Page 61 - TURKRptAUG19

P. Cars Production
74,074
-14%
492,700
-12%
Total Production
109,116
-17%
735,062
-13%
P. Cars Sales
36,024
-13%
156,378
-43%
Total Sales
43,943
-17%
200,901
-45%
P. Cars Imports
19,562
-27%
88,185
-52%
Total Imports
23,153
-27%
108,198
-52%
P. Cars Exports
62,846
-8%
419,046
-9%
Total Exports
96,879
-12%
634,768
-8%
P. Cars Exports (USD mn)
866
-10%
5,757
-12%
Total Exports (USD mn)
2,220
-15%
15,589
-7%
Tractor Production
1,588
-51%
10,570
-59%
Grand Total
110,704
-18%
745,632
-14%
source: osd
9.1.3 Transport sector news
The number of passengers Turkey’s 56 airports served declined by 3.3% on an annual basis to 94.7mn in the first half of the year, according to data from the country’s airports authority (DHMI). The 12.3% y/y decline in domestic passenger traffic in January-June is particularly striking, reflecting the impact of unfavourable economic conditions – high inflation, weak growth and high unemployment- on people’s travel and holiday plans. It should be noted that June was the month locals enjoyed an extended 9 days Ramadan holiday, thus domestic travel activity should have been much more robust. However, data from the DHMI suggested otherwise. Local airports served a total of 49.5mn domestic passengers in the first half of the year. International passenger traffic, on the other hand, showed a 9% y/y increase to 45.2mn in January-May. This is not surprising as June marked the beginning of high tourism season. Adnan Menderes airport in Izmir, one of the country’s major tourism destinations for local and foreign tourists, saw a 17% y/y increase in international passenger traffic. Antalya, another favourite spot for holidaymakers, welcomed more than 13mn foreign passengers, a 21% increase on an annual basis. Mugla Dalaman and Mugla Milas-Bodrum airports, which are the gateways to popular holiday reports, saw 11% and 25% y/y increases, respectively, in the number of international travellers in the first six months of the year. A weaker currency is always a boon for local tourism industry since it makes the country cheaper for international holidaymakers. And local airlines, Turkish Airlines and low-cost carrier Pegasus benefit greatly from the increased tourism activity. The Turkish lira depreciated some 30% against the dollar last year and it has weakened another 10% since the start of this year. But the weaker lira is not good news for locals, because for them it means higher hotel and services prices and higher travel costs. The latest data showed that restaurant and hotel prices soared 2.65% m/m in June for an annual increase of 20.8%. Transport costs increased 0.47% m/m and the annual rise for this category was 19.34%.
9.1.4 Construction & Real estate sector news
Cement sales on the local market plunged as much as 41% on an annual basis in January-April due to weak housing market and overall slowdown in the Turkish economy, said Nihat Ozdemir, the head of the Cement Producers’ Association (TCMB). Unfavourable weather conditions also adversely affected local sales, according to Ozdemir. In line with poor demand, local producers’ output declined by 33% in January-April from a year ago. He noted that the
61 TURKEY Country Report August 2019 www.intellinews.com