Economic Council endorses Tourism Action Plan

ZAGREB, 8.4.2009.

This year's Tourism Action Plan envisages a seasonal lifting of visa requirements for Russia and Ukraine, relieving the sector from quasi-taxes to the Croatian Composers' Society and Croatian Radio and Television as well as from monument annuity, stated the Minister of Tourism Damir Bajs on Wednesday.

photo: FaH, Lana Slivar Dominić

A reduction of the VAT rate for the tourist sector and measures related to the future law on tourist land, which will soon be put to Parliament, will be considered for next year, he told the press after a session of the Economic Council, which endorsed the Tourism Action Plan.

Bajs said the Government could discuss the Plan as early as tomorrow and that the Plan was already being developed on the ministerial and other levels.

He did not say how much the Plan was financially worth, but added that the tourism sector would considerably feel the quasi-taxation relief.

photo: FaH, Lana Slivar Dominić

The minister said visa for Russians and Ukrainians would be temporarily revoked from 1 July and 31 October this year, adding that the response in the two countries was positive. He said similar measures would be considered for Chinese and Indians as well.

The Economic Council recommended that local government and self-government units should consider the possibility of reducing levies, notably local rates, monument annuity and parking prices.

photo: FaH, Lana Slivar Dominić

Bajs said 2010 could be more difficult for tourism than this year and announced the adoption of the new tourist land law which envisaged granting concessions on 100 million square meters of tourist land.

Regarding changes to the VAT rate in the tourism sector, Bajs said it would be considered during the adjustment of Croatia's entire tax system to European Union standards, and that a new rate might be applied next year. (Hina)