Murad said buying hotels on the coast using only bank loans is a bad idea, since the investment is recouped over 15-20 years and revenue cannot cover both monthly payments and interest.
Over 25% of these hotels have trouble repaying their loans and more than 10 have defaulted and are undergoing foreclosure, said Murad.
According to Tourism Ministry data, Constanta county has 994 registered accommodation units, including 352 hotels.
Murad added that the taxes paid by Romanian hotels are among the highest in Europe, making up even 50% of total revenue. “We pay a lot for running water, more than in Greece. It is the most expensive water in Europe and costs almost as much as electricity,” he said.
The number of tourists who spent their holiday on the Romanian Black Sea coast increased by 10% this year compared to 2010, according to the data of the National Association of Tour Operators (ANAT). Despite the increase, hotel owners’ revenues fell 10% to 15%, as tourists spent less money and had shorter holidays.