Page 5 - bneIntellinewsTurkeyToday20170428.pdf

Companies and Industries
Turkey hotel occupancy rates rise to 55.8% in March
Turkey’s average hotel occupancy rates increased to 55.8% in March from 50.5% a year ago, the Hotel Association of Turkey (TUROB) said on April 27, Hurriyet Daily News reported.
The average occupancy rate was 50.5% in February.
The association attributed the rise in the occupancy rates to a surge in the number of corporate business meetings and the sharp rise in the number of Iranian tourists visiting Turkey during the Nevruz holiday.
In Istanbul, the average hotel occupancy rate was 56.1% in March up from 52.2% in the same month of 2016 while in Antalya, one of the country’s major tourist attractions, the average occupancy rate jumped to 55.1% from 49.8%.
The hotel occupancy rate given for across Turkey rose to 52.3% in Q1 from 50.1% in the same quarter of 2016.
Turkish hotels’ average daily rate (ADR) declined to €57.2 in the first quarter from €74.2 a year ago, their revenue per available room (RevPAR) dropped to €29.3 from €37.2, the newspaper reported, citing TUROB data.
Foreign tourist visits declined by a sharp 30% y/y to 25.25mn in 2016 as terrorist attacks and geopolitical risks kept foreigners away. Restrictions on Russians travelling to Turkey, introduced by Moscow after the November 2015 downing of a Russian fighter-bomber by the Turkish Air Force, also took a heavy toll on the visitor rate.
But the country’s struggling tourism industry showed some signs of recovery in February. Foreign tourist arrivals fell by 6.5% y/y in February to 1.16mn. This marked a decline in the 19th month in a row, but the pace of the decrease slowed.
Turkish low-cost carrier to launch direct flights to Yerevan
Turkish low-cost carrier Pegasus Airlines will start operating Istanbul-Yerevan flights on June 1, Arka news agency reported on April 28. The development is significant for both the small airport in Yerevan, which does not have many direct connections to Europe, and for Turkish-Armenian ties.
Armenia and Turkey do not have official commercial and diplomatic ties. Ankara closed off the border with Armenia in 1993 to protest against its war with close Turkish ally Azerbaijan over the breakaway region of Nagorno-Karabakh. Furthermore, the issue of the recognition of the 1915 Armenian genocide remains an apple of discord between the two countries.
Despite the diplomatic tensions, commerce, and particularly Turkish exports to Armenia, are beginning to pick up. Many of the exports transit through Georgia; some are smuggled across the officially sealed border.
According to a Eurasianet report published in April, flights between Yerevan and Istanbul these days are full of businesspersons seeking opportunities. But an outright restoration of ties is believed to be a distant prospect, given how Turkey has to honour its diplomatic obligations to Azerbaijan.
Pegasus Airlines operates several flights to European cities from its hub at the Sabiha Gokcen airport in Istanbul; therefore it could provide low-cost solutions for Armenians to travel to Europe.
The news of Pegasus' new connection comes just as Armenia and the EU launch negotiations on a Comprehensive Air Transport Agreement on April 28. When completed, Armenia will be able to join the common EU Aviation Area, making it easier for airlines to operate flights between the bloc and Armenia.
This PDF is intended for Ben Aris at Intellinews.
Systematic forwarding is a breach of subscription compliance obligations.
Written by bne IntelliNews, New Sparta Media and Emerging Markets Direct Media Holdings LLC. We make no warranty, express or implied, as to the accuracy or completeness of the information. The views expressed reflect our best judgment as of the date of publication and are subject to change without notice. Opinions are not necessarily those of New Sparta Media, Emerging Markets Direct Media Holding LLC or its affiliates. New Sparta Media and Emerging Markets Direct Media Holdings LLC and take no responsibility for decisions made on the basis of these opinions. Unauthorized redistribution of this information is strictly prohibited.