Foreign tourism investment in Turkey declines

17-02-24

Foreign direct investment in Turkey's tourism sector experienced a marked decline in 2023, registering an 86% drop compared to the previous year. This dramatic reduction brought investments from $332 million in 2022 to just $46 million in the last year, marking a turning point for the country's tourism industry.

This decline in foreign investment has been deeply felt in key sectors such as accommodation and catering, fundamental to Turkey's tourism ecosystem. Data provided by the Central Bank of the Republic of Turkey, and compiled by Turizm Ajansi, reflects not only international investor pullback but also a broader context of economic and possibly geopolitical challenges.

Moreover, Turkey's tourism investments abroad have not been left out of this negative trend, declining by approximately 25%, equivalent to $80 million. This decline underscores a generalized contraction in the flow of both inbound and outbound tourism investments, which could have long-term implications for the competitiveness and resilience of the Turkish tourism sector on the global stage.

This decline in foreign direct investment in tourism raises questions about the future strategies Turkey could adopt to revitalize one of its most vital sectors. The need to address the underlying factors that have led to this decline becomes imperative to ensure a sustainable recovery and future growth of tourism in Turkey.