Amendments to the Hospitality Industry Act Open for Public Consultation

The Ministry of Tourism on Thursday submitted a proposal for amendments to the Hospitality Industry Act for public discussion, and through e-consultation, all interested parties can submit their opinions, comments, criticisms, and suggestions in the next month, until June 2.

As the announcement of amendments to this law has sparked discussions in some areas ‘on the ground’ even before its publication in e-consultation, especially from private accommodation providers, the Ministry of Tourism emphasized in response to Hina that this regulation can only be adopted after the law or its amendments come into force.

At that time, the minister will adopt the regulation, which the Ministry states is still being worked on and will also be subject to public consultation before its adoption.

– The Hospitality Industry Act regulates the manner and conditions under which legal and natural persons can perform hospitality activities, and as it is assessed that the existing law is vague in some parts or limiting for the development of hospitality and the competitiveness of Croatian tourism, we propose amendments that can be seen in the proposal on e-consultation, the Ministry emphasizes.

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They add that the amendments aim to harmonize the standards of facilities for renters who obtained a decision to provide hospitality services in households by September 1, 2007, in accordance with the then-valid Regulation on the Classification and Categorization of Facilities Providing Hospitality Services in Households, with the currently valid Regulation of the same name, thus standardizing the facilities providing hospitality services in households.

It is estimated that this could affect 20,000 renters who obtained a decision to provide hospitality services in households by September 1, 2007.

At the same time, issues are being resolved for those renters who do not wish to apply for harmonization, for reasons that they do not have or do not want to invest additional funds in upgrading the facility to raise standards, or the facility itself may not have the spatial possibilities to raise standards (e.g., space for additional sanitary facilities to meet the requirement that each room has its own), allowing them to continue providing hospitality services without the right to use category labels (stars). In this way, renters will not be prevented from providing services, but service users (guests) will be informed that the facility does not have a category and therefore expect a different, lower standard of service.

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The amendments also regulate that renters, in addition to accommodation services, can provide their guests with breakfast services, whereas until now they could also provide half-board and full-board services. This, as explained, would contribute to renters who currently provide half-board or full-board services and have equipped their facilities to provide such services, continuing to operate as hospitality providers by establishing companies or crafts, thereby changing the ratio of renters to hoteliers in favor of hoteliers.

Regarding amendments related to food and beverage service, the Ministry emphasizes that all who meet the conditions will be able to register for that activity and that, as with the harmonization of standards concerning accommodation, equal business conditions are being introduced so that everyone can operate under uniform rules.

The proposed amendments allow hospitality activities, in addition to special hospitals and health resorts, to be performed by other health institutions, commercial companies for performing health activities, and health workers who independently practice privately, in accordance with special regulations governing health care.

The legal amendments also regulate a new type of household facility and on family farms, namely a facility for Robinson accommodation, and prescribe special standards for facilities in households and family farms.

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Another novelty is that accommodation for seasonal and field workers for performing jobs, as well as accommodation for participants in artistic residency programs, is not considered a hospitality activity.

The proposal also foresees the introduction of mitigating measures for tourist inspectors towards service providers who commit violations, applying the principle of opportunity, i.e., prescribing the possibility of rectifying irregularities and deficiencies identified in inspection supervision without punishment.

– We expect that the consequences of adopting these amendments will be an increase in the quality of services and standards of household facilities, an equal position of renters and hoteliers in the market, greater consumer protection, an extended tourist season, and higher income for renters, facilitating business for entrepreneurs, all aimed at developing and strengthening the overall competitiveness of Croatian tourism, the Ministry of Tourism states.