Tourist impulse Q3: Croatia grew in physical indicators, the only double-digit growth was achieved by Turkey

first_imgThis season was again marked by a high growth in the offer of accommodation capacities, especially in the short-term rental of real estate, as well as the continued decline in the occupancy rate of accommodation. This year, the number of beds in commercial accommodation increased by a total of 67.077, mostly in household facilities, by 35.777 new beds. The increase in this form of accommodation, together with the increase in the number of beds in non-commercial accommodation of 36,1 thousand this year alone is equivalent to the number of 183 new hotels with an average size of 200 rooms, while in the period from 2010 to 2019 the number of beds in household increased 444,6 thousand which would be equal to 1.112 new hotels with an average size of 200 rooms.  “In the first eight months of this tourist season, the leading hotel and tourism companies achieved a 5,4 percent increase in operating income compared to last year, thanks to increased investments in quality that enabled price growth, additional sales and marketing activities and consequent intensification. last-minute “reservation” said Veljko Ostojic, director of the Croatian Tourism Association (HUT). The season confirmed the earlier announcements of tourism experts that only those who continuously invest in quality and actively manage their tourism product will be able to count on further growth, in the situation of return of eastern Mediterranean markets, especially Turkey, is the conclusion of the presentation of the third edition of trends of the Croatian Tourism Association (HUT). Croatia grew in physical terms, the only double-digit growth was achieved by Turkey Most of the leading domestic hotel and tourism companies expect continued growth in the off-season, while most hotels and camps expect a higher volume of reservations in the off-season compared to last year, with hotels between 2 and 6 percent and camps between 1 and 9 percent. A drop in bookings of between 2 and 8 percent is expected by most apartment complexes (63 percent) and just over a fifth of the hotels and campsites covered, according to the Tourist Impulse Q3 report. To illustrate the fact that the state achieves the greatest economic and fiscal effects by marketing products through the hospitality channel, as well as that tourism is the most efficient form of “export”, HUT compared the effects of selling a bottle of wine through different distribution channels.  In the Mediterranean, the highest growth rates of tourist arrivals this year were achieved by Turkey, with a plus of 14,11 percent in the first seven months of this year. At the same time, key western Mediterranean markets are growing: Spain 1,91 percent, Malta 4,86 percent, and Slovenia 5,24 percent in the first seven months of 2019. Attachment: HUT / Tourist impulse Q3 Read the full report in the attachment. According to the report, this year online portals recorded a high growth rate of sales of accommodation capacities (+12,4 percent), and the average price increased (+6 percent), which means that revenue in this segment of tourism in the period from August 2018 to July 2019 reached 2,03 billion euros. At the same time, the occupancy of capacity in household facilities was further reduced, to 22 percent, which is more than twice lower than the occupancy rate in hotels (45,1%). HUT reiterated that all European countries that compete with Croatia in tourism have a reduced value added tax rate for hotel accommodation and catering services, with the aim of continuously encouraging the development of the tourism sector and the economy as a whole. Croatia also managed to end up in physical terms – according to data from last week, an annual cumulative growth of arrivals of 4,33 percent and an increase of 1,84 percent of overnight stays was recorded. In the third edition of the Tourist Impulse Q3, in addition to an overview of the financial and market results of the 2019 tourist season by type of capacity, key indicators of short-term real estate rental in Croatia were published on online portals. Short-term real estate rental continues to grow, rental income on two online portals exceeded 2 billion euros  According to the survey, these companies use the predominant share of domestic components, especially in the segment of bakery products (87 percent), in construction and installation services (72 percent), and more than half of the consumption of alcoholic beverages (65 percent) and beverages (66 percent), meat and meat products (64 percent) and vegetables (54 percent). “As we announced, this season has shown that the period of high growth rates in tourism is behind us and that there will be a struggle for every guest. If we want to keep our position on the tourist map, the business conditions in tourism must improve. Only in this way can we free up funds to invest in the key prerequisites for success in the coming years. These are necessary to increase the quality of accommodation and the overall offer, as well as to keep the existing and attract new quality staff. In this context, we see the announced reduction of VAT on the preparation and serving of food in restaurants as the first step in the direction of capturing the competitiveness of domestic tourism with neighboring countries. Tax relief is an incentive for investments in new hotel and similar facilities that have a significant impact on the economic activity of destinations, but also the whole of Croatia”, Ostojic pointed out. Ucomparing the effects of selling a bottle of wine through different distribution channels In addition, a survey of leading hotel and tourism companies in Croatia showed that the share of products and services of Croatian origin in the total consumption of the sector is significant, according to HUT. Such capacity growth has further exacerbated the overall structure of tourism capacity, with hotels and camps currently together accounting for only 35 percent of total commercial accommodation capacity, while the share of beds in household facilities has reached 52,2 percent of commercial accommodation. If we add a significant increase in capacity in non-commercial accommodation, this structure is even more unfavorable. In the sale through catering, the amount of value added tax per bottle of wine is 2,2 times higher than in retail, taxes and contributions on salaries are over 12 times higher than in exports and over 20 percent higher than in the sale of wine in retail. At the same time, employment in the hospitality industry is higher than in other distribution channels, as well as the foreign exchange component, which is at least 4 times higher than in other channels. Given the size of this form of accommodation, the third edition of the Tourist Impulse also presented data from the online portals Airbnb and HomeAway, which at the end of July offered a total of 236.800 accommodation units from Croatia.last_img

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