Share of Tourism Investments in Fixed Capital Investments: Türkiye during the Planned Development Period

Abstract

This study examines the share of tourism investments in fixed capital investments during planned development periods. The research employed panel data analysis, which is a qualitative research method. The data used in this study were obtained from the key economic indicators, investment, and savings statistics of the Presidency of the Republic of Türkiye Strategy and Budget Office. This study presents the amount of tourism investments made by the private and public sectors over the years and conveys the share of tourism investments in fixed capital investments to the reader. The share of tourism investments, which consistently increased from 1963 to 1989, experienced a decline between 1989 and 1995. However, starting in 1995, the share of tourism investments began to rise again, continuing its upward trend until 2003—except for the 2001 crisis—reaching its highest level of all time. Following a fluctuating pattern until 2010, tourism investment declined sharply after the year, falling below 1% as of 2023. To increase the share of tourism investments within fixed capital investments again, it is recommended to review tourism incentive policies and shift them toward alternative tourism sectors, improve tourism infrastructure investments, particularly in transportation, increase sustainable tourism investments, and develop new marketing and promotional strategies that will enable Türkiye to utilize its tourism potential more efficiently.