Croatian tourism company Valamar Riviera said on September 5 it is postponing investments planned for 2018 because of the unpredictable fiscal framework in the sector.

Valamar Riviera from Porec is the biggest tourist group in Croatia in terms of capacity. It owns 43 buildings on the Adriatic coast - 30 hotels and resorts, and 13 campsites from Istria and the island of Krk to Dubrovnik, with a total capacity of more than 48,000 guests. 

“The company has postponed the investment in Valamar Pinia Family Suites due to an unpredictable fiscal framework for investors in tourism as well as delays in the preparation of the required technical documentation,” Valamar said in a statement posted on the Zagreb bourse websire.

The tourism company will decide on next year’s investments by the end of November 2017, it added.

This year, the group is responsible for the biggest investments in the tourism sector, according to Total Croatia News, investing HRK562mn in two new luxury summer resorts in Istria.

In June, Valamar announced the company is planning to invest around HRK2bn in its portfolio. The supervisory board has confirmed the company plans to invest HRK703mn in its hotels next year.

Unofficial sources quoted by Total Croatia News claim the temporary suspension is related to “construction problems”. The company reportedly has not managed to obtain all the needed permits to open a hotel worth over HRK100mn. In addition, the company also wants to let the government know current taxes are burdening investors.

The government of Croatia has recently postponed “until further notice” the introduction of property tax, public radio broadcaster TV HRT announced on September 2 quoting unofficial sources.