GOVT DISCUSSES POSSIBLE OUTCOME OF 1999 TOURIST SEASON

ZAGREB, April 29 (Hina) - Although Croatia is a safe country on the whole of its territory, NATO actions in neighbouring Yugoslavia have caused wrong perceptions, which will cause huge damage to Croatia's tourism this year. According to the Tourism Ministry, should the best possible scenario happen - the completion of the NATO operation by mid May - tourism business would decrease by 33 per cent in relation to 1998, which means that income from tourism would be lower by US$900 million. In case NATO actions continued until the end of May or last even longer - the decrease would range between 40 and 50 per cent, and the loss would amount to US$1.1 - 1.4 billion, Tourism Minister Ivan Herak told the Government on Thursday. In relation to last year, the Government expected a 10 per cent increase in tourism business. However, Croatia's tourism prospects started to deteriorate with the beginning of NATO air raids. Tourism business decreased by 33 per cent over Easter holidays, resulting in 46,000 overnight stays less than last year. This prompted the Tourism Ministry to plan further promotional activities on foreign markets as well as subsidies for organised arrivals of domestic and foreign tourists. This plan would require an additional US$10.7 dollars, of which just above nine million would be secured from the budget. "To expect imminent cessation of NATO activities in Yugoslavia is unrealistic. Everything points to the fact that NATO is stepping up its activities and that Yugoslavia is becoming more and more isolated", Foreign Minister Mate Granic said during the session. That is why promotional activities should be intensified on markets which are least affected by the NATO operation. Finance Minister Borislav Skegro announced that in its latest instruction on travels, on Wednesday, the Foreign Office said the whole of Croatia was safe for travelling. "Croatia... has never been safer, but in some segments, especially in the perception (of the country), this has set us four to five years back", Premier Zlatko Matesa said. Regardless of the announcements by the International Monetary Fund and World Bank that countries which are suffering consequences of NATO attacks would be given assistance, Croatia has to turn to its own resources and prove that it is safe for tourists, Matesa said. That is why the Government has agreed that state-financed meetings, congresses and conventions should until further notice be held in southern Croatia, especially in the Dubrovnik-Neretva County. All those who have changed the location of or cancelled their meetings in the county would not be given state help, Matesa said. He added that school trips to the area must not be cancelled, but rather stimulated. The ministers stressed that cultural programmes needed support. One has to turn to guests "because we have driven away our guests by being too comfortable and with too high prices", Reconstruction and Development Minister Jure Radic said. The Government also discussed the first report on sending US$2.4 million worth of humanitarian aid (flour, canned fish, blankets, soap and detergent) to Albania and Macedonia, the countries which have accepted the largest number of Kosovo refugees. The aid sent to Albania is worth US$1.46 million and to Macedonia US$970,000. (hina) jn rml