site.btaTour Operators Ready to Protest First-Reading Legislative Amendments Introducing Tourism Guarantee Fund

Tour operators, represented by the Future for Tourism Union, have expressed readiness to protest against the amendments to the Tourism Act adopted at first reading in early February. Tour operators describe the amendments, which provide for the creation of a Tourism Guarantee Fund, as “unworkable” and ineffective for both businesses and consumers. While they say they support the idea of establishing such a fund in principle, they oppose its current structure. They warned that if the text is not fully revised before the second reading, the sector will organize large-scale protests.

Speaking at a press conference at the Bulgarian News Agency’s (BTA) National Press Club in Sofia on Wednesday, Pavlina Ilieva, Chair of the Management Board of the Future for Tourism Union – Association of Tour Operators and Travel Agents, said the bill in its current form is unworkable, offers no real benefit to consumers, and risks pushing businesses into the grey economy.

Ilieva said that on Tuesday the association submitted a position paper to the relevant parliamentary committee in two versions. “The first is written in a more emotional tone, in the hope that MPs who are not familiar with our business will understand us. The second is a legal version, which we hope will be considered,” she said. “We hope we will be heard and given the opportunity to revise it all. If not, we are ready to fight and to resort to protests, although that is not our goal,” she added.

Diana Blagoeva, a member of the association's Management Board, said that the organization fully supports the establishment of a Guarantee Fund, noting that the key issue for both businesses and consumers is that it must be workable. She highlighted concerns about the financial provisions in the bill, which require each tour operator to contribute 0.25% of the value of every package tour. Blagoeva questioned how this rate was determined, noting that while there are currently 1,860 active tour operators, there is no clear data on their capital or on the monthly and annual revenues they generate from package tours.

Last week, Parliament adopted the amendments providing for the establishment of a Tourism Guarantee Fund at first reading. Under the proposed changes, tour operators entered in the Tourism Act register will be required to provide insolvency guarantees not only through the currently mandatory Tour Operator Liability insurance, but also through bank guarantees and participation in financing the Tourism Guarantee Fund.

Earlier this week, the Association of Bulgarian Tour Operators and Travel Agents also called for substantial changes to the bill.

On Tuesday, in a letter to parliamentary Committee on Tourism Chair Desislav Taskov, the Ministry proposed that the opinions of industry associations in the sector of tour operator and travel agency activity be reconsidered before the second reading of the bill. The Ministry suggested that this take place at a committee meeting with the participation of industry representatives. Such a meeting is scheduled for Thursday, according to the Parliament’s website.