November 2016 TÜROB Investment Incentive Report
TÜROB: This period should be put to good use through renovation investments...
TÜROB President Timur Bayındır stated that it is normal for new investments to slow down during the period the sector is going through. However, Bayındır noted that they are particularly waiting for the government to take action on renovation incentives.
Association of Turkish Hoteliers (TÜROB) President Timur Bayındır stated that it is normal for new investments to slow down during the period the sector is going through, but that they are particularly waiting for the government to take action on renovation incentives. The November 2016 'investment incentive certificates' issued by the Ministry of Economy were announced. According to Ministry of Economy data compiled by the Association of Turkish Hoteliers (TÜROB), in November 2016 a total of 15 new hotel projects across 12 cities nationwide received incentive certificates, while 4 hotels received renovation certificates. Evaluating the latest data, TÜROB President Timur Bayındır stated that he was pleased with the distribution of incentive-backed investments across 12 separate provinces nationwide during November 2016. President Bayındır said: "I believe our statements are bearing fruit. The shift of investments toward medium-sized businesses and toward provinces facing a supply shortage outside Antalya and Istanbul is a positive step."
Anatolia must accelerate
President Bayındır expressed that the current incentive system needs to be revised through coordinated efforts between sector organizations and the Ministry of Economy. Bayındır said: "In addition to spreading tourism investments to our Anatolian provinces, it must be taken into account that there are many hotels entering a state of wear and tear in Antalya, Istanbul, Aydın and Muğla, the driving force of the accommodation sector, and the incentive certificates to be granted in these provinces should be regulated to favor the modernization and renovation of existing investments rather than new investments."
201 million TL in November
Meanwhile, following the completion of investments backed by incentives in November, to be carried out with a total expenditure of 201.2 million TL, 625 new additional jobs will be created in the sector. With the completion of these investments, bed capacity will increase by 3 thousand 132. In November 2015, incentives worth 313.4 million TL had been received for 19 hotel projects. Accordingly, while the number of investments fell by 21%, the investment amount also declined by 36%. In the 11-month period covering January-November 2016, a total of 161 new hotel projects across 39 cities nationwide received incentive certificates. Following the completion of investments to be carried out with a total expenditure of 2 billion 639 million TL, 8 thousand 762 new additional jobs will be created in the sector. With the completion of these investments, bed capacity will increase by 35 thousand 244. In the same period of 2015, incentive applications had been made for an investment of 3 billion 310 million TL for 203 hotels. Accordingly, a decline of 21% occurred in the number of hotels and 20% in the investment amount.
Top three unchanged
In the 11-month period, the top three provinces in terms of bed numbers for new investments again remained unchanged. Antalya, ranking first with 6 thousand 623 beds, was followed by Istanbul with 5 thousand 874 beds and Muğla with 4 thousand 244 beds. In terms of the number of hotels, Istanbul maintained its first-place position by reaching 26 hotels. Muğla ranked second with 20 hotels, followed by Antalya in third place with 13 hotels. With Artvin and Tokat appearing on the list for the first time, the number of provinces receiving investment reached 39. In terms of bed numbers, 5-star hotels made up half of the total investment capacity with 17 thousand 606 beds.
Click to download the November 2016 TÜROB Investment Incentive Report.