1 Turkish Tourist Jewellery Market Turkish Success of Jewellery Sales to Tourists 21st Feb 2005

2 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook

3 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Outline: EU have decided that the accession negotiations with Turkey will start in 2005 which might be as long as 10 years Inflation is moving towards one digit level after several decades Exchange rate is around mid 2001 levels 6 zeroes are dropped from TL (YTL)

4 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Source: EIU e GDP US$ bn Real GDP growth (%) Consumer price inflation (avg. %) Population (m) Exports of goods fob (US$ bn) Imports of goods fob (US$ bn) Exchange rate (avg.) YTL:US$

5 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Sources: WTO, SIS & Trade estimate e Number of Foreign Tourists (m) Tourism Revenue (US$ bn)

6 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Worldwide ranking by tourism revenue in 2003 (US$ bn) Source: WTO World USA Spain France Italy Germany UK China Austria Turkey Greece

7 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook 2005 Tourist market investments 50 New hotels under construction 50,000 New beds will be ready for 2005 summer season

8 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook bought 36 units of Airbus and 15 units of Boeing airplanes in July Delivery will be in 2005.

9 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Outline : Third biggest gold consumption after India and USA Largest gold coin market and coin manufacturer in the world Third biggest jewellery manufacturer after India and Italy

10 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Pure gold tonnes Sources: WGC, IGE, TSM & Trade estimates e Bullion Imports Scrap Jewellery exports Suitcase trade Jewellery sales to locals New coin minting Total gold offtake

11 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Sources: WGC, WTO, SIS & Trade estimates e Number of Foreign Tourists (m) Tourism Revenue (US$ bn) Jewellery sales to tourists (tonnes)

12 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Seasonality of incoming foreign tourists Source: SIS

13 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Regional Trends in Incoming Tourists m Country Groups % chg 1 OECD (Europe) OECD (Other) Other European C.I.S Asian countries African countries Other Total

14 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Traveling by millions % chg Air Road Sea Railway Total

15 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Country of origin of tourists % share Germans 20.1 Russian Federation citizens 9.5 UK citizens 9.5 Dutch 8.5 Austrians 4.7 Bulgarians 4.4 French 3.9 Belgians 3.7 Iranians 2.8 Greeks 2.1 Other countries 30.8

16 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook What did they hear beforehand (47% heard about Turkish gold): Cheaper72% Special Turkish designs34% Better workmanship32% Bigger variety24% Research by Piar-Gallup

17 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Whom did they hear it from: A friend71% The travel agency26% Previous visitors26% Promotional brochures24% Research by Piar-Gallup

18 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook After they saw the jewellery what did they think? Not expected that cheap72% Not expected that much variety34% Not expected that many26% Expected them to be cheaper13% Research by Piar-Gallup

19 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Purchase decision: After they arrived60% Decided before40% Research by Piar-Gallup

20 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Top motives for the tourists who decided to buy before their trip: Cheaper 73% Special Turkish designs10% Better workmanship33% Better selection25% Research by Piar-Gallup

21 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Top motives for the tourists who decided to buy after they arrive: Attracted me 49% Realized they were cheaper39% Good salesman help30% Lot of varieties26% Better workmanship22% Special Turkish designs16% Research by Piar-Gallup

22 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Self purchase or gift: Self80% Gift20% Research by Piar-Gallup

23 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Adornment or store of value: Adornment90% Store of value10% Research by Piar-Gallup

24 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Types of jewellery bought: Ring34% Chain32% Necklace25% Earring23% Bracelet17% Pendant10% Research by Piar-Gallup

25 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook 78% of the tourists said that they have never bought any jewellery from another country they visited. Research by Piar-Gallup

26 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Jewellery retailers for tourists: 6,000 in Mediterranean coast 1,000 inside Grand Bazaar in Istanbul 1,000 in other tourist areas

27 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Mega jewellery stores for tourists: 40 Jewellery mega-retailers With average 3,000sqm shopping area With an average of 100 salesmen

28 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Mega jewellery retailer stats: Average 100,000 tourists visit annually Average 20,000 sales per year Average 35,000 items sold per year

29 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Mega jewellery retailer stats: Average item price US$1,000 Main customer is German and Russian with 30% share each Rest is Europeans (Swiss, Austrian, Belgian, Dutch) with some Americans

30 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook

31 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Direct Exports vs Tourist Sales Turkish jewellery manufacturers are the second biggest exporter in the world The tourist sales and direct exports are helping one another by creating awareness on Turkish jewellery brands Summer tourist retailers are catering their customers in their country of origin in winters

32 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook Sources: WGC, SIS & Trade estimates e2006e2007e2008e Number of Foreign Tourists (m) Tourism Revenue (US$ bn) Jewellery sales to tourists (tonnes)

33 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook 5 Year Targets: Become one of the first 5 destinations in number of tourists Become one of the first 5 countries in tourism revenues Rate of increase in gold jewellery sales to tourists faster than the increase in tourism revenues

34 Turkish Tourist Jewellery Market Turkish Economy Turkish Tourism Turkish Jewellery Market Tourist Jewellery Market Tourist Tourist as Jewellery Buyer Tourist Market Retailers Jewellery Exports Outlook...during your next vacation, we wish all of you a very happy holiday in Turkey, in the cradle of civilizations, enjoying the turqoise beaches of Cleopatra or skiing and hiking mount Ararat or playing golf or simply sipping your Turkish coffee and enjoying your Turkish delight and buying lots of Turkish jewellery making your holiday unforgettable...