## Turkey's Economy Hit By Declining Tourism

_IMF News, February 23, 2017_

## Source details

**Canonical URL:** [Turkey's Economy Hit By Declining Tourism](https://www.imf.org/en/news/articles/2017/02/21/na230217turkeys-economy-hit-by-declining-tourism)

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- [Markdown version](/en/news/articles/2017/02/21/na230217turkeys-economy-hit-by-declining-tourism/index.md)
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## Bibliographic details
- Authors: Declining Tourism
- Published: February 23, 2017

---

### Overview
- Turkey’s previously booming tourism sector was gravely hit in the wake of a series of terrorist attacks and domestic political turmoil.
- The dwindling number of visitors "chopped off about one percentage point of GDP from the country’s growth in 2016," according to a recent IMF study.

### Scale and economic impact
- Tourism revenues were equivalent to 3.7 percent of GDP.
- Tourism directly generated 600,000 jobs, or 2.3 percent of total employment.
- An additional 1,000,000 jobs sprang up in related sectors, including restaurants and leisure industries.
- A 10 percent decline in foreign arrivals translates into a 0.3–0.5 percent fall in GDP (staff estimates).
- The decline in tourism reduced growth by about one percentage point of GDP in 2016.

### Causes of the downturn
- Sharp rise in terrorist attacks and political uncertainty in 2016.
- Terrorist attacks: 400 in just 2015 versus an average of 70 annually between 2010 and 2014.
- More than 30 percent fall in the number of European tourists, who used to make up over half of visitors.
- Dramatic reduction in Russian tourists due to sanctions, including restrictions on charter flights and sales of travel packages.

### Sectoral effects
- Beyond hotels, restaurants, and transportation, affected industries include:
  - Telecommunications
  - Retail trade
  - Textiles
- Studies indicate recovery is likely to be slow because repeated incidents of violence tend to have long-lasting effects on tourist arrivals.

### Historical factors that supported tourism growth before the downturn
- Expansion factors prior to 2016:
  - Growing network of the national air carrier
  - Infrastructure development
  - Hotel construction
  - Country marketing
- Visa facilitation: only 3 percent of foreign tourists needed visas, helping divert visitors from competitors in the Mediterranean, such as Egypt.

*IMF Country Focus — February 23, 2017.*

---

## Content in this bundle

- [Na022317t (PDF)](/external/lang/turkish/pubs/ft/survey/so/2017/na022317t.pdf){rel="external" type="application/pdf"}

---

## References

- [https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)
- [PRESS CENTER](http://presscenter.imf.org/)
- [IMF Country Focus](https://www.imf.org/en/news/country-focus)
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- [How Countries Should Respond to the Strong Dollar](https://www.imf.org/en/Blogs/Articles/2022/10/14/how-countries-should-respond-to-the-strong-dollar)
- [Fiscal Policy Can Help People Rebound From Cost of Living Crisis](https://www.imf.org/en/Blogs/Articles/2022/10/12/fiscal-policy-can-help-people-rebound-from-cost-of-living-crisis)
- [Public Further Delaying Climate Policies Will Hurt Economic Growth](https://www.imf.org/en/Blogs/Articles/2022/10/05/further-delaying-climate-policies-will-hurt-economic-growth)
- [Global Food Crisis Demands Support for People, Open Trade, Bigger Local Harvests](https://www.imf.org/en/Blogs/Articles/2022/09/30/global-food-crisis-demands-support-for-people-open-trade-bigger-local-harvests)
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- [On the Looming Food Security Crisis in Africa](https://www.imf.org/en/News/Articles/2022/05/19/sp051922-emergency-meeting-on-the-looming-food-security-crisis-in-africa)
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- [A Disrupted Global Recovery](https://blogs.imf.org/2022/01/25/a-disrupted-global-recovery/)
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- [Joint Action Needed to Secure the Recovery](https://blogs.imf.org/2021/10/27/joint-action-needed-to-secure-the-recovery/)
- [Seven Charts that Show Sub-Saharan Africa at a Crucial Point](https://www.imf.org/en/News/Articles/2021/10/20/na102021-seven-charts-that-show-sub-saharan-africa-at-a-crucial-point)
- [Debt Service Relief for 24 Eligible Low-Income Countries](https://www.imf.org/en/News/Articles/2021/10/08/pr21291-the-imf-executive-board-extends-debt-service-relief-24-eligible-low-income-countries)
- [Putting Public Investment to Work](https://blogs.imf.org/2021/08/11/putting-public-investment-to-work/?utm_medium=email&utm_source=govdelivery)
- [Coming Together](https://blogs.imf.org/2021/08/10/coming-together/)
- [Drawing Further Apart: Widening Gaps in the Global Recovery](https://blogs.imf.org/2021/07/27/drawing-further-apart-widening-gaps-in-the-global-recovery/)
- [Stepping Up to Meet Low-Income Countries’ Pandemic Recovery Needs](https://blogs.imf.org/2021/07/26/stepping-up-to-meet-low-income-countries-pandemic-recovery-needs/)
- [The IMF Approves Policy Reforms and Funding Package to Better Support the Recovery of Low-Income Countries From the Pandemic](https://www.imf.org/en/News/Articles/2021/07/22/pr21222-imf-approves-policy-reforms-funding-package-support-low-income-countries-from-pandemic)
- [Urgent Action Needed to Address a Worsening ‘Two-Track’ Recovery](https://blogs.imf.org/2021/07/07/urgent-action-needed-to-address-a-worsening-two-track-recovery/)
- [Seizing the Opportunity for a Pro-Growth, Post-Pandemic World](https://blogs.imf.org/2021/07/20/seizing-the-opportunity-for-a-pro-growth-post-pandemic-world/)
- [The Policymaker’s Trilemma](https://blogs.imf.org/2021/05/12/the-policymakers-trilemma/)
- [Achieving the Sustainable Development Goals Will Require Extraordinary Effort by All](https://blogs.imf.org/2021/04/29/achieving-the-sustainable-development-goals-will-require-extraordinary-effort-by-all/)
- [Four Questions About Debt and Financing Risks from COVID-19 in the Middle East and North Africa](https://www.imf.org/en/News/Articles/2021/04/27/na042821-4-questions-about-debt-and-financing-risks-from-covid-19-in-mena)
- [Six Charts Show the Challenges Faced by Sub-Saharan Africa](https://www.imf.org/en/News/Articles/2021/04/12/na041521-six-charts-show-the-challenges-faced-by-sub-saharan-africa)
- [Funding the Recovery of Low-income Countries After COVID](https://blogs.imf.org/2021/04/05/funding-the-recovery-of-low-income-countries-after-covid/)
- [Slow-Healing Scars: The Pandemic’s Legacy](https://blogs.imf.org/2021/03/31/slow-healing-scars-the-pandemics-legacy/)
- [Key to Resolving Covid’s Global Debt Crunch: Transparency](https://www.imf.org/en/News/Articles/2021/03/12/vc-key-to-resolving-covid-s-global-debt-crunch-transparency)
- [The Great Divergence: A Fork in the Road for the Global Economy](https://blogs.imf.org/2021/02/24/the-great-divergence-a-fork-in-the-road-for-the-global-economy/)
- [How Strong Infrastructure Governance Can End Waste in Public Investment](https://blogs.imf.org/2020/09/03/how-strong-infrastructure-governance-can-end-waste-in-public-investment/)
- [Healing the Fractures of the Global Economy](https://blogs.imf.org/2020/09/01/healing-the-fractures-of-the-global-economy/)
- [COVID-19: Without Help, Low-Income Developing Countries Risk a Lost Decade](https://blogs.imf.org/2020/08/27/covid-19-without-help-low-income-developing-countries-risk-a-lost-decade/)
- [Impact of Conflict and Political Instability on Banking Crises in Developing Economies](https://blogs.imf.org/2020/07/29/impact-of-conflict-and-political-instability-on-banking-crises-in-developing-economies/)
- [Reopening from the Great Lockdown: Uneven and Uncertain Recovery](https://blogs.imf.org/2020/06/03/courage-under-fire-policy-responses-in-emerging-market-and-developing-economies-to-the-covid-19-pandemic/)
- [How the IMF Can Help Countries Address the Economic Impact of Coronavirus](https://www.imf.org/en/About/Factsheets/Sheets/2020/02/28/how-the-imf-can-help-countries-address-the-economic-impact-of-coronavirus)
- [Emerging from the Great Lockdown in Asia and Europe](https://blogs.imf.org/2020/05/12/emerging-from-the-great-lockdown-in-asia-and-europe/)
- [How Pandemics Leave the Poor Even Farther Behind](https://blogs.imf.org/2020/05/11/how-pandemics-leave-the-poor-even-farther-behind/)
- [World Bank Group and IMF mobilize partners in the fight against COVID-19 in Africa](https://www.imf.org/en/News/Articles/2020/04/17/pr20168-world-bank-group-and-imf-mobilize-partners-in-the-fight-against-covid-19-in-africa)
- [Six Charts Show How COVID-19 Is an Unprecedented Threat to Development in Sub-Saharan Africa](https://www.imf.org/en/News/Articles/2020/04/13/na0413202-six-charts-show-how-covid-19-is-an-unprecedented-threat-to)
- [Fiscal Policies For Women’s Economic Empowerment](https://blogs.imf.org/2020/02/18/fiscal-policies-for-womens-economic-empowerment/)
- [Regional Economic Outlook for sub-Saharan Africa 2030 Challenges and Opportunities for Mozambique](https://www.imf.org/en/News/Articles/2019/11/21/sp21112019-regional-economic-outlook-for-sub-saharan-africa-2030-mozambique)
- [Building on South Asia's Economic Success](https://www.imf.org/en/News/Articles/2019/11/01/NA110219-building-on-south-asias-economic-success)
- [Latest Economic Developments in Latin America](https://www.imf.org/en/News/Articles/2019/10/28/NA102819-Interview-with-Alejandro-Werner-on-Latest-Economic-Developments-in-Latin-America)
- [The IMF’s Purpose: Delivering for People](https://www.imf.org/en/News/Articles/2019/10/18/sp101819-md-am-plenary-speech)
- [How Elevated Global Uncertainty Is Creating Challenges for Sub-Saharan Africa](https://www.imf.org/en/News/Articles/2019/10/17/na1819six-charts-on-how-elevated-global-uncertainty-is-creating-challenges-for-sub-saharan-africa)
- [The World Economy: Synchronized Slowdown, Precarious Outlook](https://blogs.imf.org/2019/10/15/the-world-economy-synchronized-slowdown-precarious-outlook/)
- [Realizing the Potential of the G20 Compact with Africa](https://blogs.imf.org/2018/10/30/realizing-the-potential-of-the-g20-compact-with-africa/)
- [Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development](https://www.imf.org/en/News/Articles/2018/10/11/cm-intergovernmental-group-of-twenty-four-on-international-monetary-affairs-and-development)
- [Keeping Asia at the Forefront Amid Growing Risks](https://www.imf.org/en/News/Articles/2018/10/10/NA091118-Keeping-Asia-at-the-Forefront-Amid-Growing-Risks)
- [Managing Director's Statement on the Role of Fund Engagement in Fragile and Conflict-Affected States](https://www.imf.org/en/News/Articles/2018/10/04/pr18378-md-statement-on-the-role-of-fund-engagement-in-fragile-conflict-affected-states)
- [IMF Releases the 2018 Financial Access Survey](https://www.imf.org/en/News/Articles/2018/09/28/pr18366-imf-releases-the-2018-financial-access-survey)
- [IMF Executive Board Discusses 2018 Review of Facilities for Low-Income Countries](https://www.imf.org/en/News/Articles/2018/08/01/pr18325-imf-executive-board-discusses-2018-review-of-facilities-for-low-income-countries)
- [Policies to Ensure Asia's Sustained Economic Success](http://www.imf.org/en/news/articles/2018/05/24/sp052518-policies-to-ensure-asia-s-sustained-economic-success)
- [Sub-Saharan Africa: Firming Up the Economic Recovery](http://www.imf.org/en/news/articles/2018/05/11/na051118-sub-saharan-africa-firming-up-the-economic-recovery)
- [IMF Sets Out Policy Steps to Reduce Vulnerabilities and Raise Sub-Saharan Africa's Medium-Term Growth](http://www.imf.org/en/news/articles/2018/05/08/pr18161-imf-sets-out-policy-steps-to-reduce-vulnerabilities-and-raise-sub-saharan-africa)
- [Managing Debt Vulnerabilities in Low-Income and Developing Countries](https://blogs.imf.org/2018/03/22/managing-debt-vulnerabilities-in-low-income-and-developing-countries/)
- [Understanding Debt: A Better Tool for Low-Income Countries](http://www.imf.org/en/news/articles/2017/10/02/na100217-understanding-debt-a-better-tool-for-low-income-countries)
- [Building a More Resilient and Inclusive Global Economy](http://www.imf.org/en/news/articles/2017/04/07/building-a-more-resilient-and-inclusive-global-economy-a-speech-by-christine-lagarde)
- [Delivering on the 2030 Agenda](http://www.imf.org/en/news/articles/2016/10/09/pr16455-delivering-on-the-2030-agenda)
- [Slowing Global Growth Has Varied Effects on Low-Income Countries](http://www.imf.org/external/pubs/ft/survey/so/2015/CAR121715A.htm)
- [Financing for Development: IMF's Role in the Post-2015 Agenda](http://www.imf.org/external/pubs/ft/survey/so/2015/pOL070815A.htm)
- [Financing For Development: The Way Forward](http://www.imf.org/external/pubs/ft/survey/so/2015/new041915a.htm)
- [recent IMF study.](http://www.imf.org/en/Publications/CR/Issues/2017/02/03/Turkey-2017-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-44614)
- [Analysis focusing on tourism](http://www.imf.org/en/Publications/CR/Issues/2017/02/03/Turkey-Selected-Issues-44615)
- [Turkey and the IMF](http://www.imf.org/external/country/tur/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2017/02/21/na230217turkeys-economy-hit-by-declining-tourism_