Bulgaria Tourism and Real Estate Primary Investors' Targets - Report

Business | February 10, 2008, Sunday // 00:00

The InvestBulgaria Agency (IBA) announced that Bulgaria's tourism and real estate sectors attracted the greatest share of foreign direct investments of all sectors in 2007.

According to the preliminary report of the IBA, the foreign direct investments in January-November 2007 reached about EUR 5,05 billion which is a 20% increase from the same period in 2006. This figure is 17,7% of the country's GDP.

The IBA stated that the improvements of the business climate in the country were related primarily to the reduction of the earnings tax, which is now down to 10%, and of the social security tax.

The largest foreign investors in Bulgaria in 2007 are reported to be the UK, Austria, Greece, Belgium, Spain, Cyprus, and Luxembourg.

The IBA report says, however, that the fact that about 60% of the foreign investments had been directed to tourism and real estate business was an expression of an upsetting imbalance. It stressed that the government needed to step up its efforts to attract more investors in the manufacturing sector in contrast to the popular commerce and services sectors, which provide fastest returns.

The priority sectors for the Bulgarian government in 2008 are said to be banking, software development, industry, renewable energy sources, health care, and education.

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