The Furniture Sector Can Heal the Wounds of Tourism Losses
Following the crisis with Russia and the subsequent embargo, many sectors, particularly tourism, have experienced significant foreign currency losses. The embargo applied to various sectors has impacted the entire industry. If Turkey strengthens its brand perception through effective communication efforts, the foreign currency lost due to the Russian embargo can be quickly recovered.
The embargo imposed by Russia on Turkey has started to negatively affect many sectors. Therefore, during these days when support packages for the tourism sector are being implemented, Loda Mobilya Chairman Davut Karaçak stated that the currency loss could be compensated by other sectors, with the furniture sector taking a leading role.
Karaçak stated, “All exporting sectors can compensate for the potential currency losses from the Russian embargo by focusing on value-added production, unique design, and branding in the international market, especially in tourism.” Evaluating claims that Turkey’s annual income loss from tourism due to the Russia crisis could reach $8.5 billion, Karaçak added, “The Turkish furniture sector, which currently exports $2.4 billion, will nearly offset this loss once it achieves its export target of $10 billion in 2023.”
“Crises Bring Opportunities”
Davut Karaçak noted, “Until the 2000s, the furniture sector was focused on the domestic market. The upheavals in the global economy and the subsequent economic crises turned into opportunities for the Turkish furniture sector to open up to international markets.” He emphasized that the Russian embargo could also be turned into an opportunity. “The Turkish furniture sector, which has implemented an expansive policy in nearby markets, increased its export figures from $300 million to $2.4 billion over the past 15 years. The sector, capable of achieving even better results, has the infrastructure to easily reach the $10 billion target set for 2023. What we need to do is invest in design, innovation, and branding,” he said.
“We Now Produce Furniture for Developed Countries”
Addressing the sector's impact on the national economy, Karaçak stated, “The furniture sector is among the leading sectors that create the most employment while having the least imports. Turkey's furniture exports rank among the sectors with the least imported raw material inputs, providing a significant influx of resources to the national economy. Today, in countries where the furniture sector holds a dominant position in the economy, it is among the leading sectors.”
Source: Ekonomi Gazetesi, February 25, 2016
