Background information

Travel agencies have recorded huge losses since the beginning of the pandemic, and due to the inability to provide services for more than a year and a half, they continue to record an enormous drop in traffic. The Association of Croatian Travel Agencies (ACTA) and its members stress the importance of continuing key support that means the survival of agencies and the preservation of jobs. According to data from UHPA members, the decline in revenue in the first seven months of 2021 compared to the same period in 2019 is 78%. The latest data from the Central Bureau of Statistics confirm that the highest drop in traffic in Croatia, 83%, was recorded in activities N 79 Travel agencies, tour operators (tour operators) and other reservation services and activities related to them.

Content of measure

The Government of the Republic of Croatia adopted Decision on the adoption a small value aid program to help affected activities in the transport sector, tourism sector and the cultural and artistic events industry to launch and normalize current operations due to the current COVID-19 pandemic. This will enable travel agencies and tour operators to use state aid to reimburse part or all of the paid operating costs to those who during 2020 and 2021, respectively. The condition is a decline in operating revenues in 2021 and 2021 compared to 2019 of at least 75%. For this purpose, HRK 36 million (€4.8 million) has been provided, while the largest amount of support cannot exceed HRK 10 thousand (€1.33 thousand) per average number of employees per year in a travel agency. Therefore, this is a one-off support per employee.

Use of measure

Exact number of workers and companies is currently unknown. However, the eligibility conditions are following. Eligible are companies from touristic sector in a broader sense. It was determined that the activities that meet the above conditions of the following NKD codes:

• From transport sector: Other passenger land transport (NKD 49.39), Sea and coastal passenger water transport (NKD 50.10), travel agencies (NKD 79.11), if related with nautical traffic in terms of one-day and multi-day cruises and Activity of tour operators (NKD 79.12), if they are related to nautical traffic in terms of one-day and multi-day cruises.
• From tourism sector: Small business entities (companies outside the public sector and crafts) that have a registered Activity travel agencies and tour operators (tour operators) (NKD 79.1).
• From the industry of cultural and artistic events eligible are entrepreneurs from NKD 90.02, namely professional organizers of eligible events and entrepreneurs who perform accompanying activities of organizing eligible events (rental of equipment and ticket sales), who can prove that more than 50% of their business activity in 2019 in relation to eligible events.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Employers' organisations Company / Companies	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Informed	Informed
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Social partners jointly
• Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners are quite satisfied with the Decision on the mentioned grant fully aware of the seriousness of the crisis. However, they hope that the situation would improve and that said sectors will obtain very positive business results as before the COVID-19 pandemics. Furthermore, they would be willing to be much more actively included in preparation and implementation of similar measures in the nearly future.

Views and reactions

Social partners expressed their satisfaction with the proposed measure.

Sectors and occupations

This case is not occupation-specific.

Sources

• 02 July 2021: Potpora male vrijednosti za pomoć pogođenim djelatnostima iz prometnog sektora, turističkog sektora te industrije kulturnih i umjetničkih događanja za pokretanje i normalizaciju tekućeg poslovanja (Low value grant program to assist affected activities from the tourism and related sectors to launch and the normalization of current operations) (hrturizam.hr)