The amount of loans provided by Turkish banks for the tourism sector saw a 282 percent increase over the last five years, reaching TL 61.4 billion ($15.9 trillion).According to data compiled by the Banking Regulation and Supervision Agency (BDDK), loans that the Turkish banking sector lent to tourism corporations amounted to TL 49.7 billion by the end of September last year, while it increased to TL 61.3 billion by Sept. 30.

The increase in loans for the tourism sector rose by 23.3 percent on a year-on-year basis, while the increase over the last five years was 282 percent. Tourism sector entities received TL 16.1 billion in loans in September 2012.

Istanbul topped the list of cities that received the highest amount of tourism loans with TL 24.3 billion, while that city was followed by the holiday capital Antalya with TL 17.6 billion. Ankara and Muğla received TL 4.7 and TL 2.5 billion, respectively. Izmir ranked fifth among cities with a TL 1.1 billion tourism loan.

İş Bank Deputy Chief Executive Mehmet Şencan said they attach great importance to the tourism sector's contribution to the country's economy in terms of foreign exchange revenues that it creates as well as to the promotion of the country.

"The Turkish lira or FC Tourism Working Capital Loan for the purpose of financing working capital needs and the Turkish lira Tourism Investment Loan and FC Tourism Investment Loan for the financing of new investments [such as the purchase of equipment and real estate for investments] and investment costs such as the renewal expenditures made for the facility lead the way in the loans we have provided to our customers in the tourism sector," Şencan said, adding that the amount of cash loans provided for the sector in this context is around TL 7 billion.

DenizBank Corporate and Commercial Banking Group Executive Vice President Mehmet Aydoğdu said with the $3 billion they transferred to the tourism sector as DenizBank Financial Services Group, they continue to experience the sensitivities of the period with every component of the sector.

Ziraat Bank Corporate Branch Banking Group head Battal Arslan noted that they provide their customers in the tourism sector with medium/long-term loans for maintenance, repair and equipment upgrades of existing hotels and long-term loans for the construction of a new hotel or the purchase of another hotel.

Arslan said they provide working capital loans up to 24 months for the financing of working capital needs in the issues required in current business cycles, such as market payment and personnel salaries, recalling that they have provided about $4 billion in financing to the sector in this context. "We, as Ziraat Bank, will attach special importance and support the tourism sector, which contributes to the reduction of the current account deficit of our country, create high employment, hold the use of domestic raw materials at a maximum level and serve as the priority sector in terms of our country and our bank, in the future as we did in the past," Arslan added.