Tourism in Bulgaria experienced a significant drop in workforce numbers during the peak summer season, according to the latest data from the National Statistical Institute (NSI).
The sector saw an 11.5% reduction in employees compared to the previous quarter, while the overall economy experienced a smaller decrease of just 1%.
This decline in tourism employment, however, stands in contrast to the sector’s financial performance, which showed positive growth signs.
Despite the contraction in workforce size, tourism salaries rose significantly in the past year, with the average gross wage increasing by 18.2% to BGN 1,495.
While this was the highest rate of wage growth among various industries, it also remains the lowest average salary when compared to other sectors.
The disparity between rising wages and workforce reductions raises questions about the sector’s ability to attract and retain employees, particularly given the challenges posed by a global economic environment marked by rising inflation.
In terms of financial performance, the tourism sector demonstrated notable resilience. September saw a substantial 14.8% increase in revenue from overnight stays, reaching a total of BGN 249.7 million.
Foreign tourists contributed BGN 157.1 million of this total, underscoring the sector’s dependence on international visitors. Despite this growth, revenues from foreign tourists still fell slightly short of pre-pandemic figures.
In September 2019, before the pandemic disrupted global travel, revenues from foreign tourists totaled BGN 166.7 million. Inflation has been a contributing factor to this discrepancy, reducing the purchasing power of foreign visitors compared to previous years.
Hotel occupancy rates also improved in September, reaching 34.1%, a 2.4 percentage point increase from the same month in 2023.
The highest demand was seen in luxury accommodations, particularly 4- and 5-star hotels, which reported a much higher occupancy rate of 44.9%.
These hotels cater predominantly to foreign guests, indicating that international tourism remains a significant driver of the country’s tourism economy.
The number of overnight stays in hotels grew by 1.4% overall, supported by a 2.6% rise in stays by foreign guests. Stays by Bulgarian tourists saw a more modest increase of 0.4%.
This suggests that while domestic tourism continues to contribute to the sector’s performance, international visitors are the main contributors to the overall growth.
Tourism professionals in Bulgaria are hoping that the sector’s strong financial results will offset the challenges posed by the workforce reduction.
Industry experts suggest that while the country’s tourism sector is showing signs of recovery and growth, a continued focus on enhancing the appeal of Bulgarian destinations to foreign visitors and addressing employment challenges will be crucial for sustained success.
The reduction in the tourism workforce highlights an ongoing struggle to balance demand for services with the availability of skilled labor.
While wages have increased, the sector may need to explore further incentives to retain workers and attract new talent to ensure its future growth.
The challenge of maintaining a stable workforce amid rising living costs and competitive employment opportunities across other industries could become a defining issue for Bulgaria’s tourism in the coming years.
As Bulgaria’s tourism industry continues to recover, its financial growth offers hope for the sector’s future, though sustained attention to workforce dynamics will be necessary to ensure long-term stability.