Tunç Batum, General Manager of Gürok Tourism Group, has said that returning to previous profitability levels in the tourism industry is no longer possible, citing rising operating costs, international competition and declining visitor numbers from key source markets.
Speaking on the Fokus programme broadcast by Bloomberg HT, Batum said tourism businesses were finding it increasingly difficult to pass rising costs on to customers through higher prices.
He noted that achieving price increases of 5–10% in US dollar terms was now considered a positive outcome for the sector, despite significantly higher operating expenses.
Batum also said Türkiye was becoming more expensive compared with competing destinations such as Spain and Italy, while tour operators were increasingly reluctant to accept further price increases.
“We consider a 5–10% increase in dollar terms a good result”
Batum highlighted the widening gap between operating cost increases and the price adjustments tourism businesses could achieve in international markets.
He said the sector had faced a 30% increase in costs in Turkish lira terms during the first nine months of the year, while price increases in foreign currency remained limited.
"We consider being able to increase prices by 5–10% in US dollar terms a good result," Batum said.
“Tour operators are not accepting further price increases”
According to Batum, Türkiye is facing increasing difficulties in maintaining its international price competitiveness, particularly against destinations such as Spain and Italy.
"Tour operators are not accepting further price increases. We are starting to become more expensive compared with countries such as Spain and Italy in Europe," he said.
He explained that tourism businesses were struggling to reflect higher operating expenses in their prices. However, Batum also said he did not consider price reductions aimed at gaining market share to be the right approach.
“Returning to previous profitability levels is no longer possible”
Batum stressed that growth in tourism revenues should not be interpreted as an equivalent improvement in profitability.
He pointed to the erosion of foreign-currency revenues as a major source of pressure on tourism businesses.
"An increase in revenues should not be taken to mean that profitability has also increased. There has been a significant erosion in foreign-currency revenues. Returning to previous profitability levels is no longer possible," he said.
According to Batum, operating costs have increased faster than prices, narrowing profit margins across the sector. As a result, tourism businesses remain below the profitability levels they achieved in previous years, despite revenue growth.
“There are significant declines in the UK and German markets”
Batum also drew attention to the divergence between tourism revenue growth and visitor numbers, noting that Türkiye was experiencing a decline in arrivals despite higher tourism revenues.
He said this trend could continue during the final quarter of the year.
"While there is no major problem with revenues, we are seeing a contraction in visitor numbers. In the final quarter, we may also see an increase in revenues alongside a decline in visitor numbers," he said.
Referring to Antalya, Batum reported a 5% decline in tourist arrivals and specifically highlighted the decrease in British visitors.
He also pointed to significant declines in arrivals from the UK and Germany, two of Türkiye's key tourism source markets, describing the contraction in visitor numbers as an important risk for the industry.
