300 Bulgarian Hotels to Foreclose by End of 2009

2009-06-19

Banks in Bulgaria could end up being owners of 300 hotels by the end of the current year due to the reduced tourist numbers. The comment was made by the Director of the Institute for Assessment and Analysis in Tourism, Rumen Draganov. Despite the effort on the part of the banks and the Cabinet to lower interest rates, they have not made any changes in the interest rates for tourism investors, according to Draganov, at the time when many hotel owners experience difficulties in paying off their loans. Bulgaria would not register revenues from tourism comparable to those in 2008 and they will be 25% lower than those expected previously. The main factors are: lack of tourists, lower prices with deep discounts of 30% off and offers such as 3 weeks for the price of 2. Draganov warned the banks that they will end up owning a significant number of hotels without knowing what to do with them over their failure to understand the grave financial problem to arise by the end of the summer season.