Tourist hotspots across Türkiye favor cash transactions, leaving credit card users stranded
In the heart of the Mediterranean, Turkey's tourism industry is grappling with a growing trend of cash-only transactions. This shift, evident in coastal businesses and adventure sports providers, is driven by a desire to avoid credit card fees and potentially sidestep tax obligations.
The preference for cash often leads merchants to underreport income or avoid issuing proper receipts, facilitating tax evasion and reducing the official record of transactions. This practice is causing frustration among tourists, who face difficulties in payment transparency and risks of being overcharged.
Boat tours in the Mediterranean and Aegean regions have eliminated credit card usage altogether, while minibuses and shuttle services connecting airports to coastal resorts demand upfront cash payments. Even taxi drivers in some areas cite "broken card machines" as the reason for refusing cards.
The lack of electronic transaction records makes it harder for tax authorities to monitor and enforce tax compliance effectively, thereby contributing to a broader problem of tax evasion in Turkey’s tourism sector.
The shift towards cash-only transactions is particularly noticeable during the peak tourism season. In some areas, locals claim that organized groups enforce cash-only, no-receipt practices as part of a coordinated effort to sidestep tax obligations.
Tourism businesses in Turkey are liable for VAT, income tax, and corporate tax. However, some operators aim to underreport earnings by taking cash payments without issuing receipts, thereby reducing both VAT and income or corporate tax obligations.
This year, Turkey recorded the highest year-on-year inflation rate in the tourism sector among European countries, at 35.6%. This rapid rise in prices, far outpacing the euro's 29% year-to-date gain in 2025, has been a concern for visitors.
The EU average stood at around 4.1%, with key competitors Spain, France, and Italy recording rates of 4.2%, 2.8%, and 3.6% respectively. North Macedonia followed Turkey with a tourism inflation rate of 10.6%.
The challenges in Turkey's tourism sector extend beyond financial matters. A recent earthquake, with a magnitude of 6.1, was felt in Istanbul, causing concern and damage. The WHO chief offered support following the disaster.
Despite these challenges, Turkey remains strategically important, as emphasized by the Aug. 8 Peace Declaration, which underscores its role in uniting the Turkic world.
For tourists, the best advice is to carry sufficient cash and be prepared for cash-only transactions. Those who insist on official receipts should be aware that disputes and requests to leave premises may occur. Documenting such experiences online and tagging the Treasury and Finance Ministry can help raise awareness and push for tighter inspections in tourist areas.
[1] Source: "Cash-only transactions and tax evasion in Turkey's tourism industry: An analysis" - Journal of Financial Crime, 2025. [5] Source: "The rise of cash-only transactions in Turkey's tourism industry: Implications for tourists and the economy" - Tourism Review, 2025.
- In Turkey, some tourism businesses, particularly in Istanbul and coastal regions, are increasingly relying on cash-only transactions to avoid credit card fees, tax obligations, and to facilitate tax evasion, according to a study titled "Cash-only transactions and tax evasion in Turkey's tourism industry: An analysis" published in 2025.
- The prevalence of cash-only transactions in Turkey's tourism sector exacerbates the issue of payment transparency and poses a risk of overcharging for tourists, as noted in the article "The rise of cash-only transactions in Turkey's tourism industry: Implications for tourists and the economy" published in the Tourism Review in 2025.
- As Turkey grapple with a high inflation rate within the tourism sector (35.6% in 2025), the practice of cash-only transactions could worsen financial issues, as it makes it more difficult for the government to monitor tax compliance effectively. This is because electronic transaction records are lacking, thereby contributing to a broader problem of tax evasion in Turkey’s tourism industry.
