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Croatia Records a Decline in Bookings

The 2009 tourist year is currently marked by the fact that Croatia, like other tourist destinations in Europe, is experiencing a decline in bookings, but less than its direct competitors, emphasized today the Minister of Tourism Damir Bajs, who participated in a round table in Karlovac on the current state of tourism as part of the regular annual assembly of the National Association of Family and Small Hotels.

Bajs also stated that the "threat" to our tourism is that Croatia, like few other countries, has as much as 85 percent foreign tourists, which means that our tourism directly depends on their standard. Therefore, a component of the action plan for tourism, announced as part of ten anti-recession measures of the Croatian Government, will also be additional tourism promotion, measures to increase competitiveness, and measures to overcome possible liquidity shortages of tourism entities, said Bajs. He also announced activities related to attracting domestic tourists and the introduction of a joint online booking for various entities, including family small hotels.

The President of the Management Board of the Croatian Bank for Reconstruction and Development, Anton Kovačev, stated that through the bank’s programs, users in tourism this year, as well as last year, have around 500 million kuna in loans available. As it can be seen from the requests that there are fewer planned investments, it can be expected that this will be sufficient for current needs, he added. He reminded that this refers to four HBOR credit programs – for preparing the tourist season, investments in tourism, and, in cooperation with the Ministry of Tourism, for the programs "Incentive for Success" and rural tourism. Minister Bajs announced that through the program

"Incentive for Development," in addition to existing projects, he will also support projects with additional content, such as the construction of a marina at the hotel, the expansion of sports fields, and similar projects, or projects for the re-registration of apartments into small family hotels. The Minister of Tourism recommended to apartment owners who meet the conditions for such re-registration to do so in order to be included in online booking and other benefits of a joint presence in the tourism market. Croatian small family hotels are on average filled for up to 180 days a year, which, said Bajs, is a high capacity utilization for our conditions.

In response to questions from hotel owners who protested against ZAMP, HRT subscription fees, monument rents, and similar "para-fiscal levies," Bajs emphasized that the Government is addressing this issue and is trying to find a solution to ease the situation for the economy, as there are as many as 256 different levies on the list of "para-fiscal levies" in Croatia. When asked about the planned savings of five million kuna by the Ministry, the minister explained that savings will mainly be made on administrative and similar costs. Promotion for this year has already been contracted anyway, and there will be no savings felt there, he added. (Hina)