site.btaBulgaria’s Eurozone Accession: Tourism Leaders Discuss Impacts and Opportunities

The National Board of Tourism (NBT) Tuesday held a discussion on Bulgarian tourism and implications for it from Bulgaria's accession to the euro area. The forum was organized under the patronage of the Minister of Tourism Miroslav Borshosh and with the institutional partnership of his Ministry.

The participants looked at the effects of the forthcoming change in the operational work of the tourism sector, as well as the potential benefits of Bulgaria's accession to the euro zone and the introduction of the euro as the main currency of payment as a factor for increasing the competitiveness of Bulgarian tourism.

Among the attendees were Tourism Minister Miroslav Borshosh, Bulgarian National Bank Deputy Governor Todor Chobanov and Economic, Social Council Chairperson Zornitsa Rusinova and Petya Dimitrova, Chairwoman of the Executive Board of the Association of Banks in Bulgaria, among others.

Tourism Minister Borshosh said in his remarks that Bulgaria is behind schedule in implementing its information campaign for the euro changeover, and "months and years have been wasted". He also said that "populism has been one of the biggest employers" in Bulgaria in recent years and that the entry in the eurozone is frequently attacked "with inadequate arguments which lean more toward excessive emotionality rather than realism".

Bulgarian National Bank (BNB) Deputy Governor Petar Chobanov argued that membership in the euro area will provide a number of opportunities, but it is up to Bulgaria to take advantage of them. The BNB deputy governor advised business representatives not to look in the direction of price increases as this could affect inflation, which is one of the criteria for eurozone membership.

Polina Karastoyanova, the head of the National Tourism Board, reiterated that eurozone entry is the Number One priority for the government and would be a major change for the Bulgarian society and economy. "We believe firmly that it will be a key factor for improving the competitiveness of the Bulgarian tourist products," she said. 

Nikolay Valkanov, a member of the Board of Directors of the National Tourism Board, said that businesses are fully prepared and eager to join the euro area. "Businesses have been prepared to operate in euros for a long time; in practice, we are already doing it," Valkanov said, recalling that the tourism sector has in the past conducted business in Deutsche Marks, US dollars, and euros. He noted that a large share of the sector’s activity now involves partners in Europe and worldwide, where the euro is the principal currency.

Deputy Finance Minister Metodi Metodiev pointed out that one of the positive effects of eurozone membership will be to improve the quality of work of its institutions in Bulgaria. In Metodiev's words, the conversation on Bulgaria's eurozone membership should be shifted away from the debate on the benefits and costs of adopting the euro, as academic literature and empirical analyses clearly show that the benefits are much greater than the potential costs.

Economic and Social Council Chair Zornitsa Rusinova said that all sectors, especially the tourism sector, will benefit directly from joining the euro area. According to her, the euro area will catalyze concrete benefits for businesses and people's incomes.

Petya Dimitrova, Chairwoman of the Executive Board of the Association of Banks in Bulgaria, assured that the banking institutions are already ready for the changeover to the euro and the lev. In her words, the banks have invested over BGN 400 million in systems, processes and digitalization to make the process of the changeover smooth and seamless.