Unrest in tourism, including scandals between tour operators and hotels, and even the disclosure of trade secrets – these are the consequences expected in Turkey's tourism from the entry into force of a new law on levying a tax on accommodation from tourists. Losses in the tourism sector could eventually reach 20% or more, they add. As a result, a wave of protest against the new law rises in Turkey, and business does not leave hope to prove that this measure is unprofitable and unsafe, and to persuade the state to again postpone the date of introduction of this tax from January 1, 2023 for at least another year.
< p>Thus, President of the Turkish Hoteliers Federation (TÜROFED) Sururi Chorabatir said that the accommodation tax, which will be levied on the turnover of 2% of the cost of accommodation for each tourist, will have a negative impact on profitability by 20%. The market is confident that the law should be postponed for another year, the expert told the Turkish tourism media. “Firstly, we have signed contracts with tour operators for 2023. We do not have the ability to obtain taxable prices from tour operators after contracts have been concluded. The situation becomes a deadlock: if we demand additional payment from the customer, we will get problems,” the expert said. He also stressed that since the housing tax will be levied directly on turnover, taking into account the increase in costs, this will negatively affect profitability by at least 20%.
The expert warned about another risk factor – competition. “We are being closely watched by competing countries – and competitors will use this tax issue against us,” he stressed, adding that even Europeans “won’t understand” the new tax, despite the fact that it has been introduced in many European tourist cities. “If an EU citizen has to pay $102 for a number instead of $100, there will be confusion,” he assured.
President of the Association of Turkish Travel Agencies Firuz Baglıkaya also said there would be a price dispute between tour operators and hotels. “Contracts between tour operators and hotels for 2023 have been concluded. The introduction at the beginning of 2023 may cause price disputes between tour operators and hotels, and this will create an additional burden on our industry,” the expert said.
He also noted the fact that the known tax amount of 2% of the cost residence carries another risk. “This will lead to everyone knowing the price, which should be kept secret between the travel agency and the hotel. Agreements between commercial partners will become open to the public, and this may lead to an outcome that will undermine consumer confidence in our sector.” As a result, the tourism community is demanding yet another postponement of this law for a year.
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