Tourism Minister Cappelli says he will not resign due to the tax increase.
Tourism Minister Gari Cappelli said that the impact of the increase in the value-added tax rate for restaurant and catering services would be compensated with other measures and added that he did not intend to resign due to the government’s decision. His resignation has been requested by some restaurateurs due to the tax increase, reports Večernji List on November 15, 2016.
“I will not offer my resignation, but I will offer better and more quality work. We will compensate the VAT increase in other ways and we will do everything we can to prepare as much as we can for the next tourist season”, said Cappelli.
He was speaking during a visit of government’s delegation to Šibenik, ahead of a meeting of restaurateurs and caterers who will meet in Lozovac near Šibenik to discuss the increase of VAT in their sector from 13 to 25 percent, which is why some of them are demanding Cappelli’s resignation.
“During the last ten days, we had good meetings on the subject with all the professional associations. Our tourism results are good and therefore the further development and competitiveness of Croatia’s tourism will not be affected. We fought for the hotel industry sector and have managed for the VAT tax in that sector to remain at 13 percent, and therefore there is no reason why investments in tourism should not go ahead”, said Cappelli.
He pointed out that Croatia, regardless of the VAT rate, was still one of the cheapest tourist destinations in Europe. “The difference in the consumption of guests in Croatia and in France is around 30 percent. The Croatian National Tourist Board will launch even stronger measures to help the industry and do everything possible to invest additional resources into the next season so that tourists would come. Despite all the problems, we still expect to have good results”, he said.
Cappelli pointed out that the impact of the VAT change would be compensated by other measures. “During the year, we will see where else we can cut costs and thus further help restaurant owners. Through the segment of marketing we will do more to prepare for the next tourist season”, he added.
He commented on the survey of the American travel magazine Travel and Leisure, which ranked Croatia as the first among 17 attractive global destinations which every traveller should visit.
“The fact that we have been described as the top destination is a proof that we are respected at the tourist market”, said the Tourism Minister.
