The Minister expects greater foreign investment in the tourism sector

VAN

Tourism Minister Mehmet Nuri Ersoy said Turkey’s removal from the Financial Action Task Force (FATF) “grey list” would likely lead to increased foreign investment in the tourism industry.

On June 28, the FATF announced that it had removed Turkey from its grey list of countries requiring special scrutiny.

“As long as the economy is stable, foreign investors will continue to be interested in the Turkish tourism sector… the delisting will further increase this interest,” Ersoy told reporters in the eastern province of Van.

According to the minister, the FATF decision will result in an increase in investments involving foreign partners.

Central Bank data shows foreign direct investment in the local accommodation and food services sector totaled $46 million last year, up from $332 million the previous year. FDI inflows into the recreation, arts and entertainment sector totaled $23 million, up from a paltry $2 million in 2022.

Ersoy added that the average length of stay of tourists in 2023 decreased by 5 percent compared to 2022, from 10.3 nights to 9.3 nights.

“The decline (of average stay) is expected to continue this year,” the minister added.

According to Ersoy, after the pandemic, people are traveling less, but staying in vacation destinations longer.

“There is a connection between where tourists come from and how long they stay. The further away a destination is, the longer they stay,” Ersoy explained, adding that this is why they are focusing on attracting more tourists from countries such as the US and China.

“Our forecasts are that the length of stay will continue to decline. We need to attract tourists from America and the Far East.”

Tourists from these countries stay here longer and are also willing to spend large sums of money, Ersoy said.