Türkiye Travel News

Mutlu Ayhan: Rising costs and regulations strain Marmaris hotels

Hotels in Marmaris are under pressure from rising costs, rent disputes and fire safety compliance, prompting closures, sales and operational restructuring.

Abone Ol

Marmaris – Hotels in Marmaris are facing growing pressure due to economic conditions, regulatory compliance requirements and disputes between property owners and tenants, according to Mutlu Ayhan, Chairman of the Board of the Marmaris Chamber of Commerce (MTSO).

Commenting on reports that several hotels in Marmaris have closed or been put up for sale, Ayhan said the current economic environment and the requirement to complete fire safety compliance by 31 May are directly influencing business decisions across the sector.

He noted that high financing costs, rapidly increasing operating expenses and exchange rate movements lagging behind inflation have disrupted cost balances in the accommodation sector. As a result, some businesses are being forced to reassess investment plans, redesign operating models and consider alternative options.

“This is not unique to Marmaris”

Ayhan emphasized that developments in Marmaris cannot be viewed in isolation from other tourism destinations in Türkiye.

“Similar processes are being experienced across all tourism regions in the country. Headlines about ‘hotels for sale’ or ‘hotel closures’ are, in fact, a visible reflection of the economic and operational pressures building up across the sector,” he said.

“No new regulation, only compliance with existing rules”

Addressing public concerns about fire safety regulations, Ayhan pointed out that there is no newly introduced legislation.
“There is no new regulation. Existing buildings are undergoing a compliance process to address deficiencies identified under the Regulation on Fire Protection of Buildings, which was issued in 2007,” he explained.

Ayhan added that some accommodation facilities in Marmaris already comply with the regulation and have received approval reports, while others are accelerating their work following inspections and technical assessments.

“Our businesses prioritize the safety of guests and employees above all else. There is a serious effort and investment process underway. By the end of April, the vast majority of facilities will have completed renovations and obtained fire safety approval reports,” he said.

Disputes between property owners and tenants

One of the most critical issues in the compliance process, Ayhan noted, is the disputes between property owners and tenants, particularly in leased hotels. Fire safety investments can require costly structural modifications, leading to disagreements over responsibility for these expenses.

“In some lease agreements, renovation and investment responsibilities are not clearly defined, which creates disputes in practice. Unfortunately, this can lead to some facilities ceasing operations altogether,” Ayhan said.

He stressed the need for a stronger framework that clarifies responsibilities, protects both parties and accelerates the process. “Otherwise, an increase in the number of closures will be inevitable,” he warned.

“If bed supply falls, occupancy will rise”

Assessing the broader outlook for the sector, Ayhan stated that some hotels will inevitably close or suspend operations during this period.

“The increase in properties for sale or changing their operating model is not only a result of economic pressure, but also part of a restructuring process within the sector,” he said.

While some facilities may exit the market, others may see opportunities for renewal, ownership changes and reopening with a stronger structure. “This is not merely a crisis, but a transformation driven by the needs of the sector and competition,” Ayhan added.

Ayhan also highlighted Marmaris’ scale as a tourism destination, noting that the district has around 703 accommodation facilities with close to 70,000 beds and an annual average occupancy rate of approximately 62 percent.

“In this context, a potential reduction in bed supply would naturally lead to a balancing effect through higher occupancy rates,” he concluded.

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