POYD Bodrum Representative and Bodrium Hotel & SPA General Manager Yiğit Girgin said that the purchasing power in the domestic market has decreased due to the economic fluctuations and the foreign exchange-based increase in prices has also negatively affected the foreign market.
Girgin stated that Eid al-Fitr passed in the shadow of the elections, but they still had active days in terms of tourism in Bodrum, adding that they expected the real density in the region after 15 June.
Yiğit Girgin noted that the interest of foreign tourists in Bodrum continues and said, “There was a dynamism in Bodrum in general and in the tourism sector during the Sugar Feast period. The holiday has come with its blessings. However, due to the elections and the economy, the occupancy rate was not as we expected. During the feast, rooms were periodically sold at affordable prices. In the season, it is possible to say that the price fixation has been lifted. Because of the economic uncertainties, there may be sudden increases during the season. The purchasing power in the domestic market has decreased. Costs are too high for the tourism industry. We are an industry that works in foreign currency and makes purchases in foreign currency. Due to the increasing costs, we reflect the foreign currency-based increases to foreign tourists as well. For this reason, we started to be more expensive in some points compared to abroad. This is a dangerous situation. Due to the increasing costs, we see that the demand for our country has decreased when we follow the policy with higher prices than the Arab countries with rising tourism such as Dubai.”
PRICE UPDATES ARE CONTINUOUS
Noting that the industry has to constantly update its prices due to increasing input costs, Girgin gave the following information: “Our expenses in energy, water, natural gas, raw materials, personnel costs and other basic items are increasing every month. Although the increase in foreign currency is considered profitable for us, we actually have many expenses related to foreign currency. It is the livelihood of the people that enables businesses to survive. As input costs increase, so does the money that goes into people's pockets. It is not possible to balance this when people's incomes do not increase. Currently, TL costs increase on a currency basis, while revenues remain constant. Although we want a strong Turkish economy, the pressure to stay stable is not good for the tourism sector at this stage. As everyone has stated, the foreign currency must now be 25 TL or more in the real markets.”
EXCHANGE BASED INCREASES, REDUCES FOREIGN DEMAND
Yiğit Girgin explained that the increase in prices in Turkish tourism caused a decrease in foreign demand and continued: “Due to high costs, it is possible for tourists to turn to different alternatives. If the right balances are not achieved in the future, planes may change routes due to low demand. Greek islands, Spain, warm regions in the Mediterranean basin can be preferred.
Gulf countries, Dubai and Egypt make very serious promotions in all international fairs. Turkey's competitiveness in tourism has become stagnant due to foreign exchange-based increases and costs. It was clear that the election would affect the course of tourism until the beginning of June. The first half of June seems to be a quiet one as the election is extended to the second round, the uncertainty increases and the economic stagnation manifests itself. The economic situation of people living abroad is also important. While the economic power of the Russian people is decreasing, the rise in Turkey's prices may cause a contraction in the Russian market. After all, there is a war going on there too. It is seen that the current package sales are stable. Domestic tourists who want to take a vacation can divide their vacation into two instead of doing all of their vacation in the middle of the high season. They can have a holiday at more affordable prices in the beginning of summer or in September and later, which we call yellow summer.