Tourism investments in Istanbul
Turkey is on the top of tourism countries in the world and set a record in terms of the number of tourists, as it received 51.7 million visitors in 2019, and the city of Istanbul ranks first among Turkish cities in terms of tourism, as it received nearly 15 million visitors, which opens opportunities for investors to delve into The field of tourism investment, and in this article we’ll provide you with introductory information about tourism investment in Istanbul, the facilities available in order to support this type of investment, and the returns and profits that can be reached.
Tourism investment in Turkey
About 30 million tourists visit Turkey annually, and therefore the Turkish government is keen to provide various investment opportunities in the newly emerging sectors of tourism in this field, and the tourism sector continues to grow at a rate exceeding its absorptive capacity in order to reach the goals of the year 2023.
With the rapid increase in the number of investments in Turkish real estate over the past years, there is still much room for new and huge projects in the country,
Speculations indicate that the number of tourists coming to Turkey this year will exceed 35 million, which requires the provision of public facilities for them, especially hotels, restaurants, canteens and cafes.
It is good that Turkey includes thousands of hotels of different classifications, especially five-star hotels, especially those belonging to the names of major brands.
Why is it preferred to invest in Istanbul in general?
- The ancient history of Istanbul: where it was the capital of the Roman, Byzantine, and Ottoman civilizations, and it can be said that it is the capital of the three empires
- Beautiful landscapes, numerous green squares with golden beaches and a pleasant climate, which gave it the title of the capital of tourism in the world.
- The strong infrastructure combines the ancient history and modern construction
Types of tourism investment in Istanbul
Tourism investment in Istanbul has what distinguishes it as well, and what makes it the first among all types of investments in Istanbul and Turkey in general
Especially since Istanbul is a tourist city par excellence because of its stunning scenery, and it’s wonderful and diverse tourist attractions
One of the advantages of real estate investment in general in Istanbul is the freedom of choice, as the fields of tourism work vary, between transportation, housing and accommodation, public services, guidance and tourism services and others.
The facilities provided by the government to support this sector:
Tourism investments provide the Turkish treasury with high numbers annually, and thus the Turkish government gives great importance and a basic priority to this sector, especially investments by foreigners, as it launched the so-called system of stimulating foreign investments in Turkey, which contains several articles that encourage and support foreign investments, including tourism investment.
Expected returns and profits from tourism investment in Istanbul
The best type of tourism investment is (tourist rent), which is known as hotel rent, in which the annual profit rate is 8% of the property value and can reach 15% of the property value.
Followed by the long-term lease (for the furnished property) and the profit rate is estimated between 5 and 8% of the property value.
Finally, the normal rent (the property is not furnished) and the profit rate is estimated between 4 and 8% of the property value.