Ministry to impose regulations on short-term rental services

ISTANBUL

Culture and Tourism Minister Mehmet Nuri Ersoy has announced that regulations will be introduced for the increasingly popular short-term rental sector, ensuring both taxation of service providers and the disclosure of identity information of those who benefit from the accommodation.

Despite the recent record-breaking tourist arrivals, hotels could not achieve the desired occupancy rates.

“The earthquake in February and general elections in May, cold weather until July, issues in the Russian geography affecting tourists' preferences and the global recession also contributed to this low occupancy rates in some hotels,” Ersoy said during a press conference in Istanbul on July 31.

The minister stressed that one of the most important reasons for this problem is short-term leasing practices.

"We are not against short-term rental practices. We are working on how we can incorporate these practices into our own system. We are working on a new regulation."

In a bid to ensure equality in competition with hotels and other accommodation services, short-term rental applications will also be taxed, Ersoy stated.

Ersoy also added that it will become mandatory to report the identities of the people benefiting from the accommodation to the authorities.

The short-term rental sector, previously popular in touristic hotspots, has now become much more widespread. Property owners are looking for short-term tenants through professional companies or real estate offices that rent their properties on a commission. In addition to daily and weekly rentals, monthly, quarterly and semi-annual options are also offered.

In the meantime, Türkiye’s banking industry watchdog (BDDK) on July 31 announced that it removed the installment payment option of the credit cards related to international travel expenses, including airlines, travel agencies, and accommodation.

The tourism sector in Türkiye witnessed a notable resurgence in demand as the number of tourists visiting the country during the first six months of 2023 increased by an impressive 17 percent, surpassing the 22 million mark, the minister also announced.

Tourism income experienced a substantial boost, rising by 27 percent during the same period, amounting to a staggering $21.7 billion.