Lower VAT in tourism to increase investment, revenue, say hoteliers

Croatia's association of hoteliers (UPUHH) on Wednesday welcomed the new government's announcement that it would reduce the VAT rate in tourism, seeing it as the basic prerequisite for new investments necessary for further developing tourism and boosting its revenue and competitiveness.
The association said hoteliers had been demanding a cut of VAT in tourism to eight per cent.

Its president, Kristian Sustar, said that due to the seasonal tourism model and lack of stimulating conditions the hotel business had been netting losses every year even before the recession.

He said the government must reposition tourism in the national economy and set a new macroeconomic framework in order to make Croatian tourism more efficient and stronger in the regional and global markets. (Hina)