TÜROB President Bayındır: Do not view tourism investments in Anatolia as construction investments...

In January 2017, while hotel investments decreased by 19 percent in value, the number of projects rose by 11 percent. Investments in Anatolia, led by Trabzon, were observed to be gaining momentum. Timur Bayındır, President of the Association of Turkish Hoteliers (TÜROB), stated that the investments in Anatolia were gratifying and issued a warning: “Tourism investments should not be viewed as construction investments; a sound market analysis needs to be conducted,” he said.

Timur Bayındır, President of the Association of Turkish Hoteliers (TÜROB), stated that tourism investments made in Anatolia should not be regarded as construction investments, adding that a sound market analysis should be carried out before such investments are realized. Commenting on the incentive applications for hotel investments made during the January 2017 period, President Bayındır recalled that in January, 20 new hotel projects with a total investment value of 187.9 million TL across 14 cities nationwide received incentive certificates, while 4 hotels with a total investment value of 10.5 million TL received renovation certificates.

Accurate feasibility is important
Pointing out that the slowdown in tourism investments that began last year is continuing, Bayındır said: “We maintain our view that there is no longer a need for new capacity investments in tourism centers such as İstanbul and Antalya. In these locations, investments should be directed toward renovating existing hotels rather than building new ones. Incentives should be arranged accordingly. We are pleased with the new investments being made in Anatolia. However, here too, a sound market analysis is necessary; tourism investments should not be viewed as construction investments. For these investments to achieve their purpose, it is important that they be operated with accurate feasibility. Thanks to the right incentives applied within the framework of actual needs, investments can be directed toward the regions where they are needed across the country, while ensuring that existing facilities are operated profitably and soundly.”

Trabzon ranks second in bed capacity
On the other hand, according to Ministry of Economy data, in January, 20 new hotel projects with a total investment value of 187.9 million TL across 14 cities nationwide received incentive certificates, while 4 hotels with a total investment value of 10.5 million TL received renovation certificates. The investment value rose by 19 percent and the number of projects by 11 percent compared to the same month last year. In the same month last year, incentive applications worth 232.1 million TL had been made for 18 hotels. With the finalization of the incentive applications made in January 2017, bed capacity will increase by 2,543. In terms of bed numbers among the applications made in January 2017, İstanbul ranked first with 654 beds, while Trabzon was second with 354 beds and Antalya third with 230 beds. İstanbul also ranked first in terms of the number of facilities to receive new investment, with 4 hotels. Among the hotels that received incentive certificates, 3-star hotels ranked first with 13 hotels, while in terms of capacity, 4-star hotels took first place with 1,148 beds.

JANUARY 2017 INVESTMENT INCENTIVE LIST
RankProvinceTotal Number of HotelsTotal Number of Beds
1- ANTALYA - 2230
2- BURSA - 1108
3- DENİZLİ - 150
4- ISPARTA - 1216
5- İSTANBUL - 4654
6- KARABÜK - 2214
7- KASTAMONU - 1134
8- KAYSERİ - 1127
9- MANİSA - 1103
10- MUĞLA - 2134
11- ORDU - 163
12- SİVAS - 1106
13- TOKAT - 150
14- TRABZON - 1354
TOTAL 202543

Comparison of the Month of January for the Years 2014-2015-2016-2017
YearNumber of ProvincesNumber of HotelsNumber of BedsAdditional EmploymentInvestment Value
2014153810,9702,486641 million TL
201510183,134666195.4 million TL
201615183,8531,042232.1 million TL
201714202,543544187.9 million TL