Holidays in Turkey are becoming more expensive: Waiting for money relief is in vain!

Holidays in Turkey are becoming more expensive: Waiting for money relief is in vain!

Holidays in Turkey are becoming more expensive and the trend towards price increases is expected to continue. According to a report by derwesten.de Inflation in the country fell to 37.9% in April, although this represents a slight decrease compared to 38.1% in March. Despite this slight relaxation, the price level remains high. Tourists have to expect significantly higher expenses for accommodation and meals.

The Turkish lira has fallen sharply against the U.S. dollar, partly due to political turmoil such as the arrest of Istanbul Mayor Ekrem Imamoglu. This has made imported goods more expensive and thus further increased domestic costs. In April, prices in hotels, cafes and restaurants rose by almost 42% compared to the previous year. Food and non-alcoholic drinks have increased in price by 36%, while housing costs in Turkey have risen by 74% since April 2024.

Response to inflation

In order to counteract inflation, the Turkish central bank increased the key interest rate from 42.5% to 46.0%. This shows the desire to promote long-term stabilization of monetary policy. However, there is no short-term relief for tourists in sight. The head of the Turkish central bank warns of further inflation risks and has formulated the goal of achieving annual inflation of 24% by the end of 2025.

Despite these challenges, Turkey remains a popular destination for travelers. The region particularly attracts holidaymakers to the Aegean Sea and the Riviera and, in addition to long sandy beaches, also offers excellent swimming conditions. Although the tourism industry is struggling with high prices, bookings from Germany remain at a high level, according to an analysis by reisereporter.de shows.

Price development for 2024

A further increase in the inflation rate in Turkey is forecast for 2024, which could again lead to higher prices in hotels and restaurants. The average price of hotel rooms is already 138 euros in Istanbul and 110 euros in Antalya, which is 37.4% more than in 2022. Despite these price increases, German vacationers are willing to travel: they tend to save money during their vacation rather than forego travel altogether.

Currency developments offer advantages to travelers from Euro countries as their currency gains purchasing power. Bargains are possible, especially on individual trips, while package tours often have high prices. In response to market developments, tour operators are calling for new offers, such as cheaper “basic packages” instead of all-inclusive options. Russian tour operators have already announced such offers without alcohol, which could reduce costs by 7-9%.