Bulgaria

Briefing Notes on Tourism Policy and Institutional Framework

Briefing Notes on Tourism Policy and Institutional Framework

 Briefing Notes on Tourism Policy and Institutional Framework

Bulgaria
1.1 General

1
Administrative
structure Bulgaria is a republic, with the President elected every 5 years for no longer
than two consecutive terms of office. The current president is Georgi Parvanov,
who took office in January 2002.

The Government (The Council of Ministers) is the main body of the executive
power, headed by the Prime Minister. The Council of Ministers rules and
conducts the internal and foreign policy of the state, secures public order and
national security and exercises control over public administration and the
military forces. In June 2005 general elections, no party received a clear
majority, and a coalition government was formed with Socialist Party leader
Sergei Stanishev as the new prime minister.

The municipality is the main administrative territorial unit for the local
government. The policy of every municipality is determined by the
Municipality Council and includes the economic development, the
environmental policy, the educational, the cultural, etc. activities. The
Municipality Council approves the annual budgets and development plans of
the corresponding municipality. Every municipality is ruled by a Mayor.

1.2 Tourism

Previously part of the Ministry of Economy, as part of the February 2005

Cabinet restructuring, tourism afterwards falls within the responsibility of the
newly established Ministry of Culture and Tourism under Minister Nina
Chilova. The Bulgarian Tourism Authority was the government agency for
tourism promotion. Now after government election in June 2005, the Tourist
Act was amended to transformation of the Bulgarian Tourism Authority to a
State Agency within the responsibility of the Council of Ministers. The Law
has been approved by the Parliament recently (10/11/2005) and it is expected to
come out soon. The new Agency will have appointed a new president.

The Ministry was a regulatory and policy-making function but a bottom up

approach to tourism development has been promoted through the
establishment of regional and local tourism offices which include
representatives from government, private sector and NGOs. The new Agency
will be the main regulatory body in the area of tourism.

Key tourism organisations Key tourism organisations include:

9 The Bulgarian Association of Travel Agents (BATA) – founded in 1992 to

assist, represent and protect the economic interests of travel agencies and
tour operators in Bulgaria. Regular members of BATA can be any Bulgarian
tour operators and/or travel-agents. Associated members of BATA are other
tourism-related entities. At present, the Association includes more than
250 members.

9 The Bulgarian Tourist Chamber (BTC) – a non-profit organisation that

brings together national, regional and local tourism organisations, hotels
and restaurants, tour operators and travel agents. Founded in March 1990,
BTC was the non-government tourist trade association in Bulgaria. One of

1
 the priorities of the Chamber is to actively cooperate with the Bulgarian
government in drafting tourism legislation in line with EU directives and
international practice.

9 Bulgarian Hotel and Restaurant Association (BHRA) – a non-profit

organisation which coordinates and encourages the development of private
hoteliers and restaurateurs. It is concerned with promotion of professional
ethics, capacity development and improved standards.

9 The National Hospitality Management Club (NHMC) – established by

owners and general managers of hotels and restaurants from all over
Bulgaria. Among the founders were leading hotels and hospitality related
companies such as The Sheraton Sofia Hotel Balkan, The Radisson SAS
Hotel Sofia, TourMarketing, Ltd, etc.

Regional trade In addition to these national level organisations there are five key regional trade
associations associations:

9 Pirin Tourism Forum

9 Tourism Association of Rhodopes
9 Burgas Tourism Association
9 Regional Tourism Association of Stara Planina
9 Varna Tourism Chamber

Specialist product-based Specialist product-based associations include:

associations
9 Bulgarian Association for Alternative Tourism (BAAT) – a non-profit
association, which assists the development of alternative types of tourism
– rural, agrarian, eco-, and mountain tourism; ornithology, religious, etc.

9 Bulgarian Association for Rural and Ecological Tourism (BARET) - a

non-profit association, whose tasks relate to the promotion of rural and
ecological tourism. The Association has developed the ‘Bulgarian eco-
paths’ national programme.

9 Bulgarian Association for Cultural, Ecological, and Rural Tourism

(BACERT) – a non-profit legal entity, which seeks to assist the
development of cultural, ecological, and rural tourism. Members of
BACERT are tourist agencies whose programmes in Bulgaria feature visits
to major cultural monuments and interesting natural sites, wine tours, spa
visits and so on.

2
2
Policy and 2.1 Tourism Specific
legislative
framework The legislative framework for tourism currently consists of:

9 the Tourism Act,

9 the Ordinance for Licensing of Tourism Activities, and
9 the Ordinance for Classification of Tourist Objects.

In addition, tourism has been recognised as a priority sector in most Regional

and District Development Plans (1999) and in the National Economic
Development Plan 2000-2006. While sustainable tourism is identified as a
policy objective, there is little clarity however on what this means in practice
and how to implement it.

Tourism Act However, the Tourism Act has been amended and entered into effect in April
2005 and the amendment was intended to:

(a) clearly define the entire diversity of tourism-related activities;

(b) define the tasks and responsibilities of the central and local
administration;
(c) formulate direct and indirect incentives for tourism development at
national and regional level;
(d) set clear rules for quality management in tourism corresponding to
European standards;
(e) create specialised bodies for marketing and quality standards.

Bulgaria is due to join the European Union in 2007. As such much activity in
recent years to adapt and harmonise Bulgarian legislation with EU directives
and policy.

The new Tourism Act will therefore be likely to further revision following
accession in 2007.

Charter of Bulgarian The National Assembly has also approved the development of a national
Tourism strategy for tourism development – the Charter of Bulgarian Tourism. It is
intended that this will:

9 outline the further separation of powers between central, regional and local
government and branch organisations in encouraging tourism
development;
9 define the geography of the future development of tourism;
9 define a policy on modernisation of the tourism industry through an
appropriate incentives structure, skills development, and marketing
strategy.

This is not yet, however, in draft format. Culture and Tourism Minister Nina
Chilova said in April 2005 that overall Bulgaria’s tourism policy emphasised
keeping up the pace in seaside and winter tourism, and developing and
marketing cultural tourism. A prime objective is continued privatization of
state-owned tourist facilities – although there have been criticisms of lack of
transparency in the privatization process and complicated investment
procedures.

3
 Ecotourism Although there is no formal tourism strategy as such, there is a national
ecotourism strategy. In 2002, the Ministry of Economy (MOE), the Ministry of
Environment and Waters (MOEW), and the Ministry of Agriculture and Forests
(MOAF) signed a Protocol for Cooperation for the field of ecotourism. And
subsequently developed a national ecotourism strategy and action plan
(NETSAP) – based on the Convention on Biological Diversity (CBD) Guidelines
for Activities Related to Sustainable Tourism and Biological Diversity.
http://www.ecotourism.bulgariatravel.org/.

2.2 Investment and Fiscal Policy

Investment and Fiscal The Bulgarian Constitution and Property Act provide that foreign nationals and
Policy foreign legal entities can acquire buildings and limited property rights (right of
use etc) but not direct ownership of land. To acquire land, foreign nationals
need to establish – or acquire a stake in – a company incorporated under
Bulgarian legislation, in compliance with the Law on Commerce.

The owner of a building or a plot is obliged to pay property tax. Where a

building is built on a State or municipal plot, the value of the plot will also be
included in the tax calculation. The tax is equal to 0.15% of the book value of
the property. In addition to the property tax, owners also pay waste-collection
fees.

Resident companies are also charged corporate tax on their total income; non-
resident companies pay tax on Bulgarian-source income only. Companies are
generally treated as resident when they are registered under Bulgarian law. A
flat rate of 15% applies as from January 1st 2005.

Every local or foreign person may own an unlimited number of accounts in any
currency, in any bank in Bulgaria. There are no restrictions on the repatriation
of earnings, capital, royalties or interest with regard to the foreign investments
and repatriation payments can be made freely.

4
3
Links to FTO
Preferred Code of
Practice

Number/Issue Bulgaria provisions

RT 01.01.01 – 04 Not destination specific

Responsible Tourism Policy

RT 01.01.05 There are a number of tourism associations in Bulgaria that UK TOs would be
Membership of community/ welcome to join. See Section 1.2 for details.
environmental group
There is no certification scheme specific to Bulgaria – but many of the existing
schemes would be appropriate.

RT 01.01.06 There are no Bulgarian laws or regulations specifically relating to tourist

Ensuring new infrastructure development. Important laws include the Foreign Investment
developments meet Law and various environmental laws. General planning provisions include:
regulatory requirements
9 Law for Urban and Land-use Planning (for urban and territorial
arrangement), (1973)
9 Law for the Administrative and Territorial Division, (1995)
9 Regulation no. 5 for construction norms and rules, (1995)

Development plans have been prepared for each region under the auspices of
the Ministry of Regional Development and Public Works.

At local level, municipal land-use plans prescribe requirements for tourism

development. In particular, special provisions are made for the Black Sea
coastal area which is divided into different zones – with different restrictions
applicable in each zone. Tourism developments in the Black Sea zone are
subject to EIA requirements.

A new law concerning Black Sea tourism is currently under development new
law, currently being prepared by the Ministry of Regional Development and
Public Works, only light, removable structures will be allowed on beaches. The
regulations set a deadline of a month for the removal of illegal structures. All
structures on sand dunes or surrounded by walls and fences are to be
considered illegal. The new law will also forbid all construction work from May
1 to October 15. Fines for those who violate the law are to vary between 5,000
and 10,000 leva. Construction permits will be given only if the necessary
infrastructure is available. This includes electricity and water supply and
sewage system. If this is not available, investors will be responsible for
financing such infrastructure.

RT 01.02 A new Energy strategy was developed and approved by the Parliament in July
Energy management 2002. Harmonised with EU energy policy, the strategy – and a new Energy Bill
(2003) – include clauses to promote the use of renewable energy sources and
improve energy efficiency as a means for increasing the competitiveness of
economy, the security of energy supply and environment protection.

RT 01.03 See above

Renewable Energy

5
 RT 01.04 Various pieces of legislation provide for water quality standards. All are
Water management currently being harmonised with EU directives including

9 Directive 2000/60/EC establishing a framework for Community action in

the field of water policy,
9 Directive 76/160/EEC concerning the quality of bathing water allow for
bathing water quality.

Waste collection fees are payable by all owners of land or buildings.

RT 01.05 Directive 91/271/EEC concerning urban waste-water treatment.

Waste water management

RT 01.06 Bulgaria is not known for its efficient waste management, but several
Solid waste management/ environmental groups have emerged to promote recycling. Both private citizens
recycling and large companies are being targeted by recycling campaigns, in hopes of
encouraging a ‘recycling culture’. The law on waste management was adopted
in September 2003 and a national waste management plan has been updated.
Existing landfills are being closed or upgraded. Regulations have been adopted
on batteries, waste oils, end-of-life vehicles and sewage sludge.

RT 01.06.11 A Law on protection against the harmful effects of chemicals entered into force
Responsible purchasing and in February 2000. Other laws on the management and control of substances
chemical management which deplete the ozone layer were published in January 2000. Bulgaria has
ratified the Rotterdam convention on certain hazardous chemicals and
pesticides in international trade, and the Cartagena Protocol on biosafety.
Legislation has been adopted on the import and export of certain dangerous
substances and on the risk assessment of new chemical substances. Legislation
has been adopted on biocides. Measures have also been taken concerning the
import and export of dangerous chemical substances.

RT01.07 Bulgarian National Parks are managed in accordance with the Protected Areas
Nature conservation and Act (1998). The Act specifies that National Parks are managed with the
biodiversity following goals:

9 Conserve biodiversity and protect wildlife,

9 Develop educational and scientific activities,
9 Promote rest and recreation, and
9 Increase local community welfare without harming the natural habitat.

The Ministry of the Environment and Waters manages the protected area
systems. Each National Park is managed by a regional body of the Ministry – a
National Park Directorate. Activities within the National Parks are coordinated
with international and national environmental legislation including:

9 The Environmental Protection Act (2002) provides a framework for the

overall environmental legislation and is also a guiding document for the
National Park Directorates.
9 The Biological Diversity Act (2002), the Medicinal Plants Act (2000), the
Hunting and Game Protection Act (2000), and the Fishing and Aqua-
Cultures Act (2001) treat, in detail, important elements of the environment.
9 The National Strategy for Biological Diversity Conservation, was the first
for Europe and the second in the world. Combined with the National Action
Plan for Biological Diversity Conservation, these are key documents for the
State and guided donor activities and investments within the national
parks.
9 The Regulation for Assigning of Activities in Protected Areas that are
Exclusive Property of the State and the Public Procurement Act.

The National Park Directorates maintain the tourist infrastructure, together

with the Bulgarian Tourist Union. They develop safety and behavior rules, and
work together with the Mountain Rescue Service to ensure visitor safety. The

6
 National Park Directorates also develop and maintain the tourist routes.
The management plans for the Rila and Central Balkan Parks provide for
improvements to tourist infrastructure including rest and recreation areas;
scenic lookouts; interpretation; and safety facilities. The Central Balkan
Ecotourism Association, Kalofer, and Rila Ecotourism Associations offer:

9 Reservations for hotels, activities and transport;

9 Detailed information about tourist services;
9 National Park tours and mountain guides; and
9 Visits to ethnographic, cultural and historic landmarks.

Opportunities for investment in hunting tourism, horse and dog-breeding for

fox hunting were high on the agenda of a meeting in September 05 between
Deputy Agriculture Minister Stefan Yuroukov and a UK delegation.

RT01.08 Bulgaria has ratified the European Social Charter (revised) of the Council of
Employee relations Europe. Labour relations in Bulgaria are governed by the provisions of the
Bulgarian Labour Code The LC establishes the minimum standards and
requirements that must be observed by either party to a labour agreement.
Furthermore, if the provisions of an individual labour contract are less
favourable for employees than the provisions of the LC, the latter shall apply by
virtue of law. Over the last two years, the Labour Code has been amended to
address labour market concerns and to bring labour legislation into compliance
with EU social policy and employment requirements. Minimum wage is
currently BGL 150 per month (as of January 05).

Bulgarian workers are free to join trade union movements.

RT 01.09 National Parks demonstrate a preference for local contractors. They hire local
Using local goods and businesses to produce goods and deliver services. An ecotourism component of
services each Park’s activities focuses on supporting local business opportunities within
the Parks: promoting the tourist experience and capitalizing on local foods,
events, crafts, and hospitality.

The National Sustainable Development Strategy also prioritises support to

small enterprises.

RT 01.10 See above

Benefiting communities and The Penal Code includes provisions for protecting children against sex tourism
vulnerable groups – including penalties of up to 20 years imprisonment.

RT 01.11 Not destination specific

Nurturing understanding

7
4
Directory

1. Ministry of Culture and Tourism 9. Tourism Association of Rhodopes

17 Al. Stamboliyski Blvd 14 Bulgaria Blvd
1040 Sofia Smolyan 4700
Tel: +359 2 - 940 76 38 / 74 69 / 73 22
Fax: +359 2 - 988 55 32
www.bulgariatravel.org 10. Burgas Tourism Association
Email: info@bulgariatravel.org 5b Tzar Peter St,
Burgas 8000
2. Ministry of Environment and Water Tel: 056 841 966,
67 William Gladstone str brta@abv.bg
1000 Sofia
Tel: +359 2 940 6222, +359 2 981 13 85 11. Regional Tourism Association of Stara Planina
Fax: +359 2 986 25 33 4 Raicho Krolve Str
Gabrovo 5300
3. Central Balkan National Park Directorate Office Tel: 066 3 61 90
Tel: +359 48 937838; +359 66 801277;
+359 48 761283; +359 48 905732 12. Varna Tourism Chamber
25 M Koloni Str
4. Bulgarian Tourism Authority Varna 9000
1 St. Sv.Nedelia vtk@tourexpo.bg
Sofia 1000
Bulgaria
Tel: + 359 2 987 97 78, CONTACT FOR UPDATES:
Fax: + 359 2 989 69 39 Hristina Beeva
info@bulgariatravel.org Bulgarian Tourism Authority
www.bulgariatravel.org
5. Bulgarian Association of Travel Agents Tel: +359 2 933 5811
6 Triadiza Str Fax: +359 2 989 6939
1000 Sofia Mobile: +359 8 972 844 93
Tel: +359 2 981 55 53;
Tel/Fax: +359 2 981 58 11
bata@batabg.org, bata@mail.orbitel.bg

6. Bulgarian Tourism Chamber

8 Sveta Sofia str
1000 Sofia
Tel: 00359 2 987 4059 Fax: 00359 2 986 5133
www.btch.org
Tonchev@btch.org

7. Bulgarian Hotel and Restaurant Association

5-B, Triaditza St, 1st floor
1000 Sofia
Tel/Fax: 00359 2 987 65 86
bhra_office@abv.bg

8. Pirin Tourism Forum

PO Box 454,
Blagoevgrad 2700
Tel: 073 3 67 95,
ptf@pirin-tourism.bg

8
These destination briefing notes are sponsored by
The Travel Foundation – an independent UK charity that aims to
help the outbound travel industry manage tourism more
sustainably.

The Travel Foundation

The CREATE Centre
Smeaton Road
Bristol
BS1 6XN

T: 0117 9273049
F: 0117 9300076
E: admin@thetravelfoundation.org.uk
http://www.thetravelfoundation.org.uk