Turkey
How much can you save travelling now to
Hotel
August 2023
Room in 5-star hotel costs from €129, which in Nov 2021 was €128.
You can save on your hotel costs:
+0,8%
Food
August 2023
2 dinners, 2 beer, 2-litres Coca Cola costs €28, which in Nov 2021 was €19. You can save on food costs:
+47,4%
Shopping
August 2023
Cinema ticket, Zara dress, Levi's jeans, Nike sneakers and iPhone 12 costs €963, which in Nov 2021 was €1564. You can save on shopping:
-38,4%
Why Turkey is cheaper now?
Turkey's economy is in technical recession now. Economic and political problems have flourished in 2018 and since that time situation hasn't become better.
Turkey has huge, more than other major emerging markets, foreign currency debts, mostly dollars. According to the Bank for International Settlements, Turkish borrowers owe around $200 billion to international banks.
High inflation, denial of President Erdogan to raise interest rate, very low foreign reserves of $130 billion, political tensions with the US, - led Turkish Lira’s downfall. JPMorgan Chase & Co. recommended investors go long on the dollar against the lira, targeting a move to 5.90.
By the end of 2020, Turkish Central Bank has raised its interest rate by 200 basis points to 17%, which had stabilized the economic situation. However we can see that Lira is still under pressure.
Update. Due to the next interference of President Erdogan in the affairs of the monetary lira lost more than 10%.
Lira has lost more than 46% in comparison with Euro and more than 53% with USD.
Inflation rate is 80.2% and EU inflation is 9.1%.
Tickets
There are plenty of cheap tickets to Turkey from other European countries. The cheapest tickets in August are:
70€ from Nicosia
103€ from Yerevan
115€ from Iasi
134€ from Abu Dhabi
The BigMac Index by The Economist suggests that Turkish Lira is 48,5% undervalued if we look at the Raw Index. And is 32,6% undervalued using GDP-adjusted methodology.