The Turkish Lira took a hit following the doubling of US tariffs, but according to one major Izmir-based manufacturer, amusements based in malls will be less impacted as they are funded predominantly through foreign currency.
High costs like rent will continue to be charged in foreign currencies including euro and dollar rather than the weakened Lira, said Alain Winterhalter, CEO of Switch Bowling.
He said: “The exchange rate took a hit, but is also starting to correct itself. The effect on our industry will be more linked to exchange rates rather than tariffs. Most of the bowling centres in Turkey are located in malls that were built using foreign currency resulting in rents being denominated in either dollar or euro."
He said the situation is “very unfortunate” but that it would resolve itself “one way or another because both Turkey and the US need each other for several reasons, including being NATO partners.”
However, Winterhalter stated that FECs operating in local currency "are in a difficult situation, if not impossible. Malls need help and operators need help from malls. In the meantime, purchasing and importing foreign equipment has become exorbitant. It will be sorted out, but will take time and patience."
The situation started when Turkey refused to release a US pastor who was imprisoned there.
The Lira rose by three per cent after Turkey increased tariffs on US imports on cars to 120 per cent, on alcoholic drinks to 140 per cent and on leaf tobacco to 60 per cent. But despite this, the Lira has lost a third of its value against the dollar since January.
