Turkey’s Rising Costs Impact Hotel Occupancy In Popular Destinations Like Antalya And Bodrum

Written By: Anweshan Acharya

Anweshan Acharya

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July 7, 2025 3:21 PM

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Turkey, long renowned for its inexpensive sunshine holidays, is bearing the concerning loss of visitors. Legendary destinations like Bodrum and Antalya are experiencing sharp hotel occupancy declines. What originally made Turkey so popular with British holidaymakers and tourists across Europe – inexpensive holidays – now increasingly feels tipped towards ever-costlier prices and dwindling value for money. Concern in the nation about this trend continues to fuel panic in the tourism industry regarding the long-term impact upon one of the country’s largest sectors.

Rising Costs Impacting Visitors’ Wallets

According to official reports, there has been a 0.15% drop in international arrivals in Turkey during the first five months of 2025, compared to the same period in 2024. This may seem like a small decrease, but it is enough to send ripples through the tourism industry. In May alone, visitor numbers dropped by 1.81%, signaling that Turkey’s appeal may be waning among holidaymakers.

For decades, Turkey has been a go-to destination for affordable family holidays, offering everything from beach resorts to vibrant city experiences in places like Istanbul and Ankara. However, the prices for these experiences have increased sharply in recent years. Today, a five-day family holiday to popular resorts like Antalya or Bodrum can cost more than 150,000 Turkish lira (around £2,750), significantly higher than in previous years. In comparison, a similar vacation in Greece, a close competitor for Turkish tourism, might cost between £1,460 and £1,830. This price difference is not lost on travelers, who are increasingly seeking better value for their money elsewhere.

Tourist Preferences Shift to More Affordable Destinations

While Turkey’s tourism industry is still one of the largest in Europe, it faces growing competition from other Mediterranean destinations that are offering similar attractions at lower prices. Greece, for example, has seen a significant uptick in British and European tourists, lured by its combination of beautiful beaches, rich history, and more affordable prices. In addition, other destinations in Spain and Portugal are also capitalizing on the affordability factor, which Turkey once had in its favor.

The report from Tourism Review highlights that Turkey has essentially lost its price advantage. “Tourists are now choosing destinations where they get more value for the same money,” said Kıvanç Meriç, the Izmir President of the Association of Turkish Travel Agencies. While Turkey remains popular among some nationalities, the overall trend of rising costs is steering many potential visitors away. This shift in preference is reflected in the decline of visitors from key markets such as Russia, Germany, and the UK.

Impact of Rising Accommodation Costs

A primary driver of these changing dynamics is the rising cost of accommodation in major tourist regions. The price hike in places like Antalya and Bodrum is partly due to increased input costs faced by hoteliers, including higher wages, rising utility costs, and inflation on food and energy products. With these additional expenses, hotels and other businesses have been forced to raise their prices to maintain profitability.

Family vacations in these resort areas, once an affordable option for many, are now out of reach for a significant portion of the market. This change is impacting the average length of stay as well, with tourists opting for shorter trips or choosing different, more affordable destinations altogether. The average stay in Antalya has decreased to just eight days, a clear indication that travelers are adjusting their plans to account for the rising costs.

Declining Occupancy Rates and Profit Margins

In response to these challenges, industry leaders are urging a reevaluation of Turkey’s pricing strategies. The Alanya Touristic Business Owners Association (ALTID) President Burhan Sili stated, “We must reconsider our price balance while maintaining quality. Otherwise, even if occupancy rates do not decrease, our profit margins may be seriously damaged.” This caution reflects the delicate balancing act that hoteliers face as they try to attract tourists without sacrificing the quality of their services.

Despite these concerns, there is also an acknowledgment that competition from other destinations is part of the problem. The rise in global travel means that tourists have more choices than ever before, and destinations that once held a competitive edge are finding it harder to stand out. The long-established appeal of Turkey’s resorts is being tested by the simple fact that other places are now offering comparable experiences at lower costs.

The Role of Geopolitical and Economic Factors

Beyond the issue of rising prices, geopolitical and economic factors are also contributing to the decline in visitor numbers. One of the most notable shifts has been the decline in visitors from Russia. Diplomatic issues and changes in travel patterns are leading to fewer Russian tourists in Turkey, which historically represented a significant portion of international arrivals.

Additionally, the devaluation of the Turkish lira and increased taxes on basic goods such as food and energy are adding extra burdens to both tourists and businesses. With tourism being such a crucial part of the country’s economy, this decline in foreign interest raises concerns about Turkey’s ability to maintain its standing as a top destination.

What Needs to Be Done?

With the ongoing struggles, tourism experts are calling for swift action. “Immediate action needs to be taken to tackle the issue as increased costs for businesses are being felt by tourists,” said Meriç. There is hope that Turkey can turn things around by focusing on providing better value for money and addressing the rising costs that are making holidays in the country less appealing.

Strategies could include introducing more competitive pricing, especially during peak season, and enhancing the value of the tourism experience by improving entertainment options, which have also been a point of criticism. Diversifying offerings, making hotels more affordable, and highlighting the quality of the Turkish experience might be necessary steps to restore the country’s former charm.

Conclusion: A Pivotal Moment for Turkish Tourism

Turkey’s tourism sector, which once flourished because it was inexpensive and so full of cultural depth, now finds itself at a crossroads. Higher prices and the shift in traveler mentality are forcing the sector to reconsider its approach. For the moment, favorite destinations like Bodrum and Antalya are struggling through declines in hotel occupancy, and this could spread into further territories if immediate action doesn’t occur. As the globe progresses into the future, Turkey will need to adapt so it remains one of the most sought-after destinations in the traveling sector. By balancing price and quality and recovering its value proposition, Turkey can regain status as a favorite destination for vacationers in the future.