Turkish travel agencies raise concern over porposed online booking rules

Özgür Esen- ISTANBUL

AA Photo

Turkish travel agencies have raised concerns over a draft law regulating international online accommodation platforms.

The legislation, which is expected to be submitted to parliament in the coming days, would establish a legal framework for foreign digital accommodation platforms operating in Türkiye.

Hasan Eker, vice chairman of the Association of Turkish Travel Agencies (TÜRSAB), said Turkish travel agencies currently operate under an overall tax burden of around 25 percent, while foreign online platforms would face a 5 percent tax rate under the proposed framework.

Eker argued that the difference in taxation could give online platforms a pricing advantage.

According to Eker, consumers could increasingly shift their reservations to foreign online platforms if those companies are able to offer lower prices as a result of their lower tax burden. He warned that such a trend could lead to a sharp decline in sales for Turkish travel agencies, weakening competition and increasing the risk of market concentration.

“If monopolization occurs, they will start determining prices themselves,” Eker said, adding that such a scenario could eventually result in platforms purchasing rooms from hotels at lower prices and selling them to consumers at higher prices.

Eker said the association’s main demand is equal treatment under Turkish regulations.

“We want citizens to receive services through Booking [booking. com]. Our issue is that Booking does not have an office in the country,” he said. “Foreign digital platforms operating in Türkiye should be subject to the same obligations as domestic travel agencies.”

Under the draft legislation, foreign digital accommodation platforms will be required to obtain a permit from the Culture and Tourism Ministry in order to operate in Türkiye.

The draft also requires foreign platforms, including Booking, to maintain a local representative in Türkiye.