ZAGREB, June 25 (Hina) - This year's damage to Croatia's tourism caused by the recent war in Yugoslavia will amount to between US$1 and 1.4 billion, Tourism Minister Ivan Herak told Friday's session of the Croatian National Sabor's
House of Counties. Because of NATO's three-month operation in Yugoslavia Croatia will have between 10 and 15 million overnight stays less than last year, when there were 31.28 million overnight stays, Herak said. He said the basic problem of the low interest of foreign tourists in spending their holidays in Croatia was their wrong belief that Croatia is part of Yugoslavia and that it is in a permanent war environment. The VAT rate in tourism will be decreased, Herak added, however, he failed to state the percentage of the decrease or the time the new rate would be introduced. Herak recently told the press that the current VAT rate could be decreased next year
ZAGREB, June 25 (Hina) - This year's damage to Croatia's tourism
caused by the recent war in Yugoslavia will amount to between US$1
and 1.4 billion, Tourism Minister Ivan Herak told Friday's session
of the Croatian National Sabor's House of Counties.
Because of NATO's three-month operation in Yugoslavia Croatia will
have between 10 and 15 million overnight stays less than last year,
when there were 31.28 million overnight stays, Herak said.
He said the basic problem of the low interest of foreign tourists in
spending their holidays in Croatia was their wrong belief that
Croatia is part of Yugoslavia and that it is in a permanent war
environment.
The VAT rate in tourism will be decreased, Herak added, however, he
failed to state the percentage of the decrease or the time the new
rate would be introduced.
Herak recently told the press that the current VAT rate could be
decreased next year from the current 22 per cent to 10 per cent.
However, he believed the VAT rate was not the main cause of the
current situation in tourism, but rather the generally poor
management of tourist companies.
The Government is seriously considering discontinuing the practice
of financial assistance to poorly managed tourist companies, Herak
said, adding the companies' managing bodies had consulted neither
the Government nor the Sabor when they were granted loans.
The House of Counties today supported several bills concluding the
31st session.
(hina) rml