Croatian tourism industry against raising the sojourn tax before restructuring the system of tourist boards

The Croatian tourism industry is against raising the sojourn tax before restructuring the system of tourist boards and points out: “New levies are being introduced in tourism, and it is not clear what the collected ...

The Croatian tourism industry is against raising the sojourn tax before restructuring the system of tourist boards and points out: “New levies are being introduced in tourism, and it is not clear what the collected funds will be spent on. "  

Representatives of the Croatian tourism industry gathered in the Croatian Tourism Association, the Croatian Hotel Employers 'Association, the Hotel Association at the Croatian Chamber of Commerce, the Croatian Camping Association and the Croatian Employers' Association do not support the new proposal for the 2019 Sojourn Tax Regulation.

"In principle, we do not oppose a possible increase in the amount of the sojourn tax, but we believe that the increase is not acceptable without a thorough analysis of the entire system of tourist boards. Only the increase of income without redefining the role and tasks of individual levels of tourist boards and without assessing the real financial needs is a new unargued imposition on tourism", Said Veljko Ostojic, director of the Croatian Tourism Association.

Tourist associations emphasize that the revenues of the tourist board system from the sojourn tax are growing significantly every year due to the growth in the number of overnight stays, so that the increase in revenues in 2017 amounted to 11%, or HRK 47 million. According to the sector, each new burden reduces the relatively low competitiveness of Croatian tourism compared to the surrounding countries and is not in line with the EU recommendations on reducing the fiscal and parafiscal burdens on the economy.

The unique position of the tourism sector is that the Ministry of Tourism should pass a new Law on Tourist Boards and the Law on Tourist Tax. These laws should specify in detail the activities carried out by each level of tourist boards, as well as the precise and transparent use of funds collected from the sojourn tax. The tourism industry informed the competent ministry about its views and proposals, believing that, after last year's increase, the opinion of the tourism industry will still be respected.

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