Türkiye Travel Agencies Association (TÜRSAB) President Firuz Bağlıkaya has warned that foreign online travel agencies (OTAs) could gain control of Türkiye’s domestic tourism market if the proposed legislation on foreign digital accommodation platforms becomes law.
Bağlıkaya made the remarks regarding the Foreign Digital Accommodation Platforms Bill, which is set to be discussed by the Grand National Assembly of Türkiye’s Commission on Public Works, Reconstruction, Transport and Tourism.
“All companies operating in the same sector should follow the same rules”
Bağlıkaya questioned why a separate legal framework was being prepared for foreign digital platforms while there is no comparable legislation governing digital platforms operating in Türkiye.
“Why are we introducing a separate regulation for foreigners? Why are we giving them these advantages?” Bağlıkaya said.
He argued that all companies operating in the same sector should be subject to the same rules.
“We believe that all companies operating in the same sector should be subject to the same rules. We believe it would be more appropriate to treat foreign digital platforms under the same legal regulations,” he said.
Bağlıkaya also objected to providing advantages in Türkiye to large international digital companies while there are already numerous Turkish companies operating in the same field.
“The argument that tourist arrivals will increase is not correct”
Bağlıkaya also rejected arguments that the proposed legislation would increase the number of tourists coming to Türkiye.
He said there is already no obstacle preventing foreign digital platforms from taking reservations for Türkiye from international markets.
“There is already no obstacle to tourists coming from the Netherlands, Germany, the UK or the United States. These platforms were already operating and selling Türkiye,” he said.
According to Bağlıkaya, the issue addressed by the proposed legislation is the sale of accommodation and tourism services to Turkish citizens within Türkiye.
“The issue is services offered in Türkiye being sold to Turkish citizens. A Turkish citizen in Istanbul taking a holiday in Antalya, or a Turkish citizen in Istanbul travelling to Eastern Anatolia... In other words, domestic tourism movements. This regulation is only about that,” he said.
“This is digital capitulation”
Bağlıkaya argued that the proposed framework would create advantages for foreign digital platforms by allowing them to operate without being subject to Türkiye’s laws in the same way as local companies.
“This is called digital capitulation,” Bağlıkaya said.
He described the advantages provided to foreign platforms as inappropriate and argued that they would be harmful to the tourism industry in the long term.
“Look, in three to five years, including the accommodation sector, the dominance of the entire domestic tourism market will really pass to these companies,” he said.
Bağlıkaya added that foreign platforms could ultimately determine which companies gain visibility and which hotels are sold.
“They will decide who comes to the forefront and which hotel will be sold,” he said.
“The commission cannot be restricted through the law”
Bağlıkaya also questioned whether the proposed restrictions on commissions charged by foreign platforms could be effectively implemented.
He said foreign platforms already sell Türkiye from overseas and can operate with accommodation establishments and other service providers in Türkiye.
According to Bağlıkaya, these platforms currently charge commissions of around 35% to 40% from accommodation facilities or the businesses from which they purchase services.
He argued that limiting commission rates through legislation could be difficult because companies could use alternative forms of charges.
“It appears that the current legal regulation limits the amount of commission. It is not possible for that to work,” Bağlıkaya said.
“If a company is going to receive a commission from another company, it does not necessarily have to call it a commission. It can charge it as an advertising contribution or as an advertising fee. Therefore, it is not possible to restrict this,” he said.
“Turkish agencies are saying, ‘We can also operate abroad’”
Bağlıkaya stressed that companies wishing to conduct this business in Türkiye should establish companies in Türkiye and be subject to local rules.
He compared the obligations faced by Turkish travel agencies and other domestic companies with the operating model of foreign digital platforms.
“I am subject to consumer laws here and under the supervision of the Ministry of Trade. I have to open an office and employ staff. There are tax obligations. I am open to all kinds of inspections. My headquarters is here and I work here,” Bağlıkaya said.
He contrasted this with foreign platforms operating through digital infrastructure outside Türkiye.
“One of them has only an artificial intelligence system, an electronic environment abroad. You are talking to machines, machines are making decisions about everything,” he said.
Bağlıkaya added that Turkish companies had begun discussing the possibility of moving their own operations abroad if foreign platforms were given advantages in Türkiye.
“Many of the major tour operators we are talking about, including those operating within Türkiye, have said, ‘If such a thing exists, we can also go abroad and do this business,’” he said.
“Foreign platforms won’t compete with anyone. They’ll eliminate everyone”
Bağlıkaya argued that the proposed framework could disrupt the existing dynamics of the domestic tourism market.
“We are moving toward a regulation that will completely disrupt the internal dynamics,” he said, calling on the parliamentary commission to reconsider the proposal.
“I hope the commission will act with common sense and review this again,” Bağlıkaya said.
He also rejected the view that the arrival of foreign platforms would create a more competitive market.
“I do not believe that when foreign platforms arrive, there will be a more competitive environment. If foreign platforms come, they will not compete with anyone; they will eliminate everyone,” he said.
Bağlıkaya further argued that the platforms could subsequently use various means to maximize their commission rates and revenues in Türkiye.
“They are working with a 40% commission”
Bağlıkaya also reiterated his criticism of the commission rates charged by foreign platforms.
“Go and ask accommodation establishments about the commission rate of one of these companies. It is not below 40%. They are working with a 40% commission,” he said.
He questioned the impact of such commission levels on accommodation prices.
“From the perspective of the company producing this service, is it possible for this not to be reflected in prices?” Bağlıkaya said.
