Consequences of changes in the Tourism law

Consequences of changes in the Tourism law

Tourism operations are regulated through five laws that cover all activities in tourism, which include renting accommodation, business operations of travel agencies and the functioning of tourist boards.

The changes to the Tourism law introduce numerous novelties in the way tourism is managed in line with the National recovery and resilience plan, funded by the EU. Accordingly, the goal is to manage tourism in a sustainable and high-quality manner, while distributing responsibilities from state to local level. This means that smaller local authorities, such as municipalities and cities, will have more rights and responsibilities in managing tourism.

The purpose of the new law is to protect natural resources and land, enhance the tourism offer, and improve the quality of life for residents in tourist areas. At the same time, it seeks to address the challenge of strong seasonality by encouraging a more balanced, year-round development of Croatia’s tourism market, ensuring its long-term competitiveness on the global stage.

What does this mean for private renters?

The Tourism Law introduces a new framework and vision for the future development of tourism in Croatia, with particular emphasis on privately owned accommodation capacities. Under this law, local tourist boards will gain greater authority to manage destinations and take an active role in shaping how the legislation is applied.

Therefore, what will be within the power of tourist boards is the proposal to limit certain types of accommodation in a destination, the decision on whether to allow an increase in accommodation capacities, proposals for public transport schedules and the creation of visitor flow plans for specific locations.

However, in order to limit or prohibit the increase of accommodation capacities, it is necessary to amend spatial plans, which is the basis in amendments to the Hospitality act that is currently in force, which could also affect changes in the conditions for the categorization of accommodation.

One of the key proposals is to gradually reduce the share of traditional family-oriented accommodation, reflecting shifts in demand and emerging market trends. To remain unaffected by the new act, accommodation providers should ensure their offerings align with market needs and distinguish themselves through unique amenities. In addition, socially responsible practices and ecological awareness are becoming increasingly important factors in shaping competitiveness within the tourism sector.