BANJALUKA – The Minister of Trade and Tourism of the Republic of Srpska, Ned Puhovac, stated that one of his main goals in the coming period will be a significant increase in allocations for the development of tourism, stating that the current budget is not sufficient to utilize the enormous potential that Srpska possesses.
Puhovac said in the Srna podcast that the relevant ministry currently has around 500,000 KM for grants in tourism, which, as he assessed, is insufficient for a more serious development of this economic branch.
“For next year, I plan to talk to the prime minister and everyone who decides that the budget for tourism should be at least 10 million KM, because without investing in tourism, you have no future,” stated Puhovac.
He emphasized that Republika Srpska has exceptional natural resources, but that they are underutilized.
“We have mountains, rivers, spas, Perućica, natural beauty that many do not have. While visiting the Republic of Srpska, I see that it is a potential that is practically unused,” said Puhovac.
According to him, most investments in tourism are currently made by private entrepreneurs who invest their own capital, while institutional support is limited.
Puhovac believes that the importance of tourism is not yet sufficiently recognized, even though it is an area that brings multiple effects for the economy and the promotion of Republika Srpska.
“A tourist who leaves Srpska satisfied is the best promoter of the country. There is no better promotion of a country than tourism,” emphasized Puhovac.
He pointed out that tourism currently accounts for only about 1.5 percent of the gross domestic product of Republika Srpska, which shows a lot of room for growth, reports Srna.
Puhovac: It is necessary to organize the area of issuing accommodation via the Internet
Also, commenting on the tourist market, Puhovac said that the new Tourism Act brings significant novelties in regulation, and pointed out that it is necessary to better regulate the area of issuing accommodation through internet platforms and the work of tourist organizations.
Puhovac stated that the institutions are trying to find a model by which platforms like “Buking” would oblige themselves to operate through a registered representative office in BiH and to be subject to the same obligations as domestic business entities.
“When someone charges you for the accommodation service, they also charge VAT, and the state has no benefit from that. We will try to get these companies to establish their representative office and operate in accordance with the regulations like all other companies,” he said.
He pointed out that this would enable better control of the market, especially when it comes to renting out apartments by the day and suppressing the gray economy.
According to him, an additional benefit would be greater security for guests and more precise records of persons providing accommodation services.
Speaking about the new Law on Tourism, Puhovac stated that, among other things, the conditions for carrying out rafting activities, which is one of the most recognizable tourist products of Republika Srpska, have been specially regulated.
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He emphasized that the procedures for obtaining licenses for skippers were tightened in order to raise the level of safety on the rivers.
“That man is responsible for eight or nine people in the boat and he must undergo training and fulfill all the conditions to be able to perform that job,” said Puhovac.
The Minister says that the introduction of the Central Information System in tourism, which will include accommodation service providers, is also significant, which will enable better statistics, planning and development of the tourist offer.
