Tourism and leisure businesses are subject on the one hand to the certification and inspection regime of public authorities and on the other to day-to-day relationships with thousands of consumers. A hotel's legal structure often consists of three separate layers: the owner of the property, the company running the business and the chain that licenses its brand. The contracts between these layers determine both the business's revenue and its responsibilities.
Certificates and permits
Accommodation facilities and certain tourism businesses may obtain investment and operation certificates from the Ministry of Culture and Tourism under Tourism Incentive Law No. 2634; certified facilities are subject to classification and inspection rules. For uncertified businesses, the workplace opening and operating licence issued by the municipality is the basis. The scope of the licence and certificate must match the services actually provided at the business; for example, live music or the sale of alcoholic beverages may be subject to separate permits and conditions.
Operating and brand agreements
Hotel management agreements are long-term agreements under which the operator runs the facility on behalf of the owner. Base and incentive management fees, performance tests, replacing the operator and what happens to staff and reservations when the agreement ends are the main points of negotiation. In franchise agreements, brand use, standards, audits and fees are decisive. Where the business is operated by leasing the facility, the lease provisions of Turkish Code of Obligations No. 6098 apply together with special arrangements agreed by the parties, such as turnover rent.
Guest relations and data
Contracts with consumers for package tours, accommodation and event services are subject to Consumer Protection Law No. 6502 and the secondary legislation on package tour contracts. Defective services, cancellations and refund requests are the most common subjects of dispute; for disputes below a certain amount, application to consumer arbitration committees is mandatory. Accommodation facilities must report guest information to the competent authorities under Identity Reporting Law No. 1774. Identity, contact and payment information obtained from guests is processed under Personal Data Protection Law No. 6698; data transfers to reservation systems abroad in particular should be assessed separately.
Music and use of works
Music played on the premises, broadcasts shown or works used at events are subject to the permission of right holders under Law No. 5846 on Intellectual and Artistic Works. These permissions are usually obtained through licence agreements with collecting societies. Use without permission may give rise to compensation claims and criminal investigations. In event organisation, artist, sponsor and venue agreements also need to be aligned with one another.
Employment
Seasonal work is common in the tourism sector. The conditions under which fixed-term employment contracts may be made, the consequences of successive renewals and the end of the employment relationship at the end of the season should be assessed separately under employment law. If foreign staff are to be employed, work permit procedures should be completed before the season begins.
Our firm's work in this sector
We work on hotel management, lease and franchise agreements, legal due diligence in facility acquisitions, consumer disputes and data protection compliance. This work brings together our practice in Commercial and Corporate Law, Personal Data Protection, Intellectual Property, Employment and Social Security Law and Real Estate Law.
Main topics
- Tourism certificates and operating permits (Law No. 2634)
- Hotel management, franchise and lease agreements
- Package tours and consumer disputes
- Processing of guest data and identity reporting
- Music and works licensing
- Seasonal work and foreign staff
Frequently asked questions
Is permission needed to play background music in a hotel?
Yes. Use of musical works in places open to the public is subject to the permission of right holders under the FSEK. This permission is usually obtained through licence agreements with the relevant collecting societies.
Is keeping guests' identity information contrary to the KVKK?
Legal obligations such as those under the Identity Reporting Law constitute a legal ground for processing personal data. However, the data must be processed in a way limited to the purpose, the obligation to inform must be fulfilled and retention periods must be set.
How can the owner replace the operator under a hotel management agreement?
This depends on the termination and performance test provisions in the agreement. If there is no clear provision, early termination may give rise to a compensation obligation, so it is advisable for the agreement to address this possibility from the outset.
What are consumers' rights when reservations are cancelled?
Rights vary according to the type of contract and the reason for cancellation. For package tours, the consumer's withdrawal and cancellation rights are regulated separately in the relevant regulation; for other accommodation contracts, the contract terms and Law No. 6502 are assessed together.
Is the hotel liable if a guest's belongings are lost or stolen at the hotel?
The Turkish Code of Obligations holds hotels and similar accommodation businesses liable for damage to, loss or theft of belongings brought by guests, unless the damage was caused by the guest, by force majeure or by the nature of the item. For money, securities and valuables, full liability as a rule depends on their having been handed to the business for safekeeping or on the business having refused to keep them. The guest must notify the business as soon as they learn of the damage; otherwise they cannot rely on this liability (TBK Arts. 576–578).
Legislation and sources
- Tourism Incentive Law No. 2634 (in Turkish)
- Consumer Protection Law No. 6502 (in Turkish)
- Personal Data Protection Law No. 6698 (in Turkish)
- Law No. 5846 on Intellectual and Artistic Works (in Turkish)
- Ministry of Culture and Tourism
The information on this page is general and does not constitute legal advice. As legislation may change, the current rules must be assessed separately for your particular situation.