03 October 2007 Newsletter

Foreign tourist flow has grown by nearly 7%

The number of foreign visitors to Bulgaria for the period January - August 2007 has been nearly 4 million people, which is by 7% higher than 2006. This data has been provided by the State Agency of Tourism. Some growth has been accounted in the foreign tourism revenues for the same period, whose size of EUR 1.3 billion is by 16% higher, compared to 2006.

European tourists, who visited Bulgaria by the end of August, have been by 30% more, or nearly 3 million people. Among them Romanians hold the first position with 540 000 tourists, which is by 120% more, compared to the same period last year. (The so called 'luggage trade tourists' are included in this figure).

The second position of foreign visits to Bulgaria is held by Greek tourists with 502 000 people and a 30% growth.

The traditional tourist markets – Germany and Great Britain hold the 3rd and the 4th positions respectively. Bulgaria has been visited by 449 000 German tourists, which is by 12% more than last year; the number of British tourists has been 331 000, which is by 3% more than 2006 figures.

Official statistics show a tendency towards slight stabilization of the German market and stagnation of the British market.

Statistics about the expenses of Bulgarian tourists abroad show that over EUR 700 million has been spent by Bulgarian visitors abroad, which is by 15% more, compared to the same period of 2006.

The Russian market is an important factor for the prosperity of the Bulgarian tourist industry. There is an intense interest in a balneotherapy, SPA tourism and winter holidays in Bulgaria.

By Zornitsa Markova
Dnevnik Daily
24 September, 2007

Bulgaria should double productivity rate to reach EU average incomes

EU newcomer Bulgaria should maintain a productivity growth rate of 5% to reach the income levels of the other countries in the Union, suggested a World Bank report presented in Sofia on Monday.

"Bulgaria's productivity is now growing by 2% annually, the same as the rest of the EU. However, it needs to reach 5% by 2015 and maintain this figure until 2040," the report said.

To speed up the growth rate, Bulgaria needs to improve its education system, invest more in research and development, focus on those sectors where it has a competitive edge and keep its labour market progressing.

The Associated Press
25 September, 2007,

European commission approves 3 bulgarian operative programs

The European Commission has approved three of the seven operative programs of Bulgaria, the parliamentary information service reported. The programs are "Development of the Human Resources", "Administrative Capacity" and "Competitiveness".

At an official ceremony in Brussels on Wednesday night, Bulgaria's PM Sergey Stanishev and EU Commissioner on Regional Policy Danuta Huebner, signed the papers for the first "Competitiveness" operation program.

"It was highly important for the business, as in the next seven years Bulgaria will be able to absorb more than EUR 1 billion from the European Union", said PM Stanishev.

EU Commissioner Huebner expressed her satisfaction that Bulgaria is among the first countries, whose referential framework has been approved.

Sofia News Agency
28 September, 2007

Bulgaria and Romania strike on trade, banks and the property business

The two countries keep up high popularity with investors

Central Bank of Romania has accounted for EUR 3.4 billion of direct foreign investment for the first seven months of 2007, which is an 8.7% decrease on an yearly basis.

Bulgaria, by contrast, has accounted for a EUR 2.7 billion growth of direct foreign investment for the same period. This information has been published in the Romanian newspaper 'Business Standard' in the first of a series of 5 articles, concerning matters of economy in both countries.

According to data, provided by Economist Intelligence Unit, Bulgaria has been ranked 44th by the state of its investment environment, while Romania holds the 48th position.

Banking, trade and the property business will keep on being the key sectors in both economies. This year's net profit in the trade sector (supermarkets and malls) in Romania amounts to EUR 18 billion, while in Bulgaria it is twice as little.

In both countries the biggest share in this sector belongs to the traditional local shops. In both markets the leading position is held by the international giants Metro Group and Rewe Group.

Experts see a greater potential for growth with the Bulgarian market, as it is much smaller than the Romanian.

Among the EU countries, Bulgaria has accounted for the greatest growth in building construction (by 62.8% on an yearly basis) for the first six months of its EU membership, while Romania ranks 5th. However, property prices in Romania are twice as high as those in Bulgaria.

Profitability in the building construction business in Sofia is still higher than in Bucharest, as the market of commercial areas and office buildings is smaller and insufficiently developed.

The banking sector in Bulgaria is dominated by the three banks: Unicredit, DSK and the Bulgarian & American Credit Bank. They have generated a net profit of EUR 117.2 million for the first half of 2007.

Dnevnik Daily
24 September, 2007

30% of the tourists learn about Bulgaria from the Internet

More than one third (34%) of all tourists who visited Bulgaria over the first seven months of 2007 learned about the country from the Internet, State Agency for Tourism (SAT) research showed.

According to SAT head Anelia Kroushkova, the percentage showed that the agency should emphasize on promoting the country online.

The research also showed that the number of tourists who come to spend their vacations in Bulgaria and stay in their own apartments has increased.

A total of 3.1% of all tourists who came to Bulgaria this year owned property in the country; majority lead by the British, Kroushkova said.

Sofia Echo
27 September, 2007

Portuguese tourist arrivals on the rise

3,000 – 4,000 Portuguese are expected to vacation in Bulgaria till the end of this year, said local tour operators.

The national statistical institute counted 2,500 Portuguese tourists in H1, a 40% increase y/y.

Aerotravel, Alma Tour and Astral Holidays are among the Bulgarian tour operators that are most active on the Portuguese market. Most of the Portuguese bookings are made for tours around the country.

Tourist traffic in the opposite direction is still very weak due to the lack of regular flights between Sofia and Lisbon.

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19 September, 2007

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