VZCZCXRO7655
PP RUEHDA
DE RUEHAK #5228/01 2550457
ZNR UUUUU ZZH
P 120457Z SEP 06
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC PRIORITY 8551
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUEHIT/AMCONSUL ISTANBUL 1234
RUEHDA/AMCONSUL ADANA 1080
RUEHMO/AMEMBASSY MOSCOW 5478
RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 02 ANKARA 005228 
 
SIPDIS 
 
TREASURY FOR INTERNATIONAL AFFAIRS -- JROSE 
USDOC FOR ITA/MAC/OWE - CHERIE RUSNAK 
 
SENSITVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON TU
SUBJECT:  TOURISTS CANCEL IN WAKE OF PKK BOMBINGS 
 
REF: (A) Ankara 4953, (B) Ankara 4493, (C) Ankara 1105, (D) Ankara 
 
1460 
 
This is a joint Congen Istanbul - Embassy Ankara cable. 
 
¶1.  (SBU)  Summary.  Government and private sector tourism contacts 
confirm substantial tourist cancellations, particularly in 
Mediterranean and Aegean resort hotels, following the recent wave of 
PKK bombings, but are not alarmist about final tourism numbers for 
2006, which they expect to be down only slightly from last year. 
Officials blame European package tour operators for what they 
perceived as a knee-jerk and unfair response to the bombings, 
including diverting travel from Turkey by offering penalty-free trip 
cancellations and promising re-bookings to other destinations.  End 
Summary. 
 
-------------------------------------- 
Mass Cancellations in Wake of Bombings 
-------------------------------------- 
 
¶2.  (SBU)  Government and industry contacts confirm substantial 
cancellations following the recent wave of bombings in tourist areas 
of western Turkey, including the prime tourism centers of Antalya, 
Marmaris and Istanbul (ref A).  Ministry of Culture and Tourism 
Director General for Investment Senol Aydemir, who was attending a 
conference in Antalya when the bombings occurred, described 
widespread vacancies at five-star hotels for two to three days as 
pre-booked tourists stayed away, presumably waiting to see if there 
would be more bombings.  Although many eventually showed up a few 
days late, he estimated that as many as 90,000 tourists ultimately 
canceled vacations in Antalya (mainly at resort hotels) following 
the bombings.  Based on that figure, he speculated that nationwide 
cancellations could be considerably higher. 
 
¶3.  (SBU)  Aydemir speculated that absent the recent bombings, the 
tourist arrivals might have reached 23 million by the end of 2006, 
up from 21 million in 2005.  However, although arrivals prior to the 
bombing-linked cancellations were up 1% in August 2006 compared to 
August 2005, totals were down 4.9% for January through August 2006 
compared to the same period in 2005.  Post-bombings, GOT officials 
and the Istanbul-based Tourism Investors' Association (TIA) now 
expect full year numbers to be on par with last year, when 21 
million tourists spent $18 billion. 
 
¶4.  (SBU)  Efforts by the tourism industry to control damage in the 
bombings' aftermath included a mailing to culture and tourism 
attaches in thirty-two countries that condemned terrorism and urged 
international support, and asserted that Turkey is redoubling 
security efforts.  For example, a project to install security 
cameras was underway in at least one tourist area in Antalya prior 
to the recent wave of bombings, and the government plans to expand 
the project to Bodrum and Kusadasi in the near future. 
 
--------------------------------------------- ---------- 
Bird Flu, Murdered Priest, Soccer Woes, and Competition 
--------------------------------------------- ---------- 
 
¶5.  (SBU)  The bombings only added to the sector's recent woes. 
Aydemir listed a number of "unfortunate events" in late 2005 and 
2006 that contributed to the year-to-date decline.  Negative 
publicity surrounding the bird flu outbreak, the murder of a priest 
in Trabzon, and the Turkish National Soccer team's assault on Swiss 
players following a World Cup qualifying loss marred Turkey's image 
in Western Europe according to Aydemir.  Culture and Tourism 
Ministry Director General for Marketing Ozgur Ozaslan and other 
sectoral contacts also insisted that the Danish cartoon crisis 
tarnished Turkey's image abroad, given that potential visitors were 
not able to differentiate Turkey from other Muslim countries that 
reacted more violently to the cartoons.  Tourism Investors' 
Association Secretary Genral Nedret Koruyan also cited increased 
copetition from other Mediterranean destinations, particularly 
Greece and Spain, as well as a GOT decision to contract with a new 
tourism promotion agency in November 2005.  Tourist complaints about 
the inadequate infrastructure in Antalya, as well as environmental 
concerns, might have also been factors. 
 
-------------------------------------------- 
Turkish Officials Critical of Tour Operators 
-------------------------------------------- 
 
¶6.  (SBU)  "Unfortunate events" aside, perceived "bullying tactics" 
by European tour operators, notably German-based TUI -- the world's 
largest tour operator --and UK-based Thomas Cook drew harsh 
criticism from tourism sector contacts.  Aydemir explained that 
European tour operators' attendance at tourism fairs in March and 
 
ANKARA 00005228  002 OF 002 
 
 
April 2006, and subsequent negotiation and finalization of contracts 
with Turkish hotel operators in late April, signaled a preview of 
the likely decline in European tourist arrivals for 2006.  He noted 
that European tour operators, unhappy with declining profit margins 
in Turkey (as prices for resort tourism gradually increased due in 
part to the strong lira), attempted to use the negative publicity 
surrounding Turkey to negotiate cheaper hotel rates.  When hotel 
owners refused, tour operators threatened to divert customers to 
other destinations. 
 
¶7.  (SBU) Marketing DG Ozaslan decried a "double standard" he saw in 
the bombings' aftermath.  After the recent bombings in Turkey, TUI 
and Thomas Cook immediately posted statements on their websites 
promising penalty-free cancellations and offering re-bookings to 
other destinations, whereas European tour operators did not divert 
tourists from travel to Sharm El Sheik, Egypt after bombings ripped 
through tourist areas there last year. 
 
------------------------------------ 
Damage Control: Dim Outlook for 2007 
------------------------------------ 
 
¶8.  (SBU)  Our contacts declined to speculate on the possible 
effects the bombings might have on tourist bookings for 2007. 
Ozaslan described the Ministry's promotional activities to be 
launched shortly in Europe and the U.S. to repair the damage done in 
2005 and 2006.  Turkey will continue to host journalists, producers, 
and professionals --more that 3,000 people last year -- as a part of 
its promotion campaign to combat misperceptions regarding Turkey. 
He emphasized such misperceptions of Turks and Turkey were prevalent 
in Europe, not the U.S. 
 
¶9.  (SBU)  In an interesting new trend, arrivals from Germany and 
other European countries declined in 2006, but the number of 
visitors from Russia, Japan, Korea, and the United States increased. 
 Turkey remains the number one tourist destination for Russians. 
From January through July 2006, 300,000 Americans vacationed in 
Turkey, a 26% increase compared to the same period in 2005.  Ozaslan 
noted that before the events of 9/11, more than 500,000 American 
tourists visited Turkey.  He hoped that same number would be reached 
by the end of 2006.  Ozaslan hopes Turkey's unveiling of the Turkish 
village at Disneyworld's Epcott Center at the end of 2006 will serve 
to further boost American tourism to Turkey. 
 
¶10.  (SBU)  Aydemir and Tourism Investors Association Secretary 
General Koruyan cautioned that this year's stagnant tourism 
statistics need to be put in the context of the extraordinary growth 
in Turkish tourism over the past four years.  Aydemir characterized 
the 20% annual increase in general tourism during this period as 
"beyond the expectations of the world tourism industry."  Still, 
matching or even exceeding the 2005 highpoint of 21 million visitors 
could prove difficult.  Given the majority of Turkey's 
European-origin tourists travel on package tours, and in light of 
the mass cancellations to Antalya in the wake of the August 
bombings, regaining tour operator confidence in Antalya as a beach 
vacation destination will be key. 
Wilson