ZAGREB, 4 May (Hina) – One way of maintaining Croatia’s competitiveness as a tourist destination is to be more affordable than others, which the government is trying to achieve by intervening in energy prices, Prime Minister Andrej Plenković said on Monday.
“If the government responds, fuel prices are lower, and that is a prerequisite for entering the tourist season from a more favourable position,” the prime minister said during a visit to Armenia, explaining the government’s intervention in fuel pricing.
The Croatian government earlier today adopted a decree setting fuel prices for the next two weeks. the price of petrol will remain unchanged at €1.64, while diesel will be six cents cheaper, at €1.72.
Plenković added that “thanks to the government’s response, electricity and gas prices have remained almost unchanged,” stressing that this is an important message for the entire economy.
The prime minister announced an upcoming meeting between the government and representatives of the tourism sector, at which competitive policies of other Mediterranean countries will be discussed, as well as ways to attract tourists “in circumstances where conflicts are raging”.
“More than 50% of people decide on a destination at the last minute, based on prices, “therefore we must be very wise to ensure a successful tourist season,” Plenković said.
He was answering journalists’ questions in the Armenian capital Yerevan, where he was attending the eighth meeting of the European Political Community.
Since the outbreak of the conflict in the Middle East at the end of February, the Strait of Hormuz “vital for energy transport“ has been fully or partially blocked. The government also announced this morning that, in order to protect citizens from rising fuel prices, it will forgo part of the fuel excise duty, which is one of the state budget revenues.
“For now, the Croatian budget can withstand future measures if the situation in Iran escalates again… so far everything is functioning well. We are among the best when it comes to reducing the share of public debt in GDP,” the prime minister said.
As for inflationary pressures, he said that the government “is addressing them through interventions in energy prices, because energy determines everything“ without it there is no real economic activity. I believe what the government adopted today is a good basis for slowing further price increases,” Plenković concluded.
In Armenia, the prime minister signed a joint declaration on strategic dialogue with that country. On the margins of the summit, a declaration on combating drug trafficking was also signed following a meeting of the European Coalition against Drugs, initiated by Italy and France, as well as a joint declaration on combating illegal migration.
