Türkiye’s Key Tourism Sector Slow to Recover after Huge Earthquake

The old town and the historic port are see in the |Mediterranean resort city of Antalya, Türkiye, June 18, 2020. (Reuters)
The old town and the historic port are see in the |Mediterranean resort city of Antalya, Türkiye, June 18, 2020. (Reuters)
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Türkiye’s Key Tourism Sector Slow to Recover after Huge Earthquake

The old town and the historic port are see in the |Mediterranean resort city of Antalya, Türkiye, June 18, 2020. (Reuters)
The old town and the historic port are see in the |Mediterranean resort city of Antalya, Türkiye, June 18, 2020. (Reuters)

After months of hosting displaced survivors of Türkiye’s massive earthquake in his Antalya hotels, Hakan Saatcioglu hopes his rooms will soon be filled with tourists again after the temporary guests were transferred elsewhere by the government.

Saatcioglu, the coordinator of Limak International Hotels & Resorts, is one of many in hospitality expecting to see Türkiye’s economically vital tourism sector recover from a quake that dragged down bookings and hotel stays.

"The government has kept its promise" and raised hoteliers' hopes, Saarcioglu said, by moving quake survivors to guesthouses and dormitories, easing fears that hotel rooms would be blocked to tourists as the peak summer season approaches.

But tourism has been slow to rebound following the tremors that devastated swathes of Türkiye’s southeast on Feb. 6, killing more than 50,000 people, flattening towns and cities and leaving hundreds of thousands homeless.

The quake has caused tourists to think twice before booking a trip to Türkiye, a major Mediterranean holiday destination.

Tourism revenue is critical to Türkiye as President Recep Tayyip Erdogan focuses on reducing the current account deficit - $48.8 billion last year - to tackle high inflation and interest rates.

But the recovery has been halting. Stays of two nights or more in Istanbul were down 7% compared to 2019 two weeks before the earthquake, but are now down 31%, according to figures compiled by travel data firm ForwardKeys.

A drop in new bookings means less revenue for travel professionals and the economy at large, said Olivier Ponti, ForwardKeys' vice president for insights.

"After months of excellent performance, when the country was leading the travel recovery in Europe (after the COVID pandemic), international tourism to Türkiye is clearly taking a nosedive," he told Reuters.

Before the quake, officials had hoped for a strong year on the back of a surge of tourists last year as the pandemic abated. Foreign visitors arriving in Türkiye jumped 80% year-on-year to 44.56 million in 2022, though that was still just short of the record 45.06 million people in 2019.

Despite strong bookings recently across the travel sector in Europe as a whole, Türkiye has not been able to regain momentum.

"The year started strong in terms of bookings, but it became sluggish after the quake. Now bookings have recovered a bit but have not reached their previous pace," said Kadir Ugur, chairman of Germany and Switzerland-based tour operator Bentour Reisen, which specializes in travel to Türkiye.

"People are gripped by fear when you say another big disaster is waiting to happen in Istanbul."

The stakes are high for Türkiye as tourism contributes about 10% to its GDP, and around 1.7 million people worked in accommodation and food services in 2022 - about 5% of total employment.

Looming elections

Elections slated for May 14 are also keeping tourists away out of fear of potential disruptions around the historic vote in which Erdogan faces the biggest political challenge of his two-decade rule.

Kasim Zoto, chairman of the Armada Hotel in Istanbul, said he was "on edge" ahead of the elections as the hotel had offered free cancellations up to within 48 hours of check-in and expect that could be used.

Such cancellations would push back a potential recovery further even though hoteliers are anxious to fill their rooms.

"Bookings recovered in April but the bookings for May - especially for the first two weeks of May - are low due to upcoming elections," said Ali Kirli, head of the tourism commission of Marmaris, a popular Aegean seaside destination.

A potential return to expected pre-earthquake travel figures is likely after elections wrap up, tourism officials said, especially as peak summer travel demand to Türkiye ramps up.

Hope in the resorts

Since the epicenter of the quake was in the southeastern, inland city of Kahramanmaras, no coastal resorts were affected, a factor that raised hopes for recovery, driven by a surge in Russian tourists.

According to data from the Antalya governorate, foreign arrivals to the popular Mediterranean resort area increased by 54% in March year-on-year, hitting a record high. Russians ranked first, followed by Germans and Britons, the data showed.

Türkiye is one of the few countries that Russians can still fly to after tough Western sanctions were imposed on Russia over its full-scale invasion of Ukraine last year.

On the back of these auspicious March figures, the Turkish government expects to generate $56 billion in tourism revenues this year. The tourism minister said Ankara remained committed to achieving that pre-earthquake goal despite the fallout.

And hopes remain high that travel-hungry Britons, keen to take advantage of lower prices abroad, will still flock to Türkiye in droves this summer.

"The depreciation of the Turkish lira and inflation in our European markets, especially in Britain, make Türkiye attractive for Europeans," Kirli said.



Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)
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Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)

Iraq produces more than 5 million barrels of oil per day (bpd), Oil Minister Basim Mohammed told state news agency INA on Saturday.

According to Reuters, Iraq is pushing for a higher OPEC production quota as the economic fallout from the Iran war and new investment by oil majors increase pressure on Baghdad to boost output, potentially putting it at odds with the producer group.

The conflict has hit Iraq particularly hard, forcing major export cuts and depriving the state of oil revenue, which accounted for 88% of government income last year.


IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.