NEAR EAST UNIVERSITY

SCHOOL OF TOURISM AND HOTEL

MANAGENENT

THM 315 – TOURISM ECONOMY

Student: Musa NACAFOV / 20102228

Instructor: Derviş YÜKSEL

Project:

Tourism Economy of Turkey

Tourism in Turkey

The economy of Turkey is defined as an emerging market economy by

the IMF. Turkey is among the world's developed countries according to the CIA World Factbook. Turkey is also

defined by economists and political scientists as one of the world's newly industrialized

countries. The country is among the world's leading producers of agricultural products;

textiles; motor vehicles, ships and other transportation equipment; construction

materials; consumer electronics and home appliances. In recent years, Turkey had a

rapidly growing private sector, yet the state still plays a major role

in industry, banking, transport, and communications.

Turkey has had an impressive decade of expansion that saw GDP rise from $196bn in 2001 to $787bn in 2012, or about $10,400 per capita. Since 2001, real growth has averaged more than 5% per year, an extraordinary rate for a middle-income country that imports most of its raw materials. A young and mobile population provides a natural tailwind to growth, while a high level of diversification in terms of products and markets has helped the Turkish economy bounce back strongly from recent global and regional crises. Despite a decline in growth in 2012, Turkey’s performance was regarded as impressive, given that much of emerging Europe fell into recession. However, it needs to be wary of falling into the “middle-income trap”, although there is no good evidence that countries in its income bracket are especially prone to severe slowdowns. Turkey’s open economic model might miss some short-term gains by eschewing such tactics as export subsidies and import restrictions, but that restraint has also made it into one of the more competitive emerging markets, demonstrated by its high average growth rates and relatively high incomes. This chapter contains interviews with Nicole Bricq, French Minister for Foreign Trade; Ahmet Aksu, President, Turkish Privatisation Administration; Ali Sabancı, Chairman, Pegasus Airlines; and Mark Lewis, Senior Resident Representative in Turkey, IMF.

Tourism Economy of Turkey

Tourist Arrivals in Turkey decreased to 3439554 in October of

2014 from 4352429 in September of 2014. Tourist Arrivals in

Turkey averaged 1530376.61 from 1993 until 2014, reaching

an all time high of 5296323 in August of 2014 and a record

low of 213998 in January of 1993. Tourist Arrivals in Turkey is

reported by the Turkish Statistical Institute.

Turkish Lira Hits New Record Low

The US Dollar increased to 2.32 Turkish Lira Hits New

Record Low in December from 2.21 in November of 2014.

The Turkish Lira Hits New Record Low averaged 1.09 from

1981 until 2014, reaching an all time high of 2.36 in

December of 2014 and a record low of 0 in March of 1981.

Turkey GDP

The Gross Domestic Product (GDP) in Turkey was worth

820.21 billion US dollars in 2013. The GDP value of Turkey

represents 1.32 percent of the world economy. GDP in Turkey

averaged 197.27 USD Billion from 1960 until 2013, reaching

an all time high of 820.21 USD Billion in 2013 and a record

low of 8 USD Billion in 1961. GDP in Turkey is reported by

the World Bank Group.

Turkey Industrial Production

Industrial Production in Turkey increased 2.40 percent in

October of 2014 over the same month in the previous year.

Industrial Production in Turkey averaged 4.58 percent from

1986 until 2014, reaching an all time high of 25.20 percent in

December of 2009 and a record low of -23.70 percent in

February of 2009. Industrial Production in Turkey is reported

by the Turkish Statistical Institute.

Turkey - International tourism

International tourism, number of arrivals

The value for International tourism, number of arrivals in

Turkey was 34,038,000 as of 2011. As the graph below

shows, over the past 16 years this indicator reached a

maximum value of 34,038,000 in 2011 and a minimum value of 6,893,000 in 1999.

International tourism, number of

departures

The value for International tourism, number of departures in

Turkey was 6,282,000 as of 2011. As the graph below shows,

over the past 16 years this indicator reached a maximum

value of 8,275,000 in 2006 and a minimum value of 3,981,000 in 1995.

Turkey Tourism SWOT

Strengths:ƒ Turkey has among the highest international tourism receipts in

the world.

There is a strong tradition of beach-based mass tourism.

Weaknesses: ƒ Bomb attacks in tourism destinations remain a threat.

Controversy surrounding the pope’s comments on Islam in 2006 showed

how

sensitive the global geopolitical climate is for secular states with large

Muslim

populations.

Opportunities:ƒ Golf tourism is expected to pick up in the coming years.

Development of health tourism, attracting visitors from Europe and the

Middle East.

Conference tourism.

Promoting cultural tourism.

ƒ Attracting higher value visitors.

Threats: ƒ Turkey continues to struggle with domestic political violence, with

high-profile terrorist

attacks and abductions of foreign tourists taking place in recent years.

Periodic major earthquakes.

BMI forecasts appreciation of the lira against US dollar and the euro over the

The economic contribution ofTravel & Tourism: Real 2013 prices

Direct Contribution of Travel & Tourism to GDP

Visitor Exports And International Tourist Arrivals

The global travel & tourism industry is expected

to show strong growth over the coming years driven by strong demand

Turkey’s travel & tourism revenues rose from 2007 - 2012 despite a shaky global economy

A quick look at the value chain: both for inbound and outbound tourism

References

http://en.wikipedia.org/wiki/Economy_of_Turkey

http://www.tradingeconomics.com/turkey/industrial-production

https://www.google.com.cy/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CCQQFjAB&url=http%3A%2F%2Fwww.wttc.org%2Fmedia%2Ffiles%2Freports%2Feconomic%2520impact%2520research%2Fcountry%2520reports%2Fturkey2014.pdf&ei=bZalVIbyAaGE7gbfi4DQDg&usg=AFQjCNGcXdOHV9Ne9LObKgcAK3TO2Esxyw&bvm=bv.82001339,d.d2s

http://www.invest.gov.tr/pt-PT/infocenter/publications/Documents/TOURISM-INDUSTRY.pdf

http://www.indexmundi.com/facts/turkey/international-tourism