Dimitar Hadjinikolov, the Deputy Minister of Economy whose portfolio puts him in charge of tourism, interviewed by VELINA NACHEVA about trends in the industry.
What have been the general trends in winter tourism in Bulgaria in the past four to five years?
The current season is at its peak and so is not yet over. The figures we have available are those for January, and they are very encouraging. The increase in tourism, comparing January 2003 to January 2004, is 26 per cent. Let's hope that this winter will be as long as last year's, and that it will last longer. There has been a very good start, and the season will be quite successful. Last year, charters of winter tourism operators went on to the end of April, and this coincided with the beginning of the summer charters, so the two seasons overlapped. There has been interest in Bulgarian winter tourism, from December until now, from our traditional markets, including the UK, the Scandinavian countries, Russia, and our neighbouring countries, Greece and Serbia. The TUI firm has come back for the first time in 20 years with its winter programme, and I hope this will prove successful. Investments that have been made in winter tourism are transforming Bulgarian resorts into ski centres that are attractive to European tourists.
What is the comparison between the level of investment in tourism by Bulgarian companies and foreign ones?
Most investments in tourism are being made by Bulgarian companies. Investments made in both seaside and winter tourism resorts in the past few years exceed about 300 million to 350 million leva.
When will there be a strategy for the development of tourism and for promoting it beyond the borders of the country?
Let's separate strategy for tourism development. It is not carried out overnight. If we take the strategy for one type of tourism, ecotourism, it took us 18 months to complete We have a vision about what the strategy should look like, but this is hard work, and I hope that foreign donors will finance the development of such strategy over a period of 10 to 15 years. At the beginning of this Government's term of office, a policy on the development of tourism was made public. Last year, we opened a competition for a three-year programme to promote Bulgaria abroad.
What was the amount allocated and how far has this competition progressed?
The sum was 900 million leva. Unfortunately, there were less than three bidders. According to the Public Procurement Act, a competition has to be terminated if there are less than three bidders. We will open another competition next year.
So, this project is now on ice?
The procedure was ended because of lack of candidates. We are now working on a future competition announcement with clear parameters.
How is Bulgaria promoted at the moment, solely through private initiatives, or does the state also play a role?
Unfortunately now, without underestimating the significance of private business, it offers specific products or promotions for hotels. The central issue is Bulgaria as a destination and this is being dealt with from the funds of the state budget. In previous years we emphasised Bulgaria as an attractive destination for summer recreation. Gradually, the accent on recreational tourism promotion has changed, towards specialised forms of tourism - cultural, historical, balneology, village and ecological tourism. Last year we completed an evaluation of the potential of balneological tourism, and now are we are starting to stimulate the development of this type of tourism in Bulgaria.
What are the priority types of tourism in Bulgaria?
Let us not forget that 70 per cent of Bulgarian tourism is at the seaside. Specialised forms will not be an alternative to this, but must augment the tourism industry. We are looking for the optimal balance among the different types of tourism, to transform Bulgaria from a known and preferred tourism destination, into a famous and preferred tourism country.
What is the state's commitment to the development of village tourism, which is a comparatively new niche?
This form of tourism is gaining more and more popularity. I will not call it village tourism because Bulgarian practice is a little bit different from, for example, the German practice. The Prime Minister has proposed that there be specialised regulation in this field. There are such laws in Poland, Moldova and other places that are developing this green tourism. I hope that there will be financing for developing of a programme for Bulgarian village tourism. Green holidays are the future of tourism. God has given us wonderful nature and an ecologically clean environment.
The Olympic Games in Greece are approaching, and could present opportunities for Greece's neighbours. Is Bulgaria capable of dealing with such a tourist influx?
We have been discussing for more than a year what needs to be done in relation to Athens 2004. A lot has been done in relation to the tourism aspect. Co-operation between the Greek Association of Tourism Agencies and Bulgarian Association of Tourism Agencies is already a fact. I had a meeting with Greece's development minister, Apostolos Tsohatzopoulos, and one of the topics discussed was co-operation at government level during the Olympic Games. Tourists who would like to visit Bulgaria will have the opportunity.
What does Bulgaria lack in terms of tourism capacity compared to Greece, Turkey or Croatia?
Bulgaria has major potential in summer seaside recreational tourism, and winter tourism, and these need to be developed and diversified. But Bulgaria's opportunities are not restricted only to sea tourism. If we talk about balneological tourism, we need to mention the capacity of Bulgarian springs, which is more than 4500 litres a second, and I don't know if more than five or eight per cent is used. There is potential in specialised cultural-historical tourism. Bulgaria is unique in that, travelling across a small country, you cross several ethnographic zones. Bulgaria also has seven or eight layers of history and culture. We have unique Bulgarian monasteries. These are things that need to be explored and used. The wealth of flora and fauna in Bulgaria create an opportunity for specialised trips by ecologists. Not to mention hunting tourism, too. Winged game, a favourite of Italian hunters, can be hunted in Bulgaria, and there is small game, the favourite of French hunters. Big game is hunted by Austrians and Germans. So there is diversity in this sector. These things can be commercialised and offered in packages. An historical monument is interesting, but to make it a tourist attraction, investments are needed in infrastructure.
Foreigners often say that much remains to be done in the field of tourism, in regard to service. What is your response?
I am proud to say that in the area of service, there has been a considerable improvement compared to 10 years ago. When we talk of trained staff, we could do a lot. With the Chamber of Commerce, we have the goal of improving quality in this field.
Earnings from tourism are realised as revenues instantly, making revenue from tourism clear and predictable to a large extent. What financial challenges face investors in this sector? Are there potential problems?
The realisation of revenues from tourism is not rapid. What is favourable is the expansion of season. In 1997-98 the season was two months or two months and a half. This did not stimulate investments. Now, we talk of a six-month season, ensuring a return on investments. In tourism the return on investment is between three to seven years, depending on where and how the investment is made. Hence, tourism is hardly the place to make a quick profit. The turnovers are interesting. Last year revenue from international tourism exceeded 1.5 billion leva. Hopefully it will be more this year. There are no financial problems for the investor. There are problems common to other areas of investment, and that is in terms of infrastructure.
What types of non-traditional forms of tourism can be profitable for Bulgaria and could be successful? Do folklore, wine and souvenir tourism attract tourists?
There is an interest in these forms of tourism as part of packages for tourists. Bulgarian folklore tourism is being developed outside of the season more and more. Not to mention that there is a lot of potential in it.
In the time you have been in office, have you witnessed any shift of perception from Bulgaria being an affordable destination, to something more?
There is a change in the assessment of Bulgaria as a tourism destination. Presently investments at the seaside are directed outside of the big resorts The social echelon of tourists is changing, however, this needs time.
What is your favourite holiday place in the country?
I fall for quiet places and areas deep in nature. The best contact with nature is in the villages of Apriltsi and Tryavna.
What have been the general trends in winter tourism in Bulgaria in the past four to five years?
The current season is at its peak and so is not yet over. The figures we have available are those for January, and they are very encouraging. The increase in tourism, comparing January 2003 to January 2004, is 26 per cent. Let's hope that this winter will be as long as last year's, and that it will last longer. There has been a very good start, and the season will be quite successful. Last year, charters of winter tourism operators went on to the end of April, and this coincided with the beginning of the summer charters, so the two seasons overlapped. There has been interest in Bulgarian winter tourism, from December until now, from our traditional markets, including the UK, the Scandinavian countries, Russia, and our neighbouring countries, Greece and Serbia. The TUI firm has come back for the first time in 20 years with its winter programme, and I hope this will prove successful. Investments that have been made in winter tourism are transforming Bulgarian resorts into ski centres that are attractive to European tourists.
What is the comparison between the level of investment in tourism by Bulgarian companies and foreign ones?
Most investments in tourism are being made by Bulgarian companies. Investments made in both seaside and winter tourism resorts in the past few years exceed about 300 million to 350 million leva.
When will there be a strategy for the development of tourism and for promoting it beyond the borders of the country?
Let's separate strategy for tourism development. It is not carried out overnight. If we take the strategy for one type of tourism, ecotourism, it took us 18 months to complete We have a vision about what the strategy should look like, but this is hard work, and I hope that foreign donors will finance the development of such strategy over a period of 10 to 15 years. At the beginning of this Government's term of office, a policy on the development of tourism was made public. Last year, we opened a competition for a three-year programme to promote Bulgaria abroad.
What was the amount allocated and how far has this competition progressed?
The sum was 900 million leva. Unfortunately, there were less than three bidders. According to the Public Procurement Act, a competition has to be terminated if there are less than three bidders. We will open another competition next year.
So, this project is now on ice?
The procedure was ended because of lack of candidates. We are now working on a future competition announcement with clear parameters.
How is Bulgaria promoted at the moment, solely through private initiatives, or does the state also play a role?
Unfortunately now, without underestimating the significance of private business, it offers specific products or promotions for hotels. The central issue is Bulgaria as a destination and this is being dealt with from the funds of the state budget. In previous years we emphasised Bulgaria as an attractive destination for summer recreation. Gradually, the accent on recreational tourism promotion has changed, towards specialised forms of tourism - cultural, historical, balneology, village and ecological tourism. Last year we completed an evaluation of the potential of balneological tourism, and now are we are starting to stimulate the development of this type of tourism in Bulgaria.
What are the priority types of tourism in Bulgaria?
Let us not forget that 70 per cent of Bulgarian tourism is at the seaside. Specialised forms will not be an alternative to this, but must augment the tourism industry. We are looking for the optimal balance among the different types of tourism, to transform Bulgaria from a known and preferred tourism destination, into a famous and preferred tourism country.
What is the state's commitment to the development of village tourism, which is a comparatively new niche?
This form of tourism is gaining more and more popularity. I will not call it village tourism because Bulgarian practice is a little bit different from, for example, the German practice. The Prime Minister has proposed that there be specialised regulation in this field. There are such laws in Poland, Moldova and other places that are developing this green tourism. I hope that there will be financing for developing of a programme for Bulgarian village tourism. Green holidays are the future of tourism. God has given us wonderful nature and an ecologically clean environment.
The Olympic Games in Greece are approaching, and could present opportunities for Greece's neighbours. Is Bulgaria capable of dealing with such a tourist influx?
We have been discussing for more than a year what needs to be done in relation to Athens 2004. A lot has been done in relation to the tourism aspect. Co-operation between the Greek Association of Tourism Agencies and Bulgarian Association of Tourism Agencies is already a fact. I had a meeting with Greece's development minister, Apostolos Tsohatzopoulos, and one of the topics discussed was co-operation at government level during the Olympic Games. Tourists who would like to visit Bulgaria will have the opportunity.
What does Bulgaria lack in terms of tourism capacity compared to Greece, Turkey or Croatia?
Bulgaria has major potential in summer seaside recreational tourism, and winter tourism, and these need to be developed and diversified. But Bulgaria's opportunities are not restricted only to sea tourism. If we talk about balneological tourism, we need to mention the capacity of Bulgarian springs, which is more than 4500 litres a second, and I don't know if more than five or eight per cent is used. There is potential in specialised cultural-historical tourism. Bulgaria is unique in that, travelling across a small country, you cross several ethnographic zones. Bulgaria also has seven or eight layers of history and culture. We have unique Bulgarian monasteries. These are things that need to be explored and used. The wealth of flora and fauna in Bulgaria create an opportunity for specialised trips by ecologists. Not to mention hunting tourism, too. Winged game, a favourite of Italian hunters, can be hunted in Bulgaria, and there is small game, the favourite of French hunters. Big game is hunted by Austrians and Germans. So there is diversity in this sector. These things can be commercialised and offered in packages. An historical monument is interesting, but to make it a tourist attraction, investments are needed in infrastructure.
Foreigners often say that much remains to be done in the field of tourism, in regard to service. What is your response?
I am proud to say that in the area of service, there has been a considerable improvement compared to 10 years ago. When we talk of trained staff, we could do a lot. With the Chamber of Commerce, we have the goal of improving quality in this field.
Earnings from tourism are realised as revenues instantly, making revenue from tourism clear and predictable to a large extent. What financial challenges face investors in this sector? Are there potential problems?
The realisation of revenues from tourism is not rapid. What is favourable is the expansion of season. In 1997-98 the season was two months or two months and a half. This did not stimulate investments. Now, we talk of a six-month season, ensuring a return on investments. In tourism the return on investment is between three to seven years, depending on where and how the investment is made. Hence, tourism is hardly the place to make a quick profit. The turnovers are interesting. Last year revenue from international tourism exceeded 1.5 billion leva. Hopefully it will be more this year. There are no financial problems for the investor. There are problems common to other areas of investment, and that is in terms of infrastructure.
What types of non-traditional forms of tourism can be profitable for Bulgaria and could be successful? Do folklore, wine and souvenir tourism attract tourists?
There is an interest in these forms of tourism as part of packages for tourists. Bulgarian folklore tourism is being developed outside of the season more and more. Not to mention that there is a lot of potential in it.
In the time you have been in office, have you witnessed any shift of perception from Bulgaria being an affordable destination, to something more?
There is a change in the assessment of Bulgaria as a tourism destination. Presently investments at the seaside are directed outside of the big resorts The social echelon of tourists is changing, however, this needs time.
What is your favourite holiday place in the country?
I fall for quiet places and areas deep in nature. The best contact with nature is in the villages of Apriltsi and Tryavna.
