Private accommodation foundation of tourism, forum fears

Private accommodation is the foundation of tourism so one should be careful about imposing new taxes on it, it was said on Saturday at a forum of private accommodation providers.

There are more than 106,000 private accommodation providers in Croatia, offering over 600,000 beds, which makes up 60% of all accommodation, it was said at the seventh forum organised by the Croatian Chamber of Commerce (HOK) and the National Tourist Board (HTZ), which brought together 300 renters.

Until Croatia has enough hotels, in which it lags two to three times behind its Mediterranean competitors, private accommodation will play a very important role, Dragan Kovačević of the HGK said and called for classifying private accommodation to prevent unfair competition, among other thinds.

HTZ director Kristjan Staničić said an analysis of private accommodation which the HTZ commissioned from the Tourism Institute would be ready in May and that it would be the basis for branding and promoting this type of tourist accommodation.

Asked about proposals to tax private accommodation, Monika Udovičić of the Tourism Ministry said one should wait for the findings of the analysis, but added that new taxes were not being considered yet.

She said the EU was also debating the matter so that a new directive could regulate this type of tourist accommodation and reduce undeclared renting.

Udovičić said the State Inspectorate should be asked if 30% of private accommodation in Croatia was undeclared. The 2030 tourism strategy envisages upgrading the categorisation of all tourist accommodation, she added.

Nedo Pinezić, an advisor for local tourism development, said private accommodation was important for many local communities and keeping young people there, so any tax intervention should be carefully considered.

For many locals, providing accommodation in their homes is the source of a second income, and they already pay tax on their first income, he said.

Over the last three years, foreigners have bought 30,000 properties in Croatia, including 5,000 registered for providing accommodation, and since foreigners can invest more, domestic renters fear unfair competition, Pinezić said.

It is necessary to better regulate non-commercial accommodation with 300,000 properties occasionally used by owners, their families and friends, without paying for every night and fee paid by registered renters, he added.

(Hina)

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