Automotive Expotrs November 2022

Türkiye eyes more foreign shoppers
The Culture and Tourism Ministry will work
on new strategies for boosting tourism in
Türkiye via ad campaigns and promotional
videos centered on attracting foreign
shoppers to the country, says Sinan Öncel,
chair of the United Brands’ Association
(BMD).
As domestic consumption sags, local
retailers are turning to foreign shoppers
and they benefit from a rebound in
international tourist traffic.
“In terms of the U.S. dollar, foreign tourists’
spending increased by 12 percent. We had
talks with the Culture and Tourism Ministry
to raise the issue of promoting the retail
sector and shopping in Türkiye. Officials
from the ministry agreed,” Öncel told
business daily Dünya.
Öncel expects officials to begin work for
shopping tourism in the coming days. “One
of the main reasons to visit Türkiye for
foreigners is now shopping,” he added.
In terms of volume, sales declined but
revenues rose due to the price increases,
and this increase is partly due to foreign
shoppers, Öncel said. “We need to keep
tourism alive.”
He noted that both foreign tourist arrivals
and per capita spending increased, and this
has a positive impact on the retail industry.
Foreign tourists’ spending compensates for
weak demand from local consumers, Öncel
said, noting that in some regions sales to
foreign shoppers account for 50 percent of
all sales.
The number of tourists increased
significantly, said Hasan Fırat, head of an
association, which represents businesses in
Istanbul’s famous Grand Bazaar.
Fırat recalled that shops at Grand Bazaar
closed for months during the pandemic,
which increased businesses’ debts. “Thanks
to foreign tourists, businesses are now
able to reduce their debts and even make
profits,” he said.
Shares of foreign shoppers in total sales
increased to as much as 60 percent,
according to İzzet Stamati, the chair of the
Registered Brands Association (TMD).
“Saudis top the lists, followed by Kuwaitis,
Iranians, Russians and Azeris,” he told
the daily. However, Stamati said that
more needs to be done to attract more
people since Türkiye is not among the top
shopping destinations. In 2019, some 1.6
million foreigners came to Türkiye only for
shopping, according to the daily, which
cites data from the Turkish Statistical
Institute (TÜİK). However, in the first half
of 2022, the number of foreign shoppers
climbed to an all-time high of 1.2 million. In
2017, this figure was 1.5 million, declining
to 1.4 million in the following year.
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