site.btaEU Visitors to Bulgaria Feel Like Kings at Expense of Low Wages in Tourism, Expert Says

Latest Eurostat figures, published on June 21, reconfirmed Bulgaria's image as a cheap destination for alcohol tourism, Rumen Draganov, Director of the Institute of Analysis and Assessment in Tourism, said in a BTA interview. Being inexpensive destination means depriving the tourism industry employees of the opportunity to receive normal European wages. This causes the crisis of some hotels not being able to open due to lack of staff, he said.

In Draganov's words, for Bulgaria, being first in lowest price levels for consumer goods in the EU means that this country is last in competitiveness in finding staff. "EU visitors to Bulgaria feel like kings at the expense of low wages and pensions in the tourism industry," the expert noted.

According to Eurostat, in 2021, the price levels in Bulgaria were lowest in the "restaurants and hotels" sector (46% of the EU average), "alcohol and tobacco" (64% of the EU average), while food and non-alcoholic beverages in Bulgaria were the third cheapest in Europe.

Draganov said that being a cheap tourist destination is not a compliment for Bulgaria, because this means Bulgaria earns the least of all countries in the EU, given the efforts this country puts to service a single tourist. In his words, Bulgaria reports an increase in the number of tourists but experiences serious difficulties in finding staff. “Being the cheapest destination means that we also have the lowest salaries in the tourism industry which is the reason for the lack of interest in the profession,” Draganov added.

“The chronic shortage of staff in Bulgarian tourism is some 20-25,000 people per year, given that the total number of employees in the industry and its related activities is around 320,000. There is a lack of young staff due to educational deficit, lack of tourism internships, apprenticeships, and lack of scholarships from the business as it has distanced itself from this system,” the tourism expert said.

This summer, the main problem in tourism is not inflation, the price of electricity or other goods, but the lack of employees, Draganov noted.

He warned that if the average salary in tourism industry in Bulgaria does not reach EUR 1,400 in 2025 there will be a total loss of interest in the profession. Currently, the average salary in the sector is BGN 1,100 (about EUR 560) and the employees are not guaranteed adequate social insurance and decent pensions. For years, the people who had been practicing this profession in Bulgaria have lived their old age miserably.

However, in order for employers to raise the wages, the income tax policy needs to be revised. The State collects more than 50% of workers’ salaries in the form of corporate income tax, insurances, and income tax. These taxes must be paid by the employee and the employer which means that a worker becomes too expensive for the employer even before the worker starts performing their duties, Draganov added.

He emphasized that in other European countries where jobs in the industry are better paid, insurance contributions and taxes are half the Bulgarian ones, meaning that the State should act to prevent outflow of staff and employers in tourism.