The falling value of Lira has been beneficial to the Turkey Tourism sector. Two years ago, an American traveler could purchase 4.5 Lira for a United States Dollar. But in the intervening period, this figure has increased to almost 7.5 Lira, allowing travelers from around the world to enjoy a break in Turkey at cheaper costs.
A decrease in international arrivals forecasted by Global Data
Global Data forecasted a decrease in international arrivals of only 31.6 percent this year compared to the last year. Tourism Analyst of Global Data, John Vandesquille, said that the falling price in lira can help offset the decline in travel. He also mentioned: “The continuous drop of the Turkish currency on exchange markets, stemming from years of debt accumulation and the unwillingness of president Erdogan to increase interest rates, could help tourism in the region despite the uncertain times brought by the Covid-19 pandemic.”
Vandesquille also added: “Indeed, despite having a similar number of cases to France and Italy (237,265), the number of casualties is at a similar level to Egypt and way below Spain – two of Turkey’s main competitor markets.
“This allowed Turkey to reopen its borders to tourists on June 1st, which slightly attenuated the impact of the pandemic on the peak season.
“Besides giving an impression of relative safety compared to its competitors, the favorable exchange rate is likely to attract foreign tourists, and, more particularly, British ones – who represented 2.44 million visitors in Turkey in and who are currently not allowed to visit some of their usual destinations such as Spain.”
Following the introduction of quarantine measure last month, British travelers are required to quarantine for two weeks after returning from Spain.
Vandesquille, speaking of the terrorist attacks, said: “A weak currency was already the reason tourism in Turkey experienced such a boost in the past few years, despite the negative impact of the multiple high-profile terrorist attacks between 2015 and 2017 on the country’s image.” Mentioning about Russia being number one source market, he added: “However, it would be good for the Turkish government not to upset Russia, which is the number one source market for Turkey (sending 7.16 million visitors in 2019), as it seems to have done by transforming the famous Hagia Sophia museum into a mosque.
“Indeed, losing this source of revenue as it did in 2016 due to diplomatic tensions (experiencing a 76 percent decrease in Russian visitors) would be terrible for the country in the current climate.”