site.btaAssociation Raises Concerns Over Tourism Guarantee Fund Bill

The Association of Bulgarian Tour Operators and Travel Agents (ABTTA) supports the creation of a Tourism Guarantee Fund but has serious concerns regarding the respective bill in its version adopted at first reading. ABTTA warned in a position paper on Monday that there is a real risk of adverse consequences for businesses and significant difficulties in the practical implementation and administration of the future Fund by the Tourism Ministry.

Particularly problematic is the unequal treatment of tour operators in determining the mandatory financial guarantees, which leads to economically unjustified double coverage, including for B2B operators and inbound tourism. Since the purpose of the draft law is to protect the end customer and, above all, to ensure security for outbound travel, ABTTA insists that turnover with other tour operators and legal entities should be excluded when calculating mandatory contributions and insurance.

The Association also highlights the absence of minimum and maximum thresholds for the Fund’s accumulations, as well as the lack of a mechanism to take into account the financial stability and responsible behaviour of tour operators. According to ABTTA, this creates a risk that the Fund could become an unpredictable and permanent financial burden, without a clear link to real risk.

In this context, ABTTA proposes the introduction of a risk-oriented model, under which financially stable and responsible tour operators would benefit from relaxed conditions. The Association calls for the texts to be refined between the first and second readings so that the main objective of the law – protection of the end consumer – can be achieved without unduly burdening businesses and the strategically important tourism sector.

Last week, Parliament adopted at first reading amendments to the Tourism Act, which regulate the creation of a Tourism Guarantee Fund. The draft law had been delayed for years, and at first reading it was discussed by the relevant committee in Parliament in September last year. According to Tourism Minister Miroslav Borshosh, the Fund "will make the difference between the grey sector of tourism and those who operate honestly, paying their taxes, because registration in the Fund will be the only way for all competent authorities to verify whether a tour operator is in the legitimate sector."