 12:55 PM

Tourists visiting Ephesus in Turkey. Food and drink accounted for about one quarter of tourists' spending

$9.4bn from international tourism
Visitors are spending more
Concerns about overpriced lira

Despite economic and political turmoil, foreign visitors flocked to Turkey in record numbers in the first quarter of the year.

Although the figures provided a welcome boost to revenue and expectations for growth through the rest of the year, some commentators have warned that future earnings may be weighed down by an overpriced local currency.

Turkey generated $9.4 billion from international tourism between January and March, according to data issued by state statistics agency Turkstat on April 30, a 6 percent increase on the same quarter last year.

This growth came despite a modest 1 percent rise in arrivals. Nine million foreigners had their passports stamped but they spent more with daily outlays up from $93 in the first quarter of 2024 to $99, according to Turkstat.

The main expenditure lines for foreign tourists were food and drink, which accounted for about a quarter of total spending, followed by international transport costs (16 percent), holiday packages (13 percent) and accommodation (12 percent).

The strong first-quarter result came a day after the World Travel and Tourism Council (WTTC) forecast that revenue and holidaymaker numbers in Turkey will hit record highs this year.

The country is expected to earn $135 billion in 2025 in foreign and domestic tourism revenue, an increase of $5 billion and representing 12 percent of national GDP, the WTTC said on April 29.

The sector and supporting services will also account for 10 percent of employment nationwide, representing over 3 million jobs, a figure the WTTC said should increase to nearly 4 million over the coming decade.

The bullish prediction comes as Turkish financial markets have been roiled by the arrest in March of the mayor of Istanbul, a political opponent of the president, which sparked panic and widespread street protests.

An earthquake also hit Istanbul, the commercial capital, last month causing damage but few casualties.

Pre-peak season reservations are picking up but Hakan Saatçioğlu, head of the Professional Hotel Managers’ Association, told AGBI the first quarter figures could have been better.

“Numbers are starting to look good but over the winter, many visitors went to cheaper destinations such as Egypt or Tunisia,” he said.

This is due, at least in part, to the overvalued lira, said Saatçioğlu.

“When we consider our pricing from our side it is reasonable but from the tourist point of view we are expensive,” he explained. “As the tourism industry, we are not as happy as we spend in lira but earn in Euros. We need an improvement in the foreign currency rate.”

Bahattin Yücel, a former tourism minister and chairman of the Association of Turkish Travel Agents, also said the lira was over-valued.

“There is the issue that we are seen as being too expansive and have lost flexibility in pricing with the low exchange rate of foreign currency,” he said.