Rising prices faced by foreign visitors are giving Turkey an “expensive country” image that is putting at risk its tourism boom, according to hotel industry representatives.

Speaking to business-focused Ekonomim, Muberra Eresin, chair of the Türkiye Hoteliers Association (TUROB), noted that the most high-cost tag was the most pressing problem facing Turkey’s tourism industry this year.

The challenge could be mitigated only through further depreciation of the Turkish lira, which would increase the purchasing power of foreign visitors, she argued.

Turkey has built up its tourism numbers based on its reputation as an affordable and attractive destination, but industry professionals have warned perceptions are shifting. Once seen as more budget-friendly than Egypt or Tunisia, Turkey is now often described as on par with southern European destinations such as Spain, Italy and Greece in terms of overall cost.

Official data lately showed Turkey’s foreign tourist arrivals declined by 5% y/y in the first quarter to 6.7mn, but international tourism income in January to March nevertheless moved up 5.6% y/y to $9.45bn. Yet the government wants to see a record 65mn international visitors generating $64bn in tourism revenue in 2025.

Currency volatility and hiked service costs have driven Turkish prices above those of regional competitors, tourism reps say.

Antalya Tourism Council member Recep Yavuz said that in the first quarter of the year, Mediterranean hotspot Antalya experienced an unexpected slowdown in arrivals. Visitor numbers from Germany—one of Turkey’s key markets, with others including Russia and the UK—fell by 33% y/y, with some tourists reportedly saying they felt “misled” by the cost of their holidays.

Referring to elevated restaurant prices in cities like Istanbul, Antalya and Bodrum, Yavuz said: “Travellers don’t stay in their rooms. They dine out, they shop. The price of everyday experiences matters.”

Professional Hotel Managers Association head Hakan Saatcioglu was reported as noting that exchange rates have left Turkey more expensive than ever before.

“We’re now less competitive compared to destinations like Tunisia or Egypt,” he said. “Tour operators are warning us.”

Türkiye Hoteliers Federation (TUROFED) vice chair Mehmet Isler was quoted as cautioning: “If visitors feel they paid too much for too little, the perception of 'expensive and not worth it' will damage us long-term.”

In late April, on the Escape.com.au website, one contributor wrote: “The truth is this: holidaying in Turkey is now on par with holidaying in western Europe. In fact, domestic tourism has become so prohibitively expensive that Turks are now flocking to holiday in significantly more affordable Greece, leaving scores of local resorts sitting near-empty.

“Does this mean you should follow suit? Not at all; Turkey is still a land filled with spectacular sights and warm, welcoming people, but you’ll need to be prepared for the current financial landscape.”

The recent earthquake that shook Istanbul has proved another problem. Hotels report reservation losses of 10% to 30%. The city can expect an earthquake catastrophe at any time, warn seismologists.