Since the beginning of 2014 the tourism industry in Bulgaria has been facing a myriad of problems. The sector has been affected adversely by the Ukraine crisis, as well as by the political crisis in the country and the situation in the banking system. That is what makes it so difficult to make any predictions as to how these factors will affect the economic results in the sector. In an interview for Radio Bulgaria, Blagoy Ragin, chair of the Bulgarian Hotel and Restaurant Association says that all people from the sector are hoping to be able to repeat the results form 2013. In view of present circumstances, that would be a major success. In his words, this is not the first year tourism has had problems at the start of the season but has then be able to make up for lost time.

In 2014, the Ministry of Foreign Affairs registered a rise in the number of visas issued in Russia and Ukraine. The airports in Bourgas and Varna have also been seeing business thrive. Nonetheless, these numbers are not enough for the tourism business, as a great many visitors are probably residing in real estate of their own in the country. According to Blagoy Ragin, the crisis in the two countries has devalued their local currency and even affluent tourists from that part of the world are now looking for lower prices. Another tendency has emerged towards an increase in the number of Bulgarian tourists who opt for neighbouring countries rather than resorts in Bulgaria. This is due to more aggressive marketing in those countries.

Is Bulgaria advertising its tourist product enough?

“I have always said that selling a product is much harder than creating a business,” Blagoy Ragin says. “By way of example I would just like to say that this year, Greece is earmarking EUR 160 million for external advertising, and that Turkey will spend even more than Greece. Croatia has set aside EUR 100 million for advertising which is no surprise. What is surprising is that countries like Albania, Kosovo, Macedonia and Monte Negro have launched an advertising campaign that is more aggressive than Bulgaria’s. We live in a global and open world and we should stop relying merely on our past, our beautiful nature and the lower prices. At the National Tourist Council we demanded that 1 percent of the sector’s turnover be urgently spent on external advertising. In numbers that is EUR 30 million, compared to the 15 million spent now. A lot of money has been planned for the tourist industry for the 2014-2020 period; the sum should be endorsed in September. We are hoping to see tourism with its own ministry because at the moment coordination is a difficult thing. Tourism is a priority and seeing as countries like Cyprus and Greece have ministries of tourism, I don’t see why we shouldn’t have an administrative structure that would cater for culture, spa, winter and summer tourism.”

To what an extent does the tourist industry contribute to seasonal employment?

“At the height of the summer season tourism employs 500,000 and that includes support activities like taxis, banks, currency exchange offices, airports, trade centres etc. Our task is to extend the season from May until end-October. In the months of May, September and October the emphasis should be on culture, spa and recreational tourism.”

The Bulgarian Hotel and Restaurant Association will demand that every single cent spent on tourism and its effect on the Bulgarian economy be accounted for to the media and to the National Assembly. Blagoy Ragin announced that the sector recently made a decision to promote Bulgaria seasonally with the BBC; CNN and Eurosport can also be used for promoting the country. “I suggested Grigor Dimitrov as brand ambassador for Bulgaria,” Ragin says.

How is the sector going to cope with the shortage of qualified staff?

“The first and most important thing is to raise salaries. I listened to the keynote speech by the European Commission’s new president Jean-Claude Juncker who said that the aim is to introduce a single minimum wage for the entire EU with the countries that are unable to provide this sum being assisted during the first years. It would be a wonderful thing if Brussels could do this and raise the living standard in Bulgaria a little, which would in turn mean keeping the staff inside the sector. Seasonal staff should requalify and work on the maintenance and renovation of facilities, as is the case in Spain for example. Our colleagues from Sunny Beach want Bulgarians from Bessarabia to be issued green cards – they are people who speak foreign languages, have graduated tourism in Moldova and Ukraine and want to work in the country of their ancestors. With more consensus, support and with the help of the media, I think we will be able to cope with this challenge,” says in conclusion Blagoy Ragin.

English version: Milena Daynova