Deputy PM: We expect the vaccines to speed up the recovery of tourism

deputy expect vaccines speed recovery tourism

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16:58, 07.01.2021

We expect the tourism sector to rebound after the roll out of the vaccines against Covid-19. 2020 was a very unusual and difficult year, full of challenges and unknowns. But it also gave us a lot of lessons, and the business showed that it can adapt and to follow the new rules of work and regulations, Deputy Prime Minister and Minister of Tourism Mariana Nikolova said on January 7 in a meeting with business representatives in the coastal city of Varna. Ivan Portnih, mayor of Varna municipality, and Stoyan Pasev, district governor, took part in the discussion.

The minister informed that the first phase of the aid of 35 euros for a seat for receiving a state subsidy has been completed, as 34 tour operators, which use charter flights, have submitted applications for this support. Funds were paid to 20 companies, with a total amount of nearly BGN 3.5 million, she said

The implementation of the second phase of this measure starts on January 1 this year. The aid is for a tourist who arrived in Bulgaria in the period 01.01.2021–31.05.2021, and is in gross terms, ie. before deducting taxes or other charges. It will be implemented with the already approved but unspent funds, explained the Deputy Prime Minister.

An amendment to the Law on Measures and Actions during the State of Emergency was adopted in December, regulating the introduction of a new state aid measure and its implementation, the Deputy Prime Minister announced. He specified that the total value of this subsidy, which is granted from the national budget, amounts to BGN 51 million, with which we plan to help nearly 1,600 tour operators and travel agents.

The state aid is provided for tour operators and travel agents in the form of grants amounting to 4 percent of their turnover excluding VAT in 2019, which will have to be used as a priority to compensate for losses resulting from customers who have given up vouchers, as well as amounts withheld by service providers.

Regarding the tour guides, the Deputy Prime Minister informed that the Ministry of Tourism is ready to act on the already approved project for providing BGN 3 million under OPIC, and the necessary information is still expected to be provided by representatives of the guides and mountain guides. The plans are for the full documentation of the public procurement to be ready after January 22, which will be held to provide the funds. We expect by March 31, 2021. to start signing the contracts with the four organizations, and the implementation of the activities under the agreements to start in April, said Minister Nikolova.

Regarding the development of tourism in the region last year, according to ESTI statistics, 442 thousand tourists visited the municipality of Varna from the beginning of 2020 to the middle of December. Of these, 222 thousand are Bulgarians, 138 thousand are Romanians, over 19 thousand are visitors from Germany, and more than 17 thousand are from Poland.

BGN 3.5 million have been paid to tour operators for charter flights

In the summer season 2020, National Statistical Institute data in the district of Varna show that 425 thousand tourists spent the night in the accommodation establishments with 10 and more beds. The decrease of the tourists compared to the summer season 2019 is 54%. Despite the difficulties, however, there was a season, albeit a shorter one, with millions of Bulgarians choosing to relax in the summer months on the Bulgarian Black Sea coast, the deputy prime minister commented. She cited data from Fraport, according to which at the moment Varna Airport is expected to receive 4,960 charter and scheduled flights for the period May-October 2021. According to her, the reduction of flights compared to the same period of pre-crisis 2019 is about 11%, as from Germany it is 3% and from Great Britain is 6%.

2020 was an unprecedentedly difficult year and I hope that at the beginning of the summer we will enter a normal season, Mayor of Varna, Ivan Portnich commented. We have a lot of joint work ahead of us, I hope for a good partnership and good results at the end of the year.

District governor Pasev said that tourism is essential for the local economy, and this year the restart of the tourism industry is expected to be speeded up with the vaccination agaisnt the coronavirus. He thanked the Deputy Prime Minister for her work and pointed out that she is always sympathetic to the problems of business.

The representatives of the tourist sector raised the topic of the advertising of Bulgaria as tourist destination and the possibilities for encouraging the visits of Russian tourists. Their position is that it is necessary to look for ways to ease the visa regime. They warned that every day there are people who do not want to work and leave the industry. According to them, this will open a big hole in the sector. Without staff there is no way to have an industry.

The measure 60/40 was also touched upon in the discussion, commenting on some specific difficulties encountered when applying for it. The participants stressed that they hope it will last longer because it supports the work of the sector.

They also asked questions regarding the possibility of issuing holiday vouchers, which they say would contribute to the progress of the industry.