Turkey & Eurasia Business — 2026-05-08

Key Highlights

Tourism Boom: 9.2 Million Visitors in Q1 2026

Turkey's Minister of Culture and Tourism Mehmet Nuri Ersoy announced that the country recorded 9.2 million international visitors in the first quarter of 2026 — a 4.2% rise compared to the same period last year. Tourism revenue reached $9.9 billion over the same period.

Şimşek: "No Change in Priorities Despite Global Shock"

Treasury and Finance Minister Mehmet Şimşek stated that while the Middle East conflict will affect Turkey's economic program, the country will not deviate from its core priorities. Speaking at a recent press conference, Şimşek emphasised that stability and reform remain central to Ankara's agenda. The statement comes as Turkey continues to position Istanbul as a regional financial gateway.

2026 Foreign Investor Guide Published

A new guide for foreign entrepreneurs setting up companies in Turkey has been published this week, covering updated legal requirements, company formation steps, and 2026 investment incentives. The guide notes that Türkiye's strategic position and ongoing reform packages continue to attract global capital.

2 sources

newscentralasia.net

newscentralasia.net

n24.com.tr

n24.com.tr

Analysis

Turkey's Resilience Story Is Being Tested — And Holding

The most significant business development this week is Finance Minister Şimşek's public reaffirmation that Turkey's economic reform trajectory will not be derailed by the regional fallout from the Middle East conflict. This signal matters to investors, particularly those from Gulf economies who have been weighing Istanbul as a relocation hub.

The Q1 tourism data — 9.2 million visitors and $9.9 billion in revenue — provides concrete evidence that Turkey's positioning as a stable, accessible destination is bearing fruit. The 4.2% visitor growth comes in the same quarter that Ankara unveiled its broad investment reform package (9% corporate tax for exporters, zero transit trade tax), reinforcing a narrative of competitive repositioning.

For regional businesses, the combination of a functioning financial centre ambition, improving tax architecture, and resilient tourism demand creates a compelling — if still fragile — investment case. The key risk remains inflation management and external balance, with annual inflation targets set at approximately 16% by end-2026.

What to Watch

• Central Bank policy signals: The Turkish central bank's liquidity management (including reported FX interventions exceeding $8 billion in March's first week) remains critical for lira stability. Watch for any adjustment in overnight reference rate guidance.

• Gulf capital flows into Istanbul: With the Iran-war fallout continuing to disrupt Gulf financial centres, Istanbul's pitch as a regional hub is live. Şimşek's "no change in priorities" statement is partly directed at this audience — monitor whether Gulf-origin FDI data confirms the trend.

• Q1 tourism revenue conversion: The $9.9 billion in Q1 tourism revenue will be a key input for Turkey's current account balance; any sustained improvement here could ease pressure on the lira and give the central bank more room to manoeuvre.

• Foreign company registrations: Following the new 2026 investor guide and the tax reform package, the number of new foreign-owned company registrations in the coming months will serve as an early indicator of whether reform rhetoric is translating into real capital inflows.