HRK 1.5 bln to be invested in Croatia's tourist sector this year

Some HRK 1.5 billion will be invested in preparations for this year's tourist season, not counting promotional activities, the Croatian Tourism Ministry said on Tuesday.

According to a poll conducted by the ministry, investments of the public and private sectors in tourism in 2012 will amount to nearly HRK 1.1 billion or 37 percent more than in 2011.

Given that the poll did not include investments made by small and medium-size businesses, it is estimated that without promotional activities, some HRK 1.5 billion will be invested in the preparations for the tourist season, the ministry said.

Tourism Minister Veljko Ostojic said the ministry planned to implement measures aimed at facilitating investments and reducing VAT in tourism in 2013, adding that this would additionally strengthen the competitiveness of the tourist sector and make Croatia even more attractive to foreign tourists.

The hotel sector will see the biggest increase in investments. The 28 hotel companies that were polled plan to invest HRK 885 million or 49 percent more than in 2011.

This year, Croatian counties and cities and their tourist boards will invest a total of HRK 185 million in tourism, most of which will be invested in infrastructure, destination management, as well as in new products and promotion. (Hina)