HOTELIERS SPEAK AGAINST HIGH DOMESTIC CURRENCY RATE

ZAGREB, May 18 (Hina) - The Croatian Association of Hoteliers and Restaurateurs has urged the central bank to intervene and stop the growth of the domestic currency rate, returning it to the value before the tourist pre-season. Appreciation, the Association points out, is detrimental to hoteliers. Due to their export orientation, with more than 90 percent of proceeds collected in foreign currency, the appreciation of the Croatian kuna brings Croatian hoteliers into adverse business conditions. The kuna continued growing in April and the first half of May, which resulted in 22 of 27 currencies on the Croatian National Bank rate losing in value, while the other five increased only marginally. The weekly growth of the kuna as against the euro, the German mark, and other European currencies was 1.2 percent, or 3.5 percent over the last month. The last time such a strong increase in the value of the domestic currency was recorded in 1995. According to the Association, hoteliers have signed most tourist arrangements in foreign currencies, which means that the current appreciation of the kuna will undermine business effect in the future. They demand measures to return the value of the kuna to the pre-season level. There is also actual danger, the Association says, namely that the decrease in the value of their currency might prompt some tourists to opt for other destinations. Concrete monetary measures should increase the competitiveness of Croatia's tourism and hotel business, thus helping the national economy. (hina) ha sb