Croatian Tourist Boards Face Scrutiny Over High Salaries and Bonuses

An investigation into Croatia's 298 Tourist Boards (TZ) raises questions about their role and financial management, suggesting they might be serving as institutional vehicles for local political patronage rather than solely driving tourism growth. The article probes whether Croatian tourism would function effectively, or even at all, without these entities, particularly those heavily reliant on budget allocations.

The case of the Valpovo Tourist Board is presented as a prime example. Over the past five years, the city has allocated 1.1 million euros to the TZ. Despite Valpovo recording a modest 3,429 tourist arrivals and 11,540 overnight stays last year, the TZ's self-generated revenue was only 21,728 euros, a mere 6% of its total income. Nevertheless, the city council has consistently provided substantial funding, significantly exceeding planned amounts. In the past year, the TZ received 327,000 euros, far above the planned 131,400 euros, and for the current year, it received 222,444 euros against a planned 131,400 euros.

This financial backing allows the Valpovo TZ to employ four staff members, a number considered above typical tourism standards for its size. The expenditure on salaries for these four employees alone reached 111,383 euros last year, a stark increase from 41,858 euros in 2022 for three employees. The report on the TZ's operational execution and financial statements until 2023 was signed by director Eduard Lacković, a member of the mayor's independent list. Last year and this year, Vedrana Arnaut, a senior associate at the TZ, co-signed the report. Lacković appointed Arnaut as the TZ's spokesperson in January 2024. Notably, Arnaut's husband, Matko Šutalo, is the mayor of Valpovo and, by function, the president of the TZ.

Mayor Šutalo has been recognized as a successful young mayor, even receiving praise from President Zoran Milanović during a visit. However, the article implies a potential conflict of interest and questions the allocation of public funds, especially given the significant increase in operational costs and staffing at the Valpovo TZ, while the board's own revenue generation remains minimal.