The minister anticipates an increase in foreign investments within the tourism sector

The removal of Türkiye from the Financial Action Task Force’s (FATF) "gray list" is expected to significantly boost foreign investments in the tourism industry, according to Tourism Minister Mehmet Nuri Ersoy. On June 28, the FATF announced that Türkiye was no longer on the gray list, which includes countries requiring special scrutiny.

“As long as economic stability is maintained, foreign investors will continue to show interest in the Turkish tourism sector. The removal from the gray list will further enhance this interest,” Ersoy stated during a press meeting in the eastern province of Van.

The minister projected a rise in foreign partnerships and investments in the tourism sector following the FATF decision. Central Bank data revealed that foreign direct investments in the local accommodation and food services sector totaled $46 million last year, a sharp decline from $332 million in 2021. Meanwhile, FDI inflows into the recreation, arts, and entertainment industry increased to $23 million, up from just $2 million in 2022.

Ersoy also noted a 5% reduction in the average length of tourist stays, which fell from 10.3 nights in 2022 to 9.3 nights in 2023. He warned that this downward trend is likely to persist, explaining that post-pandemic travel behavior has shifted, with people traveling less frequently but staying longer at destinations.

Ersoy emphasized the importance of attracting tourists from distant markets such as the U.S. and China, as travelers from these countries tend to stay longer and spend more. “To counter the declining length of stays, we need to focus on markets where tourists travel longer distances and stay for extended periods,” he said.

Visitors from America and Far Eastern countries not only have extended stays but are also high spenders, making them critical to the sector’s growth, according to Ersoy.