Balkans mythbusting

Clients doubtful about the Balkan region? Balkan Holidays’ Chris Rand gives you the tools to sell Bulgaria, Croatia, Serbia, Romania and Montenegro Myth: I’ve heard pickpocketing and petty crime is a problem Chris says: In Croatia this is not a problem at all. In Bulgaria, because many resorts tend to be busy in the high season, there have been occasional incidents of pickpocketing. However, there is now an increased number of police in the resorts to help stamp out this problem, and this has proved effective. Myth: It can’t compare with the likes of France for a skiing holiday Chris: Some French ski resorts might have larger ski areas than Bulgaria, but skiers pay a lot more for their lift passes! Bulgaria has three main ski resorts: Bansko, Borovets and Pamporovo. They are perfect for beginner and intermediate skiers. Plus, the apres-ski is without doubt the cheapest in Europe. Myth: I want a five-star hotel. They don’t have any upmarket hotels there Chris: The Balkans has plenty of five-star hotels. In Bulgaria there is the Kempinski Grand Arena in Bansko (right), the Melia Grand Hermitage in Golden Sands and the Barcelo Royal Beach in Sunny Beach. These are genuine five-star hotels managed by international hotel chains. Croatia also boasts some five-star properties. In Dubrovnik, there is the Hotel Excelsior, the Dubrovnik Palace and the fabulous Libertas Rixos. Myth: Only no-frills carriers fly to the Balkans – but I refuse to use them Chris: There are numerous charter flights to Bulgaria and Croatia. Balkan Holidays flies from 18 UK airports to Bulgaria and from five to Croatia, plus there are other charters, national carriers and British Airways. Myth: ‘The Black Sea’? Sounds like the beaches will be awful Chris: The Black Sea was named by widows in mourning for their sailor husbands – I admit it is not the most inviting name! Beaches in Bulgaria are sandy and tend to be very long so there is plenty of room, and all have been awarded the EU Blue Flag for cleanliness. The beaches in Croatia have pebbles, and the Adriatic is crystal-clear. Myth: It might be OK for a beach holiday but I want culture and art Chris: Most of our clients do visit Bulgaria for a beach holiday, but if you want culture you only have to leave the boundaries of the resort to find the real Bulgaria. There are art galleries and museums in all the major cities across Bulgaria, containing artefacts dating back centuries. Croatia is also rich in culture. Myth: I like good food, but the Balkans is not famous for its cuisine Chris: The food in the restaurants is excellent. Delicious fresh fish is always available, plus you can try authentic dishes such as chopska salads and moussaka. Food in hotels has really improved in recent years. Myth: There was fighting in Serbia and there’s been the trouble in nearby Georgia. It might be unsafe Chris: If it wasn’t safe, we, and other operators, would not send customers there. The Yugoslav civil war ended in 1995, and the Serbian ski resort of Kopaonik is safe and fully operational. Myth: Bulgaria is in eastern Europe, so the weather must be cold and grey Chris: Bulgaria borders Greece and Turkey to the south so it is warm and sunny during the summer, reaching temperatures of about 35C in July–anything but cold and grey. Myth: Bulgaria is now in the EU, so it must have the euro as its currency Chris: Yes, Bulgaria is in the EU, but it does not have the euro as its currency. Consequently, the cost of living there is still great value, and it seems Bulgaria won’t qualify for the euro for a few years so that’s great news for British holidaymakers!

A doubled number of ski routes threatens Vitosha

A new ski zone could be constructed on Vitosha Mountain, home to a nature park on the outskirts of Sofia, the coalition of non-governmental organisations To Sustain the Nature in Bulgaria (SNB) wrote in a media statement on August 26. On August 27, the Vitosha nature park office confirmed that in July, it had received an investment proposal for the new winter resort. The investment proposal contradicted the 10-year management plan for Vitosha nature park that was approved by the Cabinet in April 2004, the nature park’s spokesperson told The Sofia Echo. The as-of-yet-unnamed investor plans an expansion of the already existing ski zone on Vitosha Mountain by felling 20 ha of woods and urbanising more than 30 ha of high mountainous pastures. But according to the current management plan for Vitosha, any construction of new ski sites was banned, SNB said. A map that the coalition received in a plain envelope without a sender’s address showed that on a territory of four sq m were planned 29 ski routes, 17 lifts and a drag lift, which was an exceptionally high number, SNB said. Currently, Vitosha Mountain has 12km of ski pistes – but following construction, this number would be more than doubled, as the map showed an additional 13km. Eight km of the old ski slopes would be renovated, SNB said. The design of the new ski zone was done by the architectural firm Ivis Project and Design OOD, which also designed the Bansko ski zone in Pirin national park and the illegal ski zone Panichishte-Ezerata-Kaboul, planned for construction in Rila Mountain and Rila national park. Approached for comment by The Sofia Echo, Ivis OOD's spokesperson confirmed that the company had prepared the plan, but would not reveal who commissioned it. According to the company, it was not about a new ski zone, but only about expanding the existing winter sport facilities. “Simply developing a concept for ski zone is not a cheap pursuit,” SNB said. According to the coalition, it was disturbing that somebody was planning a ski zone in Vitosha nature park, where this action could be carried out only following legal procedures and only with serious political backing, and in violation with Bulgarian and the European environmental legislations, SNB said. by Elitsa Grancharova,

Homebuilding in US at 17-year low

The number of homes and apartments being built in the US sank in July to the lowest level in more than 17 years, government figures show. Builders started work on 965,000 properties, on an annualised basis, from 1.08 million in June, the Commerce Department said. However, this was not as bleak as some had been expecting. Separately, inflationary pressures saw US wholesale prices shoot ahead by 1.2% in July - its fastest pace in 27 years. Core inflation, which strips out energy and food costs, climbed by 0.7% from June, the Labor Department said, well above the the 0.2% rise which had been forecast. The rapid wholesale inflation seen in July was largely linked to energy costs during the month, which saw crude oil hit a record price of $147.27 per barrel, sending petrol prices soaring. But there are hopes that prices rises will abate, now that the price of oil has fallen by more than $30 per barrel. "Though commodity prices have come down significantly from record highs in mid-July and the dollar has strengthened, consumers can still expect to see increased inflation for some time to come as the producer price pressures feed through to consumer prices," said Arek Ohanissian, an economist at the CEBR. Grim Economists have been studying forward-looking information for signs that the US housing slump was past its worst. However, the Commerce Department data made for grim reading, with the number of construction permits issued - seen as a reliable sign of future activity - down 17.7% on an annual basis. And the number of new homes being constructed last month was down by 39.2% compared with July 2007. "The continued weakening of the housing market is an additional pressure and households will feel further squeezed in terms of real disposable income," said Mr Ohanissian. He said that "given this state of affairs and the general weakness of the economy" the Federal Reserve was likely to keep interest rates low at 2% - despite rising inflation.

Sofia Airport Handles 300,000 Passengers in July

Sofia airport serviced a total of 297,873 passengers in July, up by 17 % compared to the corresponding period of 2007, when passenger traffic at the airport stood at 254,468 passengers. The airport handled a total of 9,336 passengers on July 29, which turned out to be last month's busiest day. The Sofia airport registered an increase of 32% in the number of international charter flights. The number of passengers on such flights handled by the airport rose by nearly 45% compared to the corresponding period of 2007. Foreign companies accounted for 88% of the international charter flights to and from the airport. London was the most preferred destination from the Sofia airport with a record-high 41,000 passengers in July, up 50% year on year. The Sofia-Vienna destination ranked second with 25,300 passengers in July, which represents a 15-percent year on year increase. A total of 20,800 passengers traveled to Frankfurt last month. The passenger traffic on domestic destinations went up by 45% in July 2008, compared to July 2007. The cargo shipments handled at the Sofia airport in July rose by 8% to 1,703 tonnes.

Outlook for Sofia Office Space Market Good

Despite the effects of the credit crunch and forecasts for an overall slowdown in economic growth, Bulgarian gross domestic product defied the expectations of economists by recording seven per cent growth in the first quarter of 2008, real estate consultants CB Richard Ellis said in a Sofia office market overview for the first half of 2008. Bulgaria remains attractive to international companies that outsource and offshore parts of their activities to the country, driven by the availability of well-educated and experienced specialists at lower salaries as compared to Central and Eastern Europe, Western Europe and the US, as well as the low corporate and personal income taxes (both 10 per cent), among others. Therefore, according to the report, Sofia’s office market will continue to develop actively at least in the next two to three years. Office space completion in the first half of 2008 set a record, with completions coming in at levels of over 87 per cent of all completions in 2006 and 58 per cent of all completions in 2007, CB Richard Ellis said. As a result of this large amount of completions, Sofia now has modern office stock of approximately 808,000 sq m, according to the company. This number will continue to increase, in view of more than 250,000 sq m scheduled for completion by the end of the year. That said, the consultancy doubts that all announced office projects will actually enter the market by the end of the year. CB Richard Ellis expect that no more than 150,000 sq m will actually enter the market by the end of the year. Another 500,000 sq m are expected by the end of 2010, to make the total pipeline approximately 750,000 sq m.

Housing Prices in Sofia Increase

The price of housing has increased by 21% in the first half of 2008 compared to the second half of 2007. The average price for the period is EUR 1094 per square meter, real estate agency "Address" announced. Terminal prices are seen throughout residential districts in Sofia, in which there is record increase as well as a lot of supply. These are districts like Mladost, where prices have increased by 25% for half a year, Studentski grad (Student town) - 23,46% increase and Lyulin - 21,62%. Deals are getting harder to be made - with a bigger number of views, after a longer period of decision-making and with the presence of bigger added value for the chosen property. The increased supply of apartments on the secondary market is another characteristic trend on the market in the first half of the year. A major part of the owners started to offer after the price increase, credit interest increase and the April inflation of over 14%. Thus, housing bought with investment goals that were not rented for a long time is now offered on the market. The price of rent has increased by almost 2% in the first half of the year. Tenants have paid EUR 5,25 on average per month. In April offers of new construction apartments for rent increased. As a result the supply of these apartments increased by 6% in the first quarter of the year and 15% in the second. The most desired districts for purchase of housing are Lyulin, Mladost, Druzhba and Ovcha Kupel.