Turkey is an attractive market for investors because it has a large number of potential investment opportunities and is growing. Its market share was 1.7 billion and it has generated revenue of 8.5 million. These figures are 5% more for 2003. World Tourism Organization predicts that Turkey is the country with highest tourism demand growth, at a rate of 10% per year.
Turkey’s first 15 destinations have been visited by over 14 million people annually. Turkey is now trying to diversify its tourism offerings and accommodation options. Turkey promotes inland sites for tourists with different tastes to 3S (sea sand sun), combination, and coast regions. The country’s tourism industry is concentrated on the Aegean, Mediterranean and Mediterranean coasts. These areas account for about 80% of Turkey’s total bed capacity. However, the investments made in accommodation are inadequate to match the tourism demand that Turkey will face. Turkey therefore has the strong desire to attract national and international investors especially to those areas most frequently visited.
The ministry of Culture and Tourism plans to declare the sites and lands as “preservation and develop areas of culture and tourists regions”. The Ministry of Culture and Tourism has made available investment areas based on its priority as a destination. The approval of macro-physical plans will allow investors to begin the process of allocating land for officially identified sites. The Ministry approves the physical plans of the entire region and sub-regions.
The sites that would attract investments are Antalya (Tarsus), Didim, Antalya (Didim), Antalya (Sitra), and Istanbul. Below is a powerpoint presentation about the above regions. Further, 160 tourism centers have been identified under the Tourism Encouragement Law. These sides are not yet complete. The Ministry of Tourism provided parcels along coastlines of well-developed tourist regions like Belek Kemer and Fethiye.
Recently updated was the Tourism Encouragement Law. New procedure allows whole areas or portions of a region to be assigned to main investors. This is when the Council of Ministers makes the final decision and gives the Ministry pre-permission. After the Ministry approves the investment licence, pre-permission will be turned into final permission. Open tender will determine the investors. In designated regions and sites, they will receive an easement that includes autonomous and permanent rights of construction. Investors can get mortgages from international or national markets through this type of institution. Additionally, investors can sell the land or the building to third parties without approval from the Ministry.
This Law was created to stimulate land development projects, and attract international chains and trademarks.
These are also provided by the The Encouragement of Tourism.
– Allocation of public land for investors in tourism investment
– Authorization to hire foreign artists and personnel
Get Discounts on Water, Electricity, and Gas Prices
Priority for telephone, fax, and telex line allocations
– Exclusivity of Tax, Duties and Fees (e.g. VAT and Customs Duty).
For investors to benefit from incentive programs, they should get a Treasury Undersecretariat Incentive Certificate and a Tourism Investment Certificate.
Here are the possible types of investments for which Tourism Investment Certificates might be issued.
1. Accomodation Facilites
2. Dining and Entertainment Facilities
3. Auxiliary Service Facilities: (such as beach facilities, congress and exhibit centers, theme parks, or golf facilities).
4. Tourist Complexes
5. Personnel Training Facilities
6. Yacht Tourism Facilities
The location is the most critical aspect of any investment. The location choice has an impact on how profitable the investment will be. They must also meet the requirements of a tourist investment. No tourism facilites can be built on any land that is not designated for tourist uses under Land Use Plans. Your land can be considered ready to invest in tourism if it’s located on land that has been approved for tourist use. You can then begin design work.
A request for Public Land may be made to allocate land within the tourism zone or centre. The Council of Ministers determines the tourism areas or centres and announces them upon request from the Ministy of Tourism. The Ministry of Tourism will occasionally announce to tourists investors those areas and centres that are suitable for allocating to them through newspaper advertisements. The Land Allocation Committee will process your application within two months. For a Tourism Investment Certificate to be issued, an investor needs to submit documents and plans to the Ministry of Tourism.
The regulation stipulates that facilities are required to meet the requirements for Tourism Investment Certificates certification. These requirements are extremely detailed. They cover safety and environmental protection, design, pricing tariffs, staff training and capacity.
It can be up to 49 years. Land Allocation Commission will determine the exact duration based on factors like the type, class, and capacity of each facility as well as the specific characteristics of each location. The Treasury will pay rent annually, in advance. The facilities will be transferred to the Treasury at the end of each allocation period without payment.
To assist establishments in operating in the tourist sector, the Ministry issue Tourism Establishment Certificates. Five, four, five, three, two, two, one-star and one-star hotel types are available; motes and holiday resorts fall under the first and second classes; and restaurants fall under the first and second categories. The minimum qualifications required for each category are clearly defined. In detail, qualifications for camping sites, quest houses, aparthotels, motor caravans and hostels are determined.