March 2017 Investment Incentive Report

March 2017
ACCOMMODATION SECTOR INVESTMENT INCENTIVE CERTIFICATES

TÜROB ASSESSMENT REPORT

The “Investment Incentive Certificates” issued by the Republic of Türkiye Ministry of Economy for March 2017 were published in the Official Gazette dated 29.04.2017, and the said “Investment Incentive Certificates” have been compiled by the Association of Turkish Hoteliers - TÜROB from the perspective of the accommodation sector.

Accordingly;
a) March 2017

In March 2017, a total of 22 new hotel projects in 15 different cities across the country received an “Incentive Certificate,” while 6 hotels with a total investment amount of 45.993 million TL received a “Renovation Certificate.” Following the new investments, which will be completed with a total expenditure of 327.362 million Turkish Lira, 1,032 new additional jobs will be created in the sector.

With the completion of the investments to be made in 15 different cities, bed capacity will increase by 3,394. In terms of the number of beds, Izmir ranked first with 672 beds, followed by Muğla with 576 beds.

b) Distribution of March 2017 hotels by star category;

Among the hotels that received an incentive certificate, 3-star hotels ranked first with a total of 9 hotels, while in terms of capacity, 4-star hotels took first place with 1,074 beds.

c) Distribution of hotels by star category for January - March 2017;

Among the hotels that received an incentive certificate in the first three months of 2017, 3-star hotels ranked first with a total of 26 hotels, while in terms of capacity, 5-star hotels took first place with 3,274 beds.

d) Comparison of March 2014-2015-2016-2017

We can say that the downward trend continued, albeit by a small margin, in March 2017. Compared to March of last year, bed capacity decreased from 4,271 to 3,394, and additional employment fell from 1,133 to 1,032 people.

e) Comparison of the January-March period 2014-2015-2016-2017

It is observed that the figures for the January - March period have continued with relative stability. While there was a decline in the number of beds compared to the first 3-month period of 2016, an increase is observed in the investment amount due to high-capacity facilities.

Making a brief assessment of the report, the President of the Association of Turkish Hoteliers (TÜROB), Timur Bayındır, stated: "After a long time, we see that for the first time Istanbul is not on the list. Thus, we believe that the views expressed by us, the sector stakeholders in the field, have been taken into account by investors. We regard the inclination toward 3- and 4-star hotels as gratifying in terms of supporting diversity. However, the fact that renovation (modernization) incentives still remain very limited and that these incentives are not offered with adequate opportunities is steering the accommodation sector away from its actual needs and further shrinking its share in a contracting market. We reiterate our views on the prompt establishment of the Investment Monitoring Board and the expansion of renovation incentives."

© TÜROB – May 2017