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Sat, May 26 2012
Bulgaria's Golden Sands resort suffers 10M leva drop in profits
Golden Sands resort
Photo: Maria Subotinova
As the troubled year of 2009 made way for the New Year, marred by the global economic crisis, and the lack of tourists, one of Bulgaria's top summer destinations, Zlatni Piyassutsi (Golden Sands), reported "considerable losses" compared to 2008.
In a media statement, Zlatni Piyassutsi Ltd reported that profits had dwindled to 312 000 leva in 2009, 10 million leva down on 2008 .
Sales also fell by more than half, from 36.8 million leva in 2008, down to 15 million leva last year.
Service retail also was halved, at 14.67 million leva, whereas auxiliary revenue, categorised as "others", had decreased "substantially" down to 295 000 leva.
Dnevnik daily said that the number of tourists visiting Bulgaria's summer destination fell by 40 per cent in 2009.
Finally, Zlatni Piyassutsi's debts to banks have risen to 7.8 million leva, from three million in 2008.
Towards the end of October 2009, experts in the field said that the forecast for 2009 was that Bulgarian tourism was expected to record a decrease in revenue of between 20 and 25 per cent, but as far as Golden Sands was concerned, the figures were significantly higher.
Rumen Draganov told the Bulgarian news agency that revenue in Bulgaria's north Black Sea resorts alone is down by almost 25 per cent, citing statistics from the association of hoteliers and restaurant owners.
Worse still, according to Ivan Ivanov, head of the Regional Tourist Chamber of the south Black Sea, 2010 is expected to be even grimmer, with even fewer tourists expected to arrive at Bulgarian shores. Ivanov believes that among the hardest hit will be Bulgaria's major tourist destinations along the Black Sea.
In a media statement, Zlatni Piyassutsi Ltd reported that profits had dwindled to 312 000 leva in 2009, 10 million leva down on 2008 .
Sales also fell by more than half, from 36.8 million leva in 2008, down to 15 million leva last year.
Service retail also was halved, at 14.67 million leva, whereas auxiliary revenue, categorised as "others", had decreased "substantially" down to 295 000 leva.
Dnevnik daily said that the number of tourists visiting Bulgaria's summer destination fell by 40 per cent in 2009.
Finally, Zlatni Piyassutsi's debts to banks have risen to 7.8 million leva, from three million in 2008.
Towards the end of October 2009, experts in the field said that the forecast for 2009 was that Bulgarian tourism was expected to record a decrease in revenue of between 20 and 25 per cent, but as far as Golden Sands was concerned, the figures were significantly higher.
Rumen Draganov told the Bulgarian news agency that revenue in Bulgaria's north Black Sea resorts alone is down by almost 25 per cent, citing statistics from the association of hoteliers and restaurant owners.
Worse still, according to Ivan Ivanov, head of the Regional Tourist Chamber of the south Black Sea, 2010 is expected to be even grimmer, with even fewer tourists expected to arrive at Bulgarian shores. Ivanov believes that among the hardest hit will be Bulgaria's major tourist destinations along the Black Sea.
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Kamelia Lozanova has been appointed the executive director of the Employment Agency, a position she has held ad interim since September 2011, following the resignation of her predecessor Rossitsa Stelianova. Prior to that, Lozanova was the agency's deputy executive director in charge of international projects and European programmes. She has been with the agency for more than 20 years. Lozanova has a degree in Slavonic philology from the St Kliment Ohridski University of Sofia.
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Bedros Kalfayan, general manager of skin care and cosmetics company Beiersdorf Bulgaria, will oversee the parent's company units in Romania and Moldova starting April 1. Following company restructuring, Beiersdorf's subsidiaries in the three countries were merged and are now one unit, part of Beiersdorf Central and Eastern Europe. Kalfayan joined Beiersdorf in 2007 as sales manager and was promoted to general manager in 2008. Prior to that, he worked for Axxon Bulgaria, Ferrero and Rubella. Kalfayan has a master's degree in industrial management from the Technical University in Sofia.
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Yassen Lyubenov is the new head of marketing at Bulgarian beer brewer Kamenitza. Lyubenov has 12 years of experience in marketing in the fast-moving consumer goods sector and has started his career as assistant brand manager at Kraft Foods Bulgaria. He later became brand manager at Wrigley Bulgaria, with responsibilities for Bulgaria and Macedonia. Prior to joining Kamenitza, he was senior marketing manager at Wrigley Russia, where he was in charge of brand expansion into Ukraine, Belarus, Central Asia and the Caucasus. Lyubenov has a bachelor's degree in international business administration from the University of Lincoln, UK.
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Sasha Bezuhanova has been appointed Hewlett-Packard public sector director for emerging markets, where she will oversee HP public sector activities in 63 countries, including Bulgaria. Bezuhanova will also be in charge of HP's relations with the European Union. Bezuhanova has been HP's public sector director for Central and Eastern Europe since 2008; before that she was general manager of HP Bulgaria since 1998. Bezuhanova has a master's degree in electronics from the Technical University in Sofia and has completed a managment programme at INSEAD.
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It is famous for the purest sand on the Black Sea coast abounded with trees and bushes. Mineral water springs, as well as the spectacular wood bordering the Frangen Plateau turn Golden Sands into one of the emeralds of the Bulgarian coast.
http://www.beachresorts360.net/golden-sands-beach-
Don't try to figure out how the tourist industry works with figures, the day they figure that out themselves they will finally figure out why tourists stay away.
"Last year, tourists from Sweden decreased by 60%."
Because they are broke, like most of the EU....
One of Sweden's largest charter airlines have reduced their trips to Golden Sands with more a half from last year. First departure is from 2010-06-23, unlike last year when the first passenger got off at the end of May. Unfortunately, Bulgaria has become a destination that represents the worst of a holiday destination. Last year, tourists from Sweden decreased by 60%.
Well said Philip you said it all for me, do not also forget the droves of prostitutes.
i thought all the complexes on sunny beach had been built with dirty money and that having clients was the last thing the owners wanted. oneday it will all be legalised ie sold off to foreigners and the owners will have washed their cash
Is it any surprise when the Mafia are in charge of the zoning and building and the usual Bulgarian standards of customer service apply?
Add to this rip-off taxi drivers, the plethora of stray dogs and the "race-to-the-bottom" for visitor demographics. No wonder everyone's staying away in droves.
The Black Sea Coast could be a stunning success story if the right people were brought in mastermind and sustain its promotion and development - and that means hiring the best from outside.
But, unlike the Crown Agents fiasco - [...]
Read the full comment actually implementing the recommended changes this time.
Chances of any of this happening? Don't hold your breath.
Of course, simple Bulgarian economics: when your customers decrease you double your prices. Of course they won't come back, but eventually you'll only need 1 customer per year and you can have the rest for your own holiday!
What I dont understand are the numbers:
number of tourist is down 40%
revenues is down only 20-25%
how can this happen, have the prices inceased by more than 30??
I can hardly beleave that the less customer have spent more money in times of crises. Especially as the target toursit group for BG tourists are low income tourists from GB and CE!
if the revenue is from 20-40% and the debt has increased more than 100% it is very simple math that a lot of companies are [...]
Read the full comment in huge troubles now and will be in the coming years.
Because what will not happen that the trourist will easily come back, even after the crisis...
I thinks in some month 6-12 there will be a lot of bankrupcies in this areas, followed by hugh number of unemployment...
I think it would be time to reconsider the whole tourism strategy in this region...