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Recently, there has been increasing discussion in tourism circles about the proposal for the new Tourism Act, which is expected to come into force at the beginning of next year and which brings important and substantial changes for the entire tourism sector.
Even before the content of the new Act was known, the media and politicians were widely announcing crucial changes that would occur once the Act was adopted. Now that the proposal is finally known, however, the impression is that the changes may not be quite as radical after all. At least not unless the local tourist boards, which are given much greater opportunities to manage the destination under the new Act, decide to make such moves.
When speaking about “tourism laws”, it should be noted that tourism business is currently regulated through five laws: the Hospitality and Catering Industry Act, the Provision of Tourism Services Act, the Tourist Boards and Promotion of Croatian Tourism Act, the Tourist Board Membership Fees Act, and the Tourist Tax Act. The Tourism Act is therefore a new law and is in some way considered an umbrella law over all of the above, which will need to be changed, adapted and aligned with this new framework.
It can be said that the Tourism Act represents a new concept and set of guidelines for the future development of tourism in the Republic of Croatia. The Government and the Minister of Tourism and Sport especially emphasize that this is the first law of its kind in Europe, which in a comprehensive and systematic way sets guidelines for sustainable tourism that will be managed in a new way, taking into account the possibilities and carrying capacities of tourist destinations.
The Act is fairly extensive and introduces numerous formal and legal changes, but the most important novelties can essentially be reduced to three main points:
- giving new functions to tourist boards, which are obliged to prepare destination management plans,
- legally defining the basis for grants and incentives in tourism,
- introducing a tourism environmental contribution.
Destination management plans as the main novelty of the Act
Destination management plans, which will be prepared by local tourist boards, can be considered the main and most significant change introduced by the new Act. These are documents that tourist boards will adopt for four-year periods and that will contain an analysis of the situation and the resource base, sustainability indicators at destination level, measures and activities needed to achieve the development direction, proposed guidelines and recommendations for destination development to be submitted to local or regional self-government units, and a list of projects that contribute to implementing the measures required to achieve sustainability indicators at destination level.
When preparing these plans, tourist boards will have to follow calculation methodologies prescribed by the Ministry of Tourism and Sport. Through these methodologies, data will be obtained on tourist traffic, tourism infrastructure, available superstructure, socio-demographic, economic and environmental indicators, as well as the possibility of calculating carrying capacity, which shows how many tourists a destination can receive without negative effects on the local population, space, resources and tourist satisfaction.
What does this mean in practice?
Simply put, through destination management plans tourist boards will be able to propose how much accommodation of a certain type is needed or not needed in a destination and whether any further increase in accommodation capacity within a municipality or city should be allowed at all. They will also be able to propose public transport timetables, visitor arrival plans for certain locations with proposed sightseeing plans and durations, bus arrival schedules and passenger drop-off dynamics at busy tourist locations, and similar measures.
What is important to know about the adoption of these plans?
Two facts are particularly important here. First, the tourist board is obliged to involve the wider public in the entire process of adopting the management plan, including the local self-government unit, associations and representatives of the tourism sector, and must conduct public consultation on the draft plan beforehand. Second, this document proposes what would be desirable, but tourist boards still do not have the legal authority to implement the measures they propose.
A tourist board may assess that, for example, more bus lines or additional parking spaces are needed, but it is not within its competence to actually implement such measures. Proposals included by the tourist board in the management plan may, but do not have to, be accepted and implemented by the local self-government unit.
For example, in order to limit or prohibit further growth of accommodation capacity, local self-government units would have to amend spatial plans, and a fundamental amendment to the existing Hospitality and Catering Industry Act would also be necessary, that is, to the way accommodation categorization is currently obtained. Changes will certainly come, but what kind they will be and how radical remains to be seen.
What about tourism incentives and support measures?
The new Act will regulate what is encouraged through grants and public calls and in what way. Tourist boards will define development projects in their management plans that they consider important for the further sustainable development of the destination, and if these are accepted by the local self-government unit, such projects may be entered into the national project database and will have priority in financing from national funds.
The incentive measures for which this Act provides the legal basis will also apply to private entities, including accommodation providers. The emphasis will be on creating added value, investing in the green and just transition, using renewable energy sources, introducing eco-innovations and similar investments, as well as on the transition from traditional family accommodation to more market-sustainable accommodation capacities, such as family hotels and heritage hotels.
In fact, it is precisely through this wording that one can sense that in the coming period there will still be an insistence on reducing classic family accommodation, or rather on adapting it to new market trends. Accommodation providers are therefore certainly advised to start thinking long-term already now about how they can improve their offer.
Tourism environmental contribution
It is clear to everyone that the impact of tourism on our infrastructure is becoming increasingly visible and increasingly problematic. Many countries have long since started introducing various forms of environmental levies in order to secure sufficient funds for infrastructure for tourists, or increasingly to mitigate the negative effects of tourism and excessive tourist numbers in destinations.
The new Act foresees the introduction of a tourism environmental contribution to be paid by visitors, that is, tourists, into a special account of the local self-government unit. The funds collected in this way will be used by municipalities and cities for designated purposes, to reduce the negative impacts of tourism on the environment, climate and space, and for measures to preserve the environment and nature. Exactly how this will be implemented in practice is still unknown.
In the end, what changes for private accommodation providers and when?
The new Act will make it possible to limit the growth of new accommodation capacities, with decisions to be made by local self-government units, based on proposals from local tourist boards.
It can be said that with this Act the Ministry is למעשה giving municipalities and cities a tool to control their further tourism growth and development, but only time will show whether real changes will actually happen.
The fact is that today there is increasing talk about overtourism and the too rapid annual growth of private accommodation, but on the other hand it is also a fact that all of us depend on tourism in one way or another, so it would be unreasonable to ban something from which so many people make a living.
It is more realistic to expect that after this Act comes into force, accommodation providers will be further encouraged to adapt their accommodation to market demand and to become as environmentally and socially responsible as possible.
It is up to all of us to follow what kind of tourism development vision our municipalities and cities will adopt, and each of us will have the opportunity to actively participate in these processes. Therefore, when the time comes, take part in public consultations and present your views.
If everything proceeds according to plan, the Act will come into force on 1 January 2024, after which the Ministry of Tourism and Sport must, within six months, adopt the related regulations, such as the methodology according to which the carrying capacity of a destination will be calculated. Tourist boards will then have a deadline of one year to align themselves with the new Act and adopt destination management plans.
In other words, the first changes, in the fastest possible scenario, can be expected starting from 1 January 2025. Until then, we will actively monitor and analyse the direction in which everything will continue to develop.
