Date

Date: 11/11/2009
New EU report sees fastest growth for Turkey in Europe

According to a European Union economic report, Turkey will become the fastest growing country in Europe in 2010 with a 2.8 percent growth rate. The European Commission's economic forecast report for fall has estimated that, although Turkey’s economy will contract this year as a result of the global financial crisis, the growth rate will climb up to 3.6 percent in 2011. The report said that inflation will be 5.6 percent in 2009, and 5.8 percent and 5.3 percent for 2010 and 2011 respectively.

Date: 13/11/2009
Banks boom in Turkey without government aid

In Turkey, bank profits have risen more than 40 percent this year, though at first glance that might not seem exceptional. After all, profits have surged at US banks too, spurring a stock market rally that has wiped clean most of the losses from last year's economic meltdown. But there's a difference: Turkey's banks posted those profit gains without any government assistance.

Profits for the entire Turkish banking industry totalled USD 10.5 billion for the first nine months of the year, according to government data. At a time when the recession has hammered many European banks, Turkey's financial institutions have weathered the crisis remarkably well.

The Turkish government restructured the financial system, boosting the banks' capital requirements and raising the mandated ratio of capital to risky assets to 12 percent from 8 percent.

Another difference: Turkish banks had almost no exposure to subprime loans or derivatives. The result is that Turkish banks now have some of the world's strongest capital structures. Those capital reserves, and the absence of risky lending practices, helped shield them when the recession hit. For example, Garanti Bankasi, one of the country's largest lenders partially owned by General Electric, maintains a capital ratio of almost 18 percent, according to the bank's financial filings, far higher than most US banks.

13 November 2009 Invest in Turkey (Houston Chronicle)

Quest Magazine

Turkey Property Rentals Triumph over Recession

Friday, 04 December 2009 11:47

RENTAL PROPERTY IN TURKEY ACHIEVES RESULTS FOR HOMEOWNERS

Summer 2009 was never set to be a big year for the number of Brits holidaying abroad, with much talk of hard-hit families opting for UK breaks and shelving the idea of foreign sun, at least until the recession started to abate. But in reality, things were somewhat different. Undoubtedly, many cash-strapped British holidaymakers did stay at home; but Turkey rental property owners also experienced a successful summer according to a market survey by leading overseas lettings company, Holiday-Rentals.

"While the travel industry in general struggles, demand for rentals is going from strength to strength as travellers realise they can rent a whole home for less per head than a hotel and stretch their budget even further by taking advantage of self-catering facilities," commented Holiday-Rentals Managing Director Courtney Wylie.

Good value for money is not the only reason that people are increasingly looking to the private rental sector for holiday properties; rentals also offer greater flexibility, allowing travellers to book flights and accommodation separately themselves, often online.

One country that has emerged as a prime holiday destination for those looking for a rental property is Turkey. Popular with families and boasting a warm Mediterranean climate, perfect for those wanting a dose of sunshine, 2009 has been a very successful year for the country's holiday rental market, with holidaylettings.co.uk reporting a 70% increase in the number of enquiries about the country in 2009.

This popularity has been backed up by statistics released by the Turkish Ministry of Culture & Tourism, which show that over 24 million tourists visited Turkey in January to October 2009, an increase of 1.96% on the same period in the year before. The number of British visitors grew to 2.3 million, an impressive increase of 9.5% within a year.

A key draw for British holidaymakers is that Turkey sits outside of the Eurozone and with the pound currently so weak against the Euro, this is a great benefit to those looking to make their money stretch further.

According to the Q3 Travel Money Report from M&S Money, the Turkish lira was the third most popular currency exchanged, behind only the Euro and the US dollar. James Yerkess, M&S Travel Money Manager comments:

'The increased strength of the euro against the pound means that holidaymakers have been looking at destinations outside the Eurozone... The Turkish lira is one of the few currencies against which the pound has held its value since last year, meaning tourists heading to Turkey will still see their cash go further.'

The future looks positive with the Turkish Ministry of Culture & Tourism aiming to attract 63 million visitors annually to the country by the centenary of the Turkish Republic in 2023. Ertugrul Gunay, the country's Minister of Culture and Tourism, is looking towards a bright future:

"We are delighted with Turkey's tourism successes and the continued expansion in visitor numbers to Turkey despite the economic downturn. Looking ahead, we're confident that Turkey's tourism industry is poised for further growth."

This official optimism is backed up by new flight routes being announced to the country. Among the airlines with new routes to Turkey is low-cost operator Pegasus Airlines which recently announced several new flights for 2010, with the company set to run 17 routes between Turkey and the UK, including London to Istanbul, Bodrum and Dalaman and Manchester to Antalya and Dalaman.

This is good news for those renting and buying property in Turkey, as improved accessibility increases interest in a destination and will in turn increase demand for private holiday rentals. Indeed, holidaylettings.co.uk reported that enquiries for Turkey outstripped those for perennial favourites Florida and Portugal in September and October.

With unspoilt scenery and great beaches, Dalaman is one destination that is set to gain from the improved air links and increased tourist numbers. Situated on Turkey's south-west coast, Dalaman is an attractive option for those looking to cash in on the growing popularity of Turkey and the country's budding private rental market. Dominic Whiting, editor of a Turkey property guide, believes that now is a good time to invest in the area,

"Dalaman is a beautiful Turkish destination which has much to offer those looking to buy property to rent out. It has a wealth of activities and natural attractions including yachting, hot springs and some of Turkey's top beaches, which give it a wide appeal to holidaymakers. With the private rental market growing in such a successful manner, investors can expect solid returns. The future certainly looks bright for Turkey."

Landmark sporting events such as the World Cup, Commonwealth Games and Winter Olympic and Paralympic Games will influence the travel calendar in 2010, according to British Airways.

A growing trend towards eco-tourism puts Stockholm on the map, while Istanbul is expected to be one of the most visited European destinations in recognition of its recent title of ‘European City Of Culture’.

BA head of UK & Ireland sales Richard Tams said: “Customers recognise that there’s a world of opportunity out there – from tiger safari in India, to the FIFA World Cup in South Africa and the bright lights of Las Vegas.

“In 2010, holidaymakers will have more choice of beach destinations than ever, especially with our new services to Punta Cana, Sharm El Sheik and the Maldives.”

The top 10 list for 2010 includes:

1. Cape Town
Nearly half a million supporters are expected to visit South Africa during the FIFA World Cup in June. With Cape Town home to stunning beaches, mountains, vineyards and the Cape Town Stadium, it’s sure to be a popular base for fans.

Sue Botes, BA commercial manager in South Africa, says: “Cape Town has always been a popular destination, we expect the World Cup to push it to the top of the long haul league table as the best place to be in 2010. We are already preparing for the event and have additional flights in place, as well as our local carrier Comair to connect fans to destinations around the republic.”

2. Istanbul
As European Capital of Culture for 2010, Istanbul is Europe’s hotspot in the New Year. Offering great value for money and something for everyone - from beaches and bazaars to the breathtaking Bosphorus. Secret music gigs, rooftop bars and underground clubs dominate the social scene for the party-hard locals.

3. Las Vegas
The film ‘The Hangover’ has rekindled our love affair with the entertainment capital of the world. Not just a haven for partying – Las Vegas is firmly established as a family friendly destination with everyone from U2 to Cirque de Soleil performing on the famous strip.

4. Vancouver
Already a must-go destination for skiing and snowboarding, it’s no surprise that Canada will play host to the 2010 Vancouver Winter Olympic and Paralympic Games in February and March.

British Airways athlete Zoe Gillings, the UK’s number one snowboarder who hopes to compete in the 2010 Vancouver Winter Olympic Games, said: “Vancouver is one of best all-year round destinations for snowboarding and Cypress Mountain in West Vancouver is one of my favourite spots to train.”

5. Punta Cana, Dominican Republic
Punta Cana is one of the emerging destinations for holidaymakers in the New Year, with top tour operators citing local beaches as ‘the most stunning in the Caribbean’. Known for its golf and spa facilities, the island is one of the best-kept property secrets in recent times. Boasting a five-mile oceanfront, local hangout Cap Cana is rumoured to be the new playground for the rich and famous.

6. Dubrovnik
Known as the ‘Pearl of the Adriatic’, Croatia offers privacy and tranquility making it a popular hideout for the jet set, including recent visitors Jay-Z and Beyonce.

Mirjana Dostal, BA commercial manager Croatia, said: “Dubrovnik holds many attractions and delightful boutiques, with each corner of the city offering a unique experience. However its cluster of private islands have made this a new favourite destination for Hollywood A-Listers to get-away."

7. New York
New York has always been hip, but the New Year will give us yet more excuses to plan a trip. Due for theatrical release in 2010 are two film sequels celebrating Manhattan - ‘Sex and the City 2’ and Oliver Stone’s ‘Wall Street 2’.

8. Stockholm
Recently voted the best city in the world to live in, Stockholm has become the model city for others to follow. Europe’s epicenter of biodiversity and ecology will celebrate its official title of ‘European Green Capital’ in 2010, making it a popular choice for eco-tourists.

9. The Maldives
One of the hottest destinations for holidaymakers and honeymooners in 2010. Collections of coral reefs boast unrivalled facilities for diving, while the picture postcard beaches offer chill-out bliss to the maximum.

10. Delhi
Thanks to the growing trend for ‘tiger safari’, nearby destinations Bandhavgarh Wildlife Sanctuary and Kanha National Park provide another reason to get off the beaten track and visit Delhi in 2010. Judy Jarvis, BA regional commercial manager South Asia, said: "There has never been a better time to visit India. Next year marks two special occasions - 80 years of British Airways flying to India and the first time Delhi will host the Commonwealth Games. With 45 weekly flights to five destinations, we offer an unrivalled service."

Turkish Stocks May Soar to Record in 2010: Technical Analysis

By Seda Sezer

Dec. 4 (Bloomberg) -- Turkey’s stock index, lifted by a Fitch Ratings sovereign-debt upgrade, may test its record after support at 45,000 provided a “powerful springboard” for a gain of as much as 27 percent by end-2010, said Auerbach Grayson & Co.

The ISE National 100 Index jumped 3.7 percent yesterday after Fitch lifted Turkey to BB+, the highest speculative-grade rating, citing the economy’s “resilience” during the global financial crisis.

The gauge is “in a very strong technical position which has it ‘poised to soar’ from current levels,” Richard Ross, a global technical strategist at Auerbach in New York, wrote in a report dated Dec. 3.

Turkey’s stock index will probably test its record of 58,864, set on Oct. 15, 2007, within the next six to nine months, after which it may “push out” to a new high of about 63,000 by end of 2010, the note said.

“The ISE’s ability to rally off of critical support at the ‘neckline’ around 45,000 has generated a ‘failed’ head-and- shoulders pattern, which should provide a bullish catalyst and powerful springboard to higher prices,” Ross wrote.

A rising head-and-shoulders comprises three consecutive peaks on a chart, and a neckline is the base of the pattern. This formation signals to analysts who predict asset values by studying trading patterns and prices that a decline is likely. It need not necessarily occur.

The MSCI Emerging Markets Index of developing-nation stocks will climb 34 percent to 1,300 by the end of 2010, approaching an all-time high, as low interest rates and a global economic recovery spur earnings growth, according to a Dec. 2 JPMorgan Chase & Co. research note. The index “could retest” its closing record of 1,338.49 reached in October 2007, it said.

Turkey’s ISE gained 0.9 percent to 50,101.98 at the close of trading. The measure added 10 percent this week, the biggest gain since October 2008.

To contact the reporter on this story: Seda Sezer in Istanbul at ssezer2@bloomberg.net.