Informes Sectoriales OP - Icex

TOURISM AND RELATED SERVICES IN BULGARIA
Below is a brief SWOT analysis of Bulgaria’s tourism. Certainly, the perceived
strengths present opportunities for both domestic and incoming tourism, incl. from
Spain, and Spanish tour operators and tour agents, respectively. More interestingly,
most of the weaknesses present specific investment opportunities, e.g. Spanish companies
could participate in projects to improve the infrastructure, quality of facilities,
etc.
Among the opportunities, there is potential for high ROI as the Bulgarian tourism
market is far from (over)saturation. Forming joint ventures with local companies or
establishing other forms of co-operation may allow Spanish companies to apply for
some forms of EU funds.
Money from the grey economy may pose serious competition to foreign companies.
Also, the peculiarities of the local bureaucracy / administration still allow for corruption
practices, e.g. in issuing licenses.
Strengths
Weaknesses
♦ Picturesque scenery;
♦ Poor infrastructure;
♦ Rich cultural and historical heritage; ♦ Low quality of many hotels and other
♦ Generator of employment;
facilities;
♦ Dominant and increasing share of
private ownership;
♦ Scanty diversity of product and services;
♦ Tax and other incentives.
♦ Low qualification of the labor force;
♦ Lack of appropriate marketing policy;
♦ Poor architectural and engineering
solutions;
♦ Deterioration of ecological balance
(pollution, neglect for the environment
when developing tourist facilities).
Opportunities
Threats
♦ Potential for high return on investment
in short terms;
♦ Grey economy accounts for most of
the investments;
♦ Bulgaria’s forthcoming EU membership
and implementation of EU best
practices;
♦ Corruption in licensing;
♦ Opportunities for financing from
structural, pre-accession and cohesion
funds directly related to infrastructure
development.
Further below, there is a short description of major Bulgarian resorts that appear to
provide investment opportunities.
The town of Bansko in Pirin Mountain
Despite the progress made, there are some problems related to the infrastructure –
sewerage and water supply systems, the road and street network. In 2006, the local
municipality is ready to invest BGN 10 mln in infrastructure improvement but this is
just 1/5 of the needed amount.
Spanish Economic and Commercial Office of the Spanish Embassy in Sofia 83