Bulgaria has been presented at 100 international tourism exhibitions over 2 years, says the report on the institution’s operations

REPORT OF THE MINISTRY OF TOURISM ON THE IMPLEMENTATION PLAN OF THE GOVERNMENT’S 2014-2018 PROGRAM FOR SUSTAINABLE DEVELOPMENT OF REPUBLIC OF BULGARIA

COVERING THE PERIOD OF 07.11.2014 – 07.11.2016

SUMMARY OF THE RESULTS ACHIEVED

Clear priorities were formulated in the tourism sector on central government level

• For the first time ever the tourism sector has been identified as a government priority. Even if the sector is crucial to the Bulgarian economy – generating some 13% of the GDP and providing employment to over 300 000, it is the first time ever that there is a standalone Ministry with clear objectives, vision, and strategic plan.
• Due to coordination actions, 2016 is a record-breaking year in the history of Bulgarian tourism. Data covering the year’s first nine months indicate that Bulgaria has welcomed nearly 7 mil. international tourists. The psychological boundary of 8 mil. international tourists is expected to be passed until the year’s end.
• For the first nine months of this year, the Bulgarians opting to spend their vacation in Bulgaria have been nearly 2,9 mil. (2 874 441).
• The total number of both Bulgarian and international tourists is expected to exceed 11 mil. until the year’s end.
• According to Eurostat data, for the first 6 months of 2016 the total number of night-stays achieved (foreigners + Bulgarians) in our country was 8 mil., an over 18% growth on 2015. This ranks our country first in terms of growth in night-stays among the 27 European countries for which Eurostat has received and published data.
• Revenues from international tourism to the payment balance’s current account amount to BGN 4.7 bln. for the first eight months of 2016, meaning that during the period of January-August 2016 revenues from international tourism were BGN 621 mil. higher compared to the same period of last year, which is a 15% growth.

The manner of advertising Bulgaria as a tourism destination was completely changed.

• For the first time ever the country’s marketing strategy was planned and discussed with businesses in the industry half a year prior to implementation. Owing to this, our summer tourism product is advertised during winter, with the winter product being advertised during summer, as is the case in all advanced countries. A new, uniform vision was established for all advertising stands used to present Bulgaria at nearly 100 international tourism exchanges in 2 years.
• Bulgaria’s advertising in 2015 was targeted and pinpointed. The main activities were the direct forms of advertising – partnership with tour operators, online marketing, and participation in forums and exchanges. The results are there to see in 2016 – Bulgaria is now seeing off its best ever summer season. During the period of April–September the country welcomed over 5 mil. international tourists.
• Bulgaria was presented as an attractive tourism destination on CNN, an advertising campaign was carried out on Eurosport, Euronews, Discovery Channel, National Geographic.
• Bulgaria is positioned as a destination for higher-end tourists. The Saudi Arabia prince Sultan al Saud visited our country to explore the investment opportunities. One of the world’s biggest hotel chains, Hyatt, is entering Bulgaria with a high-category hotel in Sofia’s central area. Interest has also been registered by other large-scale chains, such as Four Seasons, Jumeira, and others.
• We succeeded in returning the Russian tourists to Bulgaria. A number of initiatives were implemented with Russia – the head of the Federal Tourism Agency came to Bulgaria for the first time in over 5 years, business forums were organized in both countries.
• For the first time in over 27 years a Bulgarian Minister, being the Minister of Tourism, had the opportunity to address the Russian Duma.
• Owing to such active dialogue, a circa 40% growth in Russian tourists was achieved, against the backdrop of declining Russian travel overseas – according to stats of the Russian Tourism Industry Council, their number during H1 of 2016 declined by 28% compared to 2015.

A number of crucial statutory and strategic documents were elaborated

• The statutory framework for the sector’s operation was elaborated. When the Ministry of Tourism was established none of the ordinances to the Tourism Act was put to paper. Presently, all of the secondary legislation has either been adopted or is undergoing coordination. It includes, inter alia, exceptionally important documents such the ordinance on the categorization of accommodation facilities and dining locations; the ordinance on the spa centre (introducing for the first time a regulation in this sub-sector); the ordinance on ski track safety, etc.
• Steps were taken to deal with the shadow economy in the sector via introduction of an effective control system. Already in place are the amendments to the Tourism Act, which regulate the operation of the Single Tourism Information System (STIS), which will enable the real-time exchange of data via protected channels among the Ministry of Tourism, NRA (the National Revenue Agency), MoI (Ministry of Interior), Municipalities, and hotel reception desks. The sector will thus be brought into the open without violating personal privacy.
• A strategic map for the sustainable development of tourism in Bulgaria was developed. The expertise of JASPERS consultants was used to update the National Strategy for Sustainable Development of Tourism in Bulgaria. Work is going on in close cooperation with a team, which used to partner with Robert Kaplan.
• Work began on a number of key issues, which have stayed out of institutional attention over the years:
• A task group was set up to identify legislative measures in promotion of mountain tourism. It involves representatives from all stakeholders– Municipalities, environmentalists, resorts, and businesses.
• A task group was set up to elaborate rules on camping in a way ensuring the sustainable development of ecotourism in Bulgaria.
• An Interdepartmental Council on Tourism Staff was set up.
• Bulgarian producers signed an agreement with hoteliers and restaurateurs for the latter to offer in their facilities food certified under the Bulgarian National Standard. It is also the first step towards elaboration of a Voluntary Quality Etiquette in catering and accommodation facilities.
• The amendments to the Tourism Act, which are currently undergoing public discussion, are finished and will be introduced as a bill in the Parliament until the year’s end. The main highlights are:
• Regulation on national-scale resorts;
• Establishment of a tourism inspectorate;
• Further guarantees for user rights in organized trips via tour operators;
• Targeted funding of Municipal tourism development programs;
• Regulation on camping;
• Measures to promote mountain tourism, etc.

Order and effective control were introduced in the sector

• Categorized tourism facilities with issued category certificates for accommodation facilities and catering & entertainment locations, tourist huts, and appertaining catering locations – 1326.
• On-site inspections performed by expert task groups under the Categorization Ordinance during the period of November 2014 - November 2016 – 1243.
• certification of tourism facilities – medical spa, spa & wellness centres:
• accepted certification applications for tourism facilities – 111;
• on-site inspections performed by expert task groups at a total of 36 locations;
• registrations of tour operators and travel agents during the period of November 2014 – November 2016 – 295.
• tourism associations registered during the period of November 2014 – November 2016 – 23 associations/, total associations presently registered in the NTR - 167;
• Recognition of legal capacity of guides:
  • Applications filed – 1196 persons;
  • registered in the NTR - 866 persons.
• Recognition of legal capacity of mountain guides - applications filed by 310 persons, presently being processed.
• Ski tracks categorized by the Committee for determination of the ski track type and safety – 52 at 3 different resort complexes;

The mode of management of sea beaches was changed

• At the start of 2016 management of sea beaches passed over to the Ministry of Tourism.
• Prior to commencement of the active summer season, a number of procedures to let beach strips were held. Owing to this, much higher revenue levels were reported for 2016 from the sea beaches lease contracts. In 2016 they exceeded the 2015 revenues by BGN 1,6 mil., with their overall amount being over BGN 5 mil.
• Over BGN 3.8 mil. have also been already collected from beach concessions. A second payment under those contracts is forthcoming in November, with the total amount of proceeds expected to exceed BGN 11 mil.
• Control was the major priority during Summer‘2016, with a special hotline and e-mail having been set up for people to report any irregularities at the beaches, which a mobile control group was at the Black Sea coast throughout the summer season. As a result, over 300 signals were received and over 450 on-site inspections were performed. Over BGN 240 000 in penalties were imposed, with new sanction notification letters being sent even now.
• A base price for 1 umbrella and 1 deck chair is now set forth for the new concessions of sea beaches, ranging between BGN 2 – 4, depending on the beach strip specifics. These requirements were introduced via an amendment to the Methodology for Determining the Concession Payment’s Minimum Amount, as adopted by the CoM.
• The first 8 concession procedures for sea beaches under the new rules are already in process. 60 more beach strips are currently in the analysis stage for the opening of concession procedures.
• Amendments to the Black Sea Cost Spatial Planning Act were prepared. These envisage definition of four major groups of sea beaches:
• Group I - Sea beaches located in urbanized territories;
• Group II - Sea beaches located in non-urbanized territories in proximity to a tourism destination, including urbanized territories and/or campsites;
• Group III - Sea beaches located in non-urbanized territories, remote from a tourism destination, including urbanized territories and/or campsites;
• Group IV - Sea beaches of limited use or purposed for the development of niche type of tourism.
• The separation of sea beaches into groups will be performed based on a minimum set of impartial criteria. These include the sea beach’s geographic position; extent of urbanization in the territories adjacent to the sea beach, nature, weather, and environment characteristics, proximity to tourism destinations. For the first groups establishment of relevant subgroups is also suggested in order to make the separation even more in-depth. All of the above will result in the beaches being managed more effectively and in the end customer’s service being improved. Work is carried out to further elaborate and fine-tune the differentiation in a separate ordinance to the Act.
• An internet module was developed, enabling any tourist to check online the price of umbrellas and deck chairs at Bulgarian beaches.

Bulgaria is actively presented as a tourism investment location

• An investment map for tourism was elaborated. The purpose is to put together all crucial projects in the sector in order to present them to would-be investors.
• Steps were taken to promote public-private partnership in the tourism sector. An advertising video with no national budget funding was created featuring some of Hollywood’s biggest stars sharing their personal impressions from Bulgaria. Agreements were signed with international companies based on which information centres for the country are now operating in Japan and Saudi Arabia, at no cost to the national budget.

Ministry’s policy has turned to Bulgarians as the most important tourist market

• 8 cultural-historical destinations were created, covering the entire country’s territory. The destinations bring together over 150 sites in over 70 settlements. Thus, tourists will be kept longer in the regions to generate economic growth and open new jobs. Interactive maps have been published online.
• The Concept for Tourism Zoning of the country was elaborated jointly with Municipalities.
• An online Registry of Tourist Attractions was created, bringing together 3 300 sites and registering over 5 mil. visits in 1 year.
• A number of campaigns were carried out to promote domestic tourism, a billboard campaign was carried out jointly with Municipalities. As a result, a nearly 10% growth was registered in domestic tourism during the period of January-August 2016, compared to 2015.

Attention has turned to small and medium businesses

• In less than two years over 100 meetings were organized and held with representatives of businesses in the various regions. Issues and challenges facing the sector were discussed, with some of the proposals being incorporated into the Ministry’s statutory documents.

Bulgaria is positioning itself as one of the most active members of the World Tourism Organization (WTO) and leading country in the tourism sector within the Danube region

• Our country was selected to be Vice President of WTO’s 21^st General Assembly. The holding of the International Congress on World Civilizations and Creative Tourism in Sofia is being jointly prepared with WTO, with over 150 ministers and leading scientists from across the globe having been invited.
• Russe became a coordination centre for tourism projects for all 14 countries in the Danube region. A Bulgarian-Romanian Technical Secretariat was established in the Danubian city under Priority Axis 3 of the Danube Strategy, which covers tourism and culture. The unit supports and coordinates activities in this sphere for the entire region.
• Active work is carried out to develop cross-border cooperation and create joint tourism products. A bilateral Bulgaria - Romania task group was set up. Joint projects with Croatia, Serbia, Turkey, and Greece are being prepared.
• Cooperation agreements were signed with China, Romania, Greece, Azerbaijan, Russia, Portugal, Argentina, Cyprus, and Saudi Arabia.

Work on EU programs and projects was accelerated

• 3 projects with EU funding totally worth BGN 17 mil. were implemented in 2015, a significant share of the funds being invested to advertise the country – the campaign to promote domestic tourism and to advertise Bulgaria on Discovery, Eurosport, Euronews, and National Geographic.
• In 2016 the Ministry elaborated and applied with projects totally worth in excess of BGN 16mil. in various EU level programs.