Will small private accommodation providers in Croatia be left stranded?

Croatia’s small family-run accommodation providers have raised concerns over a proposed new Tourism Law, warning that changes to the categorisation system could create significant uncertainty for legal private hosts.

The proposed legislation has triggered debate among the tourism sector, with the association Spasimo male obiteljske iznajmljivače (Save Small Family Accommodation Providers) arguing that the changes will not address one of the sector’s key problems, illegal letting.

Hana Matić, vice-president of the association, told RTL Danas that the proposed introduction of a registration number would apply to those already operating legally and would therefore do little to tackle illegal accommodation providers.

She described the proposed law as “a smokescreen” and argued that the main concern for small hosts lies elsewhere, in the possibility of mandatory re-categorisation under rules that have not yet been made public.

According to Matić, one of the main concerns is that the detailed requirements for the new categorisation system would be determined through a rulebook issued by the Ministry of Tourism rather than being set out in detail in the law adopted by Parliament.

The association says this has created uncertainty among private accommodation providers, who do not yet know what future requirements could be introduced.

Matić gave the example of possible minimum size requirements for rooms or bathrooms. If new standards were introduced and an existing property failed to meet them, she warned that the owner could potentially lose the permit under which they have been legally renting accommodation.

The concern, she said, is that hosts who have operated legally for years could face new conditions that their properties may not be able to meet.

The precise content of the future categorisation rules remains unknown.

The proposed legislation is expected to return to the Croatian Parliament for a second reading in the autumn, following the parliamentary summer recess.

Matić has called on opposition parties to submit amendments to the bill, although she expressed doubts that significant changes would be accepted by the ruling majority.

She also referred to the public consultation process, saying that more than 400 comments and proposals submitted by citizens and the association had been rejected.

The association maintains that the proposed reform could have serious consequences for small family accommodation providers if the final rules introduce new requirements that existing properties cannot meet.

The government has presented the legislation as part of a broader reform of Croatia’s tourism sector. The debate is now expected to continue ahead of the bill’s return to Parliament.

The association has not ruled out protests if its concerns are not addressed.

Asked whether private accommodation providers could take to the streets, Matić said that “all options are open” and that such a possibility was realistic.

The proposed law is therefore likely to remain a significant issue for Croatia’s small accommodation sector as the parliamentary process resumes in the autumn.