Soaring prices drive Turkish tourists to Greece Leaving local resorts struggling

Restaurant and hotel prices in Türkiye have skyrocketed, with average increases of 91 per cent in June compared to the previous year, far outpacing the already staggering headline inflation rate of 71.6 per cent.

Restaurants in some Turkish holiday towns are unexpectedly half-empty this peak tourist season, as many locals find it cheaper to vacation in neighboring Greece than to stay and dine in their own country’s world-famous resorts.

Disgruntled citizens have flooded social media with posts about exorbitant bills, such as $640 for a meal for five in Bodrum and $30 for five scoops of ice cream in Cesme, Caliber.Az reports citing the foreign media.

Meanwhile, Turks vacationing on nearby Greek islands boast about significantly lower prices.

“There’s a huge difference in service, product quality, and prices between here and there,” said Murat Yavuz, a retired Turkish banker who regularly visits Greece. “Restaurants here have used inflation as a pretext to push up prices.”

Restaurant and hotel prices in Türkiye surged by an average of 91 per cent in June compared to the previous year, far exceeding the already high headline inflation rate of 71.6 per cent. This spike has particularly impacted the services economy, a sector the central bank has identified as a major concern in its battle against rising prices.

The trend of Turks opting for vacations in Greece has been facilitated by the introduction of a fast-track visa program in March, part of a broader diplomatic effort to ease tensions between the two long-time rivals. Turks are not alone in flocking to Greece's islands; the influx of international tourists has been so significant that Greece is considering imposing restrictions on cruise ships to manage the crowds.

“We’ve lost our price advantage,” Kivanc Meric, an executive at the Association of Turkish Travel Agencies, told Euronews. He attributed this to the "over-valuation" of the Turkish lira, predicting that as many as 150,000 Turks will visit the Greek island of Samos this year, up from around 40,000 in 2023. The lira's real effective exchange rate, which measures its value against foreign currencies, is at its highest level since late 2021.

Eateries across Türkiye are experiencing a decline in purchasing power among customers. Kaplan Ilhan, a 57-year-old chef at a fish restaurant in the resort town of Kusadasi, reported a 25 per cent drop in business compared to last season. “The cost of living is a factor, but rumors on social media about Greece being cheaper also play a big role,” he said.

Gamze Cizreli, Chairwoman of the 128-branch Big Chefs casual dining chain, noted that while overall customer numbers have risen as “the upper segment is shifting to us,” there is a noticeable decline in spending per person. To manage this downturn, the company is cutting costs, including producing its own electricity.

“With interest rates at 50 per cent and inflation above 70 per cent, people are in shock,” said Baris Tansever, founder of the upmarket Sunset Grill & Bar in Istanbul. He reported a 25 per cent decline in business from last year. Tansever remarked that prices have become unaffordable for the white-collar crowd he aimed to attract when he opened his restaurant in 1994, adding, “We’re all getting poorer.”