After the differentiated VAT rate on food and beverages in hospitality establishments came into effect on January 1, the effects of the reduction from 25% to 10% are not yet visible, prompting Minister of Tourism Veljko Ostojić to call on restaurateurs at a press conference to lower prices and engage in new investments and hiring, thereby demonstrating their appreciation for the new government measure, as the Association of Small Family Hotels has done by reducing the prices of domestic wine by five to ten percent.
Ostojić analyzed the tourism results from the previous year at the conference and presented the work plan for 2013, which will feature key characteristics such as the reduction of the aforementioned tax rate, Croatia’s entry into the EU (the Ministry of Tourism received four million kuna from the budget for preparing documentation for EU application from 2014 to 2020), an increase in investments by two and a half to three billion kuna, and the adoption of a new, shortened version of the Strategy for the Development of Croatian Tourism by 2020, which is expected to be approved by the government soon.
– This year, we expect tourism traffic to be at last year’s level, with an increase in revenue of two to three percent due to increased demand following the VAT reduction, further extension of the tourist season, and in some companies, price increases. Although this year we have an unfavorable holiday schedule in the pre-season (Easter is in March), we expect an increase in arrivals in the pre and post-seasons. Namely, the increase in overnight stays outside the season is greater than the total annual growth, amounting to seven and a half percent more than in 2011, Ostojić emphasized. Likewise, last year saw a four percent increase in overnight stays on the continent.
According to data from HTZ and HNB, Croatia achieved 12.3 million arrivals and 70.3 million overnight stays last year, with revenue in the first nine months amounting to 6.27 billion euros, which is an increase of 3.2 percent compared to 2011. The share of tourism in total GDP also increased by one percentage point, reaching nearly 19 percent during the specified period, which, Ostojić says, on one hand shows how significant tourism is to the economy, and on the other that we have not initiated investments and other sectors of the economy. What remains concerning is the continuation of the trend of declining domestic guests, which were three percent fewer last year than in 2011.
Ostojić announced the continuation of financing tourism projects with HBOR, at interest rates of two, three, and five percent. Last year, HBOR approved 1.7 billion kuna for this purpose, which is 80 percent more funding than in 2011. He also announced a new interest line for small and medium enterprises, which he will present in about ten days with Minister Gordan Maras.
By the end of the year, the privatization of 13 hotel companies in majority state ownership is expected, and in a month, the announcement of the tender for the privatization of Kupari is anticipated.
Changes to Legal Regulations in 2013.
– commencement of the application of the differentiated VAT rate
– adoption of the Strategy for the Development of Croatian Tourism by 2020.
– Amendments to the Law on Providing Services in Tourism
– adoption of the Law on Tourist and Other Construction Land
– Amendments to the Law on Hospitality Activities
– adoption of the Law on Tourist Boards and the Law on the Residence Fee
– Law on Strategic Investment Projects of the Republic of Croatia (for all sectors)
After the differentiated VAT rate on food and beverages in hospitality establishments came into effect on January 1, the effects of the reduction from 25% to 10% are not yet visible, prompting Minister of Tourism Veljko Ostojić to call on restaurateurs at a press conference to lower prices and engage in new investments and hiring, thereby demonstrating their appreciation for the new government measure, as the Association of Small Family Hotels has done by reducing the prices of domestic wine by five to ten percent.
Ostojić analyzed the tourism results from the previous year at the conference and presented the work plan for 2013, which will feature key characteristics such as the reduction of the aforementioned tax rate, Croatia’s entry into the EU (the Ministry of Tourism received four million kuna from the budget for preparing documentation for EU application from 2014 to 2020), an increase in investments by two and a half to three billion kuna, and the adoption of a new, shortened version of the Strategy for the Development of Croatian Tourism by 2020, which is expected to be approved by the government soon.
– This year, we expect tourism traffic to be at last year’s level, with an increase in revenue of two to three percent due to increased demand following the VAT reduction, further extension of the tourist season, and in some companies, price increases. Although this year we have an unfavorable holiday schedule in the pre-season (Easter is in March), we expect an increase in arrivals in the pre and post-seasons. Namely, the increase in overnight stays outside the season is greater than the total annual growth, amounting to seven and a half percent more than in 2011, Ostojić emphasized. Likewise, last year saw a four percent increase in overnight stays on the continent.
According to data from HTZ and HNB, Croatia achieved 12.3 million arrivals and 70.3 million overnight stays last year, with revenue in the first nine months amounting to 6.27 billion euros, which is an increase of 3.2 percent compared to 2011. The share of tourism in total GDP also increased by one percentage point, reaching nearly 19 percent during the specified period, which, Ostojić says, on one hand shows how significant tourism is to the economy, and on the other that we have not initiated investments and other sectors of the economy. What remains concerning is the continuation of the trend of declining domestic guests, which were three percent fewer last year than in 2011.
Ostojić announced the continuation of financing tourism projects with HBOR, at interest rates of two, three, and five percent. Last year, HBOR approved 1.7 billion kuna for this purpose, which is 80 percent more funding than in 2011. He also announced a new interest line for small and medium enterprises, which he will present in about ten days with Minister Gordan Maras.
By the end of the year, the privatization of 13 hotel companies in majority state ownership is expected, and in a month, the announcement of the tender for the privatization of Kupari is anticipated.
Changes to Legal Regulations in 2013.
– commencement of the application of the differentiated VAT rate
– adoption of the Strategy for the Development of Croatian Tourism by 2020.
– Amendments to the Law on Providing Services in Tourism
– adoption of the Law on Tourist and Other Construction Land
– Amendments to the Law on Hospitality Activities
– adoption of the Law on Tourist Boards and the Law on the Residence Fee
– Law on Strategic Investment Projects of the Republic of Croatia (for all sectors)
