Turkish travel agencies warn new tax rules could favor foreign booking sites
Travel operators in Turkey say a draft law would tax foreign online accommodation platforms at 5%, far lower than the 25% burden they face, risking a shift of bookings abroad.
A proposed law in Turkey aims to create a regulatory framework for overseas online accommodation platforms, imposing a 5% tax rate on them compared with the roughly 25% tax that Turkish travel agencies currently pay. Hasan Eker, vice chairman of the Association of Turkish Travel Agencies (TÜRSAB), cautioned that the disparity could give foreign sites a pricing edge, prompting consumers to book through them and causing a sharp decline in sales for domestic agencies.
He warned that reduced competition might lead to monopolistic pricing, with platforms potentially buying hotel rooms at lower rates and reselling them at higher prices. The draft legislation also mandates that foreign platforms secure a permit from the Culture and Tourism Ministry and maintain a local representative in Türkiye. TÜRSAB’s main demand is equal treatment under Turkish law, arguing that companies like Booking should face the same obligations as home-grown agencies.
Why it matters
The bill could reshape Turkey's travel market by favoring foreign booking sites over local agencies.
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