Current Challenges
- Temporary Licensing Sprouts Concerns: The expiration terms for temporary hospitality permits raise questions.
- Defining the Host: The need to distinguish between genuine family accommodation providers and other short-term rental hosts remains critical.
- Tourism Law Alignment: Ensuring harmony with the Tourism Act poses another significant hurdle.
Policy Overview
The Croatian Ministry of Tourism and Sport has initiated an online consultation with the public regarding proposed changes to the Act on Hospitality Services, open until 13th November 2024. The amendments aim to adjust the duration of temporary permits for short-term stay providers (for example, Airbnb hosts), clearly define ‘hosts’ to discern authentic family accommodations from broader short-term rentals and align these changes with existing tourism laws.
The Minister’s Vision
Minister Tonči Glavina expressed that these amendments are designed to support sustainable tourism development, ensure reasonable adjustment timelines for stakeholders, preserve the culture of family accommodation, and return residences to long-term tenants to provide affordable living options, particularly for young families.
Introduction of the ‘Host’ Concept
The revised law introduces a precise definition of a ‘host,’ stipulating that hosts must reside within the regional administrative area of their rental property. Contrastingly, individuals renting flats within residential buildings are not classified as hosts under this definition. Additionally, agreements from fellow co-owners within such buildings now serve as a prerequisite for permit issuance, safeguarding residential stability.
Adapting to European Challenges
European tourism hotspots face sustainability concerns due to the surge of temporary rentals through booking platforms. Eurostat reports a stark increase from 440 million to 700 million overnight stays within five years, which illustrates the strain on many regions. Croatia seeks to avoid reactionary measures by proactively safeguarding local environments, economies, and communities.
Extending Provisional Arrangements
To facilitate ongoing hospitality operations, temporary permit validity extends until 31st December 2026; however, new applications will halt beginning 1st January 2025, ensuring compliance with property law registration processes. Furthermore, local governments must align the issuance of hospitality permits with council-adopted decisions regarding facility types and categories.
The proposed reforms mark a significant movement towards balanced and sustainable tourism, prioritising both visitor satisfaction and the welfare of residents. Minister Glavina envisions this as a robust step forward in the government’s reform agenda, ensuring the tourism sector thrives without sacrificing community well-being.
The draft proposal for these legislative changes is accessible via the Ministry’s website.
