Turkish Tourism Revenues Leap 23% In 2nd Quarter

Turkiye’s tourism revenues jumped 23.1%to $12.98 billion in the second quarter, Turkish Statistical Institute data showed, maintaining a strong trend in the sector.

Revenues in 2022 surged 53.4pc from the previous year to a record high of $46.28bn as lingering effects of the pandemic disappeared and fallout from the Ukraine war drove a rise in Russian arrivals.

Meanwhile, European travel stocks stumbled into some profit-taking as earnings season kicked off and extreme weather hit in July, but many investors are betting relatively attractive valuations and solid demand will keep supporting the sector.

An index of European travel and leisure stocks STXE 600 has risen 33pc over the last year, beating even market favourites like luxury and defence and racing over 23 percentage points ahead of the broader market.

The index has fallen slightly from its May peaks, but is still one of the best performers this year, thanks to sharper price increases in items like airline tickets and hotel rates as Covid-19 curbs were phased out ahead of the summer holidays.

Airlines, cruise operators and hotel owners have been key beneficiaries, but so have aircraft and engine-makers. The recovery in long-haul flying helped Rolls-Royce lift its full-year forecasts, sending its shares up over 20pc on Wednesday.

The number of restriction-free countries has risen three-fold in one year to above 180 and international tourist arrivals are closing in on pre-pandemic levels, according to data from the World Tourism Organization. Europe is among the regions with most progress.

Traders still see more opportunities ahead, even as markets face growing macro uncertainty and Europe grapples with extreme weather.

Goldman Sachs expects significant upgrades to consensus earnings estimates this year.