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Tourism

Tourism is the fastest growing sector in the Bulgarian economy with excellent opportunities for foreign investment with high return on investment ratios. In 2000 privatization of almost 85 % of the assets in the tourist sector was completed. The number of foreign tourists grew, according to preliminary assessments, with more than 25%. Exceptional interest is expected in relatively new but promising fields like historical and culture tourism etc. The legislation provides good opportunities for investment in Greenfield projects, JVs etc. on the Black Sea coast and on mineral water resort sites. Tourism is one of the key sectors in Bulgaria due to the excellent geographical location, remarkably rich nature, diverse relief and moderate continental climate.

In the last years Bulgarian tourism has been advancing progressively. According to statistical data, the number of foreign tourists (excluding children up to 16 years old) that visited Bulgaria in 2001 is over 2.7 million which is a 17.6% increase in comparison to 2000. The number of foreign tourists who came to Bulgaria for the first nine months of 2002 only is 2.4 million. Tourism (international and domestic) has traditionally been our no. 1 export sector, accounting for about 13% of GDP in 2001.

Below we outline the reasons why shrewd investors are currently choosing to generate wealth and why Bulgaria is a great investment market in which to purchase property:

•Bulgaria is an exciting emerging market and currently offers property at prices simply un-obtainable in other areas of the world. With prices steadily rising and set to continue to do so for some time, wise property investment in Bulgaria promises excellent returns on investment. Purchasers are snapping up bargains now, with a view to enjoying excellent returns on investment in the near future.

•With an increase in tourism of 50% between 2000 and 2004, Bulgaria has established itself with the fastest growing tourist trade in Europe and this, in turn, is steadily driving property prices upwards. Tourism concentrates mainly on the Black Sea Coast resorts and increasingly popular ski locations and it is creating a very stable buy-to-let environment for investors.

•Bulgaria is a new member of the EU. Traditionally new EU countries experience steep increases in property values and tourism from other EU nations, and have upgraded their infrastructures and economic structures to EU standards.

•Bulgaria has come a long way since its former Communist days and today has a stable government committed to economic reform. Now a modern, strong and rapidly growing country, Bulgaria is recognized for its promise on the international market with GDP growth reaching the highest in Eastern Europe (Institute of International Finance) at 6% for 2005/2006.

•With warm weather and stunning blue flag beaches as well as beautiful countryside, and modern, vibrant cities Bulgaria has something to offer everyone.

•Close proximity to Europe and increased low cost airlines offering direct routes to Bulgaria from many UK and other European airports, make Bulgaria easily accessible and a viable property location for investors and property purchasers alike.

Economic Factors In Bulgaria

It is important to be fully aware of the economic climate of the country in which you plan to invest. Find out below why Bulgaria is offering an ideal investment environment.
Bulgaria, a former Communist country and a recent new member of the European Union, has experienced great recovery over recent years while the government is fully committed to further economic reform and fiscal planning.

•In 1997, macro-economic stability was reinforced by the imposition of a fixed exchange rate of the lev against the German Deutsch mark and the negotiation of an IMF standby agreement.

•Foreign property ownership legislation is in line with the rest of Europe, benefiting purchasers of investment property in Bulgaria. This will have a positive impact on prices in the future.

•Low inflation and steady progress on structural reforms have improved the business environment. Bulgaria has averaged 4% growth since 2000 and has attracted significant amounts of foreign direct investment, particularly in the property sector.

•Many large multinational corporations have established bases in the capital city of Sofia, including the likes of Porsche, Mitsubishi, Ernst & Young, Ericsson, Pricewaterhouse Coopers, Carlsberg and Johnson & Johnson, creating a strong demand for quality accommodation.

•Unemployment figures are down to an all time low at between 1 and 2%.

•As part of a 3 year agreement with the International Monetary Fund (IMF), Bulgaria received considerable financing to the tune of $860million towards stabilization of the economy, and a further $500 million from the World Bank for various other domestic projects, further strengthening the economic climate.

•Between 2007 and 2009 Bulgaria will receive 4.6 billion Euro from the EU, the highest amount ever for any accession country.

•Following considerable investment afforded Bulgaria during the late 1990s, the country has emerged as one of South Eastern Europe’s most robust economies, going way beyond expectations and moving ahead of other nations in this region.

•Figures released by the World Bank indicate GDP growth in Bulgaria averages at 4% today. This figure continues to grow and will certainly be the highest growth anywhere in Eastern Europe - significantly higher than, for example, Hungary, Poland and the Czech Republic, that are also undergoing economic reforms.

•The international community now views Bulgaria in a dramatically improved economic light and ever increasing numbers of property purchasers and investors are now doing business in Bulgaria.

•Efforts to reduce inflation have succeeded, as it now stands at close to 0%.

•The Bulgarian government is driving forward privatization plans at a great pace.

•The World Bank director for Bulgaria & Romania has now confidently proclaimed Bulgaria as “a good place for investment”, highlighting the fact that in just three years, the country has risen from being the World Bank’s lowest rated country in this Eastern region, to being the highest but one.

•Bulgaria property prices remain encouragingly low, making it a potentially lucrative investment property arena. A luxury 2 bedroom off-plan apartment in a key location fetches between 80,000 and 100,000 euros in 2007.

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