Turkey Tourism Sector Faces Rising Costs And Inflation But Optimism For 2026 Grows Amid Strong European And Russian Market Prospects

Published on December 1, 2025

The Turkish tourism sector is cautiously optimistic about 2026, with expectations of growth driven by strong demand from European and Russian markets. However, rising inflation and high operational costs remain significant challenges, prompting industry professionals to adopt flexible pricing models and digital strategies to maintain competitiveness. While the outlook is positive, addressing these economic pressures is crucial for sustaining growth and profitability.

A recent survey from the Association of Turkish Tourism Professionals (AKTOB) reveals that while optimism for 2026 is palpable among Turkish tourism stakeholders, the looming challenges of high operational costs and inflation keep expectations in check. With Europe and Russia expected to drive visitor numbers, the sector remains cautious as it faces the reality of rising expenses.

A Mixed 2025 with Hopes for 2026

The outlook for 2025 has been mixed but largely positive. Approximately 56% of tourism professionals have seen or expect a rise in activity compared to the previous year. Within this group, around one-third of businesses reported growth between 5% and 19%. However, a segment of the industry faced stagnation, with 28% reporting no change and 18% experiencing a decline.

Looking ahead to 2026, the mood is brighter, with 62% of the sector predicting an increase in tourist arrivals. Most professionals anticipate a moderate 5% to 10% growth, while only 7% expect a downturn. However, 31% of respondents foresee steady conditions, with no major changes to the tourism scene.

Europe’s Role in Growth

Europe remains a critical market for Turkey’s tourism industry in 2026. Half of the survey participants foresee a boost in visitors from European countries, expecting a modest increase of 5% to 10%. The Russian and Commonwealth of Independent States (CIS) markets are also expected to perform well, with nearly half predicting growth in these regions. However, only 44% of respondents anticipate no change in these markets, with very few expecting a decline.

The domestic Turkish market is also showing strong potential, with 50% of tourism professionals counting on more local travelers. In terms of growth potential, Europe leads, followed by Russia, the CIS countries, domestic travelers, the Middle East, and Asia.

Flexible Pricing to Overcome Challenges

Given the rising costs of operation, pricing flexibility will be a key strategy for Turkish tourism businesses in 2026. Operators are expected to adopt flexible pricing models and value-oriented premium offerings to remain competitive against other destinations, without compromising on quality.

The Digital Shift and Early Bookings

Another bright spot for the sector is the anticipated surge in early bookings and digital channels. Nearly half of tourism professionals expect a 5% to 20% increase in early bookings for the 2026 season. Online sales are also expected to experience significant growth, with 81% of industry participants predicting a rise in digital channel sales.

High Costs and Inflation: The Biggest Challenges

While there is optimism about visitor growth, the high costs of doing business remain a significant concern. In 2025, 58% of industry professionals cited high operating costs as their top challenge. Looking forward to 2026, inflation tops the list of risks, followed by price competition with rival destinations and the difficulty of finding qualified staff. Other pressing concerns include geopolitical instability and the rising impact of short-term rentals, which have created added pressures on the hospitality sector.

What the Industry Needs

To navigate these hurdles, the tourism sector is calling for relief and support. Around 21% of respondents have asked for tax reductions to ease the burden of high operating costs. Additionally, many professionals are seeking assistance in opening new markets and improving infrastructure standards to enhance the overall tourism experience.

The most pressing request from the industry, however, is for year-round promotion. 56% of participants feel that promotional efforts should span the entire year, rather than focusing solely on the peak tourist season. Both the Turkish Ministry of Culture and Tourism and the Turkish Tourism Promotion and Development Agency (TGA) have been urged to launch continuous campaigns with more targeted, market-specific strategies.

A Resilient Sector, But Pressured

The survey paints a picture of a resilient Turkish tourism sector that has largely recovered its pre-pandemic confidence. Tourism professionals are optimistic about moderate growth in 2026, bolstered by strong markets in Europe and Russia. However, the challenges of high costs, inflation, and stiff competition make it difficult to maintain profitability. Without meaningful cost relief and structural reforms, the pressure on the industry will likely continue.

While Turkey’s tourism sector remains a powerhouse, its continued growth hinges on addressing the industry’s most pressing concerns. Policymakers must respond to these challenges if Turkey is to maintain its position as a top travel destination in 2026 and beyond.