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Croatia Expects to Boost Tourism in 2013 From Tax Cut, EU Entry

Croatia expects a boost in tourism next year from its entry in the European Union in July and a sales-tax cut on tourist services to 10 percent from 25 percent in January, Tourism Minister Veljko Ostojic said.

“These two factors will make Croatian tourism more competitive in the Mediterranean region,” he told a panel in Zagreb. He added the government will also step up the sale of state-owned tourist companies such as Club Adriatic d.o.o. and Brijuni Rivijera d.o.o.

Tourism accounts for one-fifth of the Adriatic Sea nation’s economy. Croatia needs foreign investment as it struggles to revive the economy after three years of recession and stagnation.

Tourism arrivals in Croatia rose 5 percent in the first 10 months from a year ago, Ostojic said. Visitors from Germany increased 13.5 percent, the biggest year-on-year rise. The Tourism Ministry relies on data supplied by the Croatian Tourist Association, which also includes nautical tourism.

To contact the reporter on this story: Jasmina Kuzmanovic in Zagreb at jkuzmanovic@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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