Could euro adoption end Bulgaria's status as budget holiday destination from Czechia?

Bulgaria, a popular EU holiday destination for people living in Czechia due to its relative affordability, has been given the green light to adopt the euro on Jan. 1, 2026. While this move aims to bolster economic integration, it may lead to increased travel expenses for Czech visitors.

The Balkan country, which uses the lev, is one of Europe’s cheapest countries for living costs—including groceries and dining out—according to data aggregator Numbeo.

For example, a three-course meal at a mid-range restaurant costs just BGN 40 (CZK 500), and a 1 kilogram of chicken fillets costs BGN 13 (CZK 172), compared to around CZK 200 in Czechia.

A one-way pass on public transport costs the equivalent of CZK 20 in Sofia, the capital, compared to CZK 30 in Prague. And, if you fancy doing some clothes shopping, a pair of branded jeans costs BGN 143 (CZK 1,238) — much cheaper than CZK 1,822 in Czechia.

Historically, some countries transitioning to the euro have experienced inflationary pressures. For instance, during Croatia's euro adoption over two years ago, the euro contributed to around 46 percent inflation in clothing, 33 percent in hospitality, and 16 percent in food between January and July 2023.

However, more positively, when Czechia’s neighbor Slovakia adopted the euro in 2009, there was only a minimal impact on inflation. Estimates suggest that the one-off effect on headline inflation was no higher than 0.3 percentage points.

For Czech tourists, the euro adoption simplifies transactions and makes it easy to quantify how much items cost.

However, the potential for increased prices in accommodations, dining, and services may offset these conveniences. Given that the Czech Republic has not adopted the euro, travelers may also face unfavorable exchange rates, further impacting travel budgets, analysts say.

In Bulgaria, package holiday prices rose by 4.1 percent year-on-year in July 2024, indicating a trend that could continue post-euro adoption. Factors such as the cessation of VAT reductions for tourism-related services and potential price rounding during currency conversion may contribute to further price hikes, financial group ING describes. 

While Bulgaria's transition to the euro offers long-term economic benefits, Czech travelers should anticipate possible short-term cost increases. Monitoring exchange rates and planning expenditures accordingly will be essential for those considering travel to Bulgaria post-2026.