Bulgarian operators forecast 23% growth for 2004

Tina Milton

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Total turnover among members of the Bulgarian Duty Free Association is expected to reach $202m this year following strong traffic growth

The Bulgarian Duty-Free Association has predicted total annual turnover of its members will reach Eu160m ($202m) this year, up from Eu130m ($164m) in 2003. Early indications show turnover has grown by 20% for the year to September. Operator Transimpex, which manages 15 shops, had the largest turnover of approximately Eu20m ($25.3m) at the end of September, according to Bulgarian Duty-Free Association chairman Radostin Genov.

"These results are due to the improved management and understanding of our problems by the government after a period of cold war with the finance minister during year 2003," Genov told RavenFox.com. "Our strategy for next year is to introduce new goods and services such as mobile telephone cards and fashion and accessories. The Bulgarian operators' main goal for next years is to introduce a portfolio balancing the sale of traditional requirements for tobacco and alcohol with the rise of perfumery and other accessories, and sweetmeats."

The country's annual passenger levels of between 17m and 18m are set to rise by 20%, which is likely to trigger further growth.

The absence of some luxury products on the domestic market, such as Marlboro and Parliament cigarettes and Balvenie whisky, is also fuelling duty-free turnover. Tobacco and alcohol accounts for 70% of sales in the market place while fragrances and cosmetics take 30% but its share is expected to rise.