Bulgaria’s tourism sector is grappling with a significant workforce decline, according to Veselin Danev, chairman of the Bulgarian Hotel Association.
Employment across the industry has fallen by nearly 20%, with a particularly steep drop of over 30% among workers under the age of 34.
Speaking at a recent forum, Danev emphasized that high taxes on seasonal workers are making Bulgaria less competitive compared to other European destinations.
Danev criticized the government’s taxation policy, pointing out that no other European country imposes such heavy taxes on seasonal labor.
He highlighted Germany’s approach, where seasonal workers are exempt from social security contributions and earnings under roughly 12,000 euros are not taxed.
In contrast, Bulgaria’s high taxes have led many young workers to seek employment abroad, leaving the country increasingly reliant on foreign workers from countries such as India and Egypt to fill the growing labor gap.
Despite these challenges, Danev stressed the continued importance of Bulgaria’s Black Sea coast, which generates more than 70% of the nation’s tourism revenue.
Foreign tourists still favor the Black Sea resorts, and efforts are underway to rebuild trust and attract more local Bulgarian visitors.
Looking ahead to the summer 2025 season, Georgi Duchev, executive director of the Bulgarian Association of Hotel Management Professionals, revealed that about one-third of Bulgarian hotels plan to increase their prices by up to 10%.
In some cases, where rates have remained unchanged for years, hotels might introduce price hikes of 20-30%, though Duchev noted that such steep increases would be rare.
Bookings for the summer season are already underway, with promising growth expected from the German market.
Duchev also expressed optimism about the Romanian market, anticipating a boost in tourism following Romania’s full accession to the Schengen Area, which has simplified travel logistics.
However, he cautioned that the overall success of the season will depend heavily on favorable weather conditions.
The hotel sector’s ongoing labor shortage is having a direct impact on pricing strategies. Duchev explained that both Bulgaria and neighboring Greece offer a broad range of services, but providing high-quality experiences inevitably demands higher costs.
With skilled positions such as maids, receptionists, bartenders, cooks, and waiters in high demand, salaries are steadily rising to stay competitive.
Duchev added that attractive social benefit packages, including transportation, accommodation, and meals, are becoming critical factors in recruiting and retaining staff.
While Greece sharply raised hotel prices following the COVID-19 pandemic, Bulgaria’s hoteliers have opted for more gradual increases.
Duchev also pointed to the growing popularity of “ultra-inclusive” packages at luxury hotels along the Black Sea coast, offering a more premium experience for discerning travelers.
Despite the mounting challenges, Bulgarian hotels reported strong employment levels during the Easter holidays and are anticipating another busy period around the early May celebrations.
Nevertheless, industry leaders warn that without addressing labor shortages and high taxation, the long-term competitiveness of Bulgaria’s tourism sector could be at risk.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members