Growing number of Bulgarian accommodation facilities expect to wind down operations – survey

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The share of managers of accommodation facilities in Bulgaria who expect to close down their business in the short term due to the coronavirus crisis increased on a monthly comparison basis in June, a recent survey by the country’s statistical office showed.

Some 3.8% of the managers of accommodation facilities in Bulgaria expect to close their business in a month’s time, the National Statistical Institute (NSI) said in a statement on Friday, citing the results of a survey it conducted during July 7-22 among more than 2,500 managers of hotels, camp sites, holiday villages and other accommodation establishments.

This percentage compares with 2.2% of respondents in NSI’s survey a month earlier.

The results of the new survey also indicate that the majority of accommodation facilities, 64.4%, plan to maintain their operations within the next month, albeit at a lower capacity, while 17.3% plan to continue to operate as usual. Nearly 13% of the respondents intend to temporarily halt their operations.

As many as 67.2% of the managers say that they do not plan any layoffs in the short-term as a result of the pandemic, while 23.0% expect to increase their headcount, NSI said.

At the same time, 28.8% of accommodation facility managers saw their operating revenues rise on a monthly comparison basis in June, while 36.4% report no change. According to NSI’s previous poll, 44.4% of the managers booked lower operating revenues in May.

More than half of the managers, 50.5%, expect that they will be able to service up to 50% of their operating expenses with own funds in the following month, while 28.3% say they will be unable to service any expenses with own funds. As many as 20.7% say they will be able to cover all of their operating expenses in a month’s time.

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