Turkey’s once-thriving reputation as an affordable Mediterranean getaway is under pressure as rising costs and falling value for money prompt tourists to look elsewhere, sector representatives and industry data show.
Hotel occupancy rates in popular destinations such as Antalya and Bodrum have dropped this year, according to a report by Tourism Review, with industry officials pointing to sharply higher accommodation costs and a declining price advantage compared to rivals like Greece and Spain.
“Turkey’s economic situation is the primary cause of the problems we are seeing in tourism,” Kıvanç Meriç, President of the Association of Turkish Travel Agencies in Izmir, told local media. Arrivals fell 0.15% in the first five months of 2025 from a year earlier, while May alone saw a steeper 1.8% drop, official figures show.
Once marketed as an affordable sun-and-sea destination for British and European holidaymakers, Turkey’s leading resorts now risk pricing out core markets. A typical family holiday in Antalya or Bodrum can now cost more than 150,000 Turkish lira ($4,550), roughly double the cost of a similar trip to Greece.
Price Hikes Erode Competitive Edge
Industry analysts say steep rises in input costs — wages, food and utilities — have pushed hotels to increase room rates just as inflation squeezes domestic and foreign wallets alike.
“Family vacations in resort areas have become unaffordable for many,” Meriç said. “The average stay is getting shorter, people are choosing cheaper destinations, and the price difference is impossible to ignore.”
Figures from the Alanya Touristic Business Owners Association show hotel occupancy and profit margins are already under pressure. Association President Burhan Sili warned that without a better pricing strategy, businesses could see squeezed profits even if beds remain filled.
Neighbouring Competition Rises
Meanwhile, Mediterranean rivals are capitalising on Turkey’s challenges. Greece and Spain continue to lure visitors with competitive prices, while Balkan destinations such as Albania and Montenegro are gaining popularity.
Tourists from Russia, once a key market for Turkey’s resorts, are also travelling in smaller numbers, partly due to geopolitical shifts.
In 2025, Turkey’s tourism ministry aims to stabilise the sector by boosting entertainment offerings and diversifying holiday packages, but analysts say short-term fixes are unlikely to offset rising costs without structural changes.
“Turkey risks losing its edge if prices stay this high and service quality doesn’t justify it,” Meriç said. “The country must restore value for money and protect its appeal as a top summer destination.”