Hotel investments have fallen 42 percent in the first five months of 2015 year-on-year, according to a report by the Turkish Hoteliers' Association. While investment incentives for 148 projects totaled TL 2.6 billion between January and May of 2014, the figure fell to TL 1.5 billion for 114 projects this year.
As Today's Zaman writes, the report analyzed Economy Ministry figures pertaining to investment incentive certificates.
Investment incentive certificates were issued for projects in 38 provinces, with İstanbul and Antalya having the highest numbers, accounting for 37 of the 114 projects.
TUROB Chairman Timur Bayındır said that tourism in Turkey should "not be seen as being confined to İstanbul and Antalya," and that the drop in investment is largely due to a supply and demand imbalance. He added that none of the projects this year were budget hotels.
The decline in investment is complemented by a drop in occupancy rates. The country's average hotel occupancy rate fell 7.6 percent last month year-on-year, the largest drop in occupancy among the surveyed countries in Europe, according to an announcement from TUROB released last week.