TÜROB Analyzed Investments for the First 4 Months of 2016 and 2017

April 2017

ACCOMMODATION SECTOR INVESTMENT INCENTIVE CERTIFICATES

TUROB ASSESSMENT REPORT

The “Investment Incentive Certificates” issued by the Republic of Turkey Ministry of Economy for April 2017 were published in the Official Gazette dated 25.05.2017, and the said “Investment Incentive Certificates” have been compiled in terms of the accommodation sector by the Association of Turkish Hoteliers - TUROB.

Accordingly;

a) April 2017

In April 2017, 23 new hotel projects received an “Incentive Certificate” in a total of 17 different cities across the country, while 4 hotels with a total investment amount of TL 35.543 million received a “Renovation Certificate.” Following the new investments, which will be completed with a total expenditure of TL 237.040 million, 845 new additional jobs will be created in the sector.

With the completion of the investments to be made in 17 different cities, the bed capacity will increase by 2,991. In terms of the number of beds, Antalya ranked first with 688 beds, followed by Istanbul with 446 beds.

b) Distribution of hotels by star category, April 2017;

Among the hotels that received incentive certificates, 3-star hotels rank first in terms of the number of facilities and the number of beds, with a total of 11 hotels and 1,256 beds.

c) Distribution of hotels by star category, January - April 2017;

In the first four months of 2017, while 3-star hotels ranked first among the hotels that received incentive certificates, with a total of 37 hotels, 4-star hotels ranked first in terms of capacity with 3,943 beds.

d) Comparison of the month of April for 2014-2015-2016-2017

While the number of hotels receiving investment incentive certificates increased in April 2017, a decrease is observed in the number of beds. Compared to April of last year, bed capacity fell from 3,889 to 2,991, and additional employment fell from 1,186 to 845 people.

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

It is observed that the figures for the past January - April period have continued to increase. While there was a decrease in the number of beds compared to the first 4-month period of 2016, an increase is observed in the investment amount due to high-capacity facilities.

Making a brief assessment of the report, Timur Bayindir, Chairman of the Association of Turkish Hoteliers (TUROB), stated: "We are pleased to see the increase in the number of 3- and 4-star hotels and that investments have spread considerably to Anatolia. The emergence of investments in our smaller cities, as well as in metropolitan areas, is very important for the spread of tourism throughout the country. For a balanced and year-round sustainable tourism, all of our tourism products need to be made high-quality by being supported with the necessary infrastructure investments."

© TUROB – May 2017