The Director of the Bulgarian Institute for Analysis and Assessment of Tourism gave an interview for FOCUS News Agency in the beginning of May. According to Mr. Rumen Draganov, Bulgaria should observe and obey the tourism legislation valid for the Schengen zone. Az Mr. Draganov said, Bulgaria is a European Union member and all travelers who have Schengen visas can come in the country even if they do not have a return ticket. As the Director of the Bulgarian Institute for Analysis and Assessment of Tourism said, it is not possible for other legislation to be active on the Bulgarian territory and it is not possible for a tour operator to have activities in Bulgaria if that tour operator is not registered under the Bulgarian legislation.
Mr. Rumen Draganov confirmed that the country should obey and observe the legislation of Schengen, as well as all EU directives, as well as the Tourism Act from 2002 that has been recently replaced by the Tourism Act from 2013. The other directives that have to be observed as well are the Consumer Protection Act and Directive 90314. This behavior of the authorities will confirm the good reputation that Bulgaria has among the travelers and the institutions in the European Union and in the Schengen zone.
The construction of new office premises in Europe is among the investments of highest priority on the property market on the continent. This was shown from an analysis of the company Patrizia Immobilien, cited by the news web portal investor.bg. It is believed that by year 2017, there will be 11 million sq.m. of new offices in the European countries. This will happen regardless of the high levels of unused office premises in many parts of the old continent in the last few years. The city that is most active when it comes to construction of office premises is Warsaw, where are expected to be constructed 900 000 sq.m. of brand new office buildings. Serious construction of office centers is to be seen in the city of Sofia as well, even though the levels of construction are not that high.
The key investors are focusing on relatively low-risk markets such as London. To get more profit however, they can focus on markets with a higher risk like the ones in Dublin, Athens and Madrid, which are currently experiencing economic difficulties. The European cities that have highest percentage of unused office premises include also Barcelona and Budapest. More stable are the office markets in Germany and the four biggest cities there – Berlin, Munich, Frankfurt and Hamburg. In Sofia city, there is an interest towards the offices of class A, which have good location, easy access and many extras.
An improved business situation will be among one of the benefits for Bulgaria is the country enters the Schengen agreement zone in the beginning or spring of next year. The abolition of the internal borders and the unified requirements as far as the goods are concerned will remove the barriers in front of Bulgaria and will alleviate the trade within the European Union. The implementation of the European standards that are applied at the outer borders will help the trade processes with third parties as well, as there will be control at one stop only and the faster transportation will be guaranteed. Besides that the border stops will be improved, as well as the quality of the services.
The local business in Bulgaria will enjoy a positive effect as well, since the companies will be able to offer their goods and services to the neighboring countries and the rest of the members of the Schengen zone. The customers will gain an access to alternative markets, will be able to use the nearby airports and will enjoy lower prices due to the competition. The entry of Bulgaria into the European border-free zone will have a positive effect on the trips from and to Bulgaria. People will feel free to travel around, without worrying for passport checks or waiting at the borders for hours.
Almost 57 billion Euros were invested in the construction and organization of European offices during the year of 2012. The sum is reduced with 7 % according to the sum spent the previous year. Of course, the overall economic stagnation in all countries of the European Union lead to no rental growth in the prices, however the interest in relocation and opening of new offices of the local and international companies in all member states was serious. Such increase in the rental prices was seen in Munich and Dusseldorf, Lyon, Oslo and Moscow, however in Sofia the rental prices of the offices remained the same or slightly lower compared to the same period a year ago. A decline in the rental levels of the offices was seen in the cities of Madrid and Lisbon.
According to the prognosis, the rental values will remain the same in most of the European business markets. The interest will be towards the modern office buildings of the highest class, which also have very good locations. The rental levels of offices of class B will remain low and the interest towards them will not increase. Reductions in the rental levels of the offices are expected in cities that have been hit badly by the economic crises like the city of Madrid or face a large supply of office space such as the city of Warsaw.
When Bulgaria finally enters the Schengen zone, which will hopefully become a reality in the future, this will have its impact on the local business. What will the companies obtain from the membership in the free-travel Schengen area? From a practical point of view, the lack of borders will make easier the transport of goods and will alleviate the travel. The Bulgarian tour operators and travel companies will be in the position to offer various combined trips. With Bulgaria being member of the Schengen agreement zone, travelers from other countries will be more eager to visit the resorts of Bulgaria. This is especially valid for travelers from Asia.
The country could also benefit from being a transit state and the predictions are that there will be two min travel destination lines from Greece and Turkey to the countries in Western Europe and from the countries in Schengen zone that are traveling to the resorts of Greece, Turkey and hopefully, the cheaper Bulgarian resorts. In general, the membership in the passport-free Schengen zone will create additional conditions for the development of a common economic zone in the area. This includes integration of the value added taxes, which will further lead to more serious interdependence of the businesses in the area. Moreover, the companies will have the freedom to choose where to situated their service centers and their activities. These will be areas with reasonable office rental prices and highly-trained professionals.
At the end of April was made the first sod of the construction of the new metro line “Mladost 1” – Business Park Sofia. The Present Mr. Rosen Plevneliev, along with the mayor of Sofia, Mrs. Yordanka Fandakova were attending the ceremony and stated that the new metro line will be 3 km long and will have three stations, serving more than 45 000 people each day. The new line of the metro will be financed by the European Union with 110 million Euros and the “Transport” program, while the municipality will invest 10 million leva.
The new line of metro will make easier the transport towards the largest office zone in the capital Sofia, where are placed the offices and headquarters of many big international and local companies. There will be yet a second metro line that will be constructed from James Bouchier Blvd to Srebarna Str. and the new Paradise Center. This second line will be 1.2 km long and will have just one metro station. According to Sofia municipality, the metro station towards the airport will be completed in 2015. Thanks to that, local and foreign business travelers will be able to reach the airport and catch their flights more easily.
The activities in Bulgaria that are related with the implementation of all criteria that are requested by the Schengen authorities are being financed by the so called Instrument Schengen. The investments made are associated with the technical equipment (motor vehicles, equipment for monitoring and control of borders, special equipment for monitoring and control, special equipment for conducting police operations near border areas, etc.), as well as the construction and maintenance of the Schengen Information System and the Visa Information System, investments related to optimization and upgrading of facilities in the border zone for better border security, trainings for improvement of the staff qualifications, etc.
The access of Bulgaria into the Schengen zone will be very positive from political and economic point of view. When Bulgaria finally becomes a regular member state, which is believed to happen in the beginning of next year, the country will benefit from the collaboration between the judicial and police authorities against the international criminality. Besides that, the Schengen membership will attract many new investors in the country, which will bring profits to the business and a better perspective in front of the country. As a member state of the Schengen agreement, Bulgaria will become more appealing to the foreign investors.
The first skyscraper in the city of Sofia will bear the name Capital Fort and will offer an intriguing mixture of offices of class A, trade zones and service centers. The offices will be modern and perfectly arranged, according to all the international regulations. The building will have a total area of 32 000 sq.m. and will be 126 m high. It will have twenty-four floors of offices that will be serviced by 12 modern elevators. The modern offices will come of various sizes ranging from 80 sq.m. to 1200 sq.m. The lower building attached to the skyscraper will also offer offices of class A, according to all international standards. This lower building will have total area of 12 000 sq.m., height of 30 m and will feature six office floors, served by six elevators. The offices there will be of the open-space type and will spread over 400 to 1700 sq.m. of area.
The new office center Capital Fort will feature a two-level central lobby area with trade zones, bank offices, two conference rooms, as well as several dining places – two restaurants and three fast-food places, a pharmacy, a tour agency, a flower shop, a newspaper stand, a beauty salon and dry-cleaners. The central atrium will have four escalators that will offer fast and easy access to the offices and a pleasant environment for the visitors. The skyscraper will have several showrooms with separate entrances and second levels. In addition to the offices, there will also be a fitness center, a children’s playground area, and a winter’s garden. The underground garages will offer 670 parking lots, arranged in several zones.
The access of Bulgaria and Romania into the passport-free traveling throughout Europe has been postponed for yet another time and this is for an indefinite period. The situation led to serious debates among the politicians in Bulgaria, who were blaming one political formation or another. At the same time Romanians seemed to be bored with the numerous delays and no longer interested whether they will enter the Schengen zone or not.
Here comes the question what does the Schengen zone symbolize? The main idea behind the Schengen agreement is for the possibility of free crossing of borders between the countries that are members of the Schengen zone. At the same time, this agreement aims to guarantee the level of security of all the member states, which is achieved by various means, including common standards of border control at the external borders; similar visa policy; similar national legislation, cross-border police and judicial cooperation, as well as introduction of the Schengen Information System. Today, all 25 member states of the Schengen agreement apply these rules. Twenty-two of the countries are members of the European Union as well. The other three that participate in the Schengen zone are Switzerland, Island and Norway. Hopefully, Bulgaria and Romania will enter the Schengen zone at the beginning of next year as 26th and 27th state of Schengen.
In the beginning of April, the Bulgarian President Mr. Plevneliev was in Budapest to meet the Hungarian President. There he expressed his gratitude for the support that Hungary provided to the accession of Bulgaria in the Schengen zone. The Bulgarian President confirmed that the country is ready for Schengen and has already met the technical requirements imposed for the membership and the planned accession in two stages. Both presidents confirmed that they support the planned enlargement of the European Union. Mr. Plevneliev also stated that when there is a problem, it is being solved. He was positive that if the country has problems with Roma invasion in the UK, it will solve the issue. For now however, there is no evidence for such problems.
According to the Bulgarian President, Bulgaria has invested a lot in keeping the borders save and strong and that the authorities have acted in the most responsible manner. He also confirmed that Bulgarians believe in the European responsibility and solidarity. The President shared the belief that Bulgaria will no longer be victim of internal problems in the European countries that organize campaigns against Sofia and Bulgaria.
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