Market Entry - Luxury Hospitality Industry in Turkey: Analysis of Growth, Trends and Progress (2020 - 2025)

About the Market

Luxury hospitality is a fast-growing market, especially with the growth of tourism and travel industry. The worldwide travel & tourism industry continued to see strong growth throughout 2015 and international tourist arrivals are predicted to grow by 3-4% per year, to reach 1.8 billion in 2030, according to the UNWTO report. Its long-term outlook ‘Tourism Towards 2030’ sees substantial potential for further growth coming from emerging economy destinations in Asia, Latin America, Central and Eastern Europe, the Middle East and Africa, growing at double the rate (+4.4% per annum), than the advanced economy destinations (+2.2% per year). In the past, raising a hotel company required enormous capital investment, but over the last two decades, many hotel groups have expanded by adopting an “asset light” model of management, rather than owning properties, by just franchising their brand to a third-party operator against a fee. Due to the continuous growth of the labor-intensive and productivity-reliant travel and tourism industry, the sector is expected to experience some difficulties in providing enough qualified talent for the forecasted 80 million new jobs created over the next ten years, according to the World Travel & Tourism Council (WTTC). Some of the major luxury hotels include Starwood Hotels & Resorts, Four Seasons Holdings Inc., InterContinental Hotels Group PLC, ITC Hotels Limited, The Indian Hotels Company Limited, Mandarin Oriental International Limited, Jumeirah International LLC, Shangri-La International Hotel Management Ltd., Kerzner International Resorts, Inc., and Marriott International Inc.

About the Geography                  

Turkey is a large country located in western Asia with a population of 74.93 million. It has a parliamentary democracy in place. It is the largest recipient of FDI and has adopted various legislative reforms to bring more foreign investment.

Turkey’s movement towards the EU has made it adopt the regulations and standards of European businesses. The country has great access to nearby markets of the Middle East, Africa, and Eastern Europe.

Low labor costs, growing middle class, large English-speaking population, and the government’s policies like ISPAT and Turkish Commercial Code, have brought huge investments to Turkey. Promoting investments in technology, services, textiles, telecommunications, and shipbuilding, has brought in many foreign companies to invest in Turkey. The proximity to the Middle Eastern conflict, inflation, weak currency, and strong dependence on hydrocarbon imports has slowed down the economy.

The Market Entry Series

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