Minister says investment in tourism in 2013 to be doubled

Investments in Croatian tourism in 2013 are expected to be HRK 2.5-3 billion, double this year's amount, Minister Veljko Ostojic has told Hina. The public and private sectors are expected to equally invest in tourism, helped by the Croatian Bank for Reconstruction and Development (HBOR) credit lines launched this year, a reduction of the VAT rate in tourism to 10% as of early 2013 and new legislation that is being drawn up to facilitate investing in tourism, the minister said. The first draft of the law is expected next week and it will refer to all investments in tourism above EUR 50 million and investments in other sectors above EUR 20 million, he added. The newly set up Investment and Competitiveness Agency is also expected to help increase investment, the minister said, adding that the macro-environment and trends on the capital market also impacted investments.

Investments in Croatian tourism in 2013 are expected to be HRK 2.5-3 billion, double this year's amount, Minister Veljko Ostojic has told Hina.

The public and private sectors are expected to equally invest in tourism, helped by the Croatian Bank for Reconstruction and Development (HBOR) credit lines launched this year, a reduction of the VAT rate in tourism to 10% as of early 2013 and new legislation that is being drawn up to facilitate investing in tourism, the minister said.

The first draft of the law is expected next week and it will refer to all investments in tourism above EUR 50 million and investments in other sectors above EUR 20 million, he added.
The newly set up Investment and Competitiveness Agency is also expected to help increase investment, the minister said, adding that the macro-environment and trends on the capital market also impacted investments.

He underlined the role of the private sector, saying it was an active player and a generator of investments.

Ostojic said the HBOR approved 74 loans totalling HRK 447 million for tourism in the first half of the year and that requests for loans totalling HRK 950 million were being processed at the start of the high season.

He announced for the autumn amendments to the law on land use for tourism, which he said was now a hurdle to investment, notably in campsites, adding that the amendments would be completed by the end of the year.

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