Published on : Tuesday, December 26, 2017
According to the latest numbers from STR, Istanbul has the third-largest construction pipeline in Europe, but as tourists continue to flock to the city, that pipeline may prove insufficient. Although the supply-demand discrepancy might not arise immediately, but chance are high that there will be issues with the existing number of room availability.
Friedrich Joussen, chairman & CEO, TUI Group, told analysts during the company’s Q4 results call that they have seen strong improvements in Turkey.
Bedbank Hotelbeds also hailed the resurgence of Turkey, reporting that the Total Transaction Value of reservations of Turkish hotel accommodation had increased by 40 percent since October 1, while the country had risen from 11th to 9th position in the ranks of most-booked destinations in the EMEA region. With the recovery, there has been a return in the number of British travellers and became the largest source of bookings with Germany following in second place and Saudi Arabia in third.
STR reported that with this growing demand, it can be met with the supply growth, at least in the Turkish capital as Istanbul already has 3,867 guestrooms in construction in 20 hotel projects. In its latest tourism barometer, UNWTO said that there is “extraordinary strength” in Southern and Mediterranean Europe along with a rapid recovery seen in Turkey and double-digit increases for most of the region’s other destinations.
“Disciplined expansion of own hotel content” is essential as TUI sees. The company has shown this year that it is not afraid to use it balance sheet and acquire properties to be sure of supply. Other tour operators may be forced to follow suit.