Background information

State aid for tour operators using air carriers with a operating license to operate charter flights to the Republic of Bulgaria for tourism purposes.

Aid to tour operators in the form of direct grants under Section 3.1 of the "Temporary Framework for State Aid Measures to Support the Economy in the Condition of the Current COVID-19 Outbreak".

It is provided to tour operators who use air carriers with an operating license to operate charter flights to our country for tourism. The amount of the subsidy is €35 each seat of the maximum passenger capacity of the aircraft for each flight.

Content of measure

The subsidy for tour operators is granted for each seat occupied by a person using a tourist service in our country, only for flights with a capacity of not less than 100 seats . The subsidy is available to all tour operators , regardless of their location, who use the services of air carriers with a valid operating license issued in the Republic of Bulgaria or another Member State of the European Union, or a party to the Agreement on the European Economic Area, or Swiss Confederation or a third country.

Funding : €20 million have been provided for this measure under the operational program 'Human Resources Development'.

The measure is to be updated in early 2021, as well as its extension.

Use of measure

The state aid scheme covers flights operated between 14 May 2020 and 31 December 2020 and is the first phase of the anti-crisis measure. The flights that will be operated during the period from 01 January 2021 to 14 May 2022 will be subject to a new notification. The maximum amount under the State aid scheme may not exceed €800,000 per Phase 1 undertaking in the form of a direct grant, all values used being in gross terms, i.e. before deduction of taxes or other charges.

Grants were paid to another 25 companies performing tour operator and travel agency activities, with an individual amount of a total of BGN 2,551,534.71. According to the latest data, a total of 597 companies were financed under the state aid scheme, and grants were paid in individual amount of a total value of BGN 34,508,528.37. This is one of the measures taken by the Ministry of Tourism to support the sector to overcome the effects of COVID-19.

Under the third phase of this aid, up to €1,800,000 per company may be awarded in the form of direct grants. Small and medium-sized enterprises can also benefit from the aid. They must be in difficulty on 31 December 2019 and must not have received rescue or restructuring aid.

The Ministry of Tourism said there is also possible to settle a fourth phase for the period from 1 January to 15 May 2022.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Sector specific set of companies	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Consultation through tripartite or bipartite social dialogue bodies	Consultation through tripartite or bipartite social dialogue bodies

Social partners' role in the implementation, monitoring and assessment phase:

• Social partners jointly
• Main level of involvement: Sectoral or branch level

Involvement

The measure was discussed within the National Council for Tripartite Cooperation and was supported by all nationally represented social partners , namely:

Trade Unions :

• Confederation of Independent Trade Unions in Bulgaria - CITUB
• Confederation of Labor "Podkrepa" - KT PODKREPA

Employers :

• Confederation of Employers and Industrialists in Bulgaria - CEIB (KRIB)
• Bulgarian Industrial Capital Association - BICA
• Bulgarian Industrial Association - BIA
• Bulgarian Chamber of Commerce and Industry
• Union for Private Economic Enterprise

Views and reactions

The social partners expressed their support and responded positively to the measure, which is an initiative of the government. They undertook to promote the measure among their main members.

Organizations supported the measure Trade Unions:

• Confederation of Independent Trade Unions in Bulgaria - CITUB
• Confederation of Labor "Podkrepa" - KT PODKREPA

Employers:

• Confederation of Employers and Industrialists in Bulgaria - CEIB (KRIB)
• Bulgarian Industrial Capital Association - BICA
• Bulgarian Industrial Association - BIA
• Bulgarian Chamber of Commerce and Industry
• Union for Private Economic Enterprise

Sectors and occupations

This case is not occupation-specific.

Sources

• 29 July 2020: Държавна помощ за туроператори-насоки за кандидатстване (www.tourism.government.bg)
• 01 December 2020: Държавата обеща 50 млн. лв. като антикризисна мярка за туроператорит (www.capital.bg)
• 08 April 2021: Министерството на туризма плати още 2 251 534 лева на туроператори (trud.bg)
• 12 July 2021: A subsidy of 35 euros for each tourist who arrives on a charter flight remains (offnews.bg)
• 21 September 2021: Прекратява се в СУНИ кандидатстването по 3-та фаза на държавната помощ на туроператорите за изпълнение на чартърни полети за входящ туризъм (www.tourism.government.bg)
• 30 March 2022: Applications for state aid of 35 euros per seat for tour operators are accepted (www.banker.bg)