Turnover in Romanian seaside tourism is expected to exceed RON1.5bn (€328.9mn) this year, doubling in the last five years, analysis by Keysfin showed on August 2.

The Romanian tourism sector has benefitted from the population’s increased disposable income following wage hikes and tax cuts. At the same time, the number of foreign visitors has also increased, most of them coming to the Southeast European country for business reasons.

"According to employers' estimates, the number of tourists in 2017 could exceed 1.5mn since most accommodation units reported this a fully booked season. Increasing population disposable income, higher standards of living, improved payment facilities, all these conditions are met so that 2017 would most probably be the best year in the last decade for Romanian tourism," Keysfin analysts said.

The number of Hotel/Restaurant/Café companies will reach a new peak based on major investment interest in this area, Keysfin said.

According to the study, there were almost 900 accommodation units, of which 335 hotels, 243 villas, 164 bungalows, 31 bed and breakfast and 56 hostels on the Romanian seaside last year. The statistical data shows that seaside business has significantly increased in recent years, from RON801.2mn in 2012 to RON1.33bn in 2016. Also, the profitability of the sector increased from RON44.9mn to RON205.8mn in the same interval.

The favourable evolution was supported by the completion of the A2 highway linking Bucharest to Constanta, as well as by the international context, the economic crisis in Greece and terrorist incidents in Turkey, the analysts claim.

Despite the positive trends in domestic seaside tourism, generally Romanian tourism is still far below its potential, Keysfin said. This is confirmed by European level statistical data, which ranks Romania last in the EU with regard to the share of tourism receipts in the GDP.

In order to reduce the gap, Romania needs to invest primarily in the transport infrastructure and in the alignment of accommodation facilities to international standards.