Sat, Feb 11 2012

TOURISM BAROMETER: Over-construction in Bulgaria: The effects

Mon, Aug 06 2007 09:00 CET

byYana Moyseeva

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According to Anelia Krushkova, chairperson of the State Agency of Tourism (SAT), next year hotels in Bulgarian Black Sea resorts could face bankruptcy,  the main reason being the over-saturation of hotels in resorts.

The sharp rise in the number of hotels in recent years has caused unprecedented competition. This has had a negative impact on about 50 per cent of hotels located outside central resort areas, leaving them empty. The shortage of holidaymakers could mean bankruptcy for hotel owners because of inability to pay off large debts.

SAT reported that during July room rates have been almost halved, but reportedly only for foreign tourists. Krushkova advised hotel owners to decrease prices not only for foreigners, but also for Bulgarians, to attract more clients.

Krushkova revealed that unofficial estimates of the number of beds available in resorts was about four times higher than the official figures. According to official statistics for 2005, the number of beds available in Bulgarian tourist areas was 221 000. Data provided by the municipalities, lists only 125 000 beds. According to data from the Nessebar municipality, there were 344 000 beds in Nessebar. However, the real number of beds is about 500 000 - 600 000, Krushkova said. There was such a significant difference between the figures because many hotel owners do not pay the tourist fees which they are supposed to pay the state for each customer.
Revenue from foreign tourists visiting Bulgaria increased by 16 per cent, or about five million euro, in the first five months of 2007. The number of holidaymakers from European Union countries increased by about 30 per cent, but as a whole the number of foreign tourists fell by 0.37 per cent. According to Krushkova, however, an increase is still expected with the peak season in August approaching.

Krushkova called on tourism organisations in Bulgaria to work together in order to develop the tourist sector. The large number of sector organisation, which has grown from 34 to 40 over just four months, as well as the over-construction in resorts are the main factors that  have had a detrimental effect on the development of the tourism field, news agency Mediapool reported.

Krushkova said that there are 273 tour operators who are not complying with current legistlation. This includes those who have insurances, but have not informed the SAT. The agency is going to make the tour operators' registry public and will publish it on its website.

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