Dimağ Çağıner, chairman of the Cyprus Turkish Hoteliers Association (KITOB), has warned that the tourism sector in the Turkish Republic of Northern Cyprus (TRNC) endured a very difficult 2026 and faces an even bleaker outlook for 2027 unless structural problems are addressed. He identified two key obstacles: astronomically high airfares and surging operational costs that are eroding the destination's competitiveness.
Speaking to Diyalog newspaper, Çağıner said: "The extremely high level of airfticket prices is our biggest problem. The other issue is that rising costs are causing us to lose our competitive edge." He noted that even peak periods such as public holidays, which traditionally boost occupancy, are no longer rescuing the sector. The busy 29 October Republic Day holiday in Turkey, he observed, failed to generate the expected tourist flow into the TRNC.
Çağıner pointed out that rising minimum wages and cost-of-living adjustments have doubled or even tripled personnel expenses, while high fuel and electricity prices are adding further pressure to hotel budgets. He also cautioned that the cost-of-living increases expected to be announced in 2027 would impose yet another significant financial burden on operators.
The KITOB chair also linked Turkey's ongoing fund investigation to reduced cash flow in the market, arguing it indirectly discourages Turkish tourists from choosing the relatively expensive TRNC as a holiday destination. He further lamented the structural shift in the accommodation sector, saying: "The concept of four-star hotels has disappeared, three-star properties are gone, and boutique and family-run businesses have been wiped out. There are almost no tourism facilities left in the country."
