Bulgarian restaurateurs and hoteliers are forecasting widespread bankruptcies due to soaring electricity costs. The industry is calling for urgent intervention to prevent potential price hikes for goods and services.

Atanas Dimitrov, vice-president of the Bulgarian Hotel and Restaurant Association (BHRA), highlighted a troubling trend of sharp increases in electricity prices during the summer season over the past two years. He noted that the energy sector is particularly sensitive, with electricity costs having surged tenfold.

For example, a hotel with approximately 250 beds used to pay an average electricity bill of 10,000 leva before the recent price hikes. Now, the bill is expected to soar to between 110,000 and 120,000 leva. Dimitrov emphasized that electricity accounts for a significant portion of tourism expenses.

Despite these rising costs, Dimitrov believes there will be no immediate impact on guest reservations or bills. However, he urged the government to implement urgent compensation measures for the industry to ensure stability. He suggested considering a cap on electricity prices and implementing mandatory support if such a measure is approved.

The threat of bankruptcies is causing growing concern within the sector. Dimitrov mentioned that the industry is preparing for protests, with some regions ready to take action within days. He reiterated the call for the state to address the issue promptly to maintain sector stability and avoid further economic distress.