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Ahead of the parliamentary debate on the proposal for a new Hospitality Act, Association Let's save small family landlords (SMOi) has sent a request to the Croatian Parliament, all parliamentary clubs and the committees for the Constitution, Legislation and European Affairs to postpone the vote and finalize the legislative proposal. The association believes that certain provisions may have serious legal and economic consequences for private landlords and requests their review before the final adoption of the law.
In the press release, they state that their remarks relate to several parts of the law - from the obligation to obtain the consent of co-owners of buildings, to the recategorization of accommodation facilities every ten years, to the issue of professionalization of business and host status. At the same time, they claim that no assessment of economic and social effects was presented with the legal proposal, although, according to their statements, the law refers to more than 110.000 registered family renters.
Co-owners' consent is the most controversial provision
As the most problematic provision, SMOi singles out the obligation to obtain a written document consent of the building co-owners to obtain or maintain approval to provide catering services in a household.
The association believes that such a solution creates legal uncertainty because, according to their interpretation, there is no possibility of appeal or obligation to explain any refusal of consent. They also warn that the new rules could also apply to existing landlords who have been operating on the basis of legally binding decisions for years, which is why they speak of a possible infringement of acquired rights.
SMOi states that it believes that certain provisions could be in conflict with the Constitution of the Republic of Croatia and the European Convention on Human Rights, and warns of the possibility of future litigation.
Recategorization, professionalization and host status
Among the objections, there is also a proposal according to which all accommodation facilities would be re-opened categorized every ten years according to the criteria that would be prescribed by a special rulebook. The association believes that such a solution could create additional administrative uncertainty and lead to problems in implementation due to the large number of facilities that would need to be re-examined.
SMOi also warns that the proposed changes, according to their interpretation, could make it more difficult to professionalize private accommodation. They state that crafts and companies would lose the ability to categorize apartments and rooms in residential buildings, which they consider contrary to the strategic goal of professionalizing the sector.
They additionally point out that the bill treats landlords differently depending on their place of residence and the type of facility in which they provide accommodation services, which is why they believe that providers of the same service could have different rights.
They are demanding that the law be returned for revision.
In the press release, SMOi states that no analysis of economic, fiscal and social effects was attached to the proposed law and claims that the comments received during the public consultation did not significantly influence the final text of the law.
President of the association Vedran Tomic He said that they expect the law to return to the revision procedure.
"SMOi calls on representatives to vote or submit amendments to prevent the law from being passed in its current form and demands that the Government return it for further revision - with transparent expert analysis, respect for constitutional guarantees and harmonisation with European Union law. Tourism that does not benefit Croatian citizens should not even exist', the association says.
The proposal for a new Hospitality Act has provoked mixed reactions in the tourism sector in recent months. While the Ministry of Tourism and Sports emphasizes that the changes are aimed at better management of accommodation capacity development, strengthening the host institute and greater powers of local governments, some representatives of private landlords warn that certain provisions could have significant consequences for existing family landlords.
The final decision on the legislative proposal will be made by the Croatian Parliament.
