Turkey Tourism Recovery Hurt by Russia Invasion of Ukraine

Around 4.5 million Russian and two million Ukrainian tourists descended on Turkey last year. (AFP)
Around 4.5 million Russian and two million Ukrainian tourists descended on Turkey last year. (AFP)
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Turkey Tourism Recovery Hurt by Russia Invasion of Ukraine

Around 4.5 million Russian and two million Ukrainian tourists descended on Turkey last year. (AFP)
Around 4.5 million Russian and two million Ukrainian tourists descended on Turkey last year. (AFP)

Every Sunday Noori Sani welcomes his old friends around a bountiful Turkish breakfast in Istanbul. But surrounding him now are empty tables on his terrace at his restaurant by the Blue Mosque.

"On a day like this, we should be full," the owner of Serbethane restaurant said in the city's historic district.

Within a few days of Russia's invasion of Ukraine on February 24, Ukrainians and Russians cancelled reservations for trips, disastrous for Turkey where tourism represented 10 percent of GDP before the pandemic.

There had been high hopes for a tourism revival in 2022 and the sector was in desperate need of a boost after the Turkish lira lost significant value last year and inflation soared to over 50 percent in February.

Visitors from Ukraine and Russia made up over a quarter of all tourists who arrived in Turkey last year, usually opting for the turquoise beaches on the Mediterranean and Aegean, according to tourism ministry figures.

"Russia and Ukraine are very important markets for us," Hamit Kuk of the Association of Turkish Travel Agencies (TURSAB) said.

Around 4.5 million Russian and two million Ukrainian tourists descended on Turkey last year.

TURSAB expected seven million Russians and 2.5 million Ukrainians this year, but Kuk said it would "likely have to review these figures".

"The war between Russia and Ukraine is making everyone nervous here. Both from a human and commercial point of view," Kuk said.

"Normally, there would be a rush of summer reservations in March. But the demand has stopped," he added.

Sanctions pain

"If it goes on like this, there will be a very serious problem," warned TURSAB president Firuz Ballikaya.

"We try to wait as calmly as we can."

In front of the Hagia Sophia mosque, Russian tourists were rushing to follow their guide, ducking their heads and refusing interviews.

There were even a few Ukrainians, including a young couple from Kyiv who "arrived as tourists and became refugees" and who were now tearfully looking to leave for a third country.

"Maybe the United States?" they asked, wishing to remain anonymous.

The situation is tricky for Turkish travel agents like Ismail Yitmen because of Western sanctions against Russia.

In his office opposite the Hagia Sophia, Yitmen despaired.

"Travel agencies like mine working with Russia are really suffering right now. Taking into account the deposit amount I have paid for hotels, my loss is more than 11,000 euros ($12,000) so far," he said.

If more groups cancel, he could lose between $65,000 and 76,000.

"A group was supposed to arrive in Turkey in two months, but we couldn't receive the money, so it's cancelled. It's because they stopped SWIFT transfers. We had already paid for the hotels."

Several Russian banks were cut off from the SWIFT messaging system, which allows banks to communicate rapidly and securely over transactions.

Despite being a NATO member, Ankara did not sanction Russia and unlike many other countries, Turkey has not closed its airspace to Russian planes.

Safety fears

Before the coronavirus pandemic, the tourism sector was recovering after multiple terror attacks in 2015 and 2016 scared tourists away.

On the edge of the Middle East, the country had suffered in the few years from the impact of wars in Syria and Iraq, both on its southeastern border.

"When the war started in Iraq and then in Syria, European and American tourists stopped coming. They thought we were too near," said Hassan Duzen, sitting with his friends at the back of his deserted carpet shop.

He was convinced the same thing would happen after the invasion.

"When they look at a map, they will see the Black Sea and think we are very close," Duzen lamented. "Why would they take a risk?"

The Ukrainian couple had the same fears.

"We can't stay here, this place isn't safe, it's too close. Their missiles can hit you," the young man said, his eyes clouded with anxiety.



Saudi EXIM Hosts Global Risk Experts Meeting in Riyadh

The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
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Saudi EXIM Hosts Global Risk Experts Meeting in Riyadh

The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA

The Saudi Export-Import Bank (Saudi EXIM) hosted the Berne Union's Country Risk Specialist Meeting, providing a platform for experts and thought leaders in risk management from the export credit community.
At the meeting, which took place from November 19 to 21 in Riyadh, the attendees exchanged best practices to better protect the industry amid shifting global dynamics.
According to a press release issued by the Saudi EXIM on Saturday, the event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions.
By strengthening institutional resilience, the industry is ready to turn global economic challenges into opportunities for economic prosperity, said the release, adding that it played a crucial role in advancing global trade, strengthening international cooperation, and developing credit solutions that empower export activities while controlling risk, SPA reported.
According to the release, discussions centered on critical risks impacting international trade and the global economy, such as debt sustainability and geopolitical tensions, along with innovative approaches to risk modelling. Participants also explored the global shifts in infrastructure, energy and critical minerals sectors, and were given an overview of Saudi Arabia's National Industrial Strategy, which focuses on economic diversification through investments, developing new sectors, and promoting local industries.
In his opening remarks, Saudi EXIM CEO Eng. Saad bin Abdulaziz Al-Khalb said the meeting is an ideal platform to address risks impacting global economic decision making.
He stated: "Through such meetings, we can turn challenges into strategic opportunities and enhance our resilience in an ever-changing world. At Saudi EXIM, we remain committed to enabling companies by offering expert financial and non-financial solutions to navigate risks effectively."
He also said that "at Saudi EXIM, we place great emphasis on risk management. In alignment with the main objective of this meeting, I am pleased to announce the completion of our independent country risk model, which is supported by advanced modelling tools and machine learning. This model will provide country ratings and predictions of default risks. We look forward to collaborating with our partners in other export credit agencies to exchange knowledge and expertise, and to strengthening our risk management functions with greater responsibility and effectiveness."
Associate Director at Berne Union Eve Hall said: "The global risk landscape today is highly volatile and highly interconnected. As we navigate our way around the ongoing transformations connected to energy transition and shifting industrial strategies, the traditional concept of 'country risk' is becoming increasingly complex. Our industry excels at understanding, quantifying and pricing these risks, and by bringing together this community of experts for technical exchange the Berne Union is able to help support the development of the industry as a whole. The initiatives announced by our colleagues at Saudi EXIM, making use of new technology in risk analysis, provide a fantastic example of where collaboration in this field can be effectively applied."
The release disclosed that Saudi EXIM's membership in Berne represents a significant strategic step, and is consistent with the Kingdom's commitment to expanding collaboration and integration in the global economy.
This is achieved by building partnerships with leading institutions to address the challenges facing the export credit sector. It also aligns with the bank's goal of developing the export of national products and services through partnerships with national and international financial and funding organizations.
Berne Union works with global trade organizations to encourage the adoption of best practices in export credit insurance, and to cooperate in maintaining the stability of global trade.
Saudi EXIM, a development bank under the National Development Fund, contributes to diversifying the Kingdom's economic base by improving the efficiency of non-oil export ecosystems, bridging financial gaps, and minimizing export risks. This plays a role in helping the non-oil national economy grow, in line with Vision 2030.