Brnjac: Tourism reform brings concrete effects

The Ministry of Tourism and Sports received 468 project proposals according to published public calls for projects public and private tourist infrastructure.

For these calls based on the National Recovery and Resilience Plan, which were announced from October 5, 2022 to March 1, 2023, we provided grants for the tourism sector in the total value of 289,3 million euros, it was presented today at a press conference at the Ministry of Tourism. 

Public calls within the framework of the National Recovery and Resilience Plan are part of the comprehensive reform of tourism carried out by the Government of the Republic of Croatia, which includes the adoption of legal and strategic documents, but also the largest investment in tourism so far through means from EU funds and from the state budget in a total value greater than 1,27 billion euros by 2030.

The Ministry of Tourism and Sports created the Sustainable Tourism Development Strategy until 2030, which was adopted by the Croatian Parliament at the session held on December 16, 2022. After comprehensive consultations with stakeholders from the tourism sector,  will soon be in public consultation and National plan for the development of sustainable tourism until 2027, which will prescribe activities and concrete measures for the implementation of the Strategy. 

Also, the drafting of an umbrella law for tourism is underway, of the Act on Tourism, which will establish an effective management system for tourism development. All of this is part of a major tourism reform.

Public calls within the NPOO are aimed at the achievement of strategic goals and the transformation of Croatian tourism in order to ensure its sustainability and resilience in the future.

Brnjac: The analysis of the Economic Institute shows that we have chosen the right direction

The Ministry of Tourism and Sports started reforming the management of Croatian tourism a year and a half ago today  we see the concrete results of this reform, stated the Minister of Tourism and Sports Nikolina Brnjac and added that with the Sustainable Tourism Development Strategy until 2030, they determined that the development of tourism will be directed towards year-round i sustainable tourism, for which it is necessary green i digital transition.

"These significant grants are intended for exactly that. The emphasis is particularly on two special forms of tourism that strongly contribute to the year-round and regionally balanced development of tourism, but also to a better quality of life and securing jobs for the local population. It is about health and active tourism, where investments in public health and sports infrastructure are an incentive  for the development of entire regions, including small and medium enterprises and self-employment. We expect that these investments will result in the creation of thermal rivieras in the continental part and climatic and air spas in Adriatic Croatia, which will make Croatian tourism more competitive and attractive throughout the year. The analysis of the Economic Institute shows that we have chosen the right direction, and the great interest in these calls confirms that the sector is ready for this step forward", He points out Grinjak. 

With the aforementioned public calls, of the total secured value of grants of 289,3 million euros, 123,4 million euros were secured for the public sector, i.e. for "Regional diversification and specialization of Croatian tourism through investments in the development of tourism products with high added value", while 165,9, EUR XNUMX million in grants intended for the private sector for "Strengthening the competitiveness of entrepreneurs and encouraging the green and digital transition of the tourism sector".

The public call for public infrastructure was received 220, and the public call for private infrastructure was received 248 project proposals. 

Each public call is divided into three groups and the invitation "Regional diversification and specialization of Croatian tourism through investments in the development of tourism products with high added value" (value of grants: 123,4 million euros) to visitor infrastructure (value of grants: 24,6 million euros), infrastructure of active tourism (value of grants: 37,2 million euros) and infrastructure for the development of spa and wellness tourism (value of grants: 61,7 million euros), and the Call "Strengthening the competitiveness of entrepreneurs and encouraging the green and digital transition of the tourism sector" (value of grants: EUR 165,9 million) on the development of tourism products acceptable to the environment, resource efficiency and green and digital transition (value of grants: EUR 135,4 million), green and digital transition of small renters and their transformation into entrepreneurs in tourism and catering (value of grants: 6,6 million euros) and encouraging the development of products and services and business models in ecosystems in the tourism value chain that contribute to the green and digital transition and solving key challenges in the tourism sector (value of grants: 23,9 million euros).

The deadline for evaluating project proposals is 90 days, followed by the Decision on Financing and the conclusion of the Grant Agreement. All contracted projects must be completed by June 2025, as stipulated in the terms of the call. 

Analysis of the impact of investments in health tourism on the Croatian economy

The Ministry is in cooperation with Economic Institute made by analysis of the impact of investment in health tourism on the Croatian economy.

The analysis shows how the investment of 61,7 million euros in health tourism has the potential to start a new investment cycle in the Croatian economy.

It is estimated that such investment could generate additional in the short term 1,13 billion euros investment, which represents 9,8 percent of total investments which the Croatian economy achieved in 2021 and to create 356 million euros of new gross added product, which represents 0,8 place total realized gross domestic product in the Republic of Croatia in 2021.

Most of the positive effect of investments in health tourism for generating new investments is realized in the short term, but in terms of gross domestic product, these investments generate even greater effects in the long term. The total estimated effects on the creation of new gross domestic product are therefore estimated at 1,26 billion euros, which is 2,8 percent of the domestic product realized in Croatia in 2021.

"All these data confirm that these investments will give new momentum to Croatian tourism, but also to the economy as a whole. In order to maintain the continuity of investments, we also secured more than 200 million euros as part of the Multi-Year Financial Framework for projects from the tourism and sports sectors, which will enable the continuation of this investment cycle", Concluded Brnjac. 

Photo: MINTS