Risk & Crisis Management in Tourism Sector:
Recovery from Crisis
in the OIC Member Countries
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4.2. Case Study 2 – Turkey (Field study)
4.2.1. History and Development of Tourism in Turkey
Istanbul has long been a popular tourist destination for its rich history, its natural beauty and
its location linking Europe with Asia. The popular overland train linking Paris to Istanbul, which
ran from 1883 to 1977, was known as the Orient Express. Attempts to establish an organised
tourism sector in Turkey started in 1923 when the ‘Travellers Association’ was established,
which seven years later became the ‘Turkey Touring and Automobile Club’. This played a major
role in promoting attractions through its publications of road maps and brochures, and it
implemented awareness and educational programmes to develop tourism in its early years.
By 1934 the government started to pay attention to the sector by having an administrative
department for tourism as part of Ministry of Economy, which enabled the birth of the National
Tourism Administration in Turkey (NTAT). In 1949, the NTAT was restructured to become the
Directorate General of Press, Publication and Tourism. The government's interest in tourism as
a source of foreign currency and jobs was expressed by the Tourism Encouragement Law in
1953, followed by a five-year development plan. Further efforts were devoted to regulating
tourism businesses, licensing and encouraging development of the sector by the establishment
of a Tourism Bank. In 1957 the Directorate General was upgraded to a Ministry and represented
in the Cabinet. In 1963 tourism was placed as a secondary priority in the development plan
under the heading of the service section, although the stated objectives of tourism were to
contribute to the national economy through its earnings, encourage domestic holidaymakers,
provide jobs and ensure sustainability of natural and cultural tourism products.
The sector has implemented several five-year plans which led to the development of mass
tourism, with several beach resorts. During the first plan (1963-1967) the public sector
established the basic infrastructure, stimulating the beginning of private sector investment in
hotels and other leisure facilities. By the end of the second plan in 1972, the tourism sector had
started to show significant growth, and over the four year period 1970-1973, international
arrivals almost doubled from 724,000 to 1,341,000. At about the same time the Association of
Turkish Travel Agencies (TURSAB) was launched. This non-profit organisation helped to
organise travel agents, encourage them to grow and provide appropriate services. Mass tourism
growth was encouraged in the third plan (1973-1977), with the government allocating public
land for investors to develop.
In the next five years the growth rate slowed down due to inadequate marketing, lack of
infrastructure to boost tourism and the economic difficulties the country was going through. In
1982, a newTourismEncouragement Lawwas put into effect, which offered generous incentives
to the investors, resulting in foreign investment and an increase in bed capacity, especially in
the south and southwest regions of Turkey. Attentionwas also given to education and vocational
training as well as improving the quality of the products and services.