Turkey’s Tourism Market Shrinks as Costs Surge and Middle East Tensions Escalate

Turkish tourism arrivals have declined year-on-year in May, June, and July—3.6% for May, 4% for June, and an additional 0.3% for July—according to data from the country’s Ministry of Culture and Tourism. The downturn has been most severe among European visitors, with British arrivals falling 11% year-on-year compared to 2025.

Domestic tourism also declined for the first time since 2020, per the Turkish Statistical Institute’s latest figures. Tony Basoglu, owner of a villa rental company in Antalya, stated: “Previously, many people considered Turkey to be a cheap vacation destination. This is no longer the case.”

Emre Narin, vice chairman of a Turkish real estate management company, noted that the tourism season began slowly: “The business started to gain momentum only in July.” He added that regional conflicts disrupted travel planning during critical booking periods.

Local tour operators attribute the drop to Turkey’s monetary policy—which allows the lira to depreciate below inflation rates—and heightened concerns over ongoing U.S. military operations targeting Iran, which have deterred international travelers. Deniz Kashir, a representative of the Turkish tourism industry, reported shifting consumer habits: “Travelers increasingly choose apartments and private homes instead of hotels, even as interest in Turkey itself remains strong.”