Published on
August 17, 2025
As Bulgaria enjoys its peak summer tourist season, the nation is witnessing high price hikes in dining and tourism-related services. From seaside towns to cities in the interior, both local and foreign tourists are catching the pinch of increased dining prices as the country goes through several economic changes. These rises are attributed to a variety of reasons, such as the return of VAT to 20%, increased food prices, and also the rise in the minimum wage to 1,077 leva by 2025.
The Economic Drivers Behind the Price Hikes
Several factors have contributed to the price increases that visitors are experiencing while dining out. Firstly, the restoration of VAT to 20%, following the pandemic period when the rate was temporarily reduced to 9%, has significantly impacted the cost of food and services. In addition, the rising costs of food ingredients and supply chain disruptions are adding to the overall inflation affecting the restaurant industry. The increase in the minimum wage has also played a part, pushing employers to raise prices to cover higher labor costs.
Public Response: Mixed Reactions from International and Domestic Tourists
Radio Bulgaria spoke to a variety of visitors to gauge their reactions to the price increases and the currency transition. Clement, a 20-year-old with Austrian and Bulgarian roots living in the UK, expressed his concern about rising prices, noting that the trend was noticeable in both Bulgaria and abroad. He expressed his support for maintaining the leva, describing the potential switch to the euro as a negative move.
On the other hand, Dorothea, a 22-year-old who spent much of her life in the US, took a more European perspective, supporting the transition to the euro but acknowledging the growing price pressures that could negatively affect the quality of life in Bulgaria.
Meanwhile, Devin, a 39-year-old Australian, had a different perspective. He found Bulgaria to be much more affordable than Australia, especially for food, drinks, and cigarettes, despite earning an average income in his home country.
The Restaurant Industry’s Preparedness for Euro Transition
From the perspective of the restaurant industry, Bulgaria is largely prepared for the currency switch and the dual-pricing requirement that went into effect on August 8, 2025. However, the implementation has been challenging, especially when it comes to adjusting cash registers to accommodate both leva and euro prices. As the process requires specialized services, restaurants are dependent on licensed providers and external companies to manage the technical adjustments.
Richard Alibegov, chairman of the Bulgarian Association of Restaurants, pointed out that while restaurants have made the necessary adjustments, the reliance on external services means they have limited control over the pace of the transition.
Challenges and Concerns: Restaurant Owners Speak Out
Restaurant owners, like Nikolay Karadimov, who runs a small restaurant in Sofia’s Mladost district, have also voiced concerns about the impact of rising prices and lack of government support. Karadimov supports the euro adoption but criticized the government for focusing solely on dual-pricing regulations without offering sufficient assistance to the restaurant sector. He suggested that a grace period for non-essential services would have been beneficial, especially in light of the January 1, 2026 deadline.
Currently, a grace period for adjusting cash registers lasts until October 8, after which authorities will begin enforcing compliance. This means that all goods and services must be listed in both leva and euro. Consumers will also need to familiarize themselves with converting prices, as the official exchange rate for the leva to euro is 1.95583.
The Road Ahead: Balancing Price Adjustments and Economic Growth
The price hikes in restaurants are a complex issue, with both positive and negative consequences. For tourists, the cost of dining may be a source of frustration, but for local businesses, these adjustments are necessary to cope with increased costs and maintain profitability. At the same time, the government’s efforts to introduce the euro and ensure a smooth transition highlight the economic and financial modernization of Bulgaria as part of its European integration goals.
As the euro transition progresses, Bulgaria’s tourism industry will need to find ways to balance price competitiveness with sustainability. This will require collaboration between the government, the tourism sector, and business owners to ensure that the tourist experience remains positive while adjusting to the economic realities of a growing economy.
Navigating the Transition and Embracing New Opportunities
Bulgaria’s move towards dual-pricing and the euro represents a tremendous change in its tourism industry, one that can potentially advance its economic position as well as boost its tourism appeal. As the government continues to pursue these developments, both the restaurant industry and tourists will need to adjust to the new reality. The implementation of dual-currency pricing will open the way for the country more clearly to integrate into wider European markets while meeting the increasing tourism needs of the region. If properly managed, Bulgaria’s tourism industry can continue to flourish in the next several years through supported economic transformation and modernization initiatives.
