Presidents of the tourism sector's leading organizations: “Reaching the targets will not be easy with the accommodation tax”

Commenting on the accommodation tax, the presidents of the tourism sector's leading organizations stated that the regulation would adversely affect the sector.

In the tourism sector, where per capita tourism revenue stands at around 650 dollars and where significant structural reforms are expected in order to raise revenues, the introduction of a tax—named the accommodation tax but covering a two percent (2%) share of all revenues—which was enacted at the General Assembly of the TBMM only after the 2020 agency contracts had already been finalized, has caused concern in the sector. It was stated that the negative perception the accommodation tax would create among consumers along with price increases would manifest itself in both domestic and inbound tourism, and that adverse effects were expected on the 'Fight Against Inflation Program' being resolutely pursued by our government.

In a joint statement issued by Osman Ayık, President of the Turkish Hotels Federation (TÜROFED), Oya Narin, President of the Turkish Tourism Investors Association (TTYD), and Müberra Eresin, President of the Association of Turkish Hoteliers (TÜROB), it was stated: “The sector, which was preparing to manage the recently introduced deduction for the Turkey tourism development and promotion agency share, will this time have to contend with an even higher-rate cost due to the newly introduced 'accommodation tax.' It will not be easy for the tourism sector—which has only just begun to recover its competitive strength following the contraction experienced in 2015 and 2016—to reach its targets with these additional costs. Effective and timely consultation with sector stakeholders on regulations affecting major cost items in the sector is our fundamental expectation from our Government. Reviewing this regulation at the first opportunity, before experiencing its negative consequences, is of critical importance for our sector to reach its 2023 tourism targets of 75 million tourists and 65 billion dollars in tourism revenue. Applying the accommodation tax only to overnight accommodation services, revising the rates according to regions and the tourism season, and—taking into account that the sector's 2020 allotment contracts are in effect—commencing it as of 1 November 2020 would be an important first step.”