Towards ‘Turkey the brand’ diversifying the tourism industry
by
KLAUS JURGENS

Quality-assured statistics are a must

Let me give you a few examples of where errors may occur: The total number of foreign arrivals in the country includes the tens of thousands of second home-owners as well as businesspeople flying into the country, many of them more than once per calendar year. Furthermore, the number of nights spent in hotel rooms by foreigners includes conference and convention attendees and businesspeople on work trips. Besides, we need to find out how much money was spent abroad, i.e., with a foreign travel agent, how much was paid to the local hotel -- often not more than seven euros per person per night -- and of course how much “pocket money” every incoming tourist invested locally.

We should not forget that domestic tourism is a vital source for Turkish revenue and employment, too. Only counting foreign tourists' input in the Turkish economy is misleading.

From 1.2 million to 26.4 million

In 1980 1.2 million foreign tourists visited Turkey. By 2000, the 10 million mark had been reached, and 2005 saw 21.1 million foreign arrivals spending on average 689 euros per person, totaling 14.48 billion euros in annual tourism receipts. The term “tourism receipts” does not refer to the actual “pocket money” foreign tourists spend while in the country but the total expenditure per person per stay.

After a slump in 2006 -- minus 7 percent -- Turkey is back on track: Last years figures (2008) stood at 26.4 million arrivals, a 13 percent increase compared to 2007.

What influences a tourist's choice?

Analysts on Russian TV station RT came to the conclusion that a recent “negative image” is to blame for Austria's recent 10 percent decrease in incoming tourists. The commentators mentioned a child molester's case, posts on YouTube as well as anti-Semitic comments made in Austria. But is it really so easy to destroy a vacation destination's image? Many similar cases spring to mind: Has tourism in Thailand come to a complete halt after the tsunami that devastated parts of the country? Are Australian tourists shunning Bali because of a nightclub bombing killing more than 200 innocent people? Did a high-speed train disaster years ago in northern Germany stop foreigners from either visiting that country or from traveling on its express rail network? Did the Irish Republican Army and their terror campaign result in foreigners turning their back to England? In all these cases -- and I could present many more -- the answer is a clear “no.” Isolated incidents do not permanently tarnish a destination's positive image. Hence, three similar events in Turkey's recent past -- an outbreak of bird flu late in 2005, a cartoon crisis shortly afterwards and bomb attacks targeting foreign tourists and interests in Antalya and Kuşadası a few years back -- cannot be used to explain why 2006 saw a sudden decline in tourism receipts. They may have contributed to it but cannot be the single reasons behind travelers shifting preferences.

A new generation of global travelers has arrived

New generations of travelers do not necessarily share the same holiday preferences as their parents. They are very well informed about prices, locations and accommodation options long before making a booking. They are used to new, exciting destinations; over 200 countries are potential destinations, so why go back to the same spot for decades on end? Globalization means that the world has become one big travel agency.

More travelers are able to go further as travel has become more affordable. And here is where the surprising similarity between Turkey and Austria begins: Both countries made near-fatal mistakes by labeling their countries a “bargain destination.” In the case of Turkey cheap charter flights, low-priced local bus tours, inexpensive hotels and cheap food attracted a clientele who either did not want to or literally could not pay more. In the case of Austria, most tourists were initially from neighboring Germany arriving by car or coach. Except for visiting Vienna and Salzburg, few “big spenders” choose Austria as a destination; as far as skiing was concerned, they went to Switzerland (St. Moritz), Italy (Cortina) or France (Chamonix) instead, and even tiny Liechtenstein continues to welcome a small but very wealthy elite including the British royal family.

Towards ‘Turkey -- the brand’

Focusing on the tourism sector, we can say Turkey has the potential to become a high-end brand. It is, however, a very complicated task to change a country's image from being lower end to that of a more classy destination. Turkey would be well advised to consider a diversification strategy away from the “3S's -- sea, sand and sun,” to make it an all-year high-quality destination, including winter sports. While this will not erase the sector-inherent fluctuations of the incoming number of visitors and how much they spend, which can best be described as a wave pattern, it will help to create a much needed and quite substantial buffer zone of extra tourism-related revenue pouring in during all four quarters of the business year.

Diversification: first step to becoming a year-round destination

I wish to focus on three areas of diversification. First, think Vienna and Mozart's hometown of Salzburg: City tourism is a vital part of the sector, which works in favor of Austria's diversified strategy.

With regards to Turkey, and while İstanbul is nearly a sub-brand in itself, other Turkish cities lack a coherent marketing strategy. The capital, Ankara, in particular could become the gateway to exploring Turkey's heartland.

Second, Turkey is a perfect summer mountain tourism destination. It boasts Europe's highest mountain, Mt. Ağrı (Mt. Ararat), but there are also many more interesting features, including many mid-range locations (at an altitude of between 1,000-2,500 meters) for families with children and elderly guests. A summer mountain destination should not focus on professional hikers alone but on promoting fresh air, walking and nature trails. Whereas in Austria no new developments were needed as winter hotels easily double as summer hotels, Turkey needs to invest heavily in both.

Winter tourism already forms part of Turkey's tourism product mix but caters mostly to domestic visitors. An assertive marketing strategy should bring much-needed revenue from international guests. The biggest obstacle is that skiing in Turkey means arriving by plane, at least for most international guests. Winter tourism entrepreneurs need substantial management training to set up sustainable, long-term businesses.

Environmentally and economically sustainable investments

A word of caution: All of these future investments must not only be economically sustainable but environmentally friendly, too. Whereas a government-inspired national development plan is very positive for benchmarking the sector, tourism as such is no domain for the state, and too much state influence -- save providing the competitive legal framework and regional grants where necessary -- would be asking for unwanted bureaucratic attention.

However, only expecting private investment without public infrastructure grants is a dead-end road. Hence, the “third way” is perhaps a viable alternative: setting-up more public-private partnerships, an instrument that deserves more attention. Tourism investments need to create much required local employment options, too. In addition to my three sub-sectors and as further proof that diversification works for Turkey, the Aegean town of Didim only recently opened a new marina that in the medium term will create 650 local jobs, a significant figure.

Whether incoming tourism numbers need an artificial ceiling -- let us say 40 million per annum -- or whether the demand and supply side of the market will take care of this by itself is an altogether different matter.