An overview of the most important amendments to the Law on Tourism of the Republic of Srpska

On February 28, 2023, the Law on Amendments to the Law on Tourism entered into force. Prior to that, the law was published in the Official Gazette no. 16/23 on February 20, 2023. As a reminder, the basic text of the law was adopted even in 2017.

Below is an overview of the most important adopted amendments to the Law on Tourism.

Primarily, the content of the Tourism Development Strategy of the Republic of Srpska is harmonized with the systemic regulations in the field of strategic planning and provides the basis for the Ministry of Trade and Tourism to approve sustainable tourism standards at the request of a local self-government unit.

One of the novelties introduced by the Law on Amendments to the Law on Tourism of the Republic of Srpska is reflected in the case when the travel agency provides a guarantee in the form of a bank guarantee, or an insurance policy contracted for a one-year period. In that case, the agency is obliged to submit the bank guarantee or insurance policy to the Ministry of Trade and Tourism for the following one-year period within 15 days from the date of issuance of the same.

In addition, the new law reduces the formalities in the process of issuing a license to perform the activities of a travel agency, so with the request for issuing a license, it is no longer necessary to submit proof of registration in the register of business entities or the register of entrepreneurs, the decision of the Tax Administration on the determination of a unique identification number, or the certificate of the Administration for Indirect Taxation on the determination of the VAT number, nor the decision on the establishment of a business unit (if the agency performs its activities outside the headquarters).

As one of the novelties, the Dayak-boat ride is introduced as a special type of tourist service that includes a sports-recreational activity. In addition, passing the exam for a tourist guide is more precisely standardized.

An obligation is also introduced for the service provider of passenger car rental and vehicles up to 3.5 tons to keep records of vehicle rental contracts in the form and content that will be prescribed by the bylaw, which will enable the inspection authorities to have a better insight into the scope of business of rent-a-car agencies. Furthermore, the age limit of vehicles at rent-a-car agencies was increased from five to seven years. The obligation of rent-a-car service providers to provide servicing and parking space for all motor vehicles has been retained, which is also a change compared to the Draft Law and the result of a public discussion.

The Law on Amendments to the Law on Tourism prescribes the procedure for awarding tourist vouchers in the Republic of Srpska, which provides a legal basis for additional incentives for the tourism industry and the citizens of the Republic of Srpska that were implemented in the previous period as a measure of the Compensation Fund.

The decision that the user of the tourist voucher can be a citizen of the Republic of Srpska, as well as a citizen residing in the Brčko District of BiH who possesses the citizenship of this entity, has been retained. The issue of whether the voucher will be used exclusively by adult citizens or whether the mentioned option will also be provided for minors will be specified by a bylaw adopted by the Government of the Republic of Srpska.

The procedure of the public call for participation in the procedure for awarding vouchers is regulated, and it is prescribed that travel agencies and caterers must meet the general conditions, namely that they have a registered seat in the Republic of Srpska and that they have settled all tax obligations no later than 30 days before the announcement of the public call, while the special conditions refer to the number of employees and the extent of damage caused to the businesses of caterers and travel agencies in the form of a reduction in business income or other measurable indicators.

The law prescribes the obligation of the caterer to provide catering services personally to the user of the voucher, in the catering facility for which the voucher was issued, and that the voucher cannot be transferred to another person. The caterer, i.e.,  the travel agency, is obliged to submit a request to the Ministry of Trade and Tourism for refund based on the already used vouchers by the fifteenth day of the month for the previous month at the latest.

Author: Milica Crnic

E-mail: [email protected]

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