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Factsheet for measure HR-2021-27/2012 Updated – measures in Croatia

A small value aid program to help affected activities in the transport sector, tourism sector and the cultural and artistic events industry

Program potpora male vrijednosti za pomoć pogođenim djelatnostima iz prometnog sektora, turističkog sektora te industrije kulturnih i umjetničkih događanja

Country Croatia , applies nationwide
Time period Temporary, 02 July 2021 – 31 December 2021
Context COVID-19
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery
– Measures to support a gradual relaunch of work
Author Predrag Bejakovic (IJF) and Eurofound
Measure added 16 September 2021 (updated 10 October 2022)

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 (€1,330) per average number of employees per year in a travel agency. Therefore, this is a one-off support per employee.

Updates

The following updates to this measure have been made after it came into effect.

13 September 2021

The first public call for the implementation of the Small Value Aid Program to assist affected activities in the tourism sector to start and normalize current operations due to the COVID pandemic-19 was launched on 9 July 2021. It remained open until 30 July 2021. Second call for the implementation of the Small Value Aid Program to assist affected activities in the tourism sector to start and normalize current operations due to the COVID-19 pandemic was announced on 26 August 2021. It was open until 6 September 2021. On 13 September 2021, the Decision on awarding grants to travel agencies for starting and normalizing current operations was published. According to the Decision, the grants were given to 307 touristic agencies in the total amount of HRK 15.6 million (€ 2.07 million). Beneficiaries are obliged to report to the Ministry of Tourism and Sport about the purposes how did they spend received funds.

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 Sector specific set of companies
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

    • Economic area Sector (NACE level 2)
      H - Transportation And Storage H49 Land transport and transport via pipelines
      H50 Water transport

This case is not occupation-specific.

Sources

  • 19 May 2019: Program potpore konkurentnosti turističkog gospodarstva (Program of support for competitiveness in tourism) (mint.gov.hr)
  • 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)
  • 13 September 2021: Poziv za dodjelu sredstava (Public call for the implementation of the Small Value Aid Program) (mint.gov.hr)
  • 13 September 2021: Odluka o dodjeli sredstava (The Decision on Distribution of the Small Value Aid Program) (mint.gov.hr)
  • 19 May 2022: Javni poziv za bespovratna sredstva u turizmu (Public announcement for grants in tourism)

Citation

Eurofound (2021), A small value aid program to help affected activities in the transport sector, tourism sector and the cultural and artistic events industry, measure HR-2021-27/2012 (measures in Croatia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HR-2021-27_2012.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.