Application Process for Turquality in Accommodation Enterprises

BEHİYE KARA / QUALITY MANAGER
03.07.2021

What is Turquality?

Turquality is the world's first and only government-supported branding program. Turquality is not a certification or accreditation. Turquality is financial support given to companies aiming to become a global brand in the international market to strengthen their corporate infrastructure and build brand power.

  • 100% domestic
  • Foreign exchange earning service
  • Potential to become a world brand

Purpose of Turquality

To manage the entire process from production to after-sales services in target markets for companies with branding potential in sectors where our country holds a competitive advantage (textile, automotive, technology, service, tourism, etc.). To strengthen the brand position of the enterprise, accelerate their opening to international markets, and ensure the creation and establishment of a quality Turkish product image in target markets.

Mission and Goals of Turquality

  • To create locomotives domestically from global Turkish brands
  • To strengthen companies' brand power and corporate infrastructure
  • To create brand awareness and consciousness domestically

Turquality Goals:

  • To provide financial resources to companies with brand potential on the path to becoming a global brand.
  • To support companies and their brands' development with strategy, operation, organization, and technology consultancy studies to create global Turkish brands.
  • To provide training support to management units of companies within the program.
  • To conduct communication and promotional activities to create and maintain a positive Turkish product image abroad.
  • To increase brand awareness of Turkish companies.
  • To provide intelligence support so that Turkish companies can take action based on market information.
  • To be an incubator and catalyst for selected Turkish brands.

Legislation

Communiqué No. 2006/4: Companies operating commercially and/or industrially in Turkey, including the Turkish Exporters Assembly (TİM), Exporters' Associations, Producer Associations, and Producer Unions, can benefit from the supports within this communiqué.

Decision No. 2564 (Service Sectors): Foreign exchange earning service sectors operating in Turkey in information technology, education, e-commerce, film, gastronomy, accommodation, retail, health tourism, logistics, airline passenger transportation, and transportation infrastructure services can benefit.

General Communiqué on the Implementation Procedures and Principles of Decision No. 2564: The repealed Decision No. 2015/9 (Service Sectors) on Foreign Exchange Earning Service Sectors Branding Supports. This decision aims to cover expenses related to activities carried out by companies, institutions, and organizations established in Turkey and operating in foreign exchange earning service sectors for branding purposes, supports provided domestically and abroad within the TURQUALITY® Program by the Turkish Exporters Assembly (TİM) and Exporters' Associations, expenses related to all activities and organizations for the market entry and retention of Turkish brands, and all expenditures made domestically and abroad to create and establish a positive Turkish product and service image for service sectors from the Support and Price Stability Fund (DFİF).

http://turquality.com.tr/mevzuat

Turquality Requirements

  • To have a trademark registration certificate in domestic and international target markets
  • For beneficiaries operating in the accommodation sector, the annual average sales revenue obtained from foreign visitors in the last 3 (three) years by the beneficiary providing accommodation services in Turkey using the brand to be included in the support scope and companies organically connected to the beneficiary must be;
    • At least 500,000 (five hundred thousand) USD for those with boutique hotel status
    • At least 4,000,000 (four million) USD for other hotels and hotel groups
  • The beneficiary applying must fill out the “TURQUALITY® Project Preliminary Evaluation Set” available on the www.turquality.com.tr website and conduct a preliminary evaluation.

History of Turquality and Service Sector

Turquality started in 2004 with the ready-to-wear and textile sector. It continued with other manufacturing sectors. In 2015, the service sector was included, and in 2018, the accommodation sector was included. Hotels are evaluated within the scope of Decision No. 2564 on Foreign Exchange Earning Service Sectors Branding Supports.

Within the Service Brand Program under Decision No. 2564, 23 brands benefit from Turquality, and 30 brands benefit from the Brand Support Program. There are 8 accommodation brands benefiting from the Service Brand Program:

  • Barut Hotels
  • Ela Quality Resort Belek
  • Elite World
  • Kaya Hotels & Resorts
  • Megasaray
  • Maxx Royal
  • Regnum Carya
  • Titanic

Turquality Brand Support Program

  • Level 1 Brand Support Program
  • Level 2 Turquality Support Program

Turquality Application

For application, the preliminary evaluation set at http://turquality.com.tr/on-degerlendirme-seti must be filled out.

Preliminary Evaluation Criteria for the Accommodation Sector

Brand Strength

  1. The ratio of the annual marketing budget allocated to the brand to total net sales
  2. Sales volume of the company and related brand in the last 10 years
  3. Years the brand has been active
  4. The ratio of your overseas bed capacity to total bed capacity
  5. Total annual occupancy rate in your hotel group
  6. Your institution's STR membership

International Access

  1. What percentage of your senior management staff has previous international business experience in the same sector?
  2. Income obtained from foreign guests within your total revenue
  3. Number of foreign countries from which you earn annual income of 500,000 USD or more
  4. Are you among the top 5 agencies in the regions (Europe, America, etc.) where you work globally with tourism agencies?

Corporate Competence

  1. Is long-term (3-5 years) strategic planning regularly followed and documented in your company?
  2. If a strategic plan is prepared in your company, what topics does this document include?
  3. Is budget work regularly done and budget realizations monitored in your company?
  4. Which best describes corporate performance management in your company?
  5. Are your financial statements audited by an independent external auditor?
  6. Is there a professional General Manager in your company, fully separated from the duties of the Chairman/members of the Board of Directors?
  7. Are the duties and responsibilities of the Human Resources Department currently being performed?
  8. Is employee satisfaction regularly measured? Are work methods changed according to the results?
  9. Documented elements within your brand strategy
  10. Are brand performance criteria measured at least once a year?
  11. Who are involved when creating brand strategy and brand plan?
  12. Innovations aimed at improving service and guest experience quality
  13. Fairs related to your sector attended in the last two years
  14. Regular activities carried out by the Marketing Unit
  15. Criteria continuously monitored to measure the effectiveness of marketing activities
  16. Periodically prepared marketing business plan and customer-focused research
  17. CRM system and infrastructure works
  18. Consumer or independent evaluation awards received by your hotel group in the last 3 years
  19. User ratings and performance tracking of your brand on online platforms
  20. Manager responsible for operation strategy and operation management policies/procedures
  21. Supplier performance measurement criteria

Structure of Turquality Brand Support Program

  • Preliminary Review Study: 2 full days by Deloitte, PwC, E&Y, KPMG, McKinsey, Grand Thornton
  • Preparation of Strategic Business Plan and Development Roadmap: 6-8 weeks by the same firms
  • Presentation of Strategic Business Plan: Ministry of Trade, 1 full day
  • Performance Evaluation: Ministry of Trade, 1 full day at the end of each year for 4 years

Preliminary Review

Turquality evaluation consists of 10 main topics and 193 subtopics. Main areas:

  • Strategic Planning and Corporate Governance
  • Financial Performance
  • Brand Management
  • Marketing and Sales
  • Operation Management
  • Innovation / Service Development
  • Governance
  • Information Technologies
  • Digitalization
  • Human Resources

Note: This content is taken from the TURQUALITY® Strategic Development Roadmap presentation prepared by Deloitte Consulting Inc. in 2021.