The Bulgarian hotel business is facing serious challenges in the first half of 2026. Data from a national survey by the Hotel and Tourism Investment Forum (HTIF) and the Bulgarian Association of Hotel Managers (BAHE) paints an alarming picture: over 70% of managers believe that the business climate has deteriorated compared to last year.

Occupancy and prices: Has the ceiling been reached?

The main conclusions of the survey show the following dynamics:

  • Decline in demand: Nearly two-thirds of hotels report an average occupancy of below 50%, and for half of them, there is a decline in occupancy compared to the previous year.
  • Price pressure: Despite the rise in operating costs, hoteliers are facing serious difficulties in raising final prices. Two-thirds of respondents do not plan any price increases until the end of the year.

Inflation as the main enemy

"If last year the leading challenge was staff shortages, today inflation and rising prices of goods and services are shifting the focus and squeezing profit margins," the organizers note.

Challenges facing the sector

When asked about the most serious obstacles to business, managers place inflation first, followed by a decline in tourist numbers and a shortage of staff. To cope with the lack of employees, businesses are relying on three main strategies:

  • Importing labor from abroad (58%);
  • Hiring students and interns (56%);
  • Increasing remuneration for competitiveness (47%).

Future prospects

Despite the difficulties, investment activity remains relatively stable. About 40% of hoteliers are planning renovations, and 21% are planning investments in new facilities. Romania remains a leading market for Bulgarian tourism, followed by the United Kingdom, Poland, and Turkey.