British holidaymakers are abandoning Turkey as surging prices and currency controls erode its status as an affordable Mediterranean destination.
Official statistics from the Turkish Ministry of Culture and Tourism show total tourist arrivals fell year-on-year by 3.6 percent in May, 4 percent in June, and 0.3 percent in July. Arrivals from the United Kingdom dropped by 11 percent in July compared to the previous year, a significant decline given that Britons represent Turkey's third largest foreign tourist market.
Turkey has long relied on Mediterranean coastal resorts such as Antalya, Marmaris, and Bodrum to attract European vacationers seeking value. For British travellers, affordable all-inclusive packages and cheap dining made the country a primary alternative to Spain and Greece.
Bloomberg reported that long-time British visitors are already changing their holiday plans due to steep price increases. Donna and Dave Needham from Britain, who both work in education while Donna also runs a small travel agency, had made Turkey a regular family holiday destination, visiting five times with their children since 2021.
During their visit this summer, the couple found the resort they previously stayed at had become unaffordable, with routine activities costing several times more than the year before. Donna Needham noted that a 15-minute jet ski ride jumped from 20 pounds a year ago to 90 pounds, leading her to state that Turkey will no longer be their top choice for next summer.
Currency policy and inflation
Ankara's foreign exchange strategy is a central factor driving up costs for overseas visitors. Turkish financial authorities have managed the currency so that the devaluation of the lira occurs at a slower pace than domestic inflation.
The strategy aims to curb inflationary pressures and limit living costs for Turkish consumers, as the national economy depends heavily on imported goods. However, because domestic prices rise faster than the currency depreciates, Turkey becomes progressively more expensive in foreign currency terms.
Consequently, euros and pounds sterling held by international tourists no longer carry the purchasing power they provided in previous years. For a destination that built its international success on a competitive price-to-quality ratio, the shift presents a major challenge.
Tony Basoglu, who operates businesses and rents out villas in Antalya province, explained that many travellers previously regarded Turkey as a cheap destination. He noted that while visitors still enjoy their stays, the country is simply no longer inexpensive.
Travel companies in Britain report that demand traditionally directed toward Turkish resorts is moving to lower-cost markets. Destinations gaining ground among budget-conscious holidaymakers include Slovenia, Montenegro, and Tunisia, as consumers search for better value for money.
Domestic travel trends and Greece
High inflation is also affecting Turkish citizens, who are increasingly seeking holiday options abroad when able to obtain visas. Travelling outside Turkey can prove cheaper than staying at popular domestic resorts.
Greek islands situated near the Turkish coastline have become a primary destination for Turkish vacationers seeking lower prices. Data from the Turkish Statistical Institute showed that domestic holiday trips declined in 2025 compared to the previous year, marking the first such decrease since the pandemic.
The shift leaves one of the largest tourist destinations in the Mediterranean struggling to remain competitive against foreign options for its own residents.
Revenue performance and hotel margins
Despite falling arrival numbers, tourism revenues in Turkey have not suffered a corresponding drop so far. Foreign visitors who continue to travel to Turkey are spending more per trip, offsetting the overall decline in visitor numbers.
Tourism is vital to the Turkish economy, representing approximately 4.1 percent of gross domestic product in 2025. The sector provides critical foreign currency inflows that help finance the external balance and support the lira, making tourism performance essential to Ankara's broader economic strategy.
Tourism businesses face growing pressure on profit margins as operational costs rise while exchange rate controls limit the benefits of currency devaluation. Emre Narin, vice president of hotel operator Marti Otel Isletmeleri on the Turkish Riviera, stated that maintaining acceptable profit margins in an environment of continuously rising costs is the primary concern for industry investors.
Hotel operators also faced additional disruption from the outbreak of war with Iran, which began during the peak early booking period. Geopolitical uncertainty discouraged some travellers from choosing Turkey and made it harder for tour operators to market holiday packages.
Industry figures reported that the tourist season began with severe headwinds, with meaningful recovery in activity appearing only in July. Turkey now faces the ongoing challenge of sustaining its massive tourism industry without its historic advantage as an exceptionally low-cost Mediterranean destination.
