Türkiye has reduced its accommodation tax from 2% to 1%, following a Presidential Decree published in the Official Gazette. The measure will be effective from 1 May 2026 through 31 December 2026, as part of efforts to support the tourism industry during a period of heightened geopolitical and economic challenges.
Geopolitical tensions weigh on global tourism
Ongoing geopolitical tensions triggered by the conflict involving the United States, Israel, and Iran have negatively impacted global travel demand, particularly across the Gulf region and the broader Middle East. Rising security concerns, combined with increasing energy costs, have driven up travel prices and contributed to a slowdown in tourism activity, including in Türkiye.
Industry calls for tax relief partially addressed
The tax reduction follows sustained calls from tourism stakeholders for fiscal measures to mitigate the impact of declining demand and rising operational costs. The accommodation tax cut marks the first concrete response to these demands.
Sector leaders highlight competitive impact
President of Turkish Hoteliers Federation Erkan Yağcı stated that maintaining the accommodation tax at 1% until the end of 2026 will provide critical support to the sector. He emphasized that the measure will help preserve Türkiye’s global competitiveness, ensure price stability, and sustain its position in international markets. Yağcı also underlined the strategic importance of the decision at a time of increasing global competition, cost pressures, and geopolitical uncertainty.
President of Turkish Hoteliers Association Müberra Eresin noted that despite global challenges, tourism remains a strategically important sector. She described the broader Tourism Support Package as a key step in strengthening financial resilience. Eresin welcomed the tax cut and stressed the importance of designing support mechanisms in a more balanced and segment-based manner. She also suggested that converting the accommodation tax into a fixed fee collected directly from guests could further enhance competitiveness.
President of Association of Turkish Tourism Investors Oya Narin highlighted tourism’s critical role in employment, investment, and regional development. She stated that lowering the tax rate is a significant move in an environment of rising costs and intense competition. According to Narin, the reduction will provide pricing flexibility for accommodation providers, strengthen competitiveness, and support demand management. She added that, alongside Credit Guarantee Fund (KGF) support mechanisms, the measure contributes to improving confidence across the sector.