The Legal Impacts of COVID-19 in the Travel, Tourism and Hospitality Industry

The Legal Impact of the COVID-19 Crisis on Tourism and the Hospitality Industry in Croatia Tatjana Josipović 1 1. The Role of Tourism and the Hospitality Industry in the Croatian Economy; 2. Recent Developments in Tourism Caused by the COVID-19 Crisis; 3. Temporary Measures in Economy; 3.1. Temporary Measures in the Tourist Sector; 4. Amendments to the Tourism Services Act (Art. 38a); 4.1. Special Circumstances Caused by COVID-19; 4.1.1. Traveller’s Right to Terminate the Package Because Special Circumstances Caused by COVID-19; 4.2. Vouchers for Non- Performed Package Travel Arrangements; 4.3. Possible Problems in the Realisation of the New Traveller’s Right to Terminate the Package; 5. Final Remarks. 1. The Role of Tourism and the Hospitality Industry in the Croatian Economy In the Republic of Croatia, tourism is the most important branch of the economy and highly crucial factor for its development. In Croatia’s total GDP, this sector's share increases every year, accounting for almost 20% of Croatia's GDP. Tourism is a horizontal industry that generates revenues and jobs to several related industries, with every fifth of a Croatian Kuna (HRK) coming from tourism. The country has about 100 thousand employees in the sector; another 108 thousand families are engaged in family rentals; there are some 50 thousand people who earn their salaries in the hospitality industry; and who knows how many other services are directly or indirectly related to the profits from tourism. Bearing all these data in mind and while preparing our country for another fruitful tourist year – which had started with an exceptional number of bookings –, the coronavirus pandemic suddenly threatened the country, for the first time since the homeland war in 1990s. 1 Prof. Dr. Sc. Tatjana Josipović; Law Faculty, University of Zagreb.