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New incentives for Turkey’s tourism

Posted on 14 February 2011

Date: 28/08/2009
New incentives for Turkey’s tourism

“BENEFITS: Turkey will raise the tourism sector’s promotional budget and reclassify tour operators that see at least $1 million in yields to be exporters, a status that will allow them to benefit from aid introduced for small- and medium-sized enterprises.

The Turkish government is taking action to introduce new incentives for the tourism sector, which has been awaiting such a move.

The country will raise the tourism sector’s promotional budget and reclassify tour operators that see at least $1 million in yields to be exporters, a status that will allow them to benefit from aid introduced for small- and medium-sized enterprises, or SMEs, according to a decision made at a meeting of the Economic Coordination Committee.

Tourism-sector representatives attended the committee meeting Wednesday under the leadership of Deputy Prime Minister Ali Babacan. Decisions made at the meeting include the allocation of higher advertisement resources, efficiency in the implementation of the value-added tax, or VAT, refund and deductions. They also cover the rearrangement of energy support, an increase in the reduction imposed on air vehicle landings and stopovers, as well as the inclusion of Esenboga Airport in the scope and expansion of flexible working models in the sector.

The meeting also determined that the head tax would be revised.

Other decisions were made to evaluate the support tour operators, in line with the number of tourists carried by airlines, to find an urgent solution for adequate pay implementation in coastal areas and to continue considering the European Union’s acquis and applications in tax arrangements on alcoholic beverages.

A positive step

The decree to classify large tour operators as exporters has been opened for signature in the Cabinet, Culture and Tourism Minister Ertugrul Günay said just after the meeting. Work will be conducted to reduce the VAT rate to 8 percent on yachts, he said, adding that the ministry would also try to remove obstacles regarding the hanging of Turkish flags on yachts.

Basaran Ulusoy, the president of the Association of Turkish Travel Agencies, said it would be a positive step to allow tourism firms to benefit from SME aid. He said companies in the sector could see increased revenue of at least 15 times the advertising budget spent.

The government also wanted to terminate low-priced energy for the tourism sector, but the idea was abandoned after talks in the committee meetings, said Touristic Hotels & Investors Association, or TUROB, Chairman Timur Bayindir.”

9 August 2009 Quoted from Hurriyet Daily News

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