"Future for Tourism" Association: “Bulgaria Has a 20% VAT Rate In Tourism and Nothing in Europe Can Be Equal To Us”

“Bulgaria has a 20% VAT rate in tourism and nothing in Europe can be equal to us,” said Pavlina Ilieva, Chair of the Board of the Association “Future for Tourism”, in an appearance on the programme The Day Begins on July 6.

Pavlina Ilieva, Chair of the Board of the Association “Future for Tourism”:

“Tourism depends on 11 ministries. Our first main problem is Dubai. Our two major markets – Ukraine and Russia – have not been present on our market for the third or fourth year already. Another major problem is the Israeli market, which is also absent. Three major markets are missing, and there is nothing with which to replace them. Another problem is comparisons. In order to compare two destinations, they must be placed under equal conditions. Bulgaria has a 20% VAT rate in tourism and from this point onwards nothing in Europe can be equal to us; we are comparing incomparable things.”

Ilieva clarified that VAT rates in other European countries range between 7% and 11%, and commented on the reasons leading to difficulties in the tourism sector:

“This year we have been hit by global problems which led to situations for which the business was not sufficiently prepared – entry into the eurozone – the currency conversion was a stressful situation, events in the Middle East and the war. Tightening of belts is one of the reasons.”