The cheapest night in the public database – 5 BGN per person

The state is the largest inefficient hotelier. Losses due to the management of 115 sites representing representative and social functions, holiday homes and training centers amounted to BGN 22 million in 2016.

The Evksinograd residence of the Council of Ministers records a annual loss of nearly 700 000 BGN, and the rest station of "Lazur" Ministry of the Interior in Nessebar – almost 600 000 BGN in 2016

The lowest price for housing is in the base of Ministry of Regional Development and Public Works (MRDPW) – 5 BGN per person per night. It's a bit more expensive at the Ministry of the Interior, where average prices per night are BG 7.50 per person

says the World Bank report, which reveals how much Bulgarian taxpayers pay for the cost of holiday homes. It aims to review the specificities of sites' work and to propose a way to improve their management

The main conclusion of the report is that the State must progressively withdraw from the management of the bases

Challenges

Strategic, Financial, Economic, Management and Social Challenges Faced by State Recreation Centers

Strategic Absence from a Policy or Vision State Comprehensive Management of Objects with Representative and Social Functions

Finance

Economically – because they operate at below-market prices, objects represent a competitive challenge for private tourist sites

Management – sites are managed by state employees without specialized knowledge or skills in property management and tourism

Social – since the maiso Holidays are managed by separate ministries, there is no equal access to the sites for all officials

In relation to Transparent – there is no d & # 39; operational information for calibration purposes, objects not being required to apply generally accepted accounting practices and not publishing annual financial statements

Most recreational facilities the state operate at a loss [19659003] The estimate of losses reveals that 83% of the 115 recreational bases of the survey generate a loss. Operational losses average BGN 230 000 per facility in 2016. For the 115 bases examined with just over 10 000 beds, this represents around 22 million leva.

In fact, the actual cost of the benefit remains hidden because the government does not declare that the costs of operating the sites [1] are not the only costs badociated with their operation

. Base managers are not stimulated to generate additional revenue. The reason – all revenues collected are transferred directly to the account of the Ministry of Finance

The study points out another problem: budget constraints lead to shorter operating times, almost twice as low as those of similar private bases. This is an inefficient use of property and leads to lost profits for the state.

Non-compliance

The survey shows that some of the state sites operate without valid categorization certificates, which are not categorized at all [2]

It is unclear why a particular property of a representative and social nature is clbadified as public or private state property. Clbadification appears to be somewhat arbitrary [3]

Only one-third of surveyed jurisdictions collect and badyze customer satisfaction data, but two-thirds of others believe this information would be useful

(19459012) [19659003] Many sites are accessible to external visitors (that is, not to employee escorts) who pay 15% to 100% above the standard rate of employees. Although prices paid by external visitors are higher, they are lower than market prices and do not cover the usual costs of operating sites. In this way, the departments effectively subsidize the vacation of their external guests

The agencies do not require that their administrations use priority objects with representative and social functions for the holding of meetings, seminars, conferences, forums, etc. They therefore pay extra for renting private rooms in hotels, although they have the necessary premises and equipment.

The outsourcing of all or part of badet management is not a common practice among participating jurisdictions. The State Withdraws Site Management

The World Bank report contains a number of recommendations to improve the management of state recreation facilities such as the development of the World Bank. a management strategy, the centralization of management, etc.

In the end, however, the main conclusion is that the state should gradually withdraw from the activities of maintenance and management of departmental recreational facilities. The international experience also shows that it is the practice in the world

The current practice is also the management of state objects under public-private agreements, such as outsourcing, concession or leasing contracts. the public sector by the know-how of the private sector

Although the majority of respondents in the administration support holiday homes, this service began to be offered during the years of the communist regime when it It is not (19659003) Nowadays, this social benefit can be monetarized (in salary) and each employee chooses to go on vacation in the country, abroad or at any time.

In conclusion, two quotes from the report: "The activity of vacation resorts is inefficient and a source of financial losses" and "The management of tourist accommodation is not a typical function of the Government should focus on providing basic public services instead of competing with the private sector to provide something that is essentially a private commodity. "

***

[1] Objects with Representative and social functions of the central administration are not required to produce detailed cost statements and report only their operating surplus or losses generated, and this method of accounting does not take into account the cost most high level of service delivery.

[2] The categorization certificate is valid for 5 years and is intended to ensure that customers and food service establishments meet certain requirements of quality of service, hygiene and safety of the customer. has the right to control whether establishments providing accommodation and food meet the requirements of the Tourism Act

[3] Although the existing legal possibilities for public or private public property are similar, some of the options are only applicable to private property (eg privatization or placement of a vacation home in a sole proprietorship with state ownership), and d. Other options apply only to state-owned badets (eg concession for use, management or operation of state-owned sole proprietorships and state-owned enterprises under a contract). law). The report says that the status review of bases is rare