Informal Sector in Bulgaria’s Tourism Estimated at 20-30%

Business » TOURISM | November 3, 2014, Monday // 13:00| Views: | Comments: 0
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Bulgaria: Informal Sector in Bulgaria’s Tourism Estimated at 20-30% Photo by BGNES

In ten years’ time, salaries in the tourism sector are expected to increase by a mere BGN 321, according to Preslav Dimitrov, Associate Professor and head of the Tourism Department at the South-West University “Neofit Rilski” in Blagoevgrad.

In an interview for the Bulgarian National Radio, Dimitrov comments on the second annual survey titled “Fighting poverty in Bulgaria” which is to be presented on Monday.

The survey examines, among other things, the role of tourism as one of the engines of economic growth.

“If we now have a salary of BGN 500-540, reported as maximum rates throughout the year, in ten years’ time we may expect salaries of around BGN 908, BGN 907 or BGN 890. The forecast is based on expectations that the economy will develop. This is not an optimistic trend by far,” he says.

He suggests that the informal sector in tourism is estimated at around 20-30%, the main reason being the presence of hidden cartel agreements between hoteliers on the salaries of their employees and the fact that a part of the employees are forced to rely on tips.

Dimitrov explains that revenues in Bulgaria are strongly dependent on the developments in Western Europe.

He insists that 83-90.7% of Bulgaria’s tourism industry depends on the GDP rates of Western European countries, adding that when the economies of these countries head downward, Bulgaria’s tourism industry experiences a sharp plunge, dragging down revenues in the country.

 

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Tags: tourism revenue, tourism sector, grey market, GDP growth, Western Europe
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