Factsheet for measure
BG-2021-50/2167
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Updated
– measures in Bulgaria
Support for the tourism sector in the pandemic
Подпомагане на туристическия сектор в условията на COVID-19
Background information
The necessary funds for the implementation of the Council of Ministers decree will be provided at the expense of the reserve for unforeseen and/or urgent expenses for 2021 under the state budget in the part for supplementary and compensatory measures in connection with COVID-19 and others under Art. 1, paragraph 2 section II, item 5.4 of the Law on the State Budget of the Republic of Bulgaria for 2021.
According to Art. 1, paragraph 7 of the Law on the State Budget of the Republic of Bulgaria for 2021, allocated funds can be spent on the basis of the adopted act by the Council of Ministers. The procedure is in accordance with Article 43, paragraph 3 of the Public Finance Act, according to which the reserve for unforeseen and/or urgent expenses under the central budget is spent on the basis of an act of the Council of Ministers.
According to Article 109, paragraph 3 of the Public Finance Act, the Council of Ministers may approve additional expenditures/transfers for the budgets of the primary budget allocation managers.
The decree is adopted on the basis of Art. 1, paragraph 5, item 9, letter “c” and Art. 1, paragraph 7 of the Law on the State Budget of the Republic of Bulgaria for 2021; Art. 43, paragraph 3 and Art. 109, paragraph 3 of the Public Finance Act, in connection with Article 76, paragraph 1 of the Law on the State Budget of the Republic of Bulgaria for 2021.
Content of measure
An additional expenditure from the budget of the Ministry of Tourism for 2021 was approved by a decree of the Council of Ministers. The amount of BGN 36 million (€18 million) will be spent as a state aid divided in two support funds. The first one amounts to BGN 30 million (€15 million) as a support to the tourism sector compensating all revenue loss, arising directly and/or indirectly from the restrictions in the activity of the enterprises due to the introduced anti-epidemic measures. The second one amounts to BGN 6 million (€3 million) as a support to tour operators for reimbursing clients payments on unrealized trips as a result of COVID-19.
Updates
The following updates to this measure have been made after it came into effect.
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10 March 2023
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In order to summarize what constitutes the state support for tourism in time, the following projects have been implemented:
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BG-176789478-2021-01 - Scheme to provide grants to tour operators and travel agents to compensate for losses resulting from the COVID-19 outbreak (closed). The aid is granted to tour operators and travel agents in accordance with the European Commission's decision under State aid scheme SA.59990 (2020/N) of 18 December 2020 C (2020) under No 9511, declaring the aid compatible with the internal market until no later than 30 June 2021.
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BG-176789478-2021-03 - Scheme for the provision of grants to tour operators for the reimbursement of amounts owed to clients for trips not taken in the period from 1 March 2020 to 31 December 2020 due to the outbreak of COVID-19 (closed). Provision of grants to tour operators for the reimbursement of amounts owed to customers for trips not taken in the period from 1 March 2020 to 31 December 2020 due to the COVID-19 epidemic, booked as such until 5 April 2021.
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BG-176789478-2021-07 - Providing grants to tour operators for the reimbursement of customers for unrealised trips due to COVID-19 (closed). Grants totalling up to BGN 6,000,000 were targeted to tour operator businesses to be used solely for the reimbursement of monies owed to customers for trips not taken between 1 March 2020 and 31 December 2020 due to the COVID-19 outbreak. The measure constitutes a State aid scheme in the form of a direct grant under point 3.1 of the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak C(2020) 1863, adopted on 19 March 2020, and its amendments C (2020) 2215 of 3 April 2020, C (2020) 3156 of 8 May 2020, C (2020) 4509 of 29 June 2020, C (2020) 7127 of 13 October 2020, C (2021) 564 of 28 January 2021 and C (2021) 8442 of 18 November 2021 and was valid until 30 June 2022.
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04 February 2022
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On 4 February 2022, under the scheme BG-176789478-2021-07 "Providing grants to tour operators to reimburse customers for unrealised trips due to COVID-19" applications started to be accepted.
On 1 February 2021, the Ministry of Tourism opened an information line where tour operators and travel agents can ask questions about the following funding schemes implemented by the Ministry: Procedure BG16RFOP002-2.092 "Support to enterprises registered under the Tourism Act as a tour operator or travel agent to overcome the economic consequences of the COVID-19 pandemic", worth BGN 10 million, funded under the Operational Programme "Innovation and Competitiveness" 2014-2020.
A grant scheme to compensate for losses resulting from the COVID-19 outbreak, to the value of BGN 51 million, funded by the Bulgarian state budget.
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Use of measure
The adopted BGN 36 million (€18 million) increase of the expenditures under the budget of the Ministry of Tourism for 2021 are going to be counted as an additional resource allocation to the Policy in the field of sustainable development of tourism and budget program "Improvement of policies and regulations in the tourism sector".
Thus the allocated additional funding shall be reflected in the implementation of the respective expenditure indicators under the budget of the Ministry of Tourism in 2022. The Minister of Tourism shall make relevant changes to the budget of the Ministry of Tourism for 2021 and to notify the Minister of Finance.
Target groups
Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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No involvement
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: N/A
Involvement
No involvement of social partners in the implementation of the measure.
Views and reactions
No view of social partners are encountered at the time of adopting the measure.
Sectors and occupations
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This case is sector-specific
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Economic area
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Sector (NACE level 2)
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I - Accommodation And Food Service Activities
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I55 Accommodation
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This case is not occupation-specific.
Sources
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01 February 2021: The Ministry of Tourism opens an information hotline in relation to the current funding schemes for tour operators and travel agents
(www.tourism.government.bg)
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22 March 2021: BG-176789478-2021-01 - Scheme for the provision of grants to persons carrying out tour operator and travel agency activities to compensate for losses as a result of the epidemic outbreak of COVID-19 (Ended)
(enims.egov.bg)
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20 July 2021: BG-176789478-2021-03 - Scheme for the provision of grants to persons carrying out tour operator activities, for the reimbursement of sums owed to customers for uncompleted trips in the period from 01.03.2020. until 31.12.2020 due to the emerging epidemic of COVID – 19 (Ended)
(enims.egov.bg)
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01 December 2021: Одобрени са допълнителни разходи по бюджета на Министерството на туризма
(www.burgasnews.com)
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01 December 2021: Правителството одобри 36 млн. лева за подпомагане на туристическия сектор в условията на COVID-19
(coronavirus.bg)
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07 December 2021: 36 милиона лева допълнителни разходи за помощи в туризма
(www.clubschetovodstvo.bg)
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04 February 2022: The third state aid measure to support tour operators in returning sums to customers has been launched
(www.tourism.government.bg)
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11 February 2022: BG-176789478-2021-07 - Provision of grants to tour operators for refunds from customers for trips not completed due to COVID-19 (Ended)
(enims.egov.bg)
