Irena Georgieva: Expectations for the Summer Season and Challenges Facing Tourism

Caretaker Minister of Tourism Irena Georgieva expressed moderate optimism for the summer tourist season in Bulgaria. “We realize that we are expecting a perhaps non-traditional, more difficult season. God willing, there will be no unexpected turns, but we are still prepared to welcome tourists and the tourism industry, the Ministry of Tourism, together with all interested parties, are ready to respond to the challenges”, said Minister Georgieva in the program “The Day Starts with Georgi Lyubenov” on BNT.

Regarding the crisis in the Middle East and the outflow of tourists from Israel to our country, Minister Georgieva pointed out that guests from this country are “extremely flexible”. The moment they have the opportunity, they will return to us. Tourists from Israel love Bulgaria, she added.

She pointed out that early bookings show levels close to last year's, with a slight increase in certain markets. Due to the uncertainty in Asia and Africa, European tourists are turning to destinations in Europe, the Minister noted and pointed this out as an opportunity for our country. She emphasized that Bulgaria is strengthening its advertising in Central Europe (Poland, Czech Republic, Hungary, Slovakia), and is also taking care of its main markets - Great Britain and Germany.

The caretaker minister pointed out that the exact size of the industry's losses due to the crisis in the Middle East cannot be specified, but noted that the impact of the military actions is being felt in several ways. She reminded that the conflict has led to the cancellation of many planned trips to the Middle East - destinations such as the UAE and neighboring countries, as early as the beginning of March. Georgieva pointed out that tour operators are suffering losses and have liquidity problems, as the funds for the failed vacations have been prepaid to suppliers who do not return them immediately.

In this regard, the caretaker minister announced that Bulgaria has notified the European Commission to allow the possibility of covering the amounts for failed vacations with vouchers, instead of returning them within the standard 14-day period. The request was made before the mechanism was officially enshrined in the national Tourism Act in order to react quickly in crisis situations. According to the Package Travel Directive, tour operators are obliged to refund the amounts to tourists within 14 days of a declared request for cancellation. Minister Georgieva clarified that the updated EU Directive already allows for such compensation, but Bulgaria is seeking confirmation for their application in short terms.

Regarding the restaurateurs' request for a permanent retention of 9 percent VAT, the Minister pointed out that this is rather a measure to support business and its sustainability, than a mechanism for reducing final prices for consumers. She emphasized that the reduction of the tax directly affects state revenues and pointed out that the decision depends on the overall budget framework of the country. Georgieva pointed out that although the Ministry of Tourism monitors the needs of the sector, the final say on the differentiated rate belongs to the National Assembly. According to Georgieva, a calm and public dialogue is needed, which takes into account the interests of both business and society, seeking a “reasonable balance”.

Regarding prices this summer, she pointed out that the increase in tourist packages is mainly due to the higher prices of consumables and inflation, and not to the adoption of the euro. According to her, tour operators are striving to keep the price increase to 8 percent in order to avoid mass cancellations from customers.