Luxury hotels suffered losses, tourists contributed to the economy

As the tourism sector successfully concludes the season by meeting its targets, economic hotels take the lead, while occupancy rates decline in upper-segment hotels. Domestic tourists, on the other hand, have risen to the forefront in some hotels.

Haber Giriş Tarihi: 17.12.2023 16:29
Haber Güncellenme Tarihi: 17.12.2023 16:29

The effects of the earthquake and the Russia-Ukraine war, along with the ability to open the season in the second half, allowed the tourism sector to finish the year in line with its targets. Upper-segment hotels contracted, while economic hotels experienced an upswing. Cornelia Diamond Golf Resort & Spa General Manager Zafer Alkaya, describing 2023 as a good season in terms of tourist numbers, highlighted that tourists showed interest in hotels operating in the economic segments. He noted that especially in holiday destinations such as Belek, a prominent golf region, the expected occupancy levels were not achieved.

FAILED TO GAIN MOMENTUM

Speaking about the situation, Alkaya stated, "Tourists are coming, but they are not showing interest in upper-segment products. Tourism is a whole. To achieve the ideal tourism revenue, each segment needs to fulfill its function." Alkaya mentioned that although revenues increased, the occupancy rate in luxury hotels, which was typically around 60%, dropped to the 50s. Alkaya pointed out that there was a challenging period until August, but the sector recovered afterward. He said, "There was no occupancy problem in Alanya, Side, and Kemer. The reason is that Belek has quality products and upper-segment villas. In the past, there was no obvious problem in the region. It surprised us; it was an unexpected situation."

THE IMPACT OF THE RUSSIA-UKRAINE WAR

Alkaya stated that the Russia-Ukraine war affected the sector, and Ukraine was almost lost. He mentioned, "Our target was 7-8 million Russians, but it dropped to 5-6 million. We are not achieving the expected momentum due to the depreciation of the ruble. There is also the impact of the earthquake. The earthquake created an unexpected trauma for both us and the countries we attract tourists from."

It was noted that the majority of tourists who came to Turkey this year did not show interest in upper-segment products.

'BUSINESSES CANNOT SURVIVE'

Alkaya highlighted that this year, local tourists stood out in Belek, and growth is expected again in 2024. He emphasized that Belek is an important region with 16 golf courses and mentioned that Turkey competes with Portugal, which has 180 golf courses, and Spain, which has 400 courses. Alkaya pointed out that Turkey has more reasonable prices compared to its rivals like Spain. He said that as long as inflation continues, there will be price increases, stating, "If costs are not reflected, businesses cannot survive."