New Delhi: Turkey's recent political stance is visibly impacting its economy and tourism sector. A significant number of Indian travelers have begun canceling their trips to Turkey, delivering a substantial blow to Turkish Airlines. The company's shares have experienced a decline of over 10% in the past month. The sharp drop in flight bookings from India demonstrates the direct impact international politics can have on markets.
What is the issue?
Following India's recent "Operation Sindhur," targeting terrorist bases in Pakistan and Pakistan-administered Kashmir (PoK), Turkey openly supported Pakistan, sparking outrage among Indian citizens. This resentment has significantly impacted Turkey's tourism sector.
According to MakeMyTrip data, flight bookings from India to Turkey have fallen by up to 60% in just one week, while ticket cancellations have increased by as much as 250%. This indicates a deliberate boycott of Turkey by Indian travelers.
The extent of the damage?
Nishant Pitti, Chairman of EaseMyTrip, stated that approximately 287,000 Indian tourists visited Turkey in 2023, a 25% increase compared to 2022. Each Indian tourist spends an average of ₹100,000 to ₹130,000 in Turkey. In total, Indian tourists contributed approximately ₹30 billion to the Turkish economy in 2023.
With numerous cancellations and a halt in new bookings, Turkey's tourism industry could face substantial losses in the coming months.
Why did Turkish Airlines' shares fall?
Turkish Airlines' shares have fallen from 312.75 Lira to 279.75 Lira, representing a drop of approximately 10.5%. Experts attribute this to investor concerns about the negative impact of flight cancellations and reduced bookings from Indian travelers on the company's revenue.
This situation highlights how Turkey's political stance is affecting not only its diplomatic relations but also its economy and stock market.
The message for Indian travelers?
This event serves as a b message to both Indian travelers and international companies, demonstrating the significant impact of Indian tourist decisions on global business. Those planning international travel should be aware of political and global issues that could affect their trips.
