Bulgaria’s Eurozone Entry: Opportunities, Challenges and Adaptive Strategies for Small and Medium-Sized Hotels
Bulgaria’s Eurozone Entry: Opportunities, Challenges and Adaptive Strategies for Small and Medium-Sized Hotels

Author(s): Dhruv Bole
Subject(s): Politics / Political Sciences, Politics, Economy, Business Economy / Management, EU-Approach / EU-Accession / EU-Development, Financial Markets, Tourism
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: Bulgaria; euro adoption; Eurozone entry; small and medium-sized hotels; tourism industry
Summary/Abstract: Small and Medium-sized Hotel Operators (SMHOs) are a major component of the Bulgaria's hospitality industry and are a key driver of national development. Given Bulgaria's planned entry into the Eurozone in early 2026, the transition to the common currency, the euro, is anticipated to bring both opportunities and challenges for these operators, particularly those operating under low profit margins. Using a narrative review approach, this study examines the opportunities that Eurozone adoption may create for such hotels, while also analyzing the challenges that could influence their competitiveness, drawing on insights from peer-reviewed academic literature, government reports, and industry publications. The study finds that Bulgaria's accession to the Eurozone would be advantageous to SMHOs in terms of more business opportunities, the removal of currency exchange risks, more investment opportunities, and access to European Union-funded financial assistance. It may also bring challenges such as increased payroll cost, lower access to credit, decline in domestic tourism, and the requirement of investment for sustainability, which can raise operating expenses. The proposed solutions in the study are able to meet such challenges and realize the benefits of Eurozone membership. The study's significance is that it provides SMHOs with a more comprehensive understanding of the potential opportunities and challenges that are likely to be confronted in the adoption of the Eurozone, highlighting the need for strategic and timely interventions to maintain their competitiveness.

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