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Travel and tourism in Turkey - statistics & facts

Tourism in turkey after the covid-19 pandemic, tourism in istanbul, key insights.

Detailed statistics

Travel and tourism's total contribution to GDP in Turkey 2019-2023

Travel and tourism's total contribution to employment in Turkey 2019-2023

Total tourism income in Turkey 2001-2023

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Current statistics on this topic.

Leisure Travel

Number of international tourist arrivals in Turkey 2000-2023

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Recommended statistics

• Basic Statistic Travel and tourism's total contribution to GDP in Turkey 2019-2023
• Premium Statistic Share of the GDP of the tourism sector in Turkey 2013-2028
• Basic Statistic Distribution of travel and tourism expenditure in Turkey 2019-2022, by type
• Basic Statistic Distribution of travel and tourism expenditure in Turkey 2019-2022, by tourist type
• Premium Statistic Total tourism income in Turkey 2001-2023
• Premium Statistic Tourism income in Turkey 2019-2022, by type of expenditure
• Basic Statistic Travel and tourism's total contribution to employment in Turkey 2019-2023
• Premium Statistic Number of employees in tourism industries in Turkey 2015-2021, by service

Travel and tourism's total contribution to GDP in Turkey 2019-2023

Total contribution of travel and tourism to GDP in Turkey from 2019 to 2023 (in billion Turkish liras)

Share of the GDP of the tourism sector in Turkey 2013-2028

Share of the GDP of the tourism sector in Turkey from 2013 to 2028

Distribution of travel and tourism expenditure in Turkey 2019-2022, by type

Distribution of travel and tourism spending in Turkey from 2019 and 2022, by type

Distribution of travel and tourism expenditure in Turkey 2019-2022, by tourist type

Distribution of travel and tourism spending in Turkey in 2019 and 2022, by type of tourist

Annual tourism income in Turkey from 2001 to 2023 (in billion U.S. dollars)

Tourism income in Turkey 2019-2022, by type of expenditure

Annual income from tourism in Turkey from 2019 to 2022, by type of expenditure (in million U.S. dollars)

Travel and tourism's total contribution to employment in Turkey 2019-2023

Total contribution of travel and tourism to employment in Turkey from 2019 to 2023 (in million jobs)

Number of employees in tourism industries in Turkey 2015-2021, by service

Number of employees in tourism industries in Turkey from 2015 to 2021, by service (in 1,000s)

Inbound tourism

• Premium Statistic Inbound visitor arrivals in Turkey 2008-2023
• Premium Statistic Number of international tourist arrivals in Turkey 2000-2023
• Premium Statistic Inbound day visitor arrivals in Turkey 2008-2022
• Premium Statistic Number of foreign tourist arrivals in Turkey monthly 2020-2023
• Premium Statistic Number of international visitors in Turkey 2022, by purpose of visit
• Premium Statistic Leading inbound travel markets in Turkey 2019-2022
• Premium Statistic Inbound tourist expenditure in Turkey Q1 2017-Q4 2021
• Premium Statistic Average tourist expenditure per capita of inbound visitors in Turkey 2003-2023

Inbound visitor arrivals in Turkey 2008-2023

Number of inbound visitor arrivals in Turkey from 2008 to 2023 (in 1,000s)

Number of international visitors arriving in Turkey from 2000 to 2023 (in 1,000s)

Inbound day visitor arrivals in Turkey 2008-2022

Number of inbound excursionists arriving in Turkey from 2008 to 2022 (in 1,000s)

Number of foreign tourist arrivals in Turkey monthly 2020-2023

Number of foreign tourist arrivals in Turkey from January 2020 to April 2023 (in 1,000s)

Number of international visitors in Turkey 2022, by purpose of visit

Number of international visitors in Turkey in 2022, by purpose of visit (in 1,000s)

Leading inbound travel markets in Turkey 2019-2022

Leading international travel markets in Turkey from 2019 to 2022, by number of arrivals (in 1,000s)

Inbound tourist expenditure in Turkey Q1 2017-Q4 2021

Quarterly expenditure of inbound tourists in Turkey from 1st quarter 2017 to 4th quarter 2021 (in billion U.S. dollars)

Average tourist expenditure per capita of inbound visitors in Turkey 2003-2023

Average tourist expenditure per capita of inbound tourists in Turkey from 2003 to 2023 (in U.S. dollars)

Domestic tourism

• Premium Statistic Number of domestic trips in Turkey 2009-2022
• Premium Statistic Domestic overnight stays in Turkey 2009-2022
• Premium Statistic Average number of domestic overnight stays in Turkey 2022, by age group
• Premium Statistic Domestic tourism spending in Turkey 2019-2022, by type
• Premium Statistic Domestic tourism expenditure on leisure and vacation trips in Turkey 2009-2022

Number of domestic trips in Turkey 2009-2022

Number of domestic trips in Turkey from 2009 to 2022 (in millions)

Domestic overnight stays in Turkey 2009-2022

Number of domestic overnight stays in Turkey from 2009 to 2022 (in millions)

Average number of domestic overnight stays in Turkey 2022, by age group

Average number of overnight stays by domestic visitors in Turkey in 2022, by age group

Domestic tourism spending in Turkey 2019-2022, by type

Domestic tourism expenditure in Turkey from 2019 to 2022, by type (in billion Turkish liras)

Domestic tourism expenditure on leisure and vacation trips in Turkey 2009-2022

Annual expenditure on domestic leisure and vacation trips in Turkey from 2009 to 2022 (in billion Turkish liras)

Outbound tourism

• Premium Statistic Number of residents traveling abroad from Turkey 2006-2023
• Premium Statistic Leading outbound destinations visited by residents of Turkey 2019-2023
• Premium Statistic Overnight stays of Turkish citizens traveling abroad 2019-2022, by accommodation type
• Premium Statistic Outbound tourism expenditure from Turkey 2003-2023
• Premium Statistic Outbound tourist expenditure from Turkey Q1 2017-Q4 2022
• Premium Statistic Average tourist expenditure per capita of outbound travelers from Turkey 2003-2023

Number of residents traveling abroad from Turkey 2006-2023

Number of citizens visiting destinations abroad from Turkey from 2006 to 2023 (in 1,000s)

Leading outbound destinations visited by residents of Turkey 2019-2023

Number of citizens visiting destinations abroad from Turkey in 2019 and 2023, by country (in 1,000s)

Overnight stays of Turkish citizens traveling abroad 2019-2022, by accommodation type

Number of overnight stays by citizens visiting destinations abroad from Turkey from 2019 to 2022, by accommodation type (in millions)

Outbound tourism expenditure from Turkey 2003-2023

Annual expenditure of outbound tourists from Turkey from 2003 to 2023 (in billion U.S. dollars)

Outbound tourist expenditure from Turkey Q1 2017-Q4 2022

Expenditure of outbound tourists from Turkey from 1st quarter 2017 to 4th quarter 2022 (in million U.S. dollars)

Average tourist expenditure per capita of outbound travelers from Turkey 2003-2023

Average tourist expenditure per capita of outbound visitors from Turkey from 2003 to 2023 (in U.S. dollars)

Accommodation

• Premium Statistic Number of arrivals to tourist accommodations in Turkey 2013-2022
• Premium Statistic Number of arrivals to tourist accommodations in Turkey 2023, by type of establishment
• Premium Statistic Inbound overnight hotel stays in Turkey 2014-2022
• Premium Statistic Number of hotel rooms in Turkey 2010-2021
• Premium Statistic Number of hotel bed-places in Turkey 2010-2021
• Premium Statistic Occupancy rate of star-rated hotels in Turkey 2023, by rating

Number of arrivals to tourist accommodations in Turkey 2013-2022

Number of arrivals to tourist accommodations in Turkey from 2013 to 2022 (in millions)

Number of arrivals to tourist accommodations in Turkey 2023, by type of establishment

Number of arrivals to tourist accommodations in Turkey in 2023, by type of establishment (in 1,000s)

Inbound overnight hotel stays in Turkey 2014-2022

Number of international overnight stays in hotel accommodations in Turkey from 2014 to 2022 (in 1,000s)

Number of hotel rooms in Turkey 2010-2021

Number of rooms in hotels and similar establishments in Turkey from 2010 to 2021 (in 1,000s)

Number of hotel bed-places in Turkey 2010-2021

Total number of bed-places in hotels and similar accommodation in Turkey from 2010 to 2021 (in 1,000s)

Occupancy rate of star-rated hotels in Turkey 2023, by rating

Occupancy rate of star-rated hotels in Turkey in 2023, by hotel rating

• Basic Statistic Leading European city tourism destinations 2019-2022, by number of bed nights
• Basic Statistic Most affordable cities for backpacking in Europe 2024
• Premium Statistic Most competitive European cities for business events 2021
• Premium Statistic Most visited destinations by international tourists in Turkey 2019-2022
• Premium Statistic Number of foreign tourist arrivals to Istanbul 2014-2023
• Premium Statistic Number of foreign tourist arrivals to Istanbul 2020-2023
• Premium Statistic Overnight accommodation costs in Istanbul 2019-2023, by month
• Premium Statistic Most visited museums in Istanbul 2022

Leading European city tourism destinations 2019-2022, by number of bed nights

Leading city tourism destinations in Europe from 2019 to 2022, by number of bed nights (in millions)

Most affordable cities for backpacking in Europe 2024

Most affordable cities for backpacking in Europe in 2024, by daily price index (in U.S. dollars)

Most competitive European cities for business events 2021

Leading city destinations for international conventions in Europe in 2021 (index score)

Most visited destinations by international tourists in Turkey 2019-2022

Leading destinations among international tourists in Turkey from 2019 to 2022, by number of visitors (in 1,000s)

Number of foreign tourist arrivals to Istanbul 2014-2023

Annual number of foreign tourist arrivals in Istanbul from 2014 to 2023 (in 1,000s)

Number of foreign tourist arrivals to Istanbul 2020-2023

Number of foreign tourist arrivals in Istanbul from January 2020 to September 2023 (in 1,000s)

Overnight accommodation costs in Istanbul 2019-2023, by month

Average cost of overnight accommodation in Istanbul, Turkey from January 2019 to October 2023 (in euros)

Most visited museums in Istanbul 2022

Leading museums in Istanbul in 2022, by number of visitors

Public opinion

• Premium Statistic Attitudes towards traveling in Turkey 2023
• Premium Statistic Travel frequency for private purposes in Turkey 2023
• Premium Statistic Travel frequency for business purposes in Turkey 2023
• Premium Statistic Travel product bookings in Turkey 2023

Attitudes towards traveling in Turkey 2023

Attitudes towards traveling in Turkey as of March 2023

Travel frequency for private purposes in Turkey 2023

Travel frequency for private purposes in Turkey as of March 2023

Travel frequency for business purposes in Turkey 2023

Travel frequency for business purposes in Turkey as of March 2023

Travel product bookings in Turkey 2023

Travel product bookings in Turkey as of March 2023

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Turkey Tourism Revenues

Tourism revenues in turkey rose 6.8 percent year-on-year to usd 12.27 billion in the fourth quarter of 2023, of which 84.8 percent came from foreign visitors while 15.2 percent came from turkish citizens residing abroad. moreover, the number of visitors recorded a 4.1 percent growth, totaling usd 12.47 million, with the average per capita spending rising by 2.5 percent to reach usd 984. expenditure on sports, education & cultural activities surged by 49.4 percent, accommodation expenses saw an increase of 14.3 percent, and food & beverages expenditures rose by 12.9 percent. for the whole 2023, tourism revenues expanded by 16.9 percent to reach usd 54.32 million. source: turkish statistical institute, tourism revenues in turkey decreased to 12273 usd million in the fourth quarter of 2023 from 20230 usd million in the third quarter of 2023. tourism revenues in turkey averaged 4684.56 usd million from 1990 until 2023, reaching an all time high of 20230.00 usd million in the third quarter of 2023 and a record low of 294.00 usd million in the first quarter of 1990. this page provides - turkey tourism revenues- actual values, historical data, forecast, chart, statistics, economic calendar and news. turkey tourism revenues - data, historical chart, forecasts and calendar of releases - was last updated on april of 2024., tourism revenues in turkey decreased to 12273 usd million in the fourth quarter of 2023 from 20230 usd million in the third quarter of 2023. tourism revenues in turkey is expected to be 10100.00 usd million by the end of this quarter, according to trading economics global macro models and analysts expectations. in the long-term, the turkey tourism revenues is projected to trend around 16500.00 usd million in 2025 and 18900.00 usd million in 2026, according to our econometric models.,   markets,   gdp,   labour,   prices,   money,   trade,   government,   business,   consumer,   housing,   taxes,   health,   climate.

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Turkey’s Travel & Tourism Sector to Grow at Twice the Rate of the National Economy

Sector set to create more than 716,000 over the next 10 years

Turkey is set to be the fourth most popular European destination amongst travellers this summer

London, UK: The World Travel & Tourism Council’s latest Economic Impact Report (EIR) reveals Turkey’s Travel & Tourism’s GDP is forecasted to grow at an average rate of 5.5% annually between over the next decade, more than twice the 2.5% growth rate of country’s overall economy.

The forecast from the World Travel & Tourism Council ( WTTC ) shows by 2032, the sector’s contribution to the nations GDP could reach nearly TRY 1,036 billion (US$117 billion), representing 11% of the total economy.

The sector is also expected to create more than 716,000 new jobs over the next decade.

By the end of this year, the sector’s contribution to GDP is expected to grow 15.5% to nearly TRY 607 billion (US$68.5 billion), amounting to 8.3% of the nation’s economy, while employment in the sector is set to grow by 4% to reach more than 2.5 million jobs.

Latest flight booking data from WTTC’s knowledge partner ForwardKeys shows that over the key summer period this year, Turkey is set to be the fourth most popular European hot spots amongst sun-seeking travellers, who will be heading to city destinations such as Istanbul, and the beaches of Antalya, Bodrum, and Dalaman.

The data shows that flight bookings are already overtaking pre-pandemic levels with bookings from the UK up 101%.

Other source markets are also outperforming 2019, with bookings from the U.S., Canada, and Ireland up 57%, 28% and 18% respectively.

Julia Simpson, WTTC President & CEO, said: “The future looks bright for Turkey’s Travel & Tourism sector with its contribution to GDP set to outpace the national economy for the next 10 years, creating almost three quarters of a million new jobs.

“Flight booking data from our partner ForwardKeys clearly shows that this popular destination is set to enjoy a bumper summer season.

“Before the pandemic, Turkey’s economy was highly reliant on international tourism, so its recovery is critical to both the economy and jobs.”

Turkey’s Travel & Tourism sector’s contribution to GDP was 11% (TRY 693.3 billion or US$78.2 billion) in 2019, falling to just 5.1% (TRY 327.2 billion or US$36.9 billion) in 2020, which represented a painful 52.8% loss.

The sector also supported nearly 2.6 million jobs across the country, before suffering an 18% drop, falling to 2.1 million.

WTTC’s latest EIR report also reveals that 2021 saw the beginning of the recovery for the Turkish Travel & Tourism sector.

Last year, its contribution to GDP climbed 60.6% year on year, to reach TRY 525.5 billion (US$59.3 billion).

The sector also saw a recovery of almost 300,000 Travel & Tourism jobs, representing a 14% rise to reach more than 2.4 million.

The global tourism body says the sector’s contribution to the economy and employment could have been higher if it weren’t for the impact of the Omicron variant, which led to the recovery faltering around the world, with many countries reinstating severe travel restrictions.

Download the press release  

China’s Travel & Tourism Sector Set to Recover by More Than 60% This Year, Reveals WTTC

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UK Travel & Tourism Sector Sees a Massive Job Shortfall of More Than 200,000 This Year, Says WTTC Report

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Can Tourism Be the Ticket to Turkey’s Economic Recovery?

12/01/2023 by EOS Intelligence

Home WORLD ECONOMY ECONOMY Can Tourism Be the Ticket to Turkey’s Economic Recovery?

Tourism is one of the most dynamic and fastest-growing sectors in Turkey . The country is highly reliant on tourism for foreign exchange earnings. However, the COVID-19 outbreak and the Russia-Ukraine war have affected the country’s tourism industry and resulted in a decline in tourist visits. While the spike in energy and commodity costs due to war has widened the current account deficit gap, it has also made tourism cheaper in the country due to a significant decline in currency value. This has resulted in an unprecedented influx of tourists once the pandemic subsided. Furthermore, various initiatives have been taken by the government to boost tourism in hopes of reducing the current account deficit, bringing down inflation rates, and supporting economic growth.

Turkey is known for its vast historical sites in the major cities of Istanbul and Antalya, as well as the Aegean and Mediterranean Sea coasts. The tourism sector employs about 2.6 million people in the country. The sector also contributes significantly to new tourism-related business sources and foreign exchange earnings and, thus, plays a crucial role in the economic development of the country, especially in the post-COVID era. In 2021, it is estimated that Turkey generated about US$25 billion in revenue from the tourism sector.

The country’s dependence on tourism has increased significantly over the past few years. Turkey’s travel and tourism sector contribution to GDP increased to 11% in 2019 as compared with 4.7% in 2014. As per the  United Nations World Tourism Organization (UNWTO) , Turkey was the sixth-most visited country in the world in 2019. While the country’s rank came down to 15th in 2020 due to the COVID-19 outbreak, it jumped to fourth in 2021 in the post-COVID-19 recovery phase.

In addition to this, as per the 2022 Economic Impact Report (EIR) by the World Travel and Tourism Council, Turkey’s Travel and Tourism GDP is expected to increase by about 5.5% on an annual basis over the next decade (2022-2032) and create over 716,000 new jobs in the country. The projected growth rate in the country’s travel and tourism sector is more than double the projected growth rate of the overall economy, which is expected to be 2.5% during the same time period.

Challenges faced by the tourism sector over the years

While the tourism sector remains one of the best-performing sectors in Turkey, it has faced its own set of challenges over the past several years. Inflation has been rapidly rising in the country since 2016 due to factors such as low-interest rates, the energy crisis, an increase in commodity prices, and declining currency value. This has significantly affected domestic travelers and business owners in the tourism sector. Several terrorist attacks, particularly in the southeast part of the country and Istanbul and Ankara by the Kurdistan Workers’ Party (PKK) and ISIS, also severely affected tourist visits and economic growth in 2016.

Owing to the 2020 COVID-19 outbreak, spending on tourism by international visitors in Turkey declined by about US$20 billion, a 70% decline in comparison with 2019. This led to a decline in demand and unemployment in related sub-sectors, including airlines, travel agencies, hotels, and car rental companies, among others.

Stringent measures and trade restrictions resulted in a significant decline in air traffic and affected the aviation industry. For instance, the National carrier, Turkish Airlines, reported a net loss of about US$761 million in 2020.

The hospitality industry was also hit due to a fall in tourism in the country. Most hotels faced significant revenue loss during lockdown months. According to the Turkish Hotel Association (TUROB), the hotel occupancy rate in the first nine months of 2020 was just 35.4%, a decline of 47.8% from the same time period in the previous year. Moreover, revenue per available room declined by 52.5% to US$24.7 during the same period.

Can Tourism Be the Ticket to Turkey’s Economic Recovery? by EOS Intelligence

The 2022 war between Ukraine and Russia further affected the tourism sector growth in Turkey. Tourist visits from Russia and Ukraine used to account for a significant share of the total number of tourists visiting the country for holidays from Europe. Over 4.7 million Russians and 2 million Ukrainians visited Turkey for vacation in 2021. While 2.2 million Russians visited Turkey during January-July 2022, it is expected that the total number of tourists from Russia in 2022 will fall short of the 2021 figures due to prolonged war and the imposition of western sanctions and flight suspension. The number of tourists from Ukraine declined to 374,000 in the first seven months of 2022, in comparison with 1.1 million during the same period in 2021. The war also spiked Turkey’s inflation rate, which touched about 80% in August 2022.

While the Turkish government is trying to attract tourists from Russia by collaborating with Turkish aircraft to transport foreign guests amid war, it is not likely to recover tourist visits to pre-war levels.

Depreciating currency value boosts tourism in the country

The increase in the current account deficit due to rising energy and commodity costs in the backdrop of war in Ukraine has led to a massive currency value plunge for the Turkish Lira in 2022. Turkey is a net importer of oil and gas, and a spike in energy costs amid the Ukraine-Russia war has widened the current account deficit gap. As per the Turkish Central Bank data, the current account deficit increased to about US$32.4 billion in the first half of 2022. As of September 2022, the Turkish Lira declined to about TRY18.3 per US$1 compared with an average of TRY 8.9 per US$1 in September 2021 and is likely to decline further in 2023 with rising inflation rates due to interest rate cut.

A significant plunge in the currency value has made Turkey a more affordable destination for holidays in comparison with other European tourist destinations. The cost of stay, food, and travel has become significantly lower for foreigners. Adding to this, there has been a decline in COVID-19 cases across the globe, which has also provided the tourism sector a strong boost.

The number of foreign tourists visiting Turkey increased by 94% in 2021 (compared with 2020), reaching 24.7 million. It further witnessed a y-o-y increase of about 128% for the period of January-July 2022 to reach 23.3 million tourists during the period. The country’s revenue from tourism also witnessed a y-o-y increase of 190% in Q2 2022 to reach US$8.72 billion. In 2022, Germany accounted for the largest share of visitors, reaching 2.9 million from January to August. The number of tourists from Middle Eastern and European countries has also increased significantly in 2022. This has also resulted in an increase in share prices of Turkish Airlines. For instance, the share value of Turk Hava Yollari AO, also known as Turkish Airways, increased by about 147% between January and May 2022.

Since Turkey is highly reliant on tourism for its foreign exchange earnings, the significant boost in tourism is likely to help lower the widening current account deficit in the country. A low current account deficit is likely to increase the value of the Lira and, thus, bring down the inflation rate and support economic growth. However, further decline in interest rates by the Central Bank is resulting in an increase in the inflation rate, which reached 80.2% in September 2022. Therefore, while tourism can help soften the blow on the economy by reeling in foreign currency and earnings, it is unlikely that it will single-handedly help the economy recover from the ongoing crisis. That being said, the government is undertaking several efforts to capitalize on the growth in the tourism sector and provide a much-needed cushion to the economy as a whole.

Initiatives aimed at boosting tourism in the country

The Turkish government realizes the role tourism can play in uplifting the economy and has been undertaking several initiatives to boost the sector. For instance, in 2021, the government adopted a new promotion strategy, ‘Go Turkey’, to boost tourism. The ‘Go Turkey’ website encompasses the use of advanced technologies such as artificial intelligence and communication models. It follows over 100 media and social media outlets which cover news about the country. Additionally, it also analyses positive or negative content on Turkey and determines promotion priority based on this analysis. The aim is to focus on advanced public relations by integrating all 81 provinces under the system and promoting tourism together as a single voice.

A few other initiatives taken up to boost tourism in the country include additional domestic flight routes, medical tourism support, transportation infrastructure development, and several hotel investments. In August 2022, Turkish Airlines signed a deal with the Services Exporters’ Association (HİB) to help increase medical tourism in Turkey to meet the medical tourism industry’s export service revenue target aimed at US$5 billion in 2023.

About US$172 billion has also been invested in communication and transportation infrastructure during 2003-2021, and the government is planning to invest an additional US$198 billion by the end of 2053. Some of the key ongoing projects include The MBB – Gari – Mezitli Metro, The IBB – Kazlicesme – Sogutlucesme Metro Line, and the IMM – Ucyol-Buca Koop Light Rail, among others, aimed at boosting the transportation network in the country. Additionally, according to the Hotel Association of Turkey (TÜROB), new investments were planned in about 30 provinces in the first half of 2022. The new investment incentive includes applications for 11 five-star hotels, 18 four-star hotels, and 26 three-star hotels.

As of March 2022, TUI Group, a leading German travel and tourism company, together with its partners in Turkey, planned on expanding its holiday program and developing a winter program across destinations to attract more tourists as compared with pre-pandemic levels.

Additionally, in July 2022, Cengiz Construction, a leading construction company, started the construction of villas and hotels in Bodrum’s Cennet Bay together with Bulgari, a luxury hospitality company, with a significant increase in international visitors in the country.

Furthermore, travel companies and agencies are focusing on the adoption of digital platforms to promote tourism in the country as people are becoming more technology savvy and prefer online booking. It also helps attract travelers from different countries across the globe. Hotel booking through digital platforms increased to 81% in 2019, up from 73% in 2014, and is expected to increase further with rising penetration of smartphones and easy internet access. Turkey’s Tourism Development Agency (TGA) is likely to spend about US$100 million to promote tourism in over 120 countries through internet platforms and media in 2022.

EOS Perspective

Tourism contributes a significant amount to the Turkish GDP and is likely to help limit the consequences of increasing commodity and energy prices by reducing the widening current account deficit gap and easing the pressure on the economy. That being said, it is unlikely to help the country recover completely from its economic woes. Although the depreciating Lira has made Turkey a very affordable destination for holidays, people operating in tourism businesses are significantly affected by the high inflation levels as well. Hotels and resorts are facing high costs of employee wages, food supplies, and car rents, among others, which hurt their profits. Interest rates cut by the Central Bank are further increasing the inflation rate. In addition to this, the key tourist season, which is the summer season for Turkey, lasts for just a few months, and the sector’s revenue and profitability fall in the winter season. This makes it evident that the Turkish economy must base its recovery on a balanced mix of support across several sectors.

The World Bank in Türkiye

Türkiye has quickly adopted measures to help contain the spread of COVID-19 and save lives, whilst providing economic support to affected firms and households. The economic outlook is more uncertain, than usual and will depend on how quickly this unprecedented crisis can be brought under control.

Country Context

Türkiye is the 17th largest economy in the world, according to IMF, with a GDP of $1024 billion as of 2023. It is a member of the OECD and the G20 and an increasingly important donor of official development assistance (ODA).

Türkiye pursued ambitious reforms and enjoyed high growth rates between 2006 and 2017, which propelled the country to the higher reaches of upper-middle-income status and reduced poverty. Real gross domestic product (GDP) growth averaged 5.4% between 2002 and 2022, resulting in income per capita (in real terms) that was more than doubled over the same period. Growth was accompanied by rapid poverty reduction; the poverty rate decreased by more than half from above 20% in 2007 to 7.6% in 2021. As of 2021, the share of people below the $6.85 per day. 

For Türkiye to preserve and further its progress, it must navigate through significant challenges that encompass economic resilience, poverty and inclusion, and sustainability. Key among these is revitalizing economic growth in a post-COVID era marked by a challenging macroeconomic climate and a downward trend in productivity observed since the mid-2010s. Furthermore, although economic expansion has continued, the reduction in poverty rates has lost momentum since 2016, hindered by increasing inequality. On the environmental front, Türkiye's industrial base and transport heavily relies on carbon-intensive processes and fossil fuels, presenting both challenges and opportunities in light of the European Union's forthcoming Carbon Border Adjustment Mechanism—a critical consideration given the EU's role as a major market for Turkish exports. Lastly, Türkiye's distinct geographic and socioeconomic conditions significantly increase its vulnerability to the adverse effects of climate change, underscoring the imperative for comprehensive adaptation measures.

Türkiye is addressing the effects of the earthquakes that hit the country on February 6, 2023. With magnitudes of 7.8 and 7.5, the earthquakes were followed by thousands of aftershocks and another 6.7 magnitude earthquake on February 20. According to official statistics, they caused more than 50,000 casualties, injured 107,000 people, damaged or destroyed 1.9 million housing units, and displaced 3.3 million people, of whom two million needed shelter. An assessment by the Government of Türkiye with support from the EU, the United Nations (UN), and the World Bank Group estimated the recovery and reconstruction needs associated with the earthquakes at around $81.5 billion. Risks also remain high, with about 70% of the country’s population living in first- and second-degree seismic zones.

Following the May 2023 elections, the newly appointed economic team has launched a comprehensive policy set to address past macroeconomic imbalances, especially high inflation. Since then, Türkiye has been moving to normalizing its macroeconomic strategies. The country experienced a robust economic expansion of 4.5% in 2023. However, this growth rate is expected to decrease to 3.0% in 2024, before picking up again in subsequent years on a stronger basis. Longstanding macro and structural challenges that undermine potential growth—including high inflation, low productivity growth, low labor force participation, and employment levels, and weakening foreign direct investment—would require robust fiscal measures and ambitious structural reforms to help accelerate sustainable economic growth.

Last Updated: Apr 09, 2024

The Türkiye Country Partnership Framework (CPF) is the World Bank Group strategy to deliver impactful solutions at greater scale and speed in Türkiye over FY24-FY28. The CPF is fully aligned with the Bank Group’s mission of ending extreme poverty and promoting shared prosperity on a livable planet and with the Government of Türkiye’s 12th National Development Plan (NDP) 2024-2028. It aims to accelerate progress towards the Sustainable Development Goals (SDGs) and support recovery and reconstruction from recent shocks. The CPF outlines how the Bank Group will further scale up impact in one of its largest country portfolios to meet priority country and global challenges.

A key focus of the CPF is to help the country mobilize private capital to address key emerging challenges on the growth, poverty and inclusion, and sustainability fronts.

During the CPF period, the Bank Group will focus on selected challenges under three broad areas:

• High and sustainable productivity growth : The focus will be on promoting climate-smart agriculture to strengthen resilience against climate change and bolster food security; greening the industrial sector to reduce carbon emissions and maintain trade competitiveness; supporting economic recovery in areas affected by the 2023 earthquakes.
• Inclusive services and jobs : To address income and other inequalities, the focus will be to improve jobs for women, youth, and vulnerable groups; reduce disparities in health and education access and quality; and support resilient municipal infrastructure and services.
• Strengthen resilience against natural disasters : To help protect Türkiye’s people and economy, the Bank Group will prioritize disaster resilience and preparedness, management of natural resources and the transition to clean energy.

The CPF also emphasizes the need to accelerate digitalization, vital for boosting productivity and public service delivery. The Bank Group will work across many fronts to accelerate the use of digital technology, including improving the digital business ecosystem, supporting seismic and climate-resilient urban planning, extending hybrid education opportunities and improving financial inclusion.

There are 30 active IBRD operations amounting to $11.7 billion . The portfolio also includes one project financed by the Global Environment Facility (GEF)and six trust fund-supported projects, including almost $600 million in European Union trust funds through the Facility for Refugees in Türkiye. 

Key Advisory Services and Analytics (ASA) Activities:  The ASA portfolio is strategically consolidated around core and extended core ASAs including: Country Climate and Development Report, Programmatic Public Finance Review, Pandemic Preparedness and Response, Country Green Growth, Quality Learning and Emergency Response Roadmap, Understanding the Drivers of Regional Disparities in Türkiye and Sustainable, Efficient and Safe Transport for Türkiye.

In 2023, Türkiye's GDP expanded a 4.5%, fueled mainly by robust increases in private consumption (12.8% in real terms), investment (8.9%), and government consumption (5.2%). Exports contracted 2.7% in 2023 while imports grew firmly at 11.7%, dragging on growth. Sector-wise, the service sector grew by 4.8% and construction by 7.8%, benefiting from earthquake recovery efforts. The labor market remained resilient, with a 9.1% unemployment rate in January, despite the low labor force participation.

The current account deficit improved to $45.4 billion in 2023 (4.2% of GDP) from $49.1 billion in 2022, notably in the latter half of the year. Factors such as reduced foreign exchange volatility, the steady depreciation of the lira, a rebound in portfolio inflows, and a significant drop in the CDSs on Turkish assets (from over 700 to 320 by the end of March) contributed to a recovery in the Central Bank of the Republic of Turkey (CBRT) net reserves, from -$5.7 billion to +$19.6 billion as of March 15.

Inflation decreased from 57.7% in January 2023 to 38.2% in June 2023. Still, it escalated to 68.5% by March 2024, driven by factors including the lira's depreciation, significant minimum wage hikes, tax adjustments, and strong demand. Despite easing credit market restrictions, the high inflation and moderately strong capital levels have restrained bank loan growth. The banking sector, while facing maturity mismatches, has shown improvements in its foreign exchange position and capitalization, with non-performing loans decreasing and the ratio improving significantly.

The overall fiscal balance deteriorated to below -5% of GDP in 2023 (from -0.8 in 2022) due to rising expenditures and earthquake-related investment needs, and the primary balance was close to -3% of GDP (from +1.4 in 2022). However, the fiscal deficit is relatively low excluding earthquake-related expenditures. Public debt remains moderate at around 30% of GDP in 2023.

Poverty continued to decline but inequality widened between 2020 and 2021; the Gini coefficient increased to 46.0 in 2021 as the bottom and top income deciles reaped the largest benefits of growth. The bottom decile experienced the highest real increase in labor income (26%), likely driven by the minimum wage increase that in 2021 exceeded CPI inflation; while the top decile reaped the highest benefits from real increases in business incomes (96%), likely due to the surge in asset prices. Poverty reduction was largely due to increased labor earnings.

Looking ahead, economic growth is expected to slow to 3.0% in 2024, on the back of policy tightening and slower global growth, before picking up pace in subsequent years. Due to stringent monetary policies, inflation is expected to gradually decrease after peaking in May 2024, while the current account balance is anticipated to improve from 2024 onwards. The general budget deficit is likely to remain elevated in 2024 despite fiscal consolidation efforts, partly due to earthquake recovery needs.

Addressing structural issues and implementing pro-growth reforms are critical for enhancing private sector productivity and investment in the mid-term. Poverty reduction is expected to continue in the short term, driven by wage increases outpacing inflation. However, without changes in growth distribution, inequality might rise, potentially hindering long-term poverty alleviation efforts.

The economic forecast hinges on the continuation of current policies, with balanced risks. Downsides include low net reserves, geopolitical tensions, fiscal vulnerabilities, and political pressures against policy normalization. Conversely, increased credibility of the economic team could attract more investments, stabilizing the currency and expediting economic adjustments.

Turkey: Commitments by Fiscal Year (in millions of dollars)*

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Turkey's key tourism sector slow to recover after huge earthquake

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• Tourism has outsized importance to Turkish economy
• Hopes for busy summer in resort areas post-quake
• Russian and British tourists most likely to return

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Reporting by Ceyda Caglayan in Istanbul, Joanna Plucinska in London, editing by Mark Heinrich

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Joanna reports on airlines and travel in Europe, including tourism trends, sustainability and policy. She was previously based in Warsaw, where she covered politics and general news. She wrote stories on everything from Chinese spies to migrants stranded in forests along the Belarusian border. In 2022, she spent six weeks covering the war in Ukraine, with a focus on the evacuation of children, war reparations and evidence that Russian commanders knew of sexual violence by their troops. Joanna graduated from the Columbia Journalism School in 2014. Before joining Reuters, she worked in Hong Kong for TIME and later in Brussels reporting on EU tech policy for POLITICO Europe.

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