Kaan Kavaloğlu, President of the Mediterranean Tourist Hoteliers and Operators Association (AKTOB), has raised concerns over the impact of the euro exchange rate on the tourism industry. Addressing the SKAL Antalya meeting, Kavaloğlu highlighted the financial strain this situation is placing on hoteliers, despite an increase in revenue.
Profits fall while revenue rises
"Compared to last year, we are up by 15%. This figure is crucial for us," Kavaloğlu stated. "However, the unfavorable euro exchange rate is a significant issue. While we all live in this country and understand its financial situation, our main revenue sources are exports and tourism, alongside local taxes. The current euro rate, coupled with cost increases of 110-130%, is unsustainable with only a 25% increase in the euro exchange rate. As a result, our costs are not being covered, leading to higher revenue but lower profits. We are facing a challenging financial season."
Germans overtake Russians after long time
Kavaloğlu also commented on market trends, noting a significant shift: "For the first time in a long while, Germans have outnumbered Russians in tourist arrivals. In the first five months of the year, the number of German tourists exceeded that of Russians, although Russians slightly outpaced Germans in April and May. Our third largest market remains the UK, followed by Poland, which has recently become a key market for us. Considering we've lost about 80% of the Ukrainian market, the growth of the Polish market is particularly valuable, as more Polish tourists are choosing Antalya and Turkey."
He added, "The UK market is also expected to surpass 1.5 million visitors this year. Our collective goal is to surpass 17 million tourists, ensuring a healthy season without financial difficulties."
