Market Study
Bulgaria
Bulgaria occupies a relatively small area - 111 000 sq. km, but is
nevertheless distinguished by generous and varied nature - a sea with
a 380 km. long coastal strip and golden beaches, 16 mountains with their
own characteristic features, shelters valleys and high plateaus, over
550 curative mineral springs, dozen of unique natural phenomena and
2000 thrilling caves, a healthy climate and diverse flora and fauna.
As a whole Bulgaria's vegetation can be ranked among the Central European
forest region, but the influence of the South Russian and Asia Minor
regions is also felt. The higher parts of Bulgarian Mountains are covered
by sub -Arctic vegetation, among which juniper forests predominate.
In fact, Bulgaria boasts 3000 higher plant varieties - almost twice
as many as in England.
Currently Bulgaria is a developing country with a low cost of living
compared to EU standard. The country is rapidly proceeding on its way
to EU and NATO membership. It is seen as a regional center of stability
and a future regional power. NATO membership will occur in 2002 and
EU accession is scheduled for 2004-2006. The assertion about NATO is
based on statements from Robertson and other high-ranking officials
that "it is in principle agreed that Bulgaria will join NATO this
year". But the decision will be taken at head meeting in Prague
- Nov. 2002. Recent statements from President Bush and NATO diplomats
make this assertion even more solid. EU membership will require that
foreign ownership of land become completely deregulated and this is
the announced intention of the ruling party.
Historically, Bulgaria was the most advanced Balkan country with GDP
per capita higher than that of Austria and equal to that of Belgium,
before the Soviet interference. Foreign investment still lags behind
that of investment in the leading 3 Eastern European countries (Czech
Republic, Poland and Hungary) but there Has been a substantial improvement
for the last 2 years with new investment exceeding the volume of privatization
for the first time. US support allows us to say Bulgaria will again
become the leading country in the region and a model for others to follow
with all the consequences regarding its economic development.
EXIM Bank offers insurance for US investment and there are several EU
funded banks that should invest in the region, but they have confined
their activity to government projects so far. CARESBAC, EPIC and BAEF
are US venture funds with local presence, but they have invested in
industrial ventures only and real estate is declared to be outside their
sphere of interest. Investment in commercial real estate comes from
local sources and EU tour operators. The latter is currently seen as
very unfavorable since all profits were transferred to the operator
and developers were stuck with contracts that lag the increase in prices
at unencumbered properties.
Still, the last four years showed a substantial increase in the number
of hotels and a boom in the number of tourists visiting Bulgaria.
All privatized hotels enjoy full occupancy and rooms are presold by
the end of March. The last 2 years showed 25% growth in turnover. The
Ministry of Economy forecasted 10% growth for this year underestimating
demand again. This year will be a record year as the season will start
in May for the first time and capacity is fully booked. This will extend
the season to 122 days vs. 85 days from last year. The increased interest
for what was referred to as the 'pre-season' comes from Scandinavian
countries. There are several reasons for this interest:
Quality of service
The private hotels offer better service than the competition in Greece,
Cypress and Turkey. This is due to the fact that Bulgarian service personnel
are more industrious and motivated than the competition. The current
unemployment rate of 19% helps hiring top quality personnel at very
cheap salaries. People with degrees and excellent knowledge of languages
are looking for jobs that they would forgo otherwise. Our assessment
is based on interviews with musicians who perform in all aforementioned
countries, interviews with tourists and market studies.
Prices of food, beverage and entertainment
Those are lower than the prices of the competition and offer greater
quality. Bulgarian breweries were bought by Heineken and Interbrew,
which led to a great improvement in the product and the marketing. This
is very important as many tourists feel they can not consume beer as
freely in their home country for a variety of reasons. 'Cheap and Good'
beer and food creates for them an exhilarating party atmosphere, which
is comparable only to that of Las Vegas. Entertainment is also very
cheap and high quality and foreign tourists can not afford in their
country amusement of that class. Casinos are also very popular and regulation
is more liberal than that of EU and neighboring countries.
Quality of nature
Bulgaria offers probably the best beaches in the world comparable only
to some Turkish and Australian resorts. Beaches in the US, Greece, France
and Mediterranean Turkey and islands are rocky and do not offer the
finest quality of sand seen in Bulgaria. Tourists value this as they
spend a lot of time on the beach. Their home countries do not offer
that much sun and sun bathing is one of their favorite activities. Bulgaria
offers the same number of sunny days as Spain with the advantage of
having very few super hot days when it is not possible to go outside.
As an Inland Sea the Black Sea offers a very slow deepening and quiet
waters, which is beneficial for swimming and water games.
Stability and very low crime rate
Bulgaria has zero terrorist activity and no ethnic conflicts unlike
many other countries. The pending accession in NATO is seen as extremely
positive by all rating agencies. The country's investment rating has
only gone up for the last three years.
The Sea
"Pontus Euxinos" - Hospitable Sea.
This is how the ancient Greeks called the Black Sea, a sea that is
indeed tempting and hospitable - clean and calm, without any tides or
dangerous sea-life. The sandy sea bottom slopes gently, making bathing
and swimming safe for even the youngest kids less than 2 years of age.
The Black Sea is half as saline as the Mediterranean and has the unique
quality to not smart on eyes. It's possible to look in water without
any discomfort.
The Bulgarian coastal stretch faces east and extends over 378 km, dotted
with vast beaches covered with fine golden sand. The majority of Bulgaria
beaches have been awarded the EU Blue Flag for their environmental excellence.
The water is clean and transparent allowing the swimmer to clearly see
the bottom at 6 feet depth.
Air temperatures in summer vary between 74°F and 81°F, water temperatures
between 63°F and 77°F. There are more than 240 hours of sunshine in
May and
September, and more than 300 in July and August. The deep-cutting coves
and rugged shores wooded hills and romantic peninsulas, vineyards and
orchards, fishing towns and secluded campsites lend a unique fascination
to the Bulgarian Black Sea coast.
Holidaymakers have a huge selection of resorts and accommodation to
choose from - depending on their budget and on the kind of holiday they
are interested in. They can find anything from luxurious 4 to 5-star
hotels, large holiday hotel complexes, small guesthouses - to more secluded
holiday villages, villas.
The large major sea resorts - Albena, Golden Sands, Riviera Holiday
Club, Sunny Day Tourist Complex, St. Constantine, Elenite Holiday Village,
Sunny Beach, Dyuni Holiday Village- tempt with innumerable sports facilities,
entertainment and inland trips to noteworthy landmarks.
Southern Black Sea Coast
* Scenic bays and vast golden beaches with large sand dunes;
* Shallow and safe sea 300 to 500 feet off-shore
* Romantic peninsulas and picturesque rivers where snow lilies grow,
virgin forest and small old towns
* Unspoiled contact with nature, combined with all modern comfort
* Campsites with villas, bungalows and tents, private lodgings and hospitable
landlords
* Restaurants, discos, night-clubs, casinos and entertainment spots
with exciting floor shows
The advantage over the northern coastline is more sunny days and warmer
waters, thus extending the length of the active season. Delayed privatization
caused slower investment and the bigger part of the development is either
occurring now or is scheduled for the next two years.
Sunny Beach Resort
Sunny Beach is situated in the southern part of the Bulgarian Black
Sea Riviera and stretches along a beautiful semicircular bay facing
east. It is closed to the north by the descending ridges of the Balkan
Mountain, thus blending sea and mountain in perfect harmony. Apart from
swimming and diving, the resort offers facilities for sailing, windsurfing
and water-skiing. Other sports such as tennis, bowling, biking, paragliding,
archery, volleyball, basketball etc. are also provided. The resort also
houses several well-equipped health and fitness centers and entertainment
to keep the children happy hours on end.
Sunny Beach offers lots of other options too. Beginner and advanced
tennis players will find all they need to keep in top shape: well-maintained
and equipped tennis courts, tennis schools, skilled partners, tournaments.
Parents can enjoy a carefree holiday for two reasons: children's menus
are offered everywhere and 24-hour kindergartens with a highly trained
staff allow plenty of time for yourself without having to worry about
your toddlers. Additionally, a lot of entertainment for kids is offered
throughout the resort and this creates a side benefit for hotel owners,
because customers are kept happy and some hotels enjoy extra revenue
from renting their grounds to small businesses providing amusement services.
Riders will also feel great at Sunny Beach. There are stables and riding
school.
The resort's yachting club and aquatic facilities offer:
Instruction in yachting,
Wind-surfing,
Water skiing,
Motor-launch cruises,
Para-sailing,
Hang-gliding.
Overall, this is the area that lags the most in its utilization from
foreign competition.
Yachting was very underdeveloped as well as other activities that would
appeal to higher net worth tourists. Hunting and sightseeing in unique
preservation areas is available but not offered. The majority of tourists
are lower income people who are benefiting from the difference in price
levels. This results in under-utilization of many of the offered activities.
From a marketing perspective the increase in visits and dollars spent
has come from word of mouth references and advertising from foreign
tour operators that is greatly unsatisfactory in its marketing message.
Starting from last year, the state resumed its funding of national resort
advertising. The biggest success with attracting better quality tourists
is achieved by northern resorts that were privatized 3-4 years ago and
have managed to upgrade their properties. Without media presence, just
by negotiating with tour operators, these have been filled with higher
net worth tourists, who spend dollars on the entire package of services
offered. We expect that the same will occur at Sunny Beach as the pace
of investment is hectic and the results from the North are evident.
The industry is rapidly reorganizing itself and marketing efforts are
becoming more concerted. Bulgarian offerings are still not represented
in Neilson brochures, for example, but this is expected to happen as
business grows very fast and tour operators will redesign their marketing
efforts to reflect the change in customer demand. Turkey and Cypress,
for example, are suffering a lot from political tension and terrorist
activity, which has led to a virtual stop of EU holiday visits. Current
events in the region, such as economic collapse in Turkey and tension
in all former Yugoslavian countries, are helping even more Bulgarian
tourism.
Temperatures and sunny days
| |
April
|
May
|
June
|
July
|
August
|
September
|
October
|
| Day t0 |
16
|
21
|
27
|
30
|
29
|
25
|
20
|
| Night t0 |
8
|
13
|
17
|
20
|
19
|
16
|
12
|
| Water t0 |
16
|
20
|
22
|
24
|
24
|
22
|
18
|
| Sun hours |
8
|
9
|
10
|
11
|
11
|
8
|
6
|
| Rainy days |
5
|
5
|
5
|
3
|
3
|
4
|
5
|
Hotels and Infrastructure
Currently Sunny Beach offers 96 hotels, 37 separate solid structure
restaurants, 2 campsites, one villa/bungalow site and 8 permanent bazaars.
Additionally, street vendors and many temporary constructions offer
food and drinks. The streets are full of souvenir and toys sellers and
entertainment for the kids is provided everywhere. After privatization
is finished street vendors will be reduced in an effort to channel tourists
to the more expensive hotel restaurants.
Accessibility
Regular bus services to regional centers; Bourgas (35 km away) and
Varna (95 km); Connections world wide via Bourgas; international airport,
harbor, railway station.
Vicinity
Nessebur
Lying
to the south is the small peninsula on which the ancient town of Nessebur
is located - an architectural and historic monument of Bulgarian and
world culture. Its cobblestone streets well kept medieval churches and
timbered houses from the 19th century create an idyllic atmosphere.
Nessebur's churches can be best described as a mixture between Slavic
and Greek orthodox architecture - some of the finest in the area. You
can stroll for hours through its streets, looking at the architecture
and the bazaars or else head for the shade of the many churches and
museums to capture something of Nessebur's rich and exotic past.
Nessebur has a good selection of private accommodation, very often in
grand old houses from the previous century. You will never run out of
places to eat and drink in Nessebur - it has a wide choice of restaurants,
taverns and cafes. A favored selection of recent years is the strip
of self-service restaurants offering the greatest variety of seafood
and visited by many foreign tourists.
Nessebur Museum Town
Situated
on a small peninsula (in the immediate vicinity of the large seaside
resort of Sunny Beach), one of the oldest towns in Europe still exudes
the spirit of different ages and peoples - Thracians, Hellenes, Romans,
Slavs, Byzantines and Bulgarians.
Nessebur's greatest wealth are its multiple churches: the Old Bishop's
Residence in an early Byzantine style (4th-5th c.), the New Bishops
Residence (St. Stefan), containing valuable 12-th century murals, the
Christ Pantocrator and Aliturgetos churches (13-th -14th c.). Nessebur's
National Revival houses with stone foundations and broad wooden eaves,
overhanging narrow cobbled lanes leading right into the sea, are also
remarkably beautiful.
Proposed Hotel
"Grand
Hotel Sunny Beach *****" is located in the central area of Sunny
Beach Resort, 20 meters from the beach and the sea and close to the
Summer Theatre and the Central Tennis Courts. This is a new-built, elegant,
5-stars hotel. Gross building area is 11 890 sq. m. in 12 floors The
hotel offers accommodations in 4 VIP and 12 standard apartments, 180
rooms + 46 family, 69 double and 3 single rooms - 430 beds. The elegant
luxurious apartments and rooms are air-conditioned, each with bathroom,
satellite-TV, mini-bar, phone and hairdryer. Most of them have terrace
and sea view. The hotel is fully air-conditioned. It's opened all yearlong.
It has a nice lobby and an elevator. The hotel has a restaurant with
international cuisine, lobby-bar, a out-side swimming pool with cocktail
bar, exchange office and personal safe at the reception, a souvenir
and cosmetic store, a fitness studio and sauna. The hotel offers additional
services- conference hall, Business center, 24-hour room service, laundry
and cleaning, rent-a-car, parking lot close to the hotel.
