Kovačev announces continuation of financial support for Croatian tourism

Through the programs ‘Financing Tourism Activities’, ‘Incentive for Success’ in collaboration with the Ministry of Tourism, ‘Program for Financing the Preparation of the Tourist Season’ and ‘Development of Rural Tourism’, 58 loans were approved in 2008 with a total value of 543 million kuna.

The Ministry of Tourism will save five million from the 240 million kuna budget for this year. Although there is a recession and a global crisis, I expect that by the end of this tourist season we will be at least equal, if not slightly better compared to our competitive countries – said Minister of Tourism Damir Bajs in his address to the participants of the Fifth Regular Assembly of the National Association of Family and Small Hotels, held today at the Korana-Srakovčić Hotel in Karlovac. Reflecting on the crisis of the 1999 tourist season, Bajs emphasized that it was a specific, difficult situation primarily for Croatian tourism due to the effects of NATO’s bombing of Serbia, which cannot be compared to the current crisis situation. However, the structure of guests, of which as much as 85 percent are from abroad, makes Croatia very sensitive to the state of the economies of the most important emitting countries.

The Director of the Croatian Bank for Reconstruction and Development Anton Kovačev announced the continuation of financial support for Croatian tourism, which will be necessary this year. During 2008, HBOR implemented four programs to promote tourism, although hoteliers could compete for funds from all 25 HBOR programs. – Through the programs ‘Financing Tourism Activities’, ‘Incentive for Success’ in collaboration with the Ministry of Tourism, ‘Program for Financing the Preparation of the Tourist Season’ and ‘Development of Rural Tourism’, 58 loans were approved in 2008 with a total value of 543 million kuna. Of this, 30 loans with a total value of 430 million kuna were approved for the construction of new and for the expansion and renovation of existing facilities, and through ‘Incentive for Success’, 15 loans were approved in the total amount of 86 million kuna, said Kovačev, particularly praising ‘Incentive for Success’, through which a total of 161 loans with a total value of 750 million kuna were approved from its inception until the end of 2008. So far, HBOR has allocated 7.8 billion kuna to tourism, which is 20 percent of the total allocation to the economy.

Kovačev particularly praised the novelty in this program, which is the possibility of financing additional hotel facilities, all under one building permit and loan application. Although there has not been much interest in financing the purchase of small inventory, food, and beverages for tourism as part of ‘Financing the Preparation of the Tourist Season’, Kovačev said that due to the newly emerged crisis this season, there could be significantly increased interest in this source of financing tourism activities. For the 2009 season, HBOR has prepared an allocation for Croatian tourism in the amount of 500 million kuna, which he believes will be sufficient given the significantly reduced investor ambitions in tourism.

HBOR will find sources of financing for its programs through borrowing abroad, within which, Kovačev added, a contract with the European Investment Bank for a loan of 250 million euros is forthcoming, aimed at promoting the overall small and medium-sized enterprises in Croatia, which also includes small family hotels. Responding to loud complaints from hoteliers about unjustified parafiscal levies such as fees for ZAMP, TV subscription to HTV, and similar, Minister Bajs announced the possibility of reconsidering the reduction of a total of 256 parafiscal levies, on which the Government will also express its opinion.    (Mladen Volarić)