You are in Home > News > Fiscal affairs > The government decided to grant the Varna & Bourgas airport concession to Copenhagen Airports.
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The government decided to grant the Varna & Bourgas airport concession to Copenhagen Airports.
submited on 11.04.2005 in category Political stability | Fiscal affairs | Regulated markets | Privatisation
submited on 11.04.2005 in category Political stability | Fiscal affairs | Regulated markets | Privatisation
The decision is expected to have impact on Bulgarian Black Sea tourism development.
The changes will affect both the physical infrastructure and the business operations model of the two airports. Up to now, we know of the following plans of the selected concessionaire:
1. Construction of a new terminal in Varna and reconstruction of the existing one in Bourgas.
2. Investments in construction will happen during the first three years.
3. Airports will start regular flights’ operation (until recently, most traffic was generated through chartered flights during the summer)
4. The concessionaire intends to maintain airport fees competitive to the comparable resort-airports in Greece and Turkey.
Uncertainty for the dependent businesses however remains, mainly due to two factors: the power of the government to set airport fees and to regulate air travel. The government will preserve its right to set fee levels, and it can decide to do so if pressured by the concessionaire. Fiscal needs might lead to high-fee policy as well. Air traffic is also highly dependent to the decision on when and how the air travel will be liberalized – at present low-cost operators are not allowed to operate regular flights to and from the country.
Tourism grew by more than 20% annually since 2001. In 2004 international tourism revenues as recorded in the balance of payments were EUR 1,746 million. The summer sea-coast tourism alone, according to Industry Watch estimates, generates about EUR 1,250 million annually.
The changes will affect both the physical infrastructure and the business operations model of the two airports. Up to now, we know of the following plans of the selected concessionaire:
1. Construction of a new terminal in Varna and reconstruction of the existing one in Bourgas.
2. Investments in construction will happen during the first three years.
3. Airports will start regular flights’ operation (until recently, most traffic was generated through chartered flights during the summer)
4. The concessionaire intends to maintain airport fees competitive to the comparable resort-airports in Greece and Turkey.
Uncertainty for the dependent businesses however remains, mainly due to two factors: the power of the government to set airport fees and to regulate air travel. The government will preserve its right to set fee levels, and it can decide to do so if pressured by the concessionaire. Fiscal needs might lead to high-fee policy as well. Air traffic is also highly dependent to the decision on when and how the air travel will be liberalized – at present low-cost operators are not allowed to operate regular flights to and from the country.
Tourism grew by more than 20% annually since 2001. In 2004 international tourism revenues as recorded in the balance of payments were EUR 1,746 million. The summer sea-coast tourism alone, according to Industry Watch estimates, generates about EUR 1,250 million annually.
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