Veselin Danev, chairman of the Bulgarian Hotel Association, highlighted a major issue in Bulgaria’s tourism sector: a significant decline in the workforce. Employment has dropped by nearly 20%, with the most noticeable decrease among younger workers, particularly those under 34 years old, where the reduction exceeds 30%. Danev also pointed out that high taxes on seasonal workers are making Bulgarian tourism less competitive compared to other European countries.

Danev criticized Bulgaria's taxation policy, noting that no other European country imposes such high taxes on seasonal labor. He compared Bulgaria’s system unfavorably to that of Germany, where seasonal workers are exempt from social security contributions and are not taxed on earnings below approximately 12,000 euros. As a result, many Bulgarians seek employment abroad, and Bulgaria imports workers from countries like India and Egypt to fill the labor gap.

The Black Sea Coast's Importance and Foreign Tourism Satisfaction

Despite these challenges, Danev emphasized that the Black Sea coast remains the cornerstone of Bulgaria’s tourism, contributing over 70% of the country’s total tourism revenue. Foreign visitors continue to choose Bulgaria’s Black Sea resorts, and Danev noted that efforts are being made to rebuild trust with local Bulgarian tourists.

Price Increases and Market Trends for the Summer 2025 Season

Meanwhile, Georgi Duchev, executive director of the Bulgarian Association of Hotel Management Professionals, revealed that around one-third of hotels in Bulgaria are planning price increases of up to 10% for the summer 2025 season, with some hotels that haven’t raised their prices in years potentially increasing rates by 20-30%. However, this will be an exception rather than the norm.

Bookings for holiday packages have already been made, with a strong growth anticipated from the German market. Duchev also pointed out that the Romanian market may see an increase in tourism, thanks to easier access resulting from Schengen agreements. He added that weather conditions will play a key role in the success of the season.

The Labor Shortage and Rising Salaries in the Hotel Industry

Duchev explained that both Bulgaria and Greece offer a range of services at different price points, but high-quality experiences cannot be provided at low prices. The shortage of skilled labor in major tourist markets is affecting pricing, as hotels must raise salaries to attract workers. In Bulgaria, positions like maids, receptionists, bartenders, cooks, and waiters are in high demand, and wages are rising to remain competitive. Duchev noted that the labor market is also influenced by social packages, including transportation, accommodation, and meals.

While Greece raised its prices significantly post-COVID, Bulgarian hoteliers have opted for more gradual price increases. Duchev also highlighted the availability of "ultra-inclusive" packages at some high-end Bulgarian Black Sea hotels, offering more luxurious options for tourists.

Strong Employment During Holiday Periods

Despite ongoing workforce issues, Bulgarian hoteliers saw good employment levels during the Easter holidays and are expecting another boost in early May.