2025 is proving to be a difficult year for the tourism sector, according to Rixos Hotels Chairman Fettah Tamince. Speaking to Oksijen columnist Güzem Yılmaz Ertem, Tamince said Türkiye has entered a “maturity phase” in tourism and is following a trajectory similar to other Mediterranean destinations.
“It’s not realistic to be cheap again”
Rixos Chief Tamince stressed that Türkiye should no longer focus solely on maximizing visitor numbers.
“Yes, inflation is high, costs have risen, and prices have gone up. But Türkiye is no longer a country that can simply aim for 60 or 70 million tourists. From now on, we need more qualified visitors — travelers who spend more, who return, who see Türkiye at the same level as southern France, Italy or parts of Greece. Because we can’t keep discounting. It’s not realistic to take things back and make them cheap again,” he said.
“The more visitors you bring, the higher the cost you pay”
Tourism in Türkiye, Tamince argued, comes with serious economic and environmental costs.
“As you increase visitor numbers, you also pay a price — whether it’s for infrastructure, roads, water shortages, air and sea pollution, or labor. Tourism is not free. Each visitor requires services that carry real costs, and those must be reflected accordingly,” he explained.
“Time to plan the future differently”
Rising input costs over the past 2–3 years have put hoteliers under severe pressure, Tamince noted. “We cannot immediately pass all cost increases onto prices. The future requires a different approach: stronger branding, reaching higher-income groups, diversifying source markets. Right now, visitors are concentrated from certain regions, but the world is much bigger. We need to tap into that,” he said, pointing to Rixos’ own efforts to reposition its brand.
“We worked as subcontractors for too long”
Tamince acknowledged profitability challenges in the sector. “Our costs are rising faster than official inflation, and although we sell in foreign currency, margins are under pressure. For years we worked as subcontractors for global brands. Those who built strong brands can now sell their products at higher prices. Türkiye must follow the same path — otherwise relying on low costs alone is not sustainable,” he warned.
“A €1,000 room in Antalya would cost €2,500 in Dubai”
On hotel pricing, Tamince argued that Türkiye remains competitive in its segment.
“At Rixos Premium Belek, a night costs around €1,000. It isn’t cheap, but for the same standard of service in Spain, Italy, the U.S. or Dubai, you would pay two to three times more. In Egypt, we can offer a similar concept for $400. Pricing depends on market, audience, and location. The key now is not just filling rooms, but attracting the right segment of tourists, especially from Europe and the Gulf,” he said.
“Construction costs have risen 601%”
Explaining why profitability remains low despite record arrivals at Antalya Airport, Tamince highlighted soaring investment costs.
“Previously, building a hotel room in Antalya was one-third the cost of southern France or Dubai. Today costs are almost equal. Construction costs have risen by as much as 601%. This pushes the return-on-investment period to 8–10 years, which reduces investor appetite,” he noted.
“Large-scale investment appetite is limited”
Türkiye’s economic environment, Tamince said, also discourages major new investments. “Everyone is paying a price in the current economy. Monetary policy remains tight, which restricts access to financing. Even if interest rates fall, accessing affordable credit will not be easy. At current commercial loan costs of 40–45%, planning major investments is very difficult. I expect some easing in the second half of 2026, but until then, appetite for large-scale projects will remain limited,” he commented.
“10,000 Jobs to be created at Tersane İstanbul”
Tamince also discussed the group’s landmark project, Tersane Istanbul.
“The site will include a Rixos hotel, another under the famous American brand Delano, and our own new brand Aliee, which we expect to make a global impact. Alongside these hotels, there will be apartments, retail units, and museums. When completed, the project will employ nearly 10,000 people. It will be one of the largest real estate developments in the world,” he said.
