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The village of Banya lies 4 km to the east of the town of Razlog and at about the same distance to the north of the popular ski centre and mountain resort of Bansko. The three settlements in the skirts of the Pirin mountain form a sort of an equilateral triangle that is gradually becoming a large ski and tourist complex.

The village is rich in mineral waters of temperature ranging between 37 and 57 degrees Celsius that are used for spa, recreational and industrial purposes. The proximity of Banya to the ski facilities of Bansko, its mineral waters and relatively underexploited tourist potential have drawn to Bulgarian and foreign investors in recent years. The village is currently undergoing massive development into a spa and mountain resort with plenty of new hotels, restaurants and other tourist facilities emerging each season.

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