Turkish hotel sector faces rising debt and cost pressures

The Turkish tourism and accommodation sector is facing significant financial pressure as debt growth outpaces revenue. Data from the first eight months of 2026 shows that while the sector's turnover reached $12.6 billion, representing a 7% annual increase, the hotel credit stock grew by 29.1% to reach $14.1 billion. This indicates that credit is expanding approximately four times faster than revenue.

Industry experts, including Zafer Canbaz, General Manager of Grand Hyatt İzmir İstinyePark, highlight that rising operational costs are eroding profitability. Despite stable exchange rates, inflation in food and beverage costs, alongside rising personnel expenses, is creating a sustainability challenge for hotel operators and investors. Additionally, the sector is struggling with human resource shortages and the difficulty of attracting talent to maintain growth targets.