KS Government's Tourist Board Caused Anarchy: Sarajevo Hoteliers Collect but Don't Pay Taxes

Two tourist boards are currently operating in the Sarajevo Canton; the Tourist Board of Sarajevo Canton, founded in 1998, and the new Tourist Board established by the KS Government a few months ago. There are a number of controversies surrounding the new, government-established tourist board.

Šemsudin Džeko, director of the 'old' Tourist Board of Sarajevo Canton, told Patria that the Government has not improved the tourism sector in Sarajevo, as it had announced by establishing the new TB. On the contrary. Anarchy currently reigns in the Sarajevo Canton when it comes to the tourism sector, he says.

Every tourist who spends a night in Sarajevo pays a 2 KM tax per night. Tourists who come on organized day trips to the KS area pay 1 KM. Hoteliers used to pay this money into the Tourist Board's account. From these taxes, the Tourist Board collected about 800,000 KM in 2016. The money was used to promote the tourist values of Sarajevo Canton. In previous years, much less tax was collected.

Prime Minister of Sarajevo Canton Elmedin Konaković said he is not satisfied with the collection of tourist taxes, and that the Tourist Board needs to work much better and collect more money. He did not want to improve the work of the existing Tourist Board, but instead, the Government established a new Tourist Board.

It can now be concluded that there has been no improvement in the collection of tourist taxes. On the contrary, there has been a significant drop or a complete halt in tax collection. The federal level of government recognizes the old, and the cantonal level recognizes the new Tourist Board. Hoteliers, who collect taxes from tourists but do not pay them to either the old or the new tourist board, are best using this vacuum.

Thirty-four employees of the old tourist board have already run into financial problems. Their January salaries have not been paid. Employees of the new tourist board are also not coming to work.

- The Government established the new tourist board at the address where the existing tourist board also operates. However, no one has ever come to work. We have never seen anyone working in the new Tourist Board. Our employees come to work regularly, but we cannot pay salaries. Hoteliers are not paying taxes to us, nor to the account of the new Tourist Board – says Džeko.

In January, the Federal Ministry of Finance adopted the Rulebook on Amendments and Additions to the Rulebook on the Method of Payment of Public Revenues to the Budget and Extra-Budgetary Funds in the FBiH. These amendments do not mention any changes regarding the account of the Tourist Board in Sarajevo Canton. Therefore, the Federal Ministry of Finance still recognizes the old Tourist Board of KS.

The case of the tourist boards in Sarajevo has ended up before the Constitutional Court of the FBiH. Lawyers for the old Tourist Board initiated an assessment of the constitutionality of the cantonal Tourism Law, based on which the Government established the new Tourist Board. If this law falls, the Government will have to shut down the newly formed Tourist Board. Regardless of how this case ends, Džeko says that Prime Minister Konaković, the Government, and the KS Assembly have already caused damage to Sarajevo Canton, writes Patria.