Hotels ‘gravely affected’ by rise of short-term rentals

The soaring demand for short-term rentals is gravely affecting the performance of hotels, which has necessitated the need for new regulations and taxes on short-term rentals recently proposed by the Culture and Tourism Ministry, a tourism sector representative has said.

The emergence of short-term rentals, fueled by businesses such as Airbnb, has altered the hospitality sector and had a significant impact on hotels as travelers seek for a more customized experience.

Despite the record-breaking number of tourists vacationing in the country this season, hotels were unable to reach the anticipated occupancy rates due to the rising popularity of short-term rental houses. Foreign tourists have started to prefer houses and villas rented through the Airbnb platform to reduce the cost of their vacations.

Tourism professionals noted that the short-term rental sector, which did not attract this much attention in previous years, peaked in 2023, and this trend was seriously reflected in the revenues of hotels.

Even though there is a 23 percent increase in overnight stays this season, a substantial number of hotel rooms remained empty, as around 19 percent of tourist accommodations were made in short-term rental houses, stated Kaan Kaşif Kavaloğlu, the president of the Association of Mediterranean Touristic Hoteliers and Operators (AKTOB).

Noting that even tourists in the higher income groups are now starting to prefer villas and houses, Kavaloğlu said that luxury hotels are also seriously affected by the short-term rentals becoming widespread.

The expert pointed out that if there is to be competition between hotels and rentals in the industry, short-term rental companies and landlords should go through the same processes and be subject to the same standards of taxation as hotels, stating that short-term rentals should be under stricter supervision.

Especially Russian, Ukrainian, British and German tourists, who are familiar with the southern province of Antalya, have also started to prefer these houses as they are cheaper and do not require strict ID confirmations even though they preferred hotels many times before,Kavaloğlu added.

Previously, Culture and Tourism Minister Mehmet Nuri Ersoy announced the introduction of new regulations for the short-term rental market that would ensure both taxation of service providers and the disclosure of identifying information of people who choose these houses for accommodation.


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