Seaside prices skyrocket, take toll on hotel revenues

The price of a seaside holiday has increased three times in the last five years, although no investments were made in modernising or improving the quality of services, travel agency officials said.

“In Neptun, for instance, prices went up 80% or even 280% in ROL as compared with last year. There were some pompous announcements this spring, saying prices would not exceed the inflation rate, but clear analyses contradict those statements. Overall, prices have tripled in foreign currencies between 1998 and 2003 in every resort,” Cornel Gaina, chairman of the Romanian Travel Agencies National Association (ANAT), told Ziarul Financiar.

However, price hikes are now turning against the hotel owners, hurting their financial forecasts.

“The number of tourists plunged in July, although there was a significant increase in May and June, 40% – 80% up from the year-ago period. But tariffs went through the roof in July, so Romanian tourists were no longer interested in the seaside,” Gaina also said

Moreover, there were hardly any foreign tourists on the Romanian seaside. “The economical downturn in Europe strongly affected the tourism industry in general, not only in Romania. Besides, the events in Iraq also had a negative contribution. Consequently, fewer foreign tourists opted for the Romanian seaside,” ANAT chairman added.

What could bring things back to normal? “Prices on the seaside could be lower or at least equal next year as compared with this year. We talked with the hotel owners to book the next season in early September and to set prices in foreign currency for foreign tourists both for 2004 and 2005”. bogdan.neagu@zf.ro