High inflation, a fixed exchange rate policy, and soaring prices are causing British tourists to reconsider Türkiye as a holiday destination, according to Yavuz Torunoğulları, Board Member of Orka Hotels.
Speaking to Tourism Economy, sister B2B portal of Türkiye Travel News, Torunoğulları said Türkiye’s growth in the UK market has been undermined by geopolitical tensions and economic challenges. He noted that rising costs and inflation have significantly weakened the country’s competitiveness, while British travelers increasingly opt for alternative destinations such as Egypt and Tunisia. He also warned that a sharp decline in city-center tourist activity could affect local businesses and shape tourism planning for 2027.
British tourists are changing their preferences
Torunoğulları stated that Türkiye has nearly doubled its tourism volume from the UK since 2019 but emphasized that demand is highly sensitive to geopolitical and economic developments.
“The Iran conflict had a serious impact on Turkish tourism. Before that situation could stabilize, Ukraine launched a large-scale drone attack on Russia. Combined with Türkiye’s inflation-driven cost increases, these developments have altered the preferences of British holidaymakers who have visited Türkiye for years,” he said.
According to Torunoğulları, the cost of dining out and shopping has reached levels that many visitors find difficult to justify.
“British tourists are changing course because of the prices they encounter. We are moving back toward pre-pandemic visitor levels,” he added.
2027 outlook already under pressure
Torunoğulları said the current slowdown is likely to affect tourism demand beyond next year.
“Tour operators will determine their 2027 seat allocations based on this year’s performance. Capacity planning will reflect current results, which is a clear indication that 2027 will not be better than 2026. The effects of economic problems and geopolitical conflicts do not disappear overnight,” he said.
Shift toward all-ınclusive destinations
The Orka Hotels executive noted that British travelers visiting Muğla are increasingly choosing all-inclusive resorts in Antalya, where holiday costs are more predictable.
“Tourists know exactly how much they will spend in an all-inclusive resort and avoid unexpected expenses. The decline in British arrivals to Muğla, while destinations such as Antalya, Egypt, Tunisia and Morocco continue to grow, clearly demonstrates this trend,” he said.
According to Torunoğulları, families often end up spending almost as much outside the hotel as they spend on the holiday itself when staying in destinations where expenses are not included.
City-center tourism down by 50%
Torunoğulları also pointed to rising rents and tighter regulations on short-term rentals of second homes as factors reducing demand.
“This visitor segment was one of the biggest contributors to local spending. Due to restrictions on second-home rentals, we have largely lost this market. Combined with the fact that all-inclusive guests are spending more time inside their hotels, tourist numbers in city centers have fallen by nearly 50%,” he said.
He warned that the trend is putting increasing pressure on local businesses and could lead to significant disruptions in tourism destinations by the end of the season.
Fixed exchange rate policy hurts hoteliers
Torunoğulları described the fixed exchange rate environment as one of the industry's biggest challenges.
“We sign contracts in foreign currencies, but we cannot reflect rising costs in our prices. UK partners argue that inflation in their market is only 2–3%, while costs in Türkiye have increased by 30–40%. Personnel expenses alone rose by 27.8%. Because exchange-rate growth has failed to match inflation, many hoteliers have stopped making profits over the last two to three years and are now focused on maintaining operations,” he said.
He added that the current exchange-rate policy is creating difficulties not only for tourism but also for the textile and export sectors.
TGA campaigns support demand recovery
Torunoğulları acknowledged the extensive promotional efforts being carried out by the Turkish Tourism Promotion and Development Agency (TGA) in the UK and Ireland.
He said bookings have improved since the start of the summer season.
“Hotels that were previously receiving 15 to 20 reservations per day are now seeing figures closer to 40 or 50. However, we are already at the end of June. Seasonal hotels must generate enough revenue in just two to two-and-a-half months to support operations throughout the year,” he noted.
Despite the recent improvement, he believes that next year’s outlook will largely depend on this year’s results and that current inflation levels do not suggest a major turnaround.
Higher hotel costs as guests stay on property
According to Torunoğulları, tourists are spending less time outside their hotels because of rising prices, which is increasing operational costs for accommodation providers.
“In the past, around 25% of all-inclusive guests would spend part of the day on excursions, visit water parks, join safaris or paragliding tours, or dine outside the hotel. This reduced hotel operating costs and eased pressure on facilities. Today, that 25% remains inside the resort, consuming more energy, water, food and beverages. Even cleaning supply usage has increased,” he explained.
Dining costs have more than doubled
Torunoğulları highlighted the impact of inflation on visitor spending.
“A family of four that could once enjoy a quality meal for £100 now faces a bill of £200 to £250. This is not a 10% or 20% increase; it is closer to 150%. Such inflation levels are difficult for British tourists to accept,” he said.
He also criticized excessive pricing practices by some businesses.
“If a product purchased for 15 Turkish lira is sold for 189 lira, that is difficult to justify. Even with a 100% margin, the price would be around 30 to 50 lira. Such pricing damages the destination’s image,” he said.
Occupancy rates down 15–25%
Torunoğulları reported that June occupancy levels, which would normally range between 75% and 80%, are currently around 60%.
“Depending on the property, occupancy has declined by 15% to 25%. When discounts introduced to stimulate demand are also taken into account, the revenue loss becomes even greater. Average revenue per guest falls as hotels lower prices in response to weaker demand,” he said.
He added that tour operators increasingly prioritize hotels offering the deepest discounts, often marketing them by category rather than by brand.
Investment plans remain on hold
Despite challenging market conditions, Torunoğulları said Orka Group continues to pursue selected investments.
The company recently opened a new 300-room hotel in the Netherlands under a franchise agreement with Radisson Blu, representing its largest recent investment.
In Türkiye, the group is planning to renovate one of its existing properties into an aqua park hotel and has additional tourism land available for future development. However, new projects remain on hold due to economic uncertainty, financing challenges and restrictions on foreign-currency lending.
“We have preparations in place and projects ready to move forward when conditions improve. We are currently evaluating opportunities for two boutique hotels in Fethiye and another property in the Turunç area of Marmaris, but we are waiting for the right market conditions,” he said.
Inflation must be the top priority
Torunoğulları concluded by stressing that controlling inflation and excessive pricing should be the government’s primary focus.
“Unless we address high prices and prevent excessive pricing practices, promotional campaigns and marketing efforts will not achieve their full potential. This should be the country’s top priority,” he said.