TURKISH TOURISM
INVESTORS ASSOCIATION
Dr.OKTAY VARLIER
Chairman of the Board
Turkish Tourism Investors Association
-Established in 1988
-185 members
-US$ 18 billions investment portfolio
TYD Members have invested in :
-Accommodation (over 200 thousand beds)
-Marinas
-Yachting
-Tourism Oriented Land and Air Transport
-Tour Operating
-Touristic Shopping Centers
-Golf Courses
-Entertainment and Recreation Facilities
-Turnkey Project Design
KEY FACTS ABOUT TURKISH TOURISM
•
•
•
•
World Tourism Organization ranks Turkey as the 8th
largest tourism revenue earner in the world,in 2004.
Great geographical advantage
-one quarter of the world population can be reached
within 4 hours flight time
Elements of success
- good balance between price and quality
- high performance of Turkish tour operators abroad
- charter flights of Turkish air carriers
- expensive euro in recent years
KEY FACTS ABOUT TURKISH TOURISM
(2)
•
Tourism is the fastest developing sector in Turkey
- annual average growth rates in the past 20 years is
10,5 % in tourist arrivals, 11,7 % in tourism revenues
- total growth rate for 2004 and 2005 is 50 %.
•
Tourism is the second highest sector in attracting
investment ( 2 billion US$ per year) after automotive.
•
In 2004, the share of tourism receipts in GNP is 4 %
•
5% of the total employement in Turkey is in the tourism
sector.
TOURIST ARRIVALS AND TOURISM RECEIPTS
IN TURKISH TOURISM
(1980-2005)
T o u rist A rriv a ls
1980
1985
1990
1995
1996
1 .2 8 8 .0 6 0
2 .6 1 4 .9 2 4
5 .3 8 9 .3 0 8
7 .7 2 6 .8 8 6
8 .6 1 4 .0 8 5
T o u rism R eceip ts
(m illio n $ )
327
1 .4 8 2
3 .2 2 5
4 .9 5 7
5 .6 5 0
1997
1998
1999
2000
2001
9 .6 8 9 .0 0 4
9 .7 5 2 .6 9 7
7 .4 8 7 .2 8 5
1 0 .4 2 8 .1 5 3
1 1 .6 1 8 .9 6 9
7 .0 0 2
7 .1 7 7
5 .2 0 3
7 .6 3 6
8 .0 9 0
2002
2003
1 3 .2 4 6 .8 7 5
1 4 .0 2 9 .5 5 8
1 7 .5 1 7 .6 1 0
2 1 .0 0 0 .0 0 0
8 .4 7 3
9 .6 7 6
1 2 .1 2 4
1 5 .0 0 0
2004
2 0 0 5 (es t.)
Tourist Arrivals and Tourism Receipts
in Turkish Tourism (1980-2004)
25.000
20.000
T ourist A rrivals
(thousand)
15.000
10.000
T ourism
R eceipts (m illion
$)
5.000
(e
st
)
04
05
20
20
03
20
02
20
01
20
00
20
99
19
98
19
97
19
96
19
95
19
90
19
85
19
19
80
0
TOURIST ARRIVALS BY MAIN COUNTRIES
OF NATIONALITY (2004)
Nationality
Germany
Tourist Arrivals
3.983.939
% Share
22,7
UIS
United Kingdom
2.792.123
1.387.817
15,9
7,9
Bulgaria
Netherlands
Iran
1.309.885
1.191.382
628.726
7,5
6,8
3,6
France
Greece
Austria
548.858
485.417
455.863
3,1
2,8
2,6
Belgium
Italy
426.971
318.097
2,4
1,8
Israel
299.172
1,7
Main markets (2004)
-EU countries ........................... 55 %
-Union of Independent States .. 16 %
(Russian Federation................... 9 %)
-Asian countries...........................9 %
-Israel is in the 12th place with 1,7 %
T o u ris t Arriv a ls B y M a in C o u n trie s o f N a tio n a lity (2 0 0 4 )
1,7
1,8
2,4
2,6
G erm any
2,8
22,7
3,1
U IS (form er U S S R )
U nited K ingdom
B ulgaria
3,6
N etherlands
Iran
F ranc e
6,8
G reec e
A us tria
B elgium
Italy
7,5
Is rael
15,9
7,9
T o u rist Arrivals B y R eg io n In T h e W o rld (2004)
Latin A m eric a
0,2
A fric a
1,1
O ther
0,1
A s ia
9,3
O E CD
E as t E urope
E as t E urope
A s ia
27,6
A fric a
O E CD
61,7
Latin A m eric a
O ther
TOURIST ARRIVALS BY REGIONS IN THE WORLD (2004)
% S h a re
E u ro p ean
U n io n (* )
OECD
T o u rist
A rriv a ls
9 .5 9 4 .9 6 8
1 0 .8 0 6 .7 6 0
6 1 ,7
E ast E u ro p e
A sia
A frica
L atin A m erica
O th er
TO TAL
4 .8 3 6 .2 8 6
1 .6 2 6 .8 8 9
1 9 7 .7 1 2
3 0 .7 3 7
1 9 .2 2 6
1 7 .5 1 7 .6 1 0
2 7 ,6
9 ,3
1 ,1
0 ,2
0 ,1
1 0 0 ,0
5 4 ,8
(*) Arrivals from EU countries are included in OECD figures.
REALIZED AVERAGE ANNUAL GROWTH RATES
(1994-2004)
T
o
u
r
i
s
t
A
r
r
i
v
a
l
s
T
o
u
r
i
s
m
R
e
v
e
n
u
e
T
u
r
k
e
y
9
,
6
%
1
4
,
0
%
W
o
r
l
d
3
,
4
%
6
,
0
%
In the past decade with regard to both tourist arrivals and tourism
receipts Turkey’s growth rates are higher than the double of world
average.
R ealized A verag e A n n u al G ro w th R ates
(1994-2004)
1 6 ,0 %
1 4 ,0 %
1 4 ,0 %
1 2 ,0 %
1 0 ,0 %
9 ,6 %
8 ,0 %
6 ,0 %
6 ,0 %
4 ,0 %
3 ,4 %
2 ,0 %
0 ,0 %
T o u rist Arriva ls
T o u rism R e ve n u e
Turke y
W o rld
Tourist Arrivals by Regions(2004)
Tourist Arrivals
% Share
Antalya
6.050.000
35
Aegean
Coast
3.500.000
20
Istanbul
3.500.000
20
•Antalya is the most visited tourism center with 35 % market
share ,followed by Istanbul and Aegean Coast with 20 % each.
ACCOMMODATION CAPACITY
(End of 2004)
T
o
u
r
i
s
m
C
e
n
t
e
rN
u
m
b
e
r
o
f
B
e
d
s%
S
h
a
r
e
A
n
t
a
l
y
a
1
9
5
.
0
0
0
4
0
,
0
A
e
g
e
a
n
C
o
a
s
t
1
4
5
.
0
0
0
3
0
,
0
I
s
t
a
n
b
u
l
6
0
.
0
0
0
1
3
O
t
h
e
r
s
8
0
.
0
0
0
1
7
,
0
4
8
0
.
0
0
0
1
0
0
T
O
T
A
L
40 % of the accommodation capacity is in Antalya. Aegean Coast has
30 % and Istanbul 13 % of the total beds.
Tourist Arrivals by Means of
Transport (2004)
Air
Land
Sea
Train
Tourist Arrivals
% Share
12.576.000
3.717.000
1.152.000
73.000
71,8
21,2
6,6
0,4
In 2004, 72 % of tourists arrived by airlines, most of them carried by
Turkish charter planes.
Public-Private Sector Cooperation
•
In Turkey , Belek Tourism Center is a perfect example of public-private
sector coordination and considered as a good model of governance in
tourism by international institutions.
•
Belek region is on the Mediterranean coast and located 30 km. to the east
of Antalya city center. Belek has 80-150 m. wide and 23km.long sandy
beach with 300 days of sunshine.
•
Belek was proclaimed tourism center by the Ministry of Tourism in 1984.
First investors in Belek faced huge problems about infrastructure (infact no
infrastructure was available when the lands were allocated to tourism
investors)and decided to form a dynamic structure to overcome these
problems with the cooperation of the public institutions. With this aim ,Belek
Tourism Investors Union (BETUYAB) was established in 1989.With the
leadership and coordination of BETUYAB infrastructure
investments(roads,electricity and water supply,telecomunication,waste
water treatment) were completed in the 1990s.
•
Total expenditures for infrastructure are estimated to be around 400 million
$,shared 1/3 by tourism investors, 1/3 by the Ministry of Tourism and 1/3 by
other public institutions like municipalities, Ministry of Energy, Ministry of
Public Works, etc.
Public-Private Sector Cooperation (2)
•
Presently, there are 38 tourism facilites in Belek with 35.000 beds. They are
5 star hotels and 1st class holiday villages. All the facilities offer tennis
courts, indoor and outdoor swimming pools, completely equipped health and
fitness centers,restaurants,bars,kid clubs, play areas etc..
•
The availability of large spectacular spaces suitable for golf and the
temperate climate of the region create a greate potential for golf tourism.
Presently there are 6 golf courses and 5 new golf courses are on
construction. Belek is a candidate to be an important golf center at
international standards.
2010 Targets
- 32 million tourists
- 27 billion $ tourism receipts
- 1 million bed capacity with international standards
Expected Investments Until 2010
- 480.000 beds
present capacity( int.standarts)
- 100.000 beds
on construction
- 300.000 beds
low quality beds to be modernized
- 120.000 beds
to be built newly
REASONS TO INVEST IN TURKISH
TOURISM
•
•
•
•
•
•
•
•
Unique geographical location
Large and dynamic sector with high growth potential
New, modern and quality oriented tourism establishments
High skilled, cost effective labour force
Low construction costs
Land allocation for tourism investors on 49 years lease base
Well developed infrastructure in tourism destinations
Highly liberalized exchange rate regime and foreign investment
regulation
-No pre permits for foreign company establishment
-No minimum capital requirement
-Any form of company is acceptable
-Company establishment in 2-3 days
-Foreign and domestic investors are treated equally
-Free transfer of profits
GOVERNMENT INCENTIVES FOR
TOURISM INVESTMENTS
• Investment allowance
(40 % in developed, 80 % in underdeveloped regions).
• Tax exemption on imported items.
• VAT exemption on local machinery and equipment.
• Tax duties and charges exemption on local purchases.
• Land allocation on 49 year lease base.
• Electricity and water consumption at the lowest available
price (during investment and operation periods)
TAXES
• Corporate Tax 30% (in 2006 20%)
• Value Added Tax 18%
• Income Tax 20-40%(in 2006 15-35%)
THANK YOU