CROATIAN HOTEL MANAGERS HOLD THEIR 3RD CONGRESS

ZAGREB, Nov 11 (Hina) - The third congress of Croatian hoteliers began on Thursday evening in the Zagreb-based Sheraton hotel. The congress, organised under the auspices of the Croatian Government and Tourism Ministry, will discuss the current situation in and possible models of rehabilitation of the Croatian hotel industry.#L# Tourism Minister Ivan Herak, who opened the event, delivered a speech at the beginning of the congress. Although no decrease in the VAT (Value Added Tax) rate for tourism has been guaranteed for 2000 and although the tourist sector has not received any state subsidy, the Government will earmark 400 million kuna (100 million German marks) as non-repayable funds, for tourism in the first five months of next year, Minister Herak announced. Loans for small business in tourism will be granted, while firms which meet conditions will be given loans, worth up to 100 million German marks, from the Croatian Bank for Reconstruction and Development (HBOR). Herak told the gathered managers that from 1996 to date over one billion German marks had been invested in tourism, and 204 million marks out of that amount had been allocated from the state budget. Herak advised hoteliers to upgrade their offers and realise that Croatia cannot choose guests and impose prices but it is the international markets that determines them. He assessed that the latest tourist year was one which all would rather forget and consequences of such poor results would be evident in coming years as well. This year there has been 26 million overnight stays or 15-17 percent less than the previous year. One of causes of this fall is the Kosovo crisis, Herak said adding that other reasons of poor results of the tourist seasons were slow- selling Croatian tourist products and the wrong prices policy. The congress closes on November 13. (hina) ms