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Hotels in Turkey suffer as tourism drops


Turkish tourism is going through a stressful period
The many problems Turkey is facing, including terrorism, tensions with Russia and the Syrian refugee crisis, are hitting the economy, especially its valuable tourism sector. Hotels are doing badly. Turkish economists think the country will lose $8 billion in tourism revenues.
Kaan Bozdemir, a partner at real estate investment broker Reha Medin Commercial, agrees Turkey is going through a stressful period.
“Everything is upside-down, both the economy and real estate,” he says. “Every month we keep doing minuses in regards to foreign tourism. Last year, Istanbul saw 75% occupancy. Now, it is 25%.”
In February, hotel occupancy in Istanbul fell by 21.4% to 47.5% year-on-year. It is highly unlikely now to reach its monthly peak of 76.2%, seen last August.
There seems to be less damage on the once hugely popular Turkish Riviera, where February occupancy dipped by 0.8% to 48.1%. But the impact of recent terrorist attacks will be seen more clearly this summer.
Bozdemir estimates that 3,000 hotels are for sale in the high-tourism area between Marmaris and the mid-Mediterranean region. Many have odd sale prices, such as a brand new 60-room, 3-star hotel in Cappadocia valued at more than 20 million lira ($7 million), up for sale for just 12 million lira. The hope is that things can only get better.
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