It’s near 11 p.m. on a breezy night in the Mediterranean resort town of Fethiye. Oguz Bagriyanik turned up the music and smiled at a couple taking seats in the Main Bar, looking satisfied.
“The night is just beginning,” said Bagriyanik, who is in his 30s and running the small pub in the Destina Hotel this summer as a sideline to his gold jewelry business in the Turkish capital of Ankara.
“I earn more here than in Ankara, the profit from drinks is higher and there are plenty of customers,” he said cheerfully, “And it’s fun to work here, to enjoy the sunshine, the sea, and to meet friends from so many countries.”
Bagriyanik is not the only one to benefit from Turkey’s relatively resilient tourism sector as international visitors slashed spending and shelved holiday plans. What makes vacations in Turkey good value is the country’s cheap currency, which has weakened continuously against the euro and sterling and attracts cash-strapped tourists from more expensive sunshine beaches in rival countries in the euro-zone like Spain and Italy.
The euro and the British pound have rallied more than 20 percent and 10 percent respectively against the Turkish lira in the past year. The lira now trades above 2.14 per euro and 2.44 per sterling.
Destina Hotel manager Serdar Engin said their business had not been much affected by the recession. “There are more British tourists coming this year to our hotel,” said Engin, who is sitting in a sofa at the hotel lobby and greeting every guest walking in with grins.
“The euro has been strengthening against the lira. That makes everything cheaper here than elsewhere,” he said.
In the first seven months of this year, the number of foreign visitors rose 1.1 percent from the same period of 2008 to 15 million, the Ministry of Culture and Tourism said Monday. That was against a backdrop of drastic slumps across the global tourism arena under the impact of the credit crunch, rising unemployment and A/H1N1 flu.
In the first four months of the year, international tourism arrivals decreased 8 percent from the same period last year, the World Tourism Organization (UNWTO) said in a June report.
In that period, the Middle East recorded the biggest decline of18 percent and Europe saw the second-biggest contraction of 10 percent, while the UNWTO predicted international tourism to decrease by between 4 and 6 percent in 2009.
During the January-April period, the number of arriving foreigners in Turkey declined only 0.5 percent year-on-year, official data shows. In July, the number of foreign visitors to Turkey rose 6.32 percent year-on-year to 4.34 million after two months of decline, signaling a revival of tourism before August, the busiest tourism month of the year.
“If euro is not so strong against lira, the English wouldn’t have come here,” said Bagriyanik. At Destina Hotel where Bagriyanik operates his pub, nearly all of about 250 beds have been filled, forcing Bagriyanik, whose father owned the hotel, to sleep in the hotel office.
Like at Destina, most tourists in Fethiye are British. Walking downtown in the evening, one would feel like wandering in a United Kingdom community with the English speaking crowds and the “Full English Breakfast” signs at restaurants.
Fethiye is emblematic of the popularity of Turkey’s Mediterranean and Aegean beaches among sun-seeking Europeans, who have fueled strong tourism growth in recent years.
In the Mugla Province where Fethiye is located, 1.45 million tourists arrived in the first seven months, only after the southern Mediterranean province of Antalya and Turkey’s largest city Istanbul.
Turkey’s tourism revenues neared 22 billion U.S. dollars in 2008, up 18.5 percent year-on-year and taking up 3 percent of the country’s gross domestic product (GDP).
PRESSURE REMAINS
For some in the business, it’s too early to celebrate. Rising expenses due to Turkey’s chronically high inflation and declining prices offered to bargain-hunting tourists could squeeze the profit room, according to Engin.
“We have reduced hotel rates a little,” he said, “Other hotels and travel agencies have also been lowering prices to keep customers coming,” he said.
The strategy, combined with the appreciation of euro and sterling, proves effective. During the busy time, it takes a while to find space or empty seats in the swimming pool and cafe at the hotel, which is surrounded by blossoming plants on the hillside.
Onur Bagriyanik, who is the brother of Oguz and helps run the family’s hotel, said he expected this year’s guests to reach around 25,000, nearly double the 14,000 of last year, with profit to stand between 25 percent and 30 percent.
With a slight growth in the number of foreign visitors in the seven months, some tourism businesses still felt a chill compared with a robust 13 percent increase of the number in 2008.
A worker calling himself Ahmet from the Galaxy boat trip company in Fethiye said the prices are down this summer but business is still quieter than last year.
“I could never book a room here in August before, but this year,I managed to order two rooms,” said business traveler Ahmet Cemal Bafli, who stayed at the Iberotel Sarigerme Park resort hotel in Dalaman, Mugla.
Despite the resilience in visitor number, these tourists have curtailed spending significantly, resulting in a 9.6 percent year-on-year decline in tourism revenues to 4.2 billion U.S. dollars inthe second quarter, the Turkish Statistical Institute said late last month.
In the first quarter, Turkey’s tourism income shed 11.2 percentfrom the same period last year, as the country’s total GDP contracted by 13.8 percent, the steepest quarterly decline since 1945.
Hotel runners also fret over a recent decision by the Finance Ministry to hike the value-added tax on tourism back to 18 percent after cutting the rate from to 8 percent at the beginning of 2008,the Turkish Hurriyet Daily news reported last month.
For all the adverse factors, at Destina Hotel, the cheap lira plays the ultimate role in securing a hefty profit. “The financial crisis is terrible, but it turns out not that bad for us,” says Oguz Bagriyanik.