Government adopts regulation to stimulate investment in tourism

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The government on Thursday adopted a regulation to stimulate investment in tourism, calling it the most significant instrument for that purpose. Speaking at a cabinet session, Tourism Minister Nikolina Brnjac said the regulation was aligned with the General Block Exemption Regulation and the law on state aid, and that it defined the compatibility of state aid under the Tourism Act and rules on the allocation of state aid for investments.

The state aid is intended for the realisation of the goals outlined in the 2030 Sustainable Tourism Development Strategy, she added. It will be allocated to large, micro, small and medium-sized enterprises in tourism.

It is expected the investments will diversify and improve tourism product, extend the season, and facilitate sustainable business, the minister said.

The aid will be granted by reducing the profit tax rate for projects defined by this regulation and for activating inactive assets by reducing the fee for disposing of inactive state-owned assets, she added.