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With official figures from 2012 showing foreign arrivals continuing to edge upwards, year-on-year, Turkey has maintained its status as a leading global tourism destination. Collaboration at the public, private and non-governmental levels is seen as key to improving professional standards in the sector, and to meeting the goals outlined in the Tourism Strategy 2023. There are still challenges, however, not least of which is the threat posed by rapid growth to the integrity of environmental, cultural and historical sites. Turkey is seeking to broaden its image as a destination by promoting its diverse landscapes and cultural heritage, with efforts under way to develop infrastructure to support golf and winter sports tourism as well. The Tourism Strategy 2023 is ambitious, with the 50m-visitor target around 20m higher than current figures. The target may be achievable, as numbers have grown at a heady rate in recent years, rising 170.7% between 2001 and 2011, for example.

After a brief dip following the onset of the global financial crisis, the telecoms sector has made a robust recovery, exceeding pre-crisis subscriber numbers in 2012. The domestic mobile network is now comparable to that of North America and Western Europe, in terms of penetration and services, with fixed-line services already reaching the majority of the population. A heavy tax regime is hampering further growth of the mobile market, but the expansion of mobile broadband services and a huge demand for smartphones have created high growth potential. The young, tech-savvy population is driving demand for new technology, and, as Turkey moves to construct an expansive 4G network across the country by the end of 2016, the mobile market is poised for strong, steady growth. This chapter contains an interview with Hakam Kanafani, CEO Turk Telekom Group, and Faruk Eczacıbaşı, Vice-Chairman, Eczacıbaşı Holding.

A favourable climate and proximity to affluent Europe and the dry Middle East make Turkey a global breadbasket and a natural destination for investors. Foreign direct investment is at unprecedented levels, reaching a total of $2.1bn by October 2012. Major government infrastructure projects are also set to boost the agriculture industry in the coming years. The sector is hampered by high levels of protection, inadequate irrigation, fragmented farms and limited access to capital to fund technological improvements. Although consolidation and mechanisation of the farming sector has resulted in fewer farm jobs, unemployment can be offset by the creation of new job in related industries such as food manufacturing. Turkey wants to see agricultural exports more than triple to $40bn over the next decade. Ideal ecological conditions, a well-developed industry, rising global demand and government support for investment make this a realistic target.

Despite substantial roadway expansion in the last five years, the country has struggled to keep up with rapid growth of car ownership, often resulting in congestion. Much more investment is necessary, not least because economic progress is creating new infrastructure needs. The most ambitious of several proposed highway expansion plans is the North Marmara Highway, which would link Izmir and Istanbul via a third bridge over the Bosphorus. Planned expansions to rail networks include improvements to domestic lines and connections to Eurasian markets. Air transport has proven to be a significant driver of economic growth. The most ambitious of Turkey’s infrastructure projects calls for the development of a third airport at a cost of more than $9bn – a proposal which is drawing a characteristic mix of excitement, investor interest and criticism in-country. This chapter contains interviews with Sani Şener, President and CEO, TAV Airports, and Ahmet Musul, Chairman, Ekol Logistics.

The construction sector is riding high on the back of a raft of major infrastructure projects, particularly in road and bridge development, and an ongoing urban regeneration plan that will see one-third of the country’s houses torn down and rebuilt. After shrinking in 2009 as the result of a financial crisis, the sector helped lead the economic recovery by growing by 18.3% and 11.5% in 2010 and 2011. Although the market is still susceptible to a temporary slowdown in light of the recent global economic crisis, which moderated growth for 2012, long-term trends favour continued growth. The coming challenge will be to align public and private incentives and ensure that haphazard planning does not derail a promising decade. This chapter contains interviews with Başar Arıoğlu, Managing Director, Yapı Merkezi, and Ahmet Haluk Karabel, President, Housing Development Administration of Turkey, as well as a viewpoint from Mehmet Ali Neyzi, CEO, STFA.

Accounting for between a quarter and a third of GDP, Turkey’s industrial sector is a global player in areas as diverse as automotive, ready-to-wear, chemicals and retail. A major source of Europe’s industrial imports – as well as a destination for the continent’s exports – Turkey also carried out significant trade in industrial goods with the Middle East, Central Asia and beyond. Despite the global financial crisis that struck in 2008, the contribution of industry’s value added to GDP in the republic managed to surpass that in the euro area in 2010. The next decade will likely see a continuation of the ongoing gradual shift in export markets away from Europe and toward Asia and Africa. At the same time, increased spending on R&D and efforts to meet the goals set for 2023 will be vital if the country is to produce higher-value-added goods, and thus keep ahead of its lower-cost Asian and African rivals. This chapter contains interviews with Mehmet Büyükekşı, Chairman, Turkish Exporters’ Assembly; Ahmet Zorlu, Chairman, Zorlu Holding; Norbert Klein, CEO for Turkey, Middle East, North Africa, Bosch Siemens Home Appliances; and Mehmet Nane, President, Shopping Centres and Retailers Association.