Turkey vies for top spot in thermal tourism as Europe’s largest center rises in Afyon

Having long been in this business, the project’s owner, Ali Acar, shares his excitement for this massive project with Let’s Talk Business in Afyon. The city is home to one-third of the bed capacity for thermal hotels in Turkey. Due to its potential and the growing interest in its thermal facilities, Afyon was declared Turkey’s “thermal capital” three years ago by the government. According to Acar -- who was also born in Afyon -- this is enough reason to invest in the city.

Turkey’s income from thermal tourism comprises only 1 percent of its total revenue, a small percentage for a country that is ranked first in Europe for its geothermal potential. In a bid to increase geothermal returns, the Ministry of Culture and Tourism is planning to add tens of thousands of new beds to host European visitors over the coming years.

Acar is investing TL 90 million ($60 million) in this project and has faith that it will be a driving force in rendering Turkey a major thermal tourism hub around the globe. “Hotels in Afyon saw 700,000 in overnight stays last year. With the finalizing of new hotels we are expecting to see 1 million in two years,” he explains. Acar underlines the price advantage in Turkey: “People spend 150 euros each day at thermal facilities in Europe; this amount is only TL 125 in Turkey [approximately 60 euros] and we offer high quality services.”

Acar started his career in the construction sector and built many houses with his company in Antalya. He later decided to enter the thermal tourism business in 1999 and conducted comprehensive market research before establishing his first hotel. He and his team visited some of Europe’s leading thermal centers in the Czech Republic, Germany and Italy. “We saw that they did not offer the quality services that facilities in Turkey did. … Our research continued for two years, and we decided in 2001 to establish our first thermal hotel in Afyon.” He says, however, they had to delay the project due to the 2001 financial crisis in domestic markets. Following the beginning of the single-party era in 2002 -- which boosted confidence in markets -- they started from scratch to open their first hotel in Afyon.

Acar makes much of his job and has a unique interest in his home city and Turkey in general. He stresses the importance of making new investments with value added. “We have to invest in the future of the country so long as we have the money. Before we built our hotel we listened to the demands of our guests and collected feedback from people. We realized that people do not cut expenditures when their health is at stake. Our major concern was to provide easy and fast access to diversified and quality services when we established our facility.” Also the president of the Afyonkarahisar Thermal Hotels Association (ATTİD), he explains that 5 percent of the visitors to Afyon’s thermal hotels are of Turkish origin from Germany, the Netherlands and France.

“Turkish tourists did not differentiate much between thermal tourism and conventional -- sea, sand and sun -- tourism in the past; but our services concentrate more on treatment.” Acar says such a perception is changing slowly as people have learned what exactly they should expect from a thermal vacation. Another difference between sea tourism and thermal tourism shows itself in value added. “Sea tourism brings $21 million in revenue from 25 million tourists each year to Turkey. If we can manage to diversify tourism and promote thermal tourism better than we currently do, we will double our tourism income,” Acar opines. He says they have shared projects to make the best of Turkey’s thermal potential with the ministries of health and tourism. The government does not turn a blind eye to the issue. Culture and Tourism Minister Ertuğrul Günay has said the government plans to attract more tourists to Turkey’s thermal facilities with new investments.

The number of tourists visiting Turkey increased by 14.56 percent in the first five months of this year compared to the same period of 2010, according to data from the Ministry of Culture and Tourism. Some 9.25 million tourists visited Turkey in the January-May period.

Water that heals

Thermal resorts are unique places for many who look to find a cure for various illnesses from rheumatism to psoriasis, and medical experts acknowledge the positive effects of this treatment. Turkey has the richest thermal water composition (salts, iodine and gases) when compared to its rivals in the European market. Acar says facilities in Europe accept 1 milligram of these three components per 1 liter of hot water as thermal water. “In Turkey each liter of hot water has 5 milligrams of these. For instance, a patient who wishes to recover from surgery scars more quickly needs to stay three weeks before his wounds can be cured in a thermal facility in Europe; this period is only one week in Turkey.” Acar says these statistics are enough to highlight the importance of Turkey’s own thermal resources. “We have to make use of this potential. France established a facility worth 50 million euros in an area where they drilled only 1 liter of hot water per second. Turkey has sources where you can have 700 liters of hot water per second,” he explains. Acar says that following some recent incentives from the government, four companies had decided to build new facilities in Afyon alone.

The businessman says they expect the government to offer incentives for thermal spring facilities that are relatively small in size and for five-star thermal hotels. He says each single hotel or hostel may not have a physiotherapy center, but large physiotherapy centers can be built close to where hotels are. “This is what Europe does. People can receive treatment at the center and stay in a hotel. We should also recruit doctors from different nations to build an international center, he says.

“We have expertise in both professional and non-professional thermal services. Turkey has the potential to become a model for the thermal hotel business. We have to concentrate on quality services and increased value added.” Underlining that Turkey is one of the best in terms of tourism services in the world, Acar says European tourists will prefer Turkey “if the country utilizes its potential.”

One major factor that will drive growth in the sector, Acar argues, is the improvement of the transportation infrastructure. The construction of Turkey’s fourth largest airport, Zafer Airport, in Kütahya, about 30 minutes from Afyon, will be finalized by 2013. Acar says the new airport will boost investment and the number of visitors to Afyon’s thermal facilities. The airport will have a capacity of 2 million passengers and is expected to have both domestic and international flights.

According to Acar, thermal hotels in Turkey will increase total bed capacity by threefold in the coming four to five years. “We have a 25,000 bed capacity by international standards, and this number can reach 75,000 in a short time and 1 million in the long run. “We have diversified thermal services, and this type of tourism spans four seasons in Turkey.”

‘A new center of attraction’

Expected to be finalized in two years on a 130,000-square-meter area, Alila Wellness Park will include one residence project along with two 5-star hotels, a massive convention center with a capacity for 5,000 people and a separate spa center on an 11,000-square-meter lot.

Acar says the new hotel will add momentum to thermal tourism in the region to make it a “center of attraction.” They are planning to recruit 500 new personnel, including physical therapy experts, hydro-therapists and gym trainers at the new facility. “If you can maintain quality service, people will choose you. We are going to offer 10-week holiday packages at our new facility, and customers will be able to benefit from our services at 50 percent off the normal price,” he explains. Acar says they are against all-inclusive packages and will not offer such a system at the Alila Wellness Park. “Competition must be in quality services. Spain invented this all-inclusive package system, but they gave it up two years ago.”

One boost for Afyon’s thermal tourism will be the construction of a new sports complex on a 650,000-square-meter lot by the government. According to Acar, sports teams could have their preseason training camps in Afyon. “Afyon is amongst the provinces with the cleanest air and is one of the 10 provinces with the highest number of sunny days during a year. These two are ideal qualities for thermal tourism.”

Recalling that the average occupancy rate in Afyon’s hotels is 65 percent during the year, Acar says people should be encouraged to visit thermal centers more often than they currently do. “This is for their health. Turkish experts suggest one week of thermal rest per year. Company owners will, for instance, see how much the productivity of their personnel will increase if they are encouraged to receive thermal treatment,” he explains. Acar says thermal is not only for sicknesses but also as a preventive measure against possible illnesses. The Ministry of Health currently pays a portion of the cost of receiving thermal treatment under the country’s social security plan.

The holy month of Ramadan -- the Islamic month of fasting -- will fall during the summer for the next few years and many have speculated that this would lead to a slowdown in the sector. This year’s Ramadan will be observed from Aug. 1-29. Acar says thermal tourism will suffer a relatively greater loss in Ramadan because people will not come to the pools while fasting during the day. “This will continue through the next few years. But we are expecting to minimize this loss by diversifying services to offer activities following iftar [fast-breaking dinner] in our new hotels.” The first hotel will be opened in 2012, the other in 2013. One is a 5-star hotel and the other business class for businessmen with extra services. Nil Thermal will be opened before the end of 2012.

Acar says they expect to attract large international and local conventions to Afyon. Turkey ranked as the 20th most important country destination for global meetings with 160 conventions in the International Congress and Convention Association (ICCA) 2010 list (14 places up from its ranking in 2000), with İstanbul responsible for around 80 percent of this; thus, the Ministry of Culture and Tourism has plans to ease the city’s burden with new convention center investments in the fast flourishing Anatolian cities.

“The Zafer Airport will be 30 minutes from our new facility, which presents us with a big opportunity,” Acar noted.

As regards foreign investments in Turkey’s thermal tourism, Acar says there is demand from abroad, and he expects to see some new players enter the market in the years to come. “Current stability in politics and the economy encourage new investments. We are ready to provide consultancy services for new investors in the region, and foreign entrepreneurs’ interest in the region will increase.”

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Why choose Turkey for thermal tourism?

• some of the world’s few mineral-rich thermal sources
• world’s seventh, Europe’s largest geothermal potential
• 1,600 thermal springs throughout Anatolia
• 190 thermal resorts in 46 cities
• 5-star facilities, qualified personnel
• competitive prices and high quality services
• fast-developing market, improved transportation infrastructure
• unique healing traditions and spa culture
• government support, a number of new investments under way
• facilities work in cooperation with some of Europe’s leading health insurance companies