Free Literature Review About The Relationship Between Tourism Sector And Economic Growth In Turkey

Type of paper: Literature Review

Topic: Tourism, Turkey, Middle East, Economics, Industry, Workplace, Economy, Infrastructure

Pages: 5

Words: 1375

Published: 2020/11/19


It is in the year 1923 that the founding of the republic of Turkey occurred .Tourism began picking up from that point and has been growing ever since. An important step towards the establishment of tourism in Turkey was the creation of the Turkish Airlines in the year 1925.It is from this particular point that tourism grew significantly until the World War II that led to significant drawbacks in the industry. After the war, the Turkish government came up with attractive business deals to attract tourism investors (Aslan & Kozak, 2012). The investors had the opportunity of acquiring loans at very low-interest rates. The legislation of that deal attracted entrepreneurs from all occupations (Beyzalta & Kustepeli, 2011). Tourism began picking up from that point and has become an important economic contributorto the Republic of Turkey.


Tourists visit the republic of turkey for various reasons that may include; Leisure, sightseeing, business and some even opt to visit the coast. The country possesses many historical sites that specifically attract the tourists that are interested in sightseeing (Kuvan and Akan, 2012). The tourism industry in Turkey is very organized due to proper management of the Association of Turkish Travel Agencies founded in 1972 and many more agencies that came up later. The country has well-organized airports to meet the ever increasing customers (Kiran, & Og, 2000). Roads and railways have also developed to higher standards to make transportation a comfortable experience. Hotels that offer accommodation services have grown significantly to meet the increasing tourist population (Aslan & Kozak, 2012). The tourism industry contributes significantly to the economic growth of the Republic of Turkey.
The tourism sector leads To the creation of many job opportunities. Employment rate has risen by a huge margin in the tourism industry over the past decades. Employees are working in hotels that accommodate tourists are an important example.The many tourist hotels available offer job opportunities to people in the country (Asku, 2006).Tour guides that drive and guide the tourists around the country also depend on the tourism sector for employment. The employees are working in tourist attraction sites also have the tourism industry to thank. All these and many more employees depend on the tourism industry in one way or another (Anafarta and Cizel, 2003). The airport attendants that assist the tourists get employment because of tourism. These are just a few of the many job opportunities that have emerged because of tourism. The tourism sector helps to reduce unemployment of many individuals (Kuvan and Akan, 2012). The boosting of the economy of the country occurs especially when the taxation of employees’ salaries occur. The government is then able to get funds to develop the country from the obtained revenues.
Earning of foreign exchange is another significant contribution of tourism to the economy of Turkey. The foreign tourists visiting the country require local currency in order to pay for the services rendered to them. They, therefore, need to exchange their foreign currency to get the local one (Aldemir, 2011). The country then acquires enough currency to spend in acquiring items like medical equipment for its citizens. The currency may also pay for foreign exports that come into the country (Beyzalta & Kustepeli, 2011). The tourism sector has ensured that the country has enough foreign exchange to facilitate trade with other countries. The result is an improvement in the economy of the country at large. The growth in the number of tourists means that the foreign exchange increases. Trade with foreign countries then occurs more often due to the available exchange.
Infrastructure has significantly improved because of the tourism sector. The transport sector, for instance, has seen a significant improvement over the years.Turkey has well-built roads and buildings, not to mention the properly lit streets especially at night (Kuvan & Akan, 2012). The country has 52 airports with 13 of them being international ones (Kiran, & Og, 2000). The total highway coverage now stretches for about 65,382 kilometers. Roads leading to tourist attraction sites like the Aya Sofa Museum have improved to deal with the number of tourists that visit theplace (Pearse, 1995). The result is that even the residents of such areasbenefit greatly from improvement of these infrastructures (Beyzalter & Kustepeli, 2011). The railway sector has also improved to cater for tourists who prefer using it for transport purposes. Tourism has played a significant role in the improvement of infrastructure in Turkeythathelps to boost the economy significantly.
Several cities havedeveloped as a result of the tourism industry in Turkey.Istanbul, for instance, has had a significant growth due to tourism. It has a rich history and culturethat attracts many tourists. Another city that rose due to tourism is Antalya. The city has many resort towns,restaurants, amazing beaches, and even waterfront bars (Kozak, & Birken, 2008). Another city,Bursa, was a capital of the Ottoman Empire. The city has both thermal springs and slopes for skiing that attract many tourists as well. These towns have an enormous economic significance since they generate much revenue (Beyzalta & Kustepeli, 2011). Every city has a unique attraction site that tourists go to experience. The growth of these cities has led to a positive impact on the economy of Turkey by promoting regional development.
The tourism has also promoted trade and entrepreneurship in the economy of the country as well. Tourist's hotels have come up to offer accommodation services to the tourists (Aslan & Kozak, 2012). These hotels have grown to meet the increasing demand by tourists. Tourism has led to a significant growth of entrepreneurship in Turkey. Service industries have come up in large numbers to serve the tourists (Anafarta & Cizel, 2003). Car rental companies are a good example. These companies allow the tourists to rent their vehicles at a fee. Another service industry is the souvenir shops. These shops have artifacts that tourists can buy to remind them of their visit to Turkey. Businesses like sports gear and equipment rentals are included. Tourists rent this equipment when going for sports activities like surfing. These enterprises depend on tourism for their success (Kuvan & Akan, 2012). They pay tax that contributes to improving the economy as well.
International relations improve because of tourism. Countries that allow their citizens to visit Turkey must be in good relations with the country. Trade within these countries then becomes easier due to the good relations that exist. The relations lead to reduced trade tariffs and importation rates. The country is then able to import products from such countries at a subsidized rate. Issuing of grants and loans are occurs as well(Aldemir, 2011). The good relations mean that Turkey can have enough sources of funds in case it is in need. These loans can develop the infrastructure or even build more schools and health facilities. The economy also benefits from these loans and grants as well.
Tourism has also significantly led to economic diversification. The industry has reduced concentration on industries like mining and manufacturing. The country now has more industries to benefit from (Beyzalter & Kustepeli, 2011). The reduction of focus reduces over-exploitation of the mining industry, for instance, which contributes negatively to the economy by destroying land. Such areas in turn require much capital to make them productive again. The investors concentrated on other sectors can now contemplate on exploring the tourism industrythat is growing significantly (Kuvan & Akan, 2012). The economy improves the more the tourism industry expands.
Tourism plays a significant role in the contribution to the economic status of the Republic of Turkey. Employment opportunities have raised because of the tourism sectors. Employment of people occurs in the tourist attraction sites, hotels and some drive them around the country (Anafarta & Cizel , 2003). The industry has led to the generation of foreign currency that plays apart in facilitating internationaltrade. Infrastructure has also grown to better standards with improved airports, roads, and even railways. Cities like Istanbul,Antalya, and even Bursa have grown as well due to tourism(Aksu, 2006). These towns generate much revenue that reflects in improved economic status of the country at large. Entrepreneurs also come up to invest in the tourism sector. Service industries like sports gear rentals contribute to the economy as well. The good relations with the countries involved in tourism promote trade in a number of ways (Var, 1990). Trade can occur at cheaper importation rates and loan issuing also occurs. The tourism industry has also led to the diversification of the economy. The sector has joined other concentrated industries like manufacturing and even mining. The tourism industry should have special priority since it is an important contributor to the economy of the country.


Akkemik, K. A. (0). Assessing the importance of international tourism for the Turkish economy: A social accounting matrix analysis.Talanta. doi:10.1016/j.tourman.2011.09.002
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Free Literature Review About The Relationship Between Tourism Sector And Economic Growth In Turkey. Free Essay Examples - Published Nov 19, 2020. Accessed February 26, 2024.

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