Euro Introduction Law Seen as Potential Pricing Burden for Bulgaria’s Hotel Sector

The hotel industry in Bulgaria is voicing concerns over the recently discussed Euro Introduction Law, fearing it could complicate pricing strategies. Iva Gatseva from the Bulgarian Hotel Association shared these views on Nova TV.

Although business representatives were heard at the Budget Committee and some adjustments were made to the law, Gatseva emphasized that the sector still faces significant challenges. The core issue lies in managing price control during the transition period when prices must be displayed in both leva and euros.

Tourism being export-driven, contracts and pricing decisions for the summer of 2026 are already underway, with some deals finalized. Gatseva stressed the need to keep prices aligned with international market standards to remain competitive. The seasonal nature of tourism complicates this, as prices vary widely between June and August - often leading to misunderstandings during inspections that could strain the administrative capabilities of hoteliers.

Another layer of complexity comes from packaged tourist services, which bundle transportation, entertainment, transfers, and guides. Gatseva explained that the fluctuating costs within these packages make it difficult to justify price changes when questioned by inspectors, presenting a major challenge for the industry.

On the other hand, the requirement for dual price labeling is not expected to be problematic. The association noted that most contracts have been negotiated in euros for years, so this change may simplify processes for both businesses and tourists.

When asked whether the euro introduction would lead to price hikes, Gatseva firmly denied this, pointing out that prices naturally adjust to market demand rather than currency changes. She underlined that real inflationary pressures stem from rising operational costs, citing examples such as the garbage tax and the 60% increase in water prices in Burgas last year.

While prices for the upcoming year are currently being set, the hotel sector remains cautious, as unforeseen cost increases during the transition to the euro could still impact final pricing.

Source: Nova TV interview