Bulgaria | The Country Has Been Approved to Adopt the Euro but the Travel & Tourism Sector is Facing a Dilemma

Bulgaria has been approved to adopt the euro effective on 1st January 2026, which wolud make it the 21st member state of the eurozone. When the Balkan country joined the EU in 2007 it committed to join the eurozone and replace its currency with euro, but with the transition  to the single currency started on 8th August, the travel & tourism sector is facing a dilemma if is the end of its “affordable holiday destination” status or not.

Adopting the euro will bring real everyday benefits to people and businesses in Bulgaria. For citizens, it means no more currency exchange fees when travelling or shopping online in other euro area countries. This makes cross - border payments easier and cheaper and encourages more trade and tourism.

While the switch to the single currency brings economic and political advantages, it also raises about inflation and channging perception among budget - conscious travellers. 

The Bulgarian travel & tourism industry has doubts concerning if this move can undermine the country’s long standing reputation as one of Europe’ s most affordable tourist destinations and in this dilemma they are pro and contra. 

The calendar to switch from the lev the euro has however been carefully designed to avoid a price chock. The transition stretches over a four - month and half monitoring period.

The East European country started its transition to the euro on 8th August 2025, launching a phased process, it will culminate with full adoption of the single currency by 31st December, adopting the new currency on 1st January 2026.

Throughout this period, consumers will see prices displayed in both Bulgarian lev and euros, as part of the nationwide effort to ease the shift and avoid confusion. Bulgaria’s Active Users Association has issued a detailed guidance to help navigate the changes monthly.

Until 31st December 2025, prices in shops and on services will appear in both currencies, but payments must still made exclusively in Bulgarian levs. The dual display must help consumers become familiar with euro equivalents ahead of the switch. Some exceptions such as books with already printed prices or already installed taximeters are allowed.

The official fixed exchange rate is set at €1 = 1.95583 BGN. It means for example that something costing currently 5 levs will appear at €2.56, rounded from €2.556459.

Following the official adoption of the euro, a more flexible phase phase will follow from 1st January to 31st January 2026. During that time, both levs and euros will be accepted for payments.

However, retailers will give change primarily in euros. Levs will be used only if euros change is unavailable. Importantly, mixing both currencies in change will be prohibited to avoid confusion.

From 1st February 2026, the euro becomes the sole legal tender, although dual pricing will continue through the end of 2026 to maintain price transparency during the adjustment period.

For euro - zone tourists, Bulgaria’s adhesion would eliminate the hassle currency exchange. It will make prices easily comparable to other euro countries. On the economic front, it will also boost investor confidence and underline the country’s stability.

 The euro introduction does not mean necessarily an abrupt surge in prices if local business plays the game.With easier price comparison across the euro zone, the country might even stand out as a “value - for - money” option, provided it maintains a price gap with Western Europe.

It is however true that past euro - zone entrants offered a cautionary tale, often based on a surge in price, especially in restaurants, accommodation, and basic services. Even modest increases could then alter the perception of affordability. 

For Bulgaria, it is a crucial selling point. The destination is in fact popular among travellers from Central and Eastern Europe and low - cost Western markets. If prices rise to quickly, Bulgaria risks to lose ground to neighboring non – euro desrtinations like Albania, Serbia, and Turkey.

Bulgaria’s tourism sector is experiencing a strong recovery, with revenue surpassing pre - pandemic levels and record - breaking international tourist arrivals in 2024. The country is also seeing a rise in luxury tourism, with high - end hotels strong occupancy rates, all that with the use of the lev and the dilemma arises if this positive trend will be the same with the euro facing various competitors in the Balkan and the Black Sea areas.

Ultimately, Bulgaria’s low - cost appeal, a pillar of its tourism sector, will request the travel & tourism sector full attention. Both the service and travel industries need to strike the balance between economic integration and affordability and keep the appeal of the Bulgaria tourism brand.

Link
https://www.travelmole.com/news/bulgaria-destination-effect-euro/