What is the Tourism and Hospitality Sector?

We can define the primary aim of businesses in the hotel sector as being sustainable and generating profit. There are certain key criteria regarding the quality of service, cost, and technology used, such as qualified personnel and customer satisfaction. While the development and change of these criteria continue today, the hotel industry also continues to show development in this direction.

The Status of the Tourism and Hospitality Sector in Turkey and the World

The tourism sector is the largest and fastest-growing sector in the world. The hospitality sector should also be evaluated in parallel with it. In Turkey, in the past, there were hotels only in certain large cities. With the current strategies implemented by chain hotels, many quality hotels now exist in almost every province of Turkey, presented by various brands in different categories, as well as franchise and management hotels.
As the demands change according to current conditions, hotels will also vary accordingly.

The more the tourism sector develops and grows globally, the more the hotel sector grows as well. It is anticipated that the sectors that stagnated due to the pandemic in recent years will continue to develop with the end of the pandemic. It is thought that the sector will grow rapidly in the upcoming periods.

What are the Largest Accommodation and Investment Groups in the World for the Tourism and Hospitality Sector?

1. What are the General Supports for the Tourism and Hospitality Sector?

It has been stated that hotels may not benefit from the supports provided by TÜBİTAK, KOSGEB, and the Ministry of Commerce, which are referred to as project-based or general supports, due to the NACE codes owned by them.

2. What are the Investment Incentives for the Tourism and Hospitality Sector?

Regions;

For 3-star, 4-star, or 5-star hotels, boutique hotels, thermal hotels, special accommodation facilities, mountain houses, and plateau houses, if there is a projected investment cost of at least 3 million TL in the 1st and 2nd regions, and at least 1 million 500 thousand TL in the 3rd, 4th, 5th, and 6th regions, they will benefit from the following supports. 1-star or 2-star hotels will only benefit from Investment Incentive Certificates if they invest in the 6th region.

• Tourism investments that can benefit from regional support in Cultural and Tourism Protection and Development Areas or in thermal tourism will benefit from provincial regional supports if they invest in the 1st, 2nd, 3rd, or 4th regions, and from the provincial regional supports of the province if they invest in the 5th or 6th regions.

• Bungalow houses will benefit from provincial regional supports if constructed in accordance with the type and class curriculum of rural tourism facilities as prescribed by the Ministry of Culture and Tourism, "Tourism Incentives"

• Day-use facilities can benefit from Investment Incentive Certificate supports if constructed in Cultural and Tourism Protection and Development Areas. "Tourism Incentives"

• What Supports are Provided for Day-use Facilities? "Tourism Incentives"
1- VAT exemption
2- Customs tax exemption
3- Stamp tax
4- Property tax
5- Building construction fee exemption

What are the Support Elements Provided for the Tourism and Hospitality Sector?

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Who Can Benefit from the Supports Provided for the Tourism and Hospitality Sector?

• Real persons, ordinary partnerships, joint-stock companies, unions, cooperatives, business partnerships,
• Public institutions and organizations,
• Professional organizations and universities that are public entities,
• Associations and foundations,
• Foreign companies' branches in Turkey can benefit from incentives. Additionally, foreign individuals or companies that establish companies in Turkey can also benefit from the incentives. 100% foreign-owned or partially foreign-owned companies established or to be established in Turkey will also benefit from the new incentive system.

What are the Minimum Investment Amounts Required for the Tourism and Hospitality Sector?

In the I. and II. Regions, 3 Million TL
In the III., IV., V., and VI. Regions, it is 1 Million 500 Thousand TL.
NOTE:
In investments with tourism investment/operation certificates, "the condition of 3 stars and above" is not required for special facilities, plateau/mountain house, and boutique hotel investments.

How Can ODS Assist You with Tourism and Hospitality Incentive Consulting?

Our hotel chains that provide services under the "Turquality" program, which is the world's most important brand incentive program, are creating Turkey's leading brands and representing Turkey in this field. As OODS Consulting Group, we have gained experience in relevant topics by serving hundreds of companies in areas such as brand, institutionalization, and digitization of processes. Thus, we play a guiding role in all areas your companies need by both specializing in incentive consulting and other fields.