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Travel Agency Legal Framework
Legal regulations in the operations of travel agencies in Croatia
In the Republic of Croatia, travel agencies, hotel caterers, transport companies, tourist guides and
others involved in tourist activities operate in accordance with laws relating to the Croatian economy
in general, as well as with regulations relating to tourism and catering. They also operate in
accordance with the Code of Practice on hotel/travel agency relations drawn up by the Croatian Chamber
of Economy in 1995. defining common practice in the hotel and travel industry. In their foreign
operations, travel agencies act in accordance with the Code of Practice on hotel/travel agency relations
drawn up by the International Hotel Association - IHA (now IH&RA) and the United Federation of Travel
Agents’ Associations - UFTAA, unless otherwise explicitly agreed between the parties. Travel agencies and other
providers of tourist services, who are members of UHPA - Association of Croatian Travel Agencies - also act in
accordance with the regulations of UHPA Code of conduct on the protection of users and suppliers and prevention of
unfair competition and recognize the arbitration of UHPA in possible disputes with the clients.
The Law on Travel Related Activities,
regulating the foundation and operation of travel agencies was passed on 8 February 1996. This law contains
the EU Council’s main directives on package travel, package holidays and package tours, which means that foreign
tour operators and their clients are similarly protected in Croatia as in the EU countries which act in accordance
with these directives.
Since January 1, 2006, a new Civil Obligations Act has been applied. Since it is completely harmonized with the EU
acquis, it contains the full text of the EU Council’s Directive on package travel. In order not to duplicate it,
the current Law on Travel Related Activities which also contains this Directive, is being changed. The new Act on
the Provision of Tourism Services, expected to be passed by the Croatian Parliament by June 2007, will not
contain the text of the afore mentioned Directive, but will include some other changes to correspond better to
the EU acquis.
In its first part, the current Law on Travel Related Activities defines tourist activities, services of travel
agencies, their types and conditions for providing those services, as well as the procedure for establishing
and the reasons for closing an agency. Section 8 of the Law reads as follows: “Travel agency is a company, a
sole trader or a craftsman who can provide services of a travel agency in order to make profit subject to
fulfilment of duly prescribed requirements by this Law”.
By Croatian Laws, in order to establish a limited liability company (abbreviation “d. o. o.” after the name)
a minimum stock capital of 20,000,00 HRK is required. A stock capital of 200,000,00 HRK is necessary to establish
a joint stock company (abbreviation “d. d.” after the company name). Since the Companies Act requires the companies
to include the basic capital and the number of their local currency and foreign currency accounts in their
letterhead, and the Law on Travel Related Activities requires them to include their ID code (as the licence number)
on all their printed papers, the agency letterhead, for agency established as limited liability or joint stock company,
will show clearly the activity for which the company is registered.
By the type of service they provide, travel agencies are either tour operators or retailers identified by the
A or B coderespectively. Most Croatian travel agencies are registered
as AB, i.e. tour operator and retailer. The agencies select the category in which they will be registered.
This registration must be recorded with the county authorities. In any case, in the part of their activity
which provides package holiday service, the travel agency must provide all services to each and every client who
has paid for the holiday, or compensate for the costs incurred in case the services were not provided due to the
agency bankruptcy or inability to meet the financial obligations. For that purpose the tour operator is obliged
to provide a guarantee in the form of insurance policy, cash deposit or bank guarantee for package holidays.
Before taking the office, every travel agency manager is obliged to pass a special examination as determined
by special regulations, passed by the Ministry of the Sea, Tourism, Transport and Development.
The Law also defines the compulsory contents of the program, prospectus or catalogue of the tour. The travel agency
providing the services of a package tour, excursion program or passenger transfer is obliged to use the means of
transport in which the passengers and their luggage are insured, and the catering facilities in which the service
users are insured. Croatian travel agencies are obliged to offer insurance against injuries, illness, death and
loss of luggage to all their clients, both Croatian and foreign, who buy package holidays and tours, during their
travel and stay. They also have to offer health insurance to Croatian travellers while travelling abroad and to
foreigners travelling within Croatia or vacationing in Croatia if they have bought the package tour or holiday
directly from a Croatian tour operator. A package holiday is defined as a pre-arranged combination of at least two
of the following: accommodation, transport and other tourist services not ancillary to transport or accommodation
but forming a significant part of the package. They must be sold at an inclusive price for a stay of over 24 hours
or include overnight accommodation.
The Law and special regulations also define minimum technical conditions of business premises for the agencies,
their equipment and the way of providing services of the agencies and the complaints book. The Ministry of the Sea,
Tourism, Transport and Development has passed 11 different regulations, which, among others, define technical and
other conditions for agency registrations, the conditions for tourist guide registration and registration of the
agreement for tourist representative in Croatia, the program, and method of examinations for travel agency
managers, for tourist guides and tourist escorts and animators. Three regulations have been passed relating to
nautical tourism - Regulation on tourist services provided in nautical tourism, Regulation on the classification
and categories of harbours for nautical tourism and Regulation on types and categories of vessels for nautical
tourism.
The Law defines services in nautical, rural and other forms of tourism, as well as other tourist services,
inspection and penalty provisions. The inspection is done by the state inspectors specialized in tourist and
catering services.
Foreign tour operators and travel agencies can obtain further information on the provisions of the Law on Travel
Related Activities and its implementation regulations from their partners in Croatia, from UHPA - the national
association of Croatian travel agencies, or from its counselling office.
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