Travel Reference
In-Depth Information
tourism development will boost the local eco-
nomy, or will rely upon EU assistance, or, more
likely, will result in a combination of both of
these characteristics.
In December 1999, Bulgaria started the
process of conforming to EU membership re-
quirements. This was a clear signal to European
business communities about investment oppor-
tunities in Bulgaria and in its tourism industry.
The volume of foreign investment for construc-
tion and the upgrading of tourism facilities
promptly increased. Foreign banks, tour opera-
tors and hotel chains have shown interest and
started various projects and ventures jointly
with local partners. In the context of economic
growth and the creation of jobs, foreign invest-
ment plays a crucial role in the country's coastal
region, the larger cities and mountain resorts. In
the 1970s Bulgaria came to rely on Western
expertise in coastal and mountain resorts and
later in the urban hotels constructed or man-
aged jointly with Western hotel chains.
In the ski resorts most technical equipment
is imported from France and Austria, while in
the coastal resorts the know-how and ideas
reflect German, Greek and British experience.
Accession to the EU will provide more opportu-
nities for such investment.
Bulgarian property attracts buyers who
acquire property in city centre areas and coastal
resorts to let for profit, and in some cases rural
property is bought with the aim of modernizing
and selling at a profit. Apart from representa-
tives of the banks, large tour operators and hotel
chains, smaller speculators include all ages
and income groups. Although land and pro-
perty in Bulgaria is much cheaper than in EU
member states, prices are rising rapidly due to
both external and internal pressures. Even in
remote villages prices have risen considerably.
The appearance of foreign speculators has
contributed substantially to this rise and its
geographical differentiation.
Many foreigners have already purchased
property (factories, houses, hotels, restaurants)
and the number of transactions has risen drama-
tically since 2000. For instance, many Greek and
British nationals have bought houses as well as
land on the Black Sea coast and in some moun-
tain areas in the interior - Rhodope, Pirin and
Central Stara Planina (Balkan). For example, the
author was told in the village Galata near Varna
that during 2004, foreign buyers caused an
increase in the price of property from
€
7to
€
20
per m
2
,
while in the ski resort of Bansko the price
rose from
€
40 to
€
70 in the same year (Dnevnik,
2005). Overall, during 2004 prices in the second
home property market in Bulgaria have risen by
35%, and a growth of 25% was expected for
2005 and 2006. In 2004, the price of building
lots at coastal resorts started at
€
35,000 (from
www.netinfo.bg,
2005). In rural areas, prices of
plots with old houses differ substantially, but
normally do not exceed
€
30,000. Here the
highest prices reported are associated with the
mountain resorts.
Bulgaria is still in the initial stage of its
host-guest relationship cycle of behaviour, and
local populations appear to be on good terms
with foreigners. It is not premature to say that
tourism has benefited host communities in
terms of improved infrastructures and higher
service standards. A political dividend has also
been recognized: during the first free elections
in the 1990s, voters living in the tourist regions
massively supported pro-Western and market-
oriented political parties. Anecdotal evidence
suggests that foreign home owners appreciate
the friendly attitude of local populations and
their Bulgarian neighbours, although at the
Second homes and foreign ownership
Bulgaria has liberalized its property law and
amendments are being prepared to allow direct
purchase of land by citizens of EU states, as well
as the building and reconstruction of existing
premises. Foreigners will be able to buy land
from the moment of accession. At present the
direct purchase of land by foreigners is not
allowed, but in practice many own land and
other property through intermediary companies
set up jointly with a Bulgarian citizen, or con-
tract the use of land through specialized agen-
cies. As a result, many foreigners already have
access to land and property as prices and costs
are much lower than in the country of origin. In
order to meet the demand, British banks have
included Bulgaria on the list of countries where
a loan is available for buying property. In fact,
in many places Britons, Greeks, Russians, and
smaller numbers of Scandinavians, Dutch and
Germans have bought or rented property.
