Minister expects more foreign investments in tourism sector

VAN

Removal of Türkiye from the Financial Action Task Force’s (FATF) “gray list” is expected to lead to more foreign investments in the tourism industry, Tourism Minister Mehmet Nuri Ersoy has said.

On June 28, FATF announced that it dropped Türkiye from its gray list of countries that require special scrutiny.

“As long as there is stability in the economy, foreign investors continue to show interest in the Turkish tourism sector…the removal from the list will give a further boost to this interest,” Ersoy told reporters in the eastern province of Van.

There will be an increase in investments with foreign partnerships after the FATF’s decision, according to the minister.

Data from the Central Bank show that foreign direct investments in the local accommodation and food services sector amounted to $46 million last year, down from $332 million in the previous year. FDI inflows into the recreation, arts and entertainment industry stood at $23 million, rising from a paltry $2 million in 2022.

The average length of stay of tourists declined by 5 percent in 2023 compared with 2022 from 10.3 nights to 9.3 nights, Ersoy also said.

“The decline [in average stay] is expected to continue this year,” the minister added.

After the pandemic, people travel less frequently but stay longer at holiday destinations, Ersoy said.

“There is a link between where tourists come from and how long they stay. The farther the destination the longer they stay,” Ersoy explained, adding that’s why they are focusing on luring more visitors from countries like the U.S. and China.

“According to our projections, the length of stay will decline further. We need to attract tourists from America and Far Eastern countries.”

Travelers from those countries stay longer and they are also big spenders, Ersoy said.