He's sort of busking. This is Bulgaria, but he's a Turkish-speaking Roma, and you can pay Roma to do just about anything.
Bulgarians--really, all Europeans--hate Roma worse than Americans hate Mexicans. Roma are famous for their 'Arab-style' music (chalga) and their strobing hip-dances, so I think the back-and-forth thwacking of the shovel is supposed to mimic the back-and-forth hip motion. At least, it wouldn't surprise me for a Bulgarian to pay a Roma to make fun of his culture, and it wouldn't surprise me for a Roma to take a Bulgarian's money to make fun of his culture. That's why all of Bulgaria's best entertainers are Roma--especially Azis.
I was going to give this three stars for the racism and cultural exploitation of everyone involved, but SWEET JESUS I want that windbreaker.