TÜRSAB Chief Legal Adviser İlker Ünsever has strongly criticised Türkiye’s proposed Foreign Digital Accommodation Platforms Law, arguing that the legislation would narrow the operating scope of Turkish travel agencies, create unequal competition and weaken consumer protections.
Speaking to the Parliamentary Commission on Public Works, Reconstruction, Transport and Tourism (TBMM Bayındırlık, İmar, Ulaştırma ve Turizm Komisyonu), Ünsever said online travel agencies (OTAs) should be regarded as travel agencies and should be subject to rules comparable to those governing domestic agencies.
TÜRSAB: OTAs are online travel agencies
Ünsever argued that although the proposed legislation refers to “foreign digital accommodation platforms,” the internationally recognised term for these businesses is OTA, or “online travel agency.”
He said the European Union has extensive rules governing the activities of travel agencies and that these rules are regularly updated. According to Ünsever, the proposed Turkish legislation would instead narrow the areas in which travel agencies operating under Law No. 1618 can provide services.
Package tour exemption raises consumer concerns
One of Ünsever’s main objections concerns the proposed exemption from package-tour rules. He said that while EU legislation can classify two services purchased separately but used during the same period as a package tour, and while package tours are clearly defined under Türkiye’s Laws No. 6502 and 1618, the proposed legislation introduces an exemption.
According to Ünsever, this could mean that Turkish consumers using digital platforms would not benefit from protections normally associated with package tours, including compulsory insurance, package-tour contracts and certain cancellation and refund rights under the Consumer Protection Law and the Package Tour Contracts Regulation.
Concern over airline ticket sales
Ünsever also questioned the inclusion of airline ticket sales in legislation primarily focused on accommodation.
He argued that international flights are already subject to IATA rules and Turkish civil aviation regulations, while passenger rights are separately regulated. He further raised concerns that foreign platforms without a central presence, employees or investment in Türkiye could sell domestic airline tickets while transferring Turkish passenger data abroad.
“17% of domestic tourism activity could go abroad”
Ünsever also challenged the argument that the legislation would contribute to higher Turkish tourism revenues.
He said that if at least 17% of sales made through foreign platforms is transferred abroad, the same share could otherwise remain in Türkiye when flights, accommodation and reservations are handled by Turkish travel agencies. He therefore questioned how the proposed model would increase tourism revenues in Türkiye.
Call for foreign platforms to establish companies in Türkiye
Referring to a 2019 statement by the Minister of Culture and Tourism regarding Booking.com, Ünsever recalled concerns over taxation in Türkiye and consumer responsibility under Turkish courts.
He argued that foreign digital platforms should establish companies in Türkiye and operate under Turkish law. He also cited court decisions concerning the sale of Turkish tourism products to Turkish consumers and said the proposed legislation would effectively create a legal framework for activities that courts had previously found unlawful.
TÜRSAB warns over broad ministerial powers
Another point of criticism concerns a provision giving the Ministry authority to determine which tourism activities connected to and complementary to those explicitly listed in the law could be permitted.
Ünsever said the provision could potentially extend beyond reservations and airline tickets to activities such as transfers. He argued that granting such broad authority to the Ministry would conflict with the limitations established by the proposed law and could transfer powers that should remain with Parliament.
Warning over impact on travel agencies
Ünsever further argued that the legislation could have a significant impact on small and medium-sized Turkish travel agencies, particularly those involved in airline ticket sales.
He said many agencies could close within five years, while larger Turkish companies could establish entities abroad and access the proposed framework through those companies. He also argued that domestic businesses could ultimately become subcontractors of foreign digital platforms.
Debate over the 2.5% digital services tax
Ünsever also questioned the proposed application of a 2.5% digital services tax to foreign platforms.
He argued that because the relevant companies’ commercial books are held abroad, Turkish authorities would rely on their declarations for taxation purposes. He also said the digital services tax was originally designed around revenues such as advertising income generated by companies including Google and YouTube, whereas the proposed model would apply the tax to revenue generated from the sale of tourism services produced in Türkiye.
He contrasted this with Turkish travel agencies, which he said are subject to corporate tax rates ranging from 20% to 45% and package-tour obligations including insurance and refunds. He also referred to difficulties experienced by Turkish consumers during the pandemic when some foreign platforms did not make payments for cancelled overseas tours.
“Why don’t foreign platforms establish companies in Türkiye?”
Ünsever concluded by calling on foreign digital platforms to establish companies in Türkiye, employ staff locally and operate under Turkish law.
He argued that the relevant areas are already regulated under Turkish legislation and that establishing a local corporate structure would remove the need for much of the proposed special framework.
He also warned that the legislation could create different rules for Turkish-owned digital platforms and foreign platforms operating in the Turkish market, describing this as an asymmetric competitive environment. According to Ünsever, the sale of Turkish tourism products to Turkish consumers by foreign platforms would not generate additional tourism revenue for Türkiye.
