Restaurateurs Booed and Boycotted Assistant Minister of Tourism Penda

About 500 participants gathered on Monday at the Congress of Restaurateurs and Tourism Workers of the Croatian Chamber of Trades and Crafts (HOK) at the Le Merdien Lav hotel in Split, and most of them left the hall during the address of Assistant Minister of Tourism Robert Penda and returned after his speech ended.

The congress participants announced the possibility of submitting a request to the Constitutional Court for a review of the constitutionality of increasing VAT on catering services from 13% to 25%, should it be voted in the Parliament.

At the moment when Penda mentioned in his speech that he was addressing on behalf of Minister of Tourism Gari Cappelli, boos were first heard among the attendees, followed by shouts of discontent.

Continuing his speech in such a noisy atmosphere, Penda emphasized that changes to “some regulations” and “reductions of parafiscal burdens” are underway at the Ministry of Tourism, after which even stronger boos followed, and more than half of the participants left the hall.

After a few minutes, Penda continued his speech, stating that he believes the conclusions adopted by the congress “will have fertile ground” and declared the congress open. After his speech ended, the congress participants who had left the hall returned.

“Legitimate and legal”

The President of the HOK’s Catering and Tourism Workers Guild, Neven Šepak, emphasized that the demonstrative exit from the hall by a large part of the congress participants indicates that it is a “sign of current protest, but legitimate and legal.” Responding to a journalist’s question during the break of the Congress about whether protests by restaurateurs would follow if the increase in VAT on catering services is passed, Šepak said that patience is needed until tomorrow when the conclusions of the Congress will be announced.

“This silent protest clearly tells the Minister of Tourism that he should address us in these two days, tell us the true state. He needs to come and explain why restaurateurs have been brought to this point, by undermining the Tourism Strategy, to be losers. This is unacceptable in economic terms,” Šepak told reporters.

In his opening speech, he stated that he expects Minister Cappelli to fight for the interests of restaurateurs and reminded of Cappelli’s initial statement in which he said that the increase in VAT on catering services is “not right.”

“We will not give up”

The President of HOK, Dragutin Ranogojac, emphasized that HOK will persist in demanding the abandonment of the tax increase on catering services.

“We will not give up and we will use all legal means to continue telling the government and ministries that this is not good, that it bothers the entire sector. From this place, we send a message that there will not be eternal terrorism in Turkey and that refugees will not be in Greece for their entire lives, and it will happen that Turkey offers summer vacations in Antalya for 400 euros with a flight. And what will we say – an increase in tax to 25% for restaurateurs who export at their doorstep?” asks Ranogajec.

He also announced the possibility of addressing the Constitutional Court in case the increase in VAT for catering services from 13% to 25% is adopted.

The envoy of the President of the Republic, Željko Garača, emphasized that he can convey her “general stance” which advocates (tax) reform, but in a way that it must not harm anyone and should be viewed in the context of the overall progress of the Croatian economy and society.

You can watch the video from the event on HRT.