HUT welcomes announced bill on non-appraised land

The Croatian Tourism Association (HUT) on Monday expressed strong support to the government's initiative to amend the law on tourism and construction land which has not yet been appraised, the bulk of which is in the tourism sector. The unresolved issue of the land used for tourist purposes is a major barrier that should be removed so as to eanble the full development of the investment potential of the tourism sector, the HUT says in a press release.

The association's president, Veljko Ostojic, is quoted as saying that the legislation adopted in 2010 does not tackle this issue in the adequate manner.

"Therefore we are happy to see the initiative of the government, and in the process of the preparation of the new legislation we are going to actively participate so as to create the best possible framework for the development of the entire tourist industry."

A recently the relevant bill, which was drawn up by the Tourism and State Assets ministries and put up for public consultation, was outlined for the public.

On that occasion it was stated that clearing up the situation with construction land that has not been appraised, the bulk of which is in the tourism sector, may lead to potential investments in tourism of EUR 3-5 billion.

The bill covers tourism land, campsites and other construction land that has not been appraised.

During the ownership transformation of tourism companies, only hotels and other tourism facilities were appraised whereas the land on which they are located was not. After the ownership transformation, the facilities became the ownership of the companies, while the land became state-owned.

Campsites, of which there are 80 in Croatia, spreading over 14.5 million square metres, are a particular problem. They either became totally state-owned, or the facilities in them became owned by companies and the land state-owned.

As a result, tourism companies have been using state-owned real estate without paying for it, and no investments have been made because potential investors could not get the necessary construction papers due to unsolved property rights relations.

In this way the state budget is deprived of 2-3 billion kuna annually, according to some estimates.

The HUP today recalls that campsites generate 25% of all overnight stays in Croatia.

Tourism Minister Gari Cappelli said recently he was pleased order was being introduced after 20 years as it was expected to result in EUR 3-5 billion being invested in tourism. (Hina)

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