Türkiye’s tourism industry is facing mounting pressure as rising costs and stronger competition from lower-priced destinations such as Egypt and Greece reshape travel demand ahead of the peak summer season.
Industry representatives say bookings remain below last year’s levels despite a temporary recovery following the easing of regional geopolitical tensions. According to Hamit Kuk, Board Member of the Association of Turkish Travel Agencies (TÜRSAB), reservations during the first months of the year slowed significantly, leaving the market approximately 8% to 10% behind the same period in 2025.
The warning comes as both international and domestic travellers increasingly prioritize affordability. European holidaymakers are seeking lower-cost destinations, while many Turkish citizens are also choosing to travel abroad in search of better value.
Egypt Gains Ground as a Lower-Cost Alternative
Egypt has emerged as one of Türkiye’s strongest tourism competitors. According to industry estimates cited by Kuk, package holidays in Egypt are around 30% cheaper than comparable offers in Türkiye.
The price gap has become increasingly significant for budget-conscious travellers. Industry data and travel agencies have reported growing interest from Turkish tourists in Egyptian destinations such as Sharm El Sheikh, helped by lower accommodation costs and expanding air connectivity between the two countries.
Kuk said the challenge facing Türkiye is no longer related to security concerns or destination appeal but rather to pricing. While the country continues to attract millions of international visitors, tourism businesses are finding it increasingly difficult to remain competitive.
“They say we broke records, but our growth rate of 2.7 percent is below the world average. This shows that we have lost our competitiveness,” said Hamit Kuk.
Tourism Businesses Struggle With Rising Costs
According to Kuk, inflationary pressures throughout the tourism supply chain have dramatically increased operating expenses for hotels, restaurants, transport providers, and tour operators.
He said supply-chain costs have risen by approximately 60% to 65%, while tourism businesses have only been able to pass on 15% to 20% of those increases to customers.
“Although inflation appears to be at 32 percent, cost increases in the tourism sector’s supply chain reach 60-65 percent. Despite this, businesses can only reflect a 15-20 percent price increase. The problem is not with the tourism sector,” Kuk said.
He added that several food products used extensively by hotels have increased in price much faster than exchange-rate movements over the past five years. As a result, some tourism operators now face costs that exceed those in many European destinations.
The growing cost burden is also affecting tourist expectations. Kuk warned that visitors are increasingly sensitive to value for money and that service quality could come under pressure if businesses continue to absorb rising expenses.
“Tourists are noticing the decline in service quality. This is one of the biggest risks for the sector,” he said.
Another concern raised by Kuk is pricing differences between domestic and international guests. He criticised hotels that charge Turkish citizens more than foreign tourists for similar services, arguing that the practice encourages local travellers to choose overseas destinations instead.
“People don’t want to pay more for the same service in their own country than they do for abroad. This creates a feeling of being cheated among citizens,” Kuk said.
The comments highlight the challenges facing Türkiye’s tourism industry as it enters the busiest period of the year. While operators hope stronger summer demand will improve performance, industry leaders warn that rising costs, weaker booking trends, and increasing competition from lower-priced destinations could continue to weigh on results throughout the season.
