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ASSOCIATION: QUALITY, PRICES OF HOTEL SERVICES BALANCED

ZAGREB, Nov 28 (Hina) - The current quality and prices of hotel services in Croatia are balanced and satisfactory, and any increase in prices of more than 2-3 percent, if not accompanied by investments into the quality of services, would decrease the competitiveness of the Croatian hotel industry and tourism on the international market.
ZAGREB, Nov 28 (Hina) - The current quality and prices of hotel services in Croatia are balanced and satisfactory, and any increase in prices of more than 2-3 percent, if not accompanied by investments into the quality of services, would decrease the competitiveness of the Croatian hotel industry and tourism on the international market. #L# This was stated by the newly-elected president of the Croatian Association and Hotel and Restaurant Managers (HUH), Franco Palma, at the HUH's 7th congress, which opened at Zagreb's Sheraton Hotel on Thursday. The main topic of the congress, which is attended by some 200 hotel managers, is the quality and price of hotel services. Palma said that the relationship between the quality and prices of hotel services in Croatia was satisfactory in comparison to other Mediterranean countries. New increases in prices will require additional investments in the reconstruction and equipment of tourist facilities, staff and new products, he said. Palma believes these changes may take five to ten years to implement. He added that better competitiveness required a reduction in the VAT rate and other state incentives, as well as better co- ordination of agriculture and other production branches. This year's HUH congress is held under the auspices of President Stjepan Mesic and the Tourism Ministry. (hina) rml

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