Sofia, Bulgaria – Sofia is poised to implement a significant increase in its tourist tax, as reported by Bgtourism.bg.
The proposal, which emerged from a recent meeting of the Advisory Council on Tourism in the capital, marks the first adjustment in several years. Currently modest compared to other European cities, Sofia’s tourist tax has remained largely unchanged until now.
Unlike practices abroad where tourists pay this tax separately upon hotel check-in, Sofia’s system includes it in the accommodation fee, leading to a “tax on tax” situation for hoteliers. Despite this complexity, the city manages to collect over BGN 2.3 million annually from this levy.
The proposed update aims to adjust the tourist tax rates per night based on hotel ratings. For 5-star hotels, the rate will rise from BGN 1.20 to BGN 3, for 4-star hotels from BGN 1 to BGN 2.50, and for 3-star hotels from BGN 0.80 to BGN 2.
The rates for 2-star and 1-star accommodations are set to become BGN 1.50 and BGN 1, respectively. These adjustments are expected to take effect from January 1, 2025, following public consultation and subsequent reports to the Municipal Council.
Anton Penev, the new director of Municipal Enterprise “Tourism” in Sofia, emphasized the importance of ensuring that tourism-related revenues are utilized transparently for the benefit of tourism development.
Penev, an experienced tourism expert, plans to engage in information campaigns and meetings with hoteliers to foster better communication and collaboration towards enhancing Sofia’s appeal as a tourist destination.
“The increase in the tourist tax is a necessary step to align with European standards and to ensure that the revenue generated is used effectively for the development of our tourism infrastructure,” Penev stated.
He also highlighted that the additional funds would be channeled into improving tourist attractions, marketing campaigns, and overall city beautification projects to make Sofia a more attractive destination for international visitors.
Tourism statistics for the first half of the year reveal promising growth in Sofia, with a 6% increase in tourist arrivals compared to the same period in 2023 and a 4% rise in overnight stays. This positive trend underscores the city’s potential to become a more prominent player in the European tourism market.
The projected revenue from the tourist tax hike anticipates a substantial increase to approximately BGN 5.6 million annually, marking a significant boost in city revenues dedicated to tourism initiatives.
These funds are expected to play a crucial role in supporting the city’s ambitious plans to enhance its tourism offerings and improve the overall visitor experience.
Hoteliers in Sofia have expressed mixed reactions to the proposed tax increase. While some are concerned about the potential impact on hotel prices and competitiveness, others recognize the need for additional funding to support the city’s tourism infrastructure.
“We understand the need for higher taxes to improve the city’s tourism facilities,” said Nikolay Petrov, manager of a 4-star hotel in central Sofia. “However, it’s important that these funds are managed transparently and efficiently to truly benefit the sector.”
The proposed tax increase is set to undergo a period of public consultation before final approval. City officials are keen to hear feedback from residents and stakeholders to ensure that the changes are implemented in a manner that supports Sofia’s long-term tourism strategy.
As Sofia gears up for these changes, the city remains committed to enhancing its tourism appeal and ensuring that both visitors and residents can enjoy a vibrant, well-maintained urban environment.
The upcoming adjustments reflect a proactive approach to maintaining and boosting the city’s tourism revenues, positioning Sofia as a competitive destination in the European travel market.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members