Economic Structure of Antalya
In terms of social, cultural and economic development, Antalya is one of the leading provinces of Turkey. When a variety of indicators are examined for Antalya in comparison with Turkey, Antalya’s potential can be clearly defined. Over recent years, Antalya has had the highest population growth rate of any other Turkish province, reflecting the fact that its dynamic economy is attracting settlers from other provinces.
Development trends in tourism, agriculture and agriculture-based industry, combined with expanding domestic and foreign trade volumes, ensure that Antalya will continue to be the attraction centre of Turkey in the next millennium.
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Turkey ’s tenth most developed province
Antalya is one of Turkey’s most developed provinces with respect to economic, demographic and social factors. This trend is rising at an increasing pace. In the State Planning Organisation’s 2003 report entitled “Socio-economic Development Ranking Study for Turkish Provinces”, Antalya ranks tenth in terms of economic and social structure and development level among 81 provinces of Turkey. It is preceded by seven western provinces such as Ankara, the capital city and Adana.
If the level of development is analysed with reference to the Mediterranean Region of Turkey, Antalya tends to be the leader of Turkey’s southern provinces, as a result of rapid development following Adana.
Eight In Terms of Contribution to Turkey’s National Income
Antalya is among the Turkish provinces with the highest rate of increase in its share of Turkey’s national income over the past decade. According to the latest figures Antalya accounts for 2,6 dollars in every 100 dollars generated nation-wide, making the province eight in terms of contribution to national income.
When a variety of some sub-sectors are examined, Antalya’s importance can be better understood. In terms of value added, Antalya’s contribution to different sectors can be given as follows; 5% to trade, 2.7% to agriculture, 2.8% to construction and 3.2% to communication and transport.
Per capita GDP in Antalya has risen significantly over recent years, from 1.833 dollars in 1987 to 2.193 dollars in 2001. The latter figure is higher than the Turkish average of 2.146 and places Antalya 20 th among Turkish provinces for this indicator.
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Agriculture and Tourism Lead in Income Generation
Over half of Antalya’s income is generated by agriculture and commerce, the greatest share of the latter being an offshoot of the tourism sector. Commerce accounts for 39.4% of the provincial GDP, agriculture for 12.3%, and industry for 5.6% and construction for 9.2%.Tourism is the principal factor behind the development in other commercial sectors.
Antalya as a Tourism Centre
Just as tourism is the backbone of Antalya’s economy, Antalya is regarded as the backbone of Turkish tourism sector. Antalya attracts visitors throughout the year and an increasing number of hotels remain open for 12 months. This trend is encouraged by the rapid diversification taking place in tourism sector to encompass such areas as hunting, trekking, winter sports, health and convention organisations. Specialisation in these sub-sectors of tourism is increasing at the same time.
The Glass Pyramid and Talya Convention Centre, which opened in 1997 and Antalya Expo Centre which opened in April 1999, are all important jump-off points for the expansion of fair and convention tourism. As tourism investment continues, the number of tourists visiting Antalya increases by leaps and bounds.
The number of tourists visiting Antalya increased from 204 thousand to 7 million in 2005. when the latter is compared with the number of tourist arrivals in Turkey, which is 20 million, Antalya accounts for 35 % of the total tourist arrivals.
Agriculture is as important as tourism, in Antalya’s economy as 19.99% of Antalya’s total area is under plant cultivation whereas the remaining land is covered with Pastures, meadows, heath land and forests.
Small-scale farming is predominant in Antalya. When the distribution of arable land and farm size in the province is examined, it is found that 84.49% of farms come into the 1-50 decare (1 decare = 1000 square metres) bracket and in all account for nearly 50.53% of total agricultural land. Farms in the 50-100 decare bracket account for nearly 16% of the total. In other words, farms with 100 decares or less account for over two thirds of farming land and 97.38% of farms fall into this category.
Of Antalya’s arable land, 46,7% is used to grow cereals and pulses, 6,2 % fruits, 2,4 % industrial crops and 10% vegetables.
• The provincial districts of Korkuteli, Antalya Central, Elmalı, Manavgat and Serik are the leading producers in terms of cereal.
• Open field cultivation of vegetables such as broad beans, peppers, tomatoes, and courgettes was concentrated in the provincial districts of Manavgat, Serik, Elmalı, Kaş and Antalya Central. Korkuteli has been the leader in mushroom production, while Antalya Central has been the first in aubergine and lettuce production. Manavgat has led the tomato production.
• Greenhouse cultivation is concentrated in Kumluca, Antalya Central, Alanya, Gazipaşa and Finike. While Antalya Central ranks first in the greenhouse cultivation of many crops, Finike and Kaş cultivate mostly tomatoes. Pot plants are cultivated only in Antalya Central and Manavgat.
• Elmalı and Finike are foremost in fruit production as a whole. Although certain fruits such as peaches and loquats are grown mainly in Antalya Central, Korkuteli, Elmalı, Manavgat and Alanya. In Gazipasa the main crops are bananas, strawberry and olive, although Alanya leads in carobs, banana and loquats production.
• Where citrus fruit production is concerned, Kumluca, Finike, Antalya Central and Alanya are the main centres for orange production, whereas Kemer, Antalya Central and Alanya lead in lemon and tangerine production.
Manufacturing Industry is Improving
The manufacturing industry is improving in Antalya, whose economy is based primarily on agriculture, tourism and commerce. According to the figures for 2001, the manufacturing industry employed just 10.9% of Antalya’s workforce and the share of industry in Antalya’s GDP was only 3.6%. Antalya’s manufacturing industry did not get underway until the 1970’s and most medium scale production plants in Antalya are agriculture based.
(Please see Organised Industrial Zone and Antalya Free Zone on pages 44-45-46)
Demand for electrical energy in Antalya reached 3.5 billion kwh in 2003. The gap between demand and supply of electrical energy is expected to rise in the medium term. Population growth, increased industrialisation and changing consumer patterns push up the demand above current levels of today. The use of electrically powered heating and cooling systems is also climbing.
Enormous investments in the communication sector in Turkey as a whole in the 1980’s transformed telecommunications in Antalya as elsewhere in the country. In Antalya this was felt particularly in 1990’s, with an increase in telephone exchange capacity from 353 thousand lines in 1995 to 611 thousand lines in 2003. Also in 2003, the province had 41 thousand 341 cable television subscribers.
The commercial sector is the most important for Antalya’s economy in terms of generated revenue and employment level. The sector is closely related to both tourism and urbanisation and accounts for 39.4% of revenues.
The sector ranks second after agriculture where employment level is concerned and first in terms of value added.
A general picture concerning the place of the commercial sector in Antalya’s economy, its structure and development, emerges from the membership figures for Antalya Chamber of Commerce and Industry and Antalya Federation of Retailers and Craftsmen.
Financial sector expands
Economic development in Antalya has been accompanied by the progress in the financial sector. Antalya ranks fifth in Turkey in terms of number of bank branches, which rose from 135 in 1991 to 161 in 2002, a share of 2.7% in national total.
The increase in bank deposit volume in Antalya is higher than the national average. While on the average of Turkey, bank deposits rose from 441 million dollars to 1 billion 425 million dollars between 1991 to 2003, a rise of 223%, in Antalya bank deposits rose from 514 million dollars in 1991 to 2 billion 419 million dollars in 2003, a rise of 371%. In 2003, bank deposits in Antalya were 70% above the provincial average and the province has maintained its 2.2% share in total deposits for the whole country in 2003.
After Turkey began to open its doors to global trade in 1980, Antalya’s foreign trade volume began to expand year by year. Antalya’s foreign trade volume is increasing at an increasing pace. For instance, the province’s foreign trade volume rose from 172 million dollars in 1993 467 million dollars in 2003, a rise of 172% on the total from 1993 to 2003.
• In 2003, the exports of Antalya totalled 231 million dollars, of which industrial products accounted for 45% and agricultural products for 49%. By years, it is observed that the export of agricultural products is decreasing while the export of industrial products is increasing. Antalya’s main export products can be named as textile products, fresh fruits, vegetables and cut flowers.
• In 2003, 51% of exports from Antalya went to European countries. On the overall, Germany is having the largest share with about 21.9%, Russia follows in the second place with 11% and Netherlands is in the third place with 9.3 %.
Imports on the Rise
Antalya’s imports have increased over the years, from 86 million dollars in 1993 to 236 million dollars in 2003, a rise of nearly 174% within seven years. Industrial and capital goods covered almost all Antalya’s imports at a portion of 87%. The import of agricultural products accounted only for about 11%.
Among Antalya’s imports, the lion share belongs to the European countries with 47%. Among the European countries Germany is the first with a share of 21.9%, Russia is the second with 11% and Netherlands is the third with 9.3%.
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