TOURISM MINISTER: 2001 VERY SUCCESSFUL FOR CROATIAN TOURISM

ZAGREB, Dec 21 (Hina) - After almost ten years, Croatia has again been recognised as a desirable tourist destination, Tourism Minister Pave Zupan-Ruskovic said at a Christmas and New Year reception the ministry and the Croatian Tourism Board organised Friday. In 2001 Croatia saw a 13% increase in tourist arrivals and a 20% increase in tourist revenue as against 2000. Around 2,500 articles on Croatia have been published in the foreign press. The minister thanked tourist workers for their efforts during the year, which resulted in a 35% increase in the tourist spending in relation to the year before. She added that higher investments into promotion activities and subsidies in 2002 would yield even better results. However, due to a lack of accommodation facilities, arrivals in 2002 could increase between five and ten percent. Zupan-Ruskovic said that during her visit to London this week, an agreement had been reached with London's Standard Bank on a loan for Croatian hotels worth approximately EUR20 million, which would be granted without state or mortgage guarantees. In January next year, Croatia and the European Bank for Reconstruction and Development will sign a contract on the privatisation of some 15 strategic hotel companies, and a package of tourism-related bills will be forwarded into parliamentary procedure, she said. In the first half of 2002, negotiations on the graduated Value Added Tax rate for the entire tourism sector will start so that arrangements for the 2003 season could be made in line with new regulations. Zupan-Ruskovic also said she wanted the Croatian tourism to be recognised as a strategic sector which could increase employment and improve living standards. (hina) np