BALKAN travel specialist Balkan Holidays has blamed a new tourist tax for static bookings to Croatia this year.
Sales and marketing manager Chris Rand said Croatia bookings have stayed level with last year, while Montenegro is up 50% – and attracting people who have been to Croatia and want to try something new – and Slovenia is up 8%.
He said: “Growth to Croatia has slowed following the government’s decision to charge VAT on accommodation. It is still a popular holiday destination but prices have gone up this year.
“Before the war, it was a budget, mass-market destination. Now the average selling price is higher than Bulgaria.”
Croatian National Tourist Office director Josip Lozic said prices in Croatia had been artificially low for the past 10 years to encourage growth and that the imposition of VAT was necessary to ensure the country’s financial situation was appropriate for European Union membership.
He said: “Both the EU and International Monetary Fund have issued guidelines to the Croatian government including reference to VAT. Despite its imposition, Croatia remains excellent value for money.”
Balkan Holidays offers seven nights’ self-catering in Croatia from £249 per person, while Montenegro starts at £299 per person. One week in Slovenia is £319.
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