Black Sea Hoteliers Decry 'Miserable' Season Amid Massive Drop in Tourism
Tourism | August 26, 2024, Monday // 17:25| viewsPhoto: Stella Ivanova
Hoteliers along Bulgaria's Black Sea coast are reporting a disappointing summer season, describing it as miserable due to a significant drop in visitor numbers. According to "Trud news," the decline in attendance has reached up to 40 percent compared to the previous year. The Southern and Northern regions are particularly affected, with only Sunny Beach showing a rise in tourist traffic.
The Bulgarian Hotel and Restaurant Association (BHRA) highlighted that the presence of any tourists this season can be attributed to substantial discounts. Vice-President Veselin Nalbantov criticized the acting Minister of Tourism, Evtim Miloshev, for suggesting that this year might be a record-breaker for Bulgarian tourism. Nalbantov pointed out that many hoteliers are struggling with soaring electricity costs, which have surged nearly 400 percent.
Despite the minister's assurances of forthcoming compensation, the BHRA remains skeptical about its impact on the overall situation. Nalbantov emphasized the need for improvements at Burgas airport, more free seats on flights, and better advertising efforts to address the issues faced by the industry. He described the current season as "measly" and warned that further price reductions in September would not be sustainable.
The Association of Tour Operators "Union for the Future of Tourism" also expressed frustration over the VAT increase to 20 percent implemented on July 1. The tax hike has negatively impacted the industry, particularly since restaurateurs and hoteliers still benefit from a reduced VAT rate of 9 percent. Pavlina Ilieva, the association's chair, noted that this increase has forced operators to absorb the additional cost, leading to higher prices for package holidays.
Ilieva criticized the disparity in VAT rates and its effect on competitiveness, stating that the increase undermines the industry's ability to attract customers. She also highlighted that direct bookings with hotels are becoming more common as travelers seek to avoid additional charges.
Looking ahead, Ilieva anticipates further reductions in September prices, estimating a potential decrease of up to 30 percent.
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