Bulgarian hoteliers and restaurateurs seek more concessions for tourist sector

Bulgaria’s Prime Minister Boyko Borissov on May 11 met with representatives of the restaurant and hotel industry. The meeting was also attended by Deputy PM. Tomislav Donchev and Finance Minister, Vladislav Goranov.

Hoteliers and restaurant owners again demanded on a 5% reduction on VAT on basic foodstuffs and on the tourism sector to be introduced from 1 July till the end of 2021. After this timeframe, they want the VAT rate to be set at 9%.

Restaurateurs and hoteliers still want the restriction to have no tax obligations to apply under the 60/40 program to be lifted. (According to the 60/40 measure, the state will finance 60% of the insurable income of employees remaining on payroll during the coronavirus crisis if the employer contributes the remaining 40%).

Later in the day, the measures under which the tourist season in Bulgaria could start were also discussed. They hope that soon there will be clarity whether foreign tourist would be possible to come to the country and under what conditions.

Final decisions for restaurateurs and hoteliers will be made tomorrow at 09:00 again at a meeting with the Prime Minister.

It will then become clear which of the industry's proposals the government agrees with.

The chairman of the associations of restaurants in Bulgaria, Emil Kolarov, is adamant that the biggest problem in the industry continues to be the VAT rate. According to him, if there is no differentiated rate for the restaurants, they will not be able to get out of the crisis, because at the moment the profits are minimal due to the anti-epidemic measures.

Their biggest concern now is that if the number of people infected with COVID-19 rises, the restaurants will have to close again, and the owners have already invested in opening them.

Currently, the ambiguities are regarding the tourist season, because at the moment all European countries are still solving issues related to tourist travel between countries.

Richard Alibegov, President of the Association of Restaurants in Bulgaria: As far as we understand today, until July 13, tourists outside the EU are banned from entering Bulgaria, and how many people inside the EU will be willing to travel is still very questionable.

Atanas Dimitrov, deputy chairman of the Bulgarian Hotel and Restaurant Association: Attitudes towards the summer season are worrying because banks consider tourism an unpromising industry and have difficulties with lending. If the virus subsides, of course, there will be foreign tourists.

Emil Kolarov, chairman of the associations for restaurants in Bulgaria: I am interested in what will happen to these colleagues who opened their gardens, bought goods, hired staff. Originally we had to close with a very little advance notice, then to open again and now when they close us again, this will be the end of our business. The total end will be for the whole industry.

Hoteliers believe that they are already late with the preparation for the summer season and within two weeks it should be clear what will be the conditions under which hotels will be able to welcome tourists.

The Minister of Tourism Nikolina Angelkova also held a working meeting with representatives of the tourism industry. With the association "Future for Tourism" she discussed the proposal to extend to 12 months the period for reimbursement by tour operators due to cancellations of holidays during the coronavirus crisis.

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