Croatian hotel sector saw profits down in 2009, with the decrease estimated to reach 15 per cent by the end of the year. Despite these trends and forecasts about the tough 2010 year, 35 leading Croatian hotel companies expect a 5 per cent rise in demand and overnight stays and a 10 per cent rise in income next year.

The figures, based on studies and analyses conducted by the Institute for Tourism and the Croatian Association of Hoteliers were presented by Institute researcher Neven Ivandic at the hoteliers’ forum held within the Croatian Tourism Days in Bol on the island of Brac on 21-23 October.

In the first eight months of 2009, hoteliers reported a 1 per cent decrease in the sales and the reduction of business costs by 3 per cent, which was similar as in 2008. This could be attributed to the flexibility of management that found ways to protect revenues alongside offering lower prices, Ivandic said.

The decline in profits, which is identified by the hoteliers' association as the sector's major problem, should prompt companies to try to improve their internal efficiency, the researcher said.

Zoran Katic, small and family-run hotels representative, said that small hoteliers had helped themselves to the largest extent by their own creativity and hard work.

The CEO of Riviera Porec hotel company, Veljko Ostojic, called for the adoption of a tourism development strategy and the reduction of the Value Added Tax and other taxes on the hotel sector's services and products.

Tourism Minister Damir Bajs said that although the results in the hotel sector had so far been better this year than expected, there was no room for satisfaction as long as the hotel sector's share in the total accommodation was slightly over 10 percent.