Turkey, traditionally one of Greece’s biggest competitors in the Eastern Mediterranean, seems to be facing significant difficulties in its tourism sector this year. Official figures from the Ministry of Culture and Tourism show a drop in foreign visitor arrivals for the third consecutive month: in July, arrivals decreased by 5% compared to 2024, reaching 6.97 million. The decline mainly concerns European markets, but is not limited to them.
Europe and the rest of the markets turn their backs
Germany remains the largest market for Turkey with 981,000 arrivals, followed by Russia (953,733), the United Kingdom, Poland and the Netherlands. Despite the large numbers, the trend is downward. The drop from the US reaches 21.9%, while decreases are also recorded from Iran (-19%) and Greece (-14.4%). Europe, which is the heart of arrivals for Turkey, now seems more selective in its choices.
At the same time, Turkish citizens themselves are choosing Greek destinations for their holidays this year too
Prices and economic context: The big rival
High inflation (33.5%), increased interest rates and the appreciation of the lira have skyrocketed the cost of accommodation and services. Foreign observers point out that all-inclusive packages, once a “magnet” for tourists, have now become excessively expensive.
But restaurant prices have also reached very high levels, with the result that even those who chose Turkey for their holidays are discouraged from spending outside the hotel. As a tourism agent tells Bloomberg, $35 for a plate of meatballs or $20 for a pizza in tourist areas shows that Turkey is losing its international competitiveness in terms of prices.
Disturbing numbers
From January to July 2025, arrivals amounted to 28.4 million, down 2.1% compared to last year. To reach the target of 65 million visitors and $64 billion in revenue, the coming months will have to reverse this trend. In 2024, Turkey had reached 52.6 million foreign visitors (62.3 million including Turks abroad), making it the fourth most visited country in the world, with tourism revenues of $61.1 billion.
Tourism accounts for about 10% of GDP and 5% of employment. This year’s downturn is affecting not only hotels and travel agencies, but also Turkey’s efforts to reduce its chronic current account deficit. The sector is being closely watched by economists and investors, who see the decline in arrivals as a “thermometer” of the country’s broader problems.
Trends and prospects for professionals
Despite the decline in arrivals in the summer, there are signs of recovery for the autumn season. Turkish tourism entrepreneurs are investing in diversifying packages and adjusting prices, trying to bring the country back to a competitive level.
For Greek professionals, this picture offers valuable lessons: keeping prices affordable, quality service management and product flexibility can become competitive advantages, especially in times when competition in the Eastern Mediterranean is getting tougher.
