Cappelli: This year we expect the opening of around 40 new and newly renovated hotels

Croatian tourism is not heading towards mass tourism, but rather towards integral development, sustainability, and quality, which is also the reason for the increasing tourist demand for Croatia, which will have a successful tourist year again this year, emphasized Minister of Tourism Gari Cappelli in an interview with Hina.

“This year we expect an increase in tourist traffic of up to 7 percent compared to 2017, as well as an increase in investments in tourism to nearly one billion euros, which will certainly reflect in the further increase in the quality of the offer, in which we progress every year, especially in the increase of high-category hotel capacities,” the minister pointed out.

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He added that Croatia is becoming increasingly interesting to investors, so this year, similar to last year, the opening of around 40 new and newly renovated hotels is expected.

He also emphasizes that tourism has a significant impact on the entire Croatian economy, as evidenced by the latest report from Standard and Poor’s, which raised the country’s credit rating, as well as last year’s announcement from The Financial Times, which ranked Croatia 7th among countries desirable for investment in tourism.

Reflecting on reservations/bookings for this year, he assesses that early bookings and very high early occupancy rates are further proof of how desirable a destination Croatia is and that everything the Ministry of Tourism, the Croatian Tourist Board (HTZ), and the entire private and public tourism sector do for better positioning of tourism has effects.

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“We are positioning ourselves better in the world, even in distant markets, from where we are seeing an increasing number of tourists and where we are already strengthening promotional activities, especially in Japan, China, Korea, the UAE, and others. These markets also offer the greatest potential for growth in tourist traffic, so this year we plan to open HTZ offices in Shanghai, Seoul, and Los Angeles, and possibly a consulate in Abu Dhabi as the first step towards an office,” the minister announces.

Year-round tourism based on sustainability principles

Opportunities for growth in tourism and the development of year-round tourism are also seen in this year’s expansion of the airline network to Croatia from around the world, thanks to which tourist traffic is growing even in the pre-season, and airports are already recording an increase in traffic of about 20 percent compared to the same period last year.

“We are following trends and trying to keep pace, and I humbly admit that we are leading in some areas, for example, our eVisitor system has been globally recognized as a technological innovation for more efficient tracking of tourist movements, for which we were awarded by the World Tourism Organization-UNWTO,” says Cappelli.

He adds that they are taking a step further, as part of digitalization, it will also be possible to provide e-services for issuing categorization decisions for hospitality and tourism facilities and issuing decisions to service providers in tourism.

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When asked whether he expects this year, given the excellent announcements from global markets, a tourist ‘overcrowding’ or a problem known worldwide as ‘overtourism’, the minister says that “we are not talking about overcrowding here, but about year-round tourism that we are developing based on sustainability principles so that we can leave future generations a country with numerous comparative advantages, both natural and anthropogenic.”

“We are taking care of planning and developing selective forms of tourism based on complete quality management and destination management that includes all stakeholders important for processes in tourism. Let us not forget that this also includes the development of special forms of tourism such as eno-gastro, cycling, health, and especially nautical tourism, which have room for development, but also for attracting new target groups. Financially, but also logistically, we encourage entrepreneurs in tourism to innovate their offerings by creating additional content that attracts guests throughout the year,” emphasizes the Minister of Tourism.

As successful examples of reducing seasonality, he cites the cities of Split and Zagreb, which, along with some other destinations, have shown that significant progress can be made in a short time and create an offer that is available year-round, which was also the guiding principle of the new promotional video, which was selected among the top four in the world to receive a sort of tourism Oscar, the “Travel Video Awards.”

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This video has so far had over 10 million views, as well as a humanitarian note, as part of the project half a million kuna was donated to children with special needs.

Legal changes for development and greater professionalization

For the first time in ten years, the Ministry of Tourism, in cooperation with the profession and the sector, is approaching a deep change of three key laws – on tourist boards, residence fees, and membership fees, with the main goal of developing tourism, professionalizing the system, and giving greater importance and autonomy to local self-government units.

Regarding the legal changes, Cappelli says they are not cosmetic, but in the interest of a more efficient legal framework for all those affected, and he invites everyone with constructive comments and suggestions to participate in public consultations regarding the legal changes, while also looking at the European level.

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“We have initiated the establishment of a Tourism Fund within the EU with the support of Prime Minister Andrej Plenković, because although it may sound incredible, tourism does not have its own working body within the European Commission, unlike about 20 other sectors, so it is not directly funded,” says Cappelli.

The fund would secure funds for tourism infrastructure, support for small and medium-sized enterprises in tourism, education, and more.

“We have already received support from numerous EU member states and expect that a large number of member states will sign the Declaration on this, and we have also received encouragement from the recent recommendation of the European Parliament for the establishment of a financial line for tourism in the next multiannual financial framework,” emphasizes the minister.

Of about 4000 work permits for foreigners, around a thousand have been utilized

When asked about the labor shortage in tourism, the minister says that this is not just a problem for Croatia, but for all EU countries, but that they are making every effort to prevent this shortage.

“We are well prepared, we have supported the development of personnel with numerous supports, and we have also enabled quotas for foreigners. Of more than about four thousand work permits for work in tourism, only over a thousand have been utilized so far. Our government is most aware of and understands the importance of tourism, so in agreement with the Ministry of Finance, a package of reliefs has been adopted, including for employers in tourism so that the entire sector can breathe. Some have already reacted positively and directed funds resulting from tax relief towards increasing wages, and in a recent conversation with hoteliers, I received information that the labor situation this year is much more stable,” reveals Cappelli.

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On the occasion of the start of the main part of the tourist year, he thanks all tourism workers, as well as others, from police officers, firefighters, and medical assistance teams to rescue services, citizens, and entrepreneurs connected with tourism, both public and private sectors, for their diligent work and contribution to the success of Croatian tourism.

“For all of us, this year is challenging, but I am confident that it will also be touristically successful, as demand is once again on the rise, but also to confirm that Croatia is one of the world’s tourism leaders,” concludes the minister.