In 2010, investments in hospitality will fall by 20 percent

We are facing an uncertain and challenging tourist season in which we must defend last year’s results and again work on attracting domestic guests, whose share in the 2009 season was significantly weaker, said Damir Bajs, Minister of Tourism, at a press conference held on Tuesday in Zagreb, after a meeting with representatives of the Government of the Republic of Croatia and hoteliers.

In addition to special measures, tourism must also be included in the general measures of the Government of the Republic of Croatia as a generator of economic development, primarily because hoteliers are simultaneously among the largest investors, the minister continued. Only last year, the hotel sector invested 4.5 million kuna in the construction or renovation of its capacities. For the season, which according to the minister should be marked by the continuation of quality improvement through HABOR measures and the use of new credit potentials, 30 million euros will be spent on promotion in foreign markets. And although everyone was most eager to hear what the Minister of Finance and Deputy Prime Minister Ivan Šuker would say about the meeting, it could only be learned that there was a discussion about non-tax contributions that were constructively discussed four days ago at the Economic Coordination, and that due to the financial situation, it will not be possible to lower the VAT rate.

From local governments, Šuker expects them to understand how a wise pricing policy for communal contributions can become an attraction for potential investors. Although they were quite sour after the meeting, representatives of the Croatian Employers’ Association in hospitality, led by President Kristijan Šustar, emphasized that the goal of the meeting was to set frameworks and mechanisms for future periods. – The upcoming season will not be of higher quality and better than last year’s, but at least one broader framework is important to us. Therefore, we welcome measures for economic development and I am sure that many hoteliers will be particularly interested in the model A measures for recovery and development, said Šustar, adding that he still does not know how many hoteliers will appear at the auctions. However, Šustar announced a significant decline in investments in the hospitality sector, by as much as 20 percent. (D.T.T.)