Industrial Production Strong, But Profitability is Decreasing

Assessment of Industry and Tourism by GÜROK

GÜROK Group Vice Chairman of the Board Esin Güral Argat made important assessments regarding the industry, tourism, and export markets.

Stating that Turkey is lagging behind other countries in the fight against inflation, Güral Argat expressed that this situation negatively affects both the domestic market and exports. “Cost increases are very high, and the exchange rate is lagging behind inflation. For this reason, our competitive advantage in foreign markets is weakening,” she emphasized, highlighting how the contraction in the European market is challenging exporters.

Market Diversification Strategy

GÜROK has adopted a market diversification strategy post-pandemic. Güral Argat said, “We have invested in showrooms, warehouses, and distribution networks in the USA. We are progressing with a state-based strategy. We export 45 percent of our total production.”

However, she noted that profitability has eroded across the industry, emphasizing the importance of effective cash flow management: “We are closing the year well in terms of industry, but profitability is eroding in all sectors. We must focus on cash flow; we should be careful not to exit our export markets because it will be difficult to re-enter.”

Customs Union Modernization Agenda

As the President of the Kütahya Chamber of Commerce and Industry, Güral Argat, who held meetings in Brussels, stated that the modernization of the Customs Union is crucial: “The Customs Union has not been updated since 1996. Updating this agreement is important for both Turkey and Europe in line with our common interests.”

High Costs and Efficiency in Tourism

Stating that occupancy rates for the 2024 tourism season have been challenging, Güral Argat noted that Turkey is becoming an increasingly expensive destination for foreign visitors. “Costs in tourism have risen significantly, and profitability has seriously decreased. However, if you maintain quality, you can achieve a certain level of occupancy,” she said. She announced that GÜROK hotels have reached occupancy rates of 95 percent in Turkey and high rates abroad.

Operating two hotels in the Maldives, Güral Argat stated, “Global economic uncertainties are affecting the Maldives as well. Therefore, efficiency and digitalization in tourism are critically important,” she said.

New Beverage Investments

GÜROK announced its entry into the beverage sector with the Avoya brand. Güral Argat said, “We do not use additives or aromas. Our products have the highest magnesium content in Turkey. We have gained significant distribution points within a year and our overseas tourism investments will continue.”

Goal for Equality in Women's Employment

Güral Argat emphasized that the company's female employee ratio is above the Turkish average, stating, “The female ratio at our hotel opening in the Maldives was 3 percent; this was unacceptable. We set a goal: We will gradually reach 50 percent. We are currently at 30 percent. We have an equal pay policy and we have obtained our equality certificates,” she explained.