Prime Minister meets with hoteliers

The government has great understanding for the development of tourism and the hotel industry and will do everything to improve that segment's competitiveness and to extend the positive tourism-investment climate, PM Plenkovic said on Friday.

The hoteliers from the UPUHH association met with Plenkovic who was accompanied by Tourism Minister Gari Cappelli, Deputy Prime Minister and Economy Minister Martina Dalic and representatives of the State Assets and Finance ministries, including the Tax Administration.

Plenkovic commended the investment cycle and the tourism results, and expressed his satisfaction with everything that tourism brings to the Croatian economy, including its impact on various other segments.

After the meeting, Cappelli underscored that the talks were open and dealt with essential problems, saying that tourism was exceptionally important as it accounts for 18% of Gross Domestic Product and hoteliers are significant investors.

"In synergy between the Tourism Ministry, others in the government and hoteliers, we will do everything to improve competitiveness in tourism and for the investment cycle to continue. This year investments in tourism amount to 800 million euros, of that, including 500 million euros is from the private sector, and we hope that trend will continue in the years to come," Cappelli said.

He said the Tax Administration said at the meeting that property tax for hoteliers might remain at about 1.5% of their income, which is the amount they pay now for municipal fees.

UPUHH president Ronald Korotaj said that the meeting was the first step in considering tourism and the economy as partners, and that hoteliers were pleased that the prime minister found the time to hear them out.

Korotaj added that they had discussed five key points and measures that need to be resolved, from the VAT rate for accommodation and hospitality, property tax, tourist tax, employment and the workforce, and land for tourism purposes.

The price rise in road tolls won't have any great impact on this year's tourism turnover considering the share of road tolls in the total tourism budget, Cappelli said.

Text: Hina

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