"The Furniture Sector Can Offset the Currency Deficit in Tourism"
In light of the support packages implemented for the tourism sector, it has been suggested that the currency losses could be compensated by other sectors, with the furniture sector taking a leading role.
Davut Karaçak, Chairman of LODA Furniture, stated, "If all exporting sectors focus on producing added value, design, branding on the international stage, and effective communication efforts to strengthen the perception of the Turkey brand, we can quickly recover the currency we lost due to Russia's embargo." He noted that the embargo imposed by Russia on Turkey has begun to negatively affect many sectors, emphasizing that the currency losses could be mitigated by other sectors, particularly the furniture sector.
Karaçak remarked, "All exporting sectors can compensate for potential currency losses caused by the Russian embargo by focusing on producing added value, 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 said, "The Turkish furniture sector, which currently exports $2.4 billion, will nearly offset this loss when it achieves its export target of $10 billion in 2023." He also addressed the impact of the sector on the national economy, stating, "The furniture sector is among those that have the least imports and creates the most employment. Turkey's furniture exports constitute 20% of the current production while generating 80% profit. The sector provides a significant influx of resources to the national economy. Today, in countries that dominate the global market, the furniture sector is among the leading sectors that drive the economy."
Karaçak added, "In the furniture category, which is part of the fast-moving consumer goods group, design, innovation, and quality are now at the forefront. In our competition against countries like China with cheap labor, we must focus on these three concepts: design, innovation, and quality. If we concentrate on these issues, Turkey can become a production hub for furniture. We maintain and continue our presence in key markets such as Northern Iraq, Baghdad, Azerbaijan, Germany, France, the United Kingdom, Saudi Arabia, Iran, Africa, and the Balkan countries."
Source: Ege Haber, February 27, 2016
