37 Million Kuna Paid Out From New Funds to Certain Croatian Tourist Boards

Lauren Simmonds

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As Poslovni Dnevnik/Marija Crnjak writes, a total of 37 million kuna was paid out to numerous Croatian tourist boards which fit the aforementioned criteria, based on new regulations on the distribution of these subsidies issued by the Croatian Government back at the end of 2020, and as has been learned from the Ministry of Tourism.

Of that amount, most went to the Croatian tourist boards operating in underdeveloped locations, while united tourist boards received almost 10 million kuna, with half of that money being spent on administrative costs, including salaries.

The data shows that most Croatian tourist boards are still united or very much associated with each other in the continental part of Croatia, where most of the underdeveloped tourist areas lie.

On the basis of the Tourist Tax Act, at a government session held in December 2020, the proposal of the Decree on the purpose and manner of the distribution of funds for underdeveloped tourist areas and continental Croatia, as well as the Decree on the purpose and manner of distribution of the funds for united Croatian tourist boards, was accepted.

The aforementioned Law encourages the association of several local and regional tourist boards and self-government units, and an association can be formal (several local and regional tourist boards) or be done as a project (the association of tourist boards and local self-government units that don’t actually have an official tourist board in their area).

“These regulations enable the payment of funds in 2020, based on measurable and objective criteria for the implementation of regular activities provided for in the annual work and financial plan for the year 2020. Pursuant to the aforementioned regulations, Croatian tourist boards are allocated funds from the Fund for Underdeveloped Tourism Areas and the Continent, ie from the Fund for United Tourist Boards for 2020. To date, the Ministry of Tourism and Sport has approved 19 formal and 22 project associations,” they revealed from the competent ministry.

Numerous agreements have now been concluded as a result of the introduction of this new system, and it seems that more communication between tourist boards and ”projects” is now on the cards.

The total amount of the fund for underdeveloped tourist areas and the continent for 2020 stands at an impressive 27.5 million kuna, of which 19.3 million kuna is being allocated for local Croatian tourist boards and 8.3 million kuna for regional tourist boards according to the basic allocation criteria, ie the index of tourism development according to the Institute for Tourism, explained the ministry.

The total amount of the Fund for United Tourist Boards for 2020, for funds intended for the implementation of projects and programmes for the development of touristic content, amounts to 9.7 million kuna.

In addition, based on the same Decree, money from the Fund for 2020 is distributed in a ratio of 30 percent for project-associated tourist boards, and the rest for those who are formally associated. The Fund for Associated Tourist Boards serves as an incentive for tourist boards and local self-government units to join forces, and funds from tourist taxes and membership fee are also poured into it.

As stated in the Regulation, beneficiaries can use the allocated funds for activities envisaged by their annual work programme or association agreement, which they couldn’t implement due to the problems caused by the ongoing coronavirus pandemic.

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