Metin Sahin, minister of industry and trade, Republic of Turkey

“Peace at home, peace in the world,” was Ataturk’s rallying cry. With peace, a country can concentrate on its domestic development, education and industrialization. And since the inception of the republic and Ataturk’s sweeping reforms, the country has seen a great many significant changes. Literacy has grown 10-fold, putting Turkey among the most educated countries of the world. Economic growth has continued almost without stop for years. The population has grown to 65 million, and Istanbul alone is roughly the size of Greece. A strictly secular society has been established, separating religion from government and schools. Economic reforms have been put in place, and democracy is now a permanent way of life. The country that rose from the ashes of the once-mighty Ottoman Empire now has one of the strongest militaries in NATO.

Different leaders in business and government offer different explanations. The most common factor cited is the succession of weak coalition governments that has plagued Turkey for years. These coalitions have been unable to deal with the high inflation that has caused the Turkish lira to lose over 15 percent of its value over the past six months. The governments have also been ineffective in keeping interest rates down. The yields on government bonds dissuade people from investing in companies listed on the Istanbul Stock Exchange. Some analysts also mention a possible wariness about Islam among European nations as a factor keeping Turkey out of the EU club, and the Kurdish separatist movement in the east may be making foreign businesses and governments nervous.

In spite of all the remarkable achievements of Ataturks’s country, the world still does not seem entirely ready to commit itself and invest in this speedily emerging market. So while the world is taking its time to notice Turkey, how is Turkey positioning itself for the next millennium?

For one thing, Turks want people to come on over and see for themselves. Following the cloak-and-dagger arrest of Kurdish leader Abdullah Ocalan, footage was splashed on TV screens everywhere of the bound and blindfolded captive and the bombings that ensued in protest. But as the average Turk will affirm, people are just as safe in Turkey as they are anywhere else in the world. This is not a nation of militant Muslims but a country with the most hospitable people in the world, many of whom have invited refugees from Ksovo into their own homes rather than relegate them to camps. Warm welcomes are what Turkish tourism is counting on. Minister of Tourism Ahmet Tan says tourism is a true hospitality industry in Turkey. “Travelers to Turkey are treated as guests rather than clients,” he stated. “Our promotional campaigns rely heavily on the human factor in travel and tourism activity, and this is the biggest competitive edge our country has in the international market.” Tourism already accounts for 4 percent of Turkey’s GNP and is the third-largest industry.

Ahmet Tan, minister of tourism, Republic of Turkey

Services make up the biggest portion of the country’s GNP. Turkey has over 70 banks, including a couple that rank among the biggest European companies in terms of market capitalization. Telecommunications is a growth sector as well, as seen by the fact that it is impossible to walk the streets of Turkey’s cities without seeing or hearing a cellular phone.

The information technology market also holds excellent opportunities. Like the automotive industry, the levels of purchasing and production in the information sector have grown rapidly in the last several years but remain far below other countries’ levels.

The past coexists with the present: Hagia Sophia stans atop the Golden Horn overlooking Istanbul's modernizing skyline.

With the economy going increasingly global, Turkey’s exports are becoming more and more an area of focus. The proliferation of quality manufacturing is a sure sign of a progressively industrializing nation, and Turkish exports reflect this. Textiles are still leading the way, but the importance of the automobile industry and the grand plans of some of the major auto makers in Turkey prove the advancing quality and competitiveness of the local industry. In fact, over 900 Turkish companies have ISO quality certificates in their fields.

One other traditional area of the Turkish economy is agriculture, Turkey is one of the few countries in he world that can feed itself without needing to import, and Turkish food processing is the most modern in the region spanning the Balkans and the Middle East. Consequently, Turkey has become a major food supplier. “The increasing world population increases the importance of the food sector,” Sahin said. Sahin is equally concrete regarding foreign investment. “Turkey attaches special importance to increasing foreign investments and offers equal opportunities to domestic and foreign investors alike,” he said. The country’s efforts to attract foreign firms have produced mixed results so far, but the effects are positive overall. The most anticipated measure has been the drive to privatize Turkey’s state-controlled assets. While many feel the process still has a long way to go, there is no denying that this is a step in the right direction.

Turkey’s emphasis on privatization has also made it one of the less constrained markets for foreign investors to enter. This benefits countries like Japan. Besides the existing laws against limitations on foreign ownership of joint ventures and partnerships, Sahin added, “Investment projects by Japanese companies in Turkey will enjoy significant advantages regarding exports, since industrial products obtained in Turkey will be in free circulation in the EU...and will not be negatively affected by the customs union.”

Turkey has shown resilience in the past. In 1994, the country suffered by far its worst economic crisis of the past two decades, yet it bounced out of it in less than a year. The Asian crisis has caused only a shudder. The Russian catastrophe following the start of the Asian crisis has been more worrisome, but so far the Turkish economy has sustained only mild damage. Turkey has diversified its international trade enough throughout Europe, the Middle East and in Central Asian nations to absorb this kind of blow.

So the Turks continue to strive forward. The massive GAP irrigation project in the southeast will provide a huge boost for the less-developed half of the country, and according to Sahin, “Turkey will become the energy corridor of Eurasia,” due to its budding oil and natural gas industries.

As infrastructure improves, the young population is becoming more dynamic by the year, providing a labor force to rival any. Turkey’s ideal location, furthermore, cannot be ignored. The country has shorelines along the Mediterranean, Aegean and Black seas. And how many countries can claim to be a bridge between East and West?

Certainly investors should be exploring Ataturk’s miracle for themselves.

Of dynamism and vigor
Atsuko Toyama, ambassador of Japan, talks about the economic future of Japanese companies in Turkey and why Turkey is an excellent haven for investment.

WER: Do you see Turkey gaining importance for Japanese investors as the government continues privatization efforts and business continues to expand?

Toyama: Yes, Turkey is gaining in importance. The most important factor for a foreign company in its decision to invest is the openness of the market economy. In this sense, it is to the advantage of Japanese companies that Turkey has been pushing ahead with a privatization plan that scales down the state-owned companies and promotes free competition for private companies. In addition, there is the fact that the Turkish economy is developing at a high rate. The good performance of recent years will give momentum to Japanese companies.

Atsuko Toyama, Japanese ambassador to the Republic of Turkey

WER: Do you believe it is important for a Japanese firm to have some type of representation in Turkey? Toyama: In Turkey, there are excellent advantages such as the dynamism of the Turkish private sector, vigorous consumer demand and an educated, diligent and capable workforce. Turkey is located at the crossroads of Europe, the Middle East and Asia and in recent years has had close relations with Central Asian countries, the development of which is drawing great attention. It is effective to use Turkey as a base for building close relations with those countries. Also, the friendliness of the Turkish people toward Japanese people is a special advantage for Japanese companies.

Toyama: I think foreign companies are showing interest in investing in such fields as energy, telecommunications and information technologies. Turkey is not only a lucrative field for Japanese companies to make investments, but also a strategic base from which they can extend their business contacts into Central Asian countries.

WER: How accommodating is the Turkish government to the needs of the Japanese community and what special organizations or efforts exist to further develop this relationship?

Toyama: The vice prime minister in charge of the economy has often visited Japan to hold dialogues aimed at expanding economic relations. The Turkish-Japanese Business Council Meeting is held every year, with participants from both the private sector and the government. Topics include ways to strengthen economic relations between Japan and Turkey. And the government provides various incentives to attract foreign investments, within the framework of its foreign investment policy.

WER: What do you like best about living in Turkey? Do you think this is an easy country for foreign businesspeople to live in?

Toyama: Personally, two things impress me: One is the pro-Japanese sentiment of the Turkish people, and the other is the rich resources of culture, history and nature. Regarding the former, we have the historic bond of the Ertugrul incident. The battleship Ertugrul was dispatched by Sultan Abdulhamit II in 1890 to send a delegation to Japan and confer a medal on the Meiji Emperor. On the way back to Turkey, however, the Ertugrul was wrecked off the Japanese coast.

Japanese inhabitants near the site volunteered their efforts to rescue the crew and helped them return to Turkey. This incident has long been remembered as giving the impetus for friendly relations between Turkey and Japan.

Success Sabanci style

Anyone with more than just a passing knowledge of Turkish business will be familiar with Sabanci Holding. After all, the company is one of the top-three firms in Turkey by market capitalization.

Sabanci Holding is an industry leader in sectors stretching from banking to tires. It possesses assets of well over $10 billion and provides a livelihood for 30,000 people. It is composed of over 50 companies. The conglomerate also operates in eight other countries, and its exports extend to four continents. The list of its partners reads like a “Who’s Who” of multinational corporations, with such names a Du Pont, Toyota, Danone and Hoechst.

Size, ranking and money, of course, are not everything. Social responsibility is considered paramount among some companies, and Sabanci does its part, primarily through Vaksa, the Sabanci Foundation. Each year 1,000 scholarships are given out by the foundation. Other projects include culture centers and health-care facilities. Vaksa’s current mission is building the $150 million Sabanci University, scheduled to open its doors for the 1999-2000 school year starting in the autumn. Its aim is no less lofty than to be a world-class institution.

So what is the common ingredient in all this business and philanthropic activity? “Success!” exclaimed Sakip Sabanci, the exuberant chairman at Haci Omer Sabanci Holding, named after his late father and mentor. “Success for the sake of success - not for money.”

As a well-known man of action, Sabanci can back this up. His achievements are well documented, the philanthropy laudable, and money is not always the primary engine. In fact, one feature of Sabanci University when it opens will be Sakip Sabanci’s own Bosphorus villa, Atli Kosk, which is slated to become a museum. The hope is that the museum will prove a valuable resource for students and scholars alike to delve into the wealth of Turkish at history. A jewel in the museum’s crown is a world-renowned collection of Ottoman calligraphy that was recently displayed at both the Metropolitan Museum of Art in New York and the Los Angeles County Museum of Art.

Sabanci explained, “I enjoy doing thins like shaking hands with people at an art exhibit - like what happened at the Met in New York. But this kind of success is not all that important. You have to have social understanding. If you believe in an idea, you can do it.”

Sakip Sabanci, chairman, Haci Ömer Sabanci Holding A.S.

“I was flying on a personal trip one day, and I chose to land in a poor area in order to study the place. I later went back there to work with the people. Promising is one thing, but acting is something completely different.” Sabanci has many goals for the development of his country, and his methods are proven. His father instilled in him a strong respect for the values of education. Hence, the creation of the nonprofit Sabanci University. He believes that education is the key to competition, which in turn is the key to industrial growth and economic success. Turkey is young and hungry for knowledge and new technologies. Industrial development is a natural result. “Industrialization is the future, and it is long-term,” Sabanci stated. “Foreign companies realize this. And they don’t only bring their money; they bring their experience.

Sabanci Holding has also lured the Japanese westward. Two good examples are Toyotasa and Brisa. Sales figures in 1997 for Toyotasa stood at $355 million, and the company is the segment market leader with the Toyota Corolla, produced in Turkey at a plant with an annual capacity of 100,000. Brisa, established in 1988, is a joint venture between Bridgestone and Sabanci that brought in over $300 million in tire sales in 1997.

Where there is interest in Turkey, there is Sabanci Holding, and the conglomerate is maintaining its pace and leadership with a strategy of integration, enlargement and pursuit of joint ventures in all major areas of the economy.

Sakip Sabanci, whose passionate aura is much more commanding than his diminutive, smiling appearance, summed up the future outlook: “Keeping an open mind to all people and ideas that can help my country succeed, I will be looking for my family - all 30,000 of them - to continue and have both good days and bad days, and to progress and to work, and this will lead to success, success, success!”

Tastes of Turkey's Delights

Whether on business or pleasure, visits to Turkey are certainly made more memorable by the accommodations made for the guests. No one knows this better than the Conrad Istanbul and the Hilton Ankara.

For Conrad Istanbul, perseverance pays off

The Conrad International Istanbul is hard to miss. One of the largest hotels in the city in terms of total beds and square meters, its curved façade can be seen from far away, occupying the top of a hill in the bustling Besiktas district. It looms elegantly monolithic above the shops and restaurants that are only a short walk away, and at night the subtle edges and undulations are accentuated by narrow lines of lights. Not even seven years old, the Conrad has already become a landmark in this fabled city, a place all the locals know and taxis frequent.

Like most five-star hotels, the Conrad is a business hotel. Seminars and conventions make up 30 to35 percent of its business, and there are plans to improve and expand the already impressive facilities. These plans include an enlarged business center, rental offices and Internet connectors for every room, proof that while the hotel is in every sense of the word a leader among business hotels in Istanbul, the management is never content just to rest on its laurels.

Just ask the general manager of the Conrad International Istanbul, Joep Bakx. He will tell you that being a large hotel in a city like Istanbul has advantages and disadvantages alike. The Conrad can attract conventions, but in difficult times the hotel's multitude of rooms can be a problem to keep full. While this is a concern for the short-term, Bakx is optimistic.

He is quick to point out that Istanbul is only the 30th most popular convention destination in Europe. Considering that Turkey has been moving toward a consummation of its economic relations with Europe, this beckons an era of considerable potential growth in business traffic.

And business traffic has already increased since the hotel's opening in August of 1992. "Three years ago there were not as many businesspeople here. Travel in Turkey was more leisure-oriented. But it has been converting, and now it's 70 to 75 percent business," he said.

Not that leisure is something the Conrad has difficulty providing. In addition to the 24-hour a day business facilities, there are restaurants preparing dishes ranging in culinary orientation from traditional Turkish to Italian to French, and traditional music and belly dancing shows. A health club occupies the lower lobby of the Conrad, complete with sauna and steam bath. There is an indoor and outdoor pool and tennis courts. Also, one doesn't have to leave the hotel to shop for authentic Turkish goods such as carpets and brass items.

But the best thing about the Conrad International Istanbul may well be the people. "They are very hospitable people," Bakx continued. "It's a prestigious job here to work in an international hotel, and it's a secure job. The people are very willing to learn, and absenteeism is low. And, they have the same benefits here as they would in Europe. People in Europe sometimes don't come to work because the social security is very good. Here, at the end of the day they have the security, but they still come to work. That shows a very positive attitude in our employees." Another major advantage of the Conrad is its relation to Hilton, which helps give the Conrad a high international profile. Even with this clout, however, the local promotional bureaus are still instrumental for the Conrad.

Bakx explained. "Having an effective visitor's bureau now gives an impartial opinion of Istanbul to the outside world. Not to a particular tourism sector, but to everyone. Things in the past have been very short-term, perhaps because Istanbul is an emerging market. Conventions and the visitor's bureau are long-term, and this is going to be a great asset to the city." If the prospects for this rapidly emerging market continue on the upswing, survival is certainly an area of little concern. Just as surely as the ships pass through the Bosphorus, that age-old symbol of commerce, the Conrad International Istanbul is poised and ready to be a port of call for business and pleasure alike.

Hilton Hotel: when in Ankara…

When foreigners think of Turkey, they think of a number of things. There's the mystical monuments sacred to more than a few major world religions, ruins of grand empires long gone, thousands of kilometers of beaches along storied sea coasts, and the exotic, bustling excitement of Istanbul.

People are often quick to forget that Istanbul is not the center of Turkish decision-making; rather, Ankara is where the country's government lives and breathes, as intended by Atatürk, who created a new capitol for a new republic. State-owned companies and embassies abound in Ankara, and even if it isn't the most widely traveled destination in Turkey, there certainly are things to see and do, as well as business to attend to.

Enter the Hilton. Consistency and excellence are synonymous with this hotel chain, and the general manager at the Ankara Hilton doesn't expect anything less. The well traveled, well-mannered Swiss Willy Blattner knows that the majority of business received at the hotel is embassy and corporate, and therefore stays relatively constant, save for election times such as this. So instead of experimenting with concepts that quite frankly don't have a place in the market, Blattner prefers to please his customers with what they've come to expect from the Hilton.

For instance, a health club was recently added to complement the swimming pool, a natural addition to the Turkish bath and sauna already there. The ballroom underwent some refurbishing. Otherwise it's been regular maintenance, such as room decorations, upholstery, and carpeting. Rooms are not ostentatious, nor are they utilitarian.

The hotel boasts one of the best restaurants in Ankara, the Marco Polo, and the bright, open Greenhouse offers quality buffet-style fare for any meal. There is a shopping arcade, a business center, bookstore and post office. And all of this is encased in a tall, handsome building in one of the most attractive areas of town.

But Blattner made clear the real strength of the Ankara Hilton. "Location. Around the corner are all the major embassies, and parliament is five minutes away in traffic. Plus, you have all the best shopping with all the international stores. There are also a lot of international corporate offices right in our backyard," he explained. "Blattner also added, "There are sightseeing opportunities in Ankara here, like the Atatürk monument. The Anatolian Museum is out of this world!" Every day the Ankara Hilton strives to achieve goals. The hotel tries to involve its employees in collaboration and decision-making, raising the level of work satisfaction. As with any enterprise, these two efforts ultimately lead to customer satisfaction and higher profit.

But in Turkey there's a secret weapon. "I strongly believe that when it comes to attitude and a willingness to please, I will put the average Turkish employee at the top of the scale," Blattner stated. "In other countries there may be more chances in apprenticeship programs, so the skills might not always compare. But you don't have to tell people here to be friendly or to make sure they take care of the people, and this is impossible to teach." Budget-conscious? Interested in Turkey but not interested in 5-star prices? The Konak Hotel in Istanbul is worth a look. The rooms are clean and comfortable and the management is friendly. For information contact (90 212) 248 4744. For great location in Turkey's capitol of Ankara, check out the First Apart Hotel. In the middle of some of the best shopping in the city, the helpful staff can be reached at (90 312) 4257575.

HOME  About Us  Careers  Contact Us  Reports  Advertisers  About Japan Times

© 1999 World Eye Reports