Brief information on Turkish Tourism Industry including tourism infrastructure, number of visitors, tourism revenues, beach, yacht, congress, winter, health & thermal tourism, top 10 hotel chains in Turkey, and market outlook

1. Foreign Market Consulting Ltd. Sti
Istanbul
June 2014
Tourism Industry in Turkey
Foreign Market Consulting Ltd. Şti. • Dede Yusuf Sok. No:11, 34453 Büyükdere Sarıyer İstanbul - Turkey
Tel: +90-212-3638 052 • Fax: +90-212-3638 517 • www.fmconsulting.com • info@fmconsulting.com

2. Contents
© 2014 Foreign Market Consulting Ltd. Sti.
A Overview Page 03
B Visitors Page 05
C Tourism Infrastructure Page 9
D Types of Tourism Page 11
E Main Companies Page 16
F Market Outlook Page 18

3. 3
• One of the world’s most popular tourism destinations thanks to:
• Natural attractions
• Four different seas with long summers
• Unique historical and archaeological sites, crossroad for many ancient civilizations
• Improving touristic infrastructure
• Tradition of hospitality
• An ideal destination not only for sun, sea and sand, but also for:
• Golf Tourism
• Yacht Tourism
• Congress Tourism
• Winter Sports
• Health & Thermal Tourism
• Faith Tours
• Mountaineering
• Underwater Diving
• Rafting
A. Overview
Introduction

4. 4
• Tourism revenues reached USD 32.3 bn in 2013.
• The annual average growth rate btw. 2003 and 2013 was 8.8%.
A. Overview
Tourism Revenues
Source: Turkish Statistical Institute, 2014
5 000 000
10 000 000
15 000 000
20 000 000
25 000 000
30 000 000
35 000 000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Tourism RevenuesUSD '000

5. 5
• Turkey ranks 6th in terms of tourist arrivals.
• 6,877 travel agencies in 2012. (Source: Ministry of Culture and Tourism, 2013)
• 13,628 tourist guides in 2012. (Source: Ministry of Culture and Tourism, 2013)
B. Visitors
Number of Visitors
International Tourist Arrivals, 2012
Ranking Country mn people
1 France 83.0
2 USA 67.0
3 China 57.7
4 Spain 57.7
5 Italy 46.4
6 Turkey 35.7
7 Germany 30.4
8 UK 29.3
9 Russia 25.7
10 Malaysia 25.0
Source: World Tourism Organization (UNWTO), 2013

6. 6
B. Visitors
Number of Visitors
Source: Ministry of Culture and Tourism, 2014
14.0
17.5
21.1
19.8
23.3
26.3 27.1
28.6
31.5 31.8
34.9
2.4 3.2 3.9 4.1 3.9
4.8 4.7 4.4
5.3 5.9
5.0
16.5
20.8
25.0
23.9
27.2
31.1 31.8
33.0
36.8
37.7
39.9
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Number of Visitors
Foreign Visitors Citizens Residing Abroad Total
mn people
• 9.2% average annual growth in the number of foreign visitors btw. 2003 and 2013.

7. 7
• Germany, Russia and UK are the main countries where visitors come from.
B. Visitors
Nationalities of Visitors
Nationalities of Visitors
Nationality Number of Visitors, 2013 Share %
Germany 5,041,323 14.4%
Russia 4,269,306 12.2%
UK 2,509,357 7.2%
Georgia 1,769,447 5.1%
Bulgaria 1,582,912 4.5%
Netherlands 1,312,466 3.8%
Iran 1,196,801 3.4%
France 1,046,010 3.0%
USA 785,971 2.3%
Ukraine 756,187 2.2%
Other 14,640,318 41.9%
Source: Ministry of Culture and Tourism, 2014

8. 8
• Main provinces of entry are Antalya, Istanbul and Mugla.
• 71% of the foreigners arrive by airways.
B. Visitors
Means of Transport & Provinces of Entry
Distribution of Foreigners Arriving in Turkey by Provinces of Entry and Means of Transport - 2013
Means of Transport
Air Land Train Sea Total Share %
ANTALYA 10 905 129 - - 215 601 11 120 730 31.9%
ISTANBUL 9 869 794 - - 616 503 10 486 297 30.0%
MUGLA 2 566 477 - - 496 212 3 062 689 8.8%
EDIRNE - 2 828 930 11 549 - 2 840 479 8.1%
ARTVIN 1 703 1 879 695 - 56 1 881 454 5.4%
IZMIR 865 796 - - 532 663 1 398 459 4.0%
Other 662 860 2 721 326 17 430 718 374 4 119 990 11.8%
Total 24 871 759 7 429 951 28 979 2 579 409 34 910 098 100.0%
Share % 71.2% 21.3% 0.1% 7.4% 100.0%
Source: Ministry of Culture and Tourism, 2014

9. 9
• 2,870 accommodation establishments and 706 thousand beds in 2012.
C. Tourism Infrastructure
Accommodation Establishments
Source: Ministry of Culture and Tourism, 2014
2 124 2 240 2 357 2 412 2 475 2 514 2 566 2 625 2 647 2 783 2 870
190 327 202 339 217 664 231 123 241 702 251 987 268 633 289 383 299 621 319 319 336 447
396 148
420 697
454 290
483 330
508 632
532 262
567 470
608 765 629 465
668 829
706 019
100 000
200 000
300 000
400 000
500 000
600 000
700 000
800 000
Number of Tourism Operation Licenced Accommodation Establishments
Number of Establishments Number of Rooms Number of Beds

10. 10
C. Tourism Infrastructure
Hotel Beds
Source: Ministry of Culture and Tourism, 2014
272 777, 46%
179 585, 31%
94 134, 16%
36 673, 6%
4 199, 1%
Classification of Hotel Beds, 2012
5 Stars 4 Stars 3 Stars 2 Stars 1 Star
• 706 thousand beds in tourism licensed accommodation establishments; 587
thousand of them are in hotels.
• 46% of the hotel beds belong to 5 star hotels.

11. 11
D. Types of Tourism
Beach Tourism
• 382 blue flag beaches, ranks 2nd in the world after Spain. (Source: The Foundation for Environmental
Education, 2014)
• 10% of the blue flag beaches in the world. (Source: The Foundation for Environmental Education, 2014)
• 954 yachting companies, with 1,704 yachts and 17,109 beds in 2012. (Source: Ministry of
Culture and Tourism, 2013)
• 91,594 foreign yachts (Flag Q yachts + yacts which have renewed their transitlog+
yachts have arrived on their route) and 104,169 foreign yachtsmen and crew
members arrived Turkish ports in 2012. (Source: Ministry of Culture and Tourism, 2013)
• 21 blue flag marinas. (Source: The Foundation for Environmental Education, 2014)

12. 12
D. Types of Tourism
Yacht Tourism
Source: Ministry of Culture and Tourism, 2013
1 335
1 663
1 815
2 156
4 078
5 770
6 834
10 786
17 605
34 528
- 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000
Greece
Italy
Malta
Austria
Netherlands
France
Israel
Germany
U.Kingdom
U.S.A
Distribution of Foreign Yachts Arrived in Turkish Ports by their Flags, 2012

13. 13
D. Types of Tourism
Congress Tourism
• Turkey ranks 21st in the world and 13th in Europe in terms of the number of
meetings, with 179 meetings in 2012. (Source: International Congress and Convention Association, 2012)
• Istanbul ranks 9th in the world and 8th in Europe in terms of the number of meetings,
with 128 meetings in 2012. (Source: International Congress and Convention Association, 2012)

14. 14
D. Types of Tourism
Winter Tourism
Center Bed Capacity Current Mechanical Facilities
Current Target Number Capacity
(person/hour)
Length
(meters)
Erzurum Palandoken 2466 8850 16 24563 25788
Bursa Uludag 1600 4300 20 15000 18514
Bolu Koroglu 1580 4000 14 7000 10380
Kayseri Erciyes 920 6000 15 22750 25689
Kastamonu Cankiri Ilgaz 917 1300 2 1439 1593
Kocaeli Kartepe 800 1000 4 6400 3250
Kars Sarikamis 639 12000 3 4148 5573
Isparta Davraz 467 1600 4 3800 3577
Source: Ministry of Culture and Tourism, 2014

15. 15
• 1,500 thermal sources
• Turkey ranks 1st in Europe 7th in the world in terms of the potential of geothermal
resources.
• 51 thermal hotels with 8,048 rooms and 17,216 beds in 2012.
• 2023 target: USD 20 bn revenues from health tourism, 2 mn foreign patients
D. Types of Tourism
Health & Thermal Tourism
Source: Ministry of Culture and Tourism (2014), Ministry of Health (2012)
5376 5074
3858 3654 3568 3657
2541 2475
1171 1139
0
2000
4000
6000
Germany Bulgaria Iraq Romania Libya Azerbaijan UK Netherlands USA Russia
Health Tourists in Turkish Private Hospitals, Top 10 Nationalities, 2011
449 411
203 192 184 153 132 96 86 77
0
200
400
600
Health Tourists in Turkish Public Hospitals, Top 10 Nationalities, 2011

16. 16
E. Main Companies
Top 10 hotel chains in Turkey
Hotel Name Number of Hotels, 2012 Number of Rooms, 2012
Hilton Int Group 22 5,519
Crystal Group 11 5,144
Rixos 10 4,533
InterContinental Group 16 3,394
Paloma-Diana 10 3,225
Kaya Group 9 3,076
WOW 5 2,914
Club Voyage 7 2,785
Delphin Group 5 2,644
Limak Group 9 2,578
Source: Resort Magazine, 2012

17. 17
E. Main Companies
Main Tourism Companies
Company Name Net Sales (TRY mn, 2012)*
Alkan Grup 913.7
Setur Servis 789.9
Odeon Turizm 780.0
ETS Tur 486.5
Tantur Turizm 348.7
Vista Turizm 328.9
Trek Turizm 284.0
*EUR 1 = TRY 2.31 in 2012
Source: Capital Magazine, 2013

18. 18
• 2023 targets of the government:
• 63 mn tourists
• USD 86 bn external tourism revenues
• USD 1,350 revenues per tourist
Source: Ministry of Culture and Tourism, 2007
• USD 24 bn (incl. accomodation investments of USD 13 bn) of investment will be
needed to reach 2023 targets.
Source: Turkish Tourism Investors Association, 2014
• Total contribution of travel and tourism to GDP is forecast to rise from TRY 192.6 bn
in 2013 to TRY 301.3 bn (11.9% of GDP) in 2024.
• Total contribution of travel and tourism to employment is forecast to rise from 2.3 mn
jobs in 2013 up to 3.1 mn jobs in 2024.
• Travel and tourism investment is forecast to rise from TRY 37.3 bn in 2013 to TRY
63 bn in 2024.
EUR 1 = TRY 2.528 in 2013
Source: World Travel & Tourism Council, 2014
F. Market Outlook
Targets and Expectations

19. Confidentiality
Foreign Market Consulting Ltd Sti handles all data and information confidentially and also asks all
information to be handled confidentially, especially regarding the sources used.
Liability
FMConsulting receives information and data from third parties and presents the gathered data to its
customers. Thus, FMConsulting does not take any responsibility for the accuracy of any declaration or
precision of any gathered data.
Foreign Market Consulting Ltd. Şti. • Dede Yusuf Sok. No:11, 34453 Büyükdere Sarıyer İstanbul - Turkey
Tel: +90-212-3638 052 • Fax: +90-212-3638 517 • www.fmconsulting.info • info@fmconsulting.com