The Impact of tourism in Turkey on the Real Estate Sector
Tourism in Turkey is an important fundamental factor in supporting the Turkish economy and real estate investment, as the greatest reliance falls on it, as Turkey remains receiving domestic and foreign tourists from all over the world.
Each season of the year is characterized by special characteristics of tourism. However, the most peak, lively, and crowded season with tourists is summer, as it is the season of holidays, family gatherings, and summer vacations, where people take tourist trips and various tours and visit vital and tourist facilities and many tourist activities to spend enjoyable times. Thus, every year, between the fifth and ninth months, tourist resorts prepare to receive the influx of foreign tourists, and prepare to meet all their needs to enjoy their tourist vacation.
Tourism in Turkey 2023 in numbers:
According to a statement published by the Turkish Ministry of Culture and Tourism in December 2023, the number of tourists who visited Turkey during the period from January to the end of November 2023 increased by 11.82% compared to the same period of the previous year. The Ministry explained that Turkey received 52 million 742 thousand and 526 visitors during the aforementioned period. Russians topped the list of foreign tourists visiting Turkey the most during the first 11 months of 2023, followed by Germans in second place, then citizens of the United Kingdom in third place, then Bulgarians and Iranians, respectively.
It is worth noting that Turkey's revenues from the tourism sector in 2022 amounted to about $46.28 billion, according to the Turkish Statistical Institute. The Turkish Ministry of Treasury and Finance had set a goal of receiving 60 million foreign tourists for the year 2023, and increasing tourism revenues to $56 billion during that period. The country also aims to receive 90 million tourists in 2028, and raise tourism revenues to $100 billion.
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What is the impact of tourism on the Turkish economy:
Tourism in Turkey is one of the vital and essential sectors that plays a major role in supporting the Turkish economy and stimulating its growth. Turkey witnesses large numbers of tourists arriving annually, from all over the world. This is due to the diversity of tourist and cultural attractions that the country offers. In addition to the Turkish government's great interest in this sector due to its great importance and its positive impact on various aspects of the Turkish economy.
One of the most notable economic impacts is increased revenues, as incoming tourists spend huge amounts of money in hotels, restaurants, shops, shopping malls, and entertainment activities. These expenses increase the circulation of money in the local economy and strengthen various sectors, such as industry, trade, crafts, and others. Tourism in Turkey also contributes to providing direct and indirect job opportunities in related sectors, such as transportation, services, and handicrafts.
In addition, tourism in Turkey works to enhance the country's image as a distinguished investment and tourism destination, which attracts more foreign investments and supports economic development. Tourism also contributes to improving the country's trade balance by improving the flow of foreign currencies into it.
Overall, the positive and direct impact of tourism on the Turkish economy shows the importance of this sector as a vital and essential driver of growth and development.
The connection between tourism and real estate investment:
The real estate sector affects tourism in Turkey in several ways, especially in terms of the presence of foreign buyers and investors, closely familiarizing them with the real estate market in Turkey, and getting acquainted with the details of real estate ownership in detail.
Therefore, the increase in the number of tourists automatically leads to an increase in the number of real estate sales to foreigners in Turkey, as these two lines are directly proportional to each other. This was clearly observed during the spread of the Corona virus in Turkey, and before 2020 where the concept of “real estate tourism” spread greatly, especially after the facilities provided to foreigners to obtain real estate residency in Turkey or obtain Turkish citizenship through real estate ownership.
Real estate tourism is: A tourist buying real estate for a residential or commercial purpose in a country other than his home country, investing it and benefiting from its monthly and annual returns. A tourist can use his home to invest in periods when he is not in Turkey, such as renting it, and when he visits Turkey, he stays at his home to spend his tourist trip.
The impact of tourism on the real estate sector:
The pace of the development of tourism in Turkey is accelerating significantly due to the Turkish government's remarkable interest. Which opens new horizons and wide-ranging investment opportunities. The real estate sector is considered one of the main sectors that is directly and significantly affected by the rapid tourism growth. Turkey has become a favorite tourist destination for many recently, which is clearly reflected in the demand for real estate in this unique country.
Accordingly, we will explore how tourism in Turkey has affected the real estate sector, as the market is witnessing tangible transformations as a result of the increasing demand for real estate. We will take a look at the impact of this demand on property types, and how investor tourists are an important factor in stimulating real estate activity in Turkey. It is as follows:
Increasing the demand on real estate:
There is a direct relationship between increasing tourism in Turkey and increasing demand on real estate. The greater the number of tourists coming to the country, the greater the demand for real estate of various types, whether they are apartment hotels, chalets, villas, or even motels and hotels.
Tourists real estate investment:
Investors usually prefer to see the property they want to buy with their own eyes, inspect it and its surrounding areas. Frankly speaking, this is a very important step when buying a property so that the investor does not fall a victim of deception or fraud. Since Turkey is a tourist country, investors can enjoy the summer vacation with the family and see whatever properties they likes.
Diversity in types of real estate:
The more nationalities of tourists and their tastes differ, the more different types of properties there are on the market. Some prefer sea views, and some prefer forest views. Some have a small family and others have a large family. There are those who want to buy an apartment to re-rent it, and there are those who want to buy a commercial property. This great diversity has increased the diversity in the Turkish market so that you can find what you are looking for.
The effect of the increase in tourist accommodation:
The diversity of Turkish real estate has increased the length of stay of tourists in Turkey due to the availability of many types and styles of hotel apartments, furnished apartments, furnished villas, chalets, etc. The availability of this type of real estate is very important for the tourist who is planning a longer stay because it is considered more affordable than motels and hotels.
The relatively low real estate prices in Turkey compared to European and American real estate and the low costs of tourism in Turkey have helped the idea of real estate tourism become widely popular in recent years. After the facilities provided by the Turkish government to tourists, real estate tourism continues in Turkey and contributes to supporting the Turkish economy as well.
If you have any questions regarding real estate tourism in Turkey or types of real estate in Turkey, do not hesitate to contact us via WhatsApp, here. Our real estate expert will respond to you as soon as possible.
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