The value of last week’s taxable invoices increased by 25% YoY but are still down 12% compared to the same week in 2019, according to the latest announcement from the Tax Administration of the Republic of Croatia being tracked for Covid-19 pandemic purposes.
A higher frequency data is compiled by Croatian Tax Administration, a department of the Ministry of Finance, who stated that the value of taxable invoices increase by 25.4% YoY (or HRK +597m) in the period from 5 April till 11 April compared to same week last year. Meanwhile total taxable invoices in the mentioned period amounted to HRK 2.9bn. It is important to note that last year in this period Croatia was in total lock-down, while this year a period from 5 April till 11 April was week after Easter (4 April) when spring holidays take place and schools are closed in Croatia and in some neighboring countries. Last year, Easter was one week later on 12 April 2020, but there was basically no hospitality activity as regional lock-down was in place. Comparing the same week of taxable invoices to this period in 2019, the value of invoices in 2021 is still down 11.6% (or HRK -389m). The spending in 2019 could not be connected with Easter as in 2019, Easter holiday was on 21 April 2019, two weeks later comparing to 2021.
Increase in taxable invoices in wholesale and retail trade in the period from 5 April till 11 April 2021 (last week) was at 14% (or HRK +264m) to HRK 2.16bn while accommodation and food services increased 6-fold amounting to HRK 180m (or HRK +150m). Many hotels in Istria and in Kvarner area, the closest driving holiday destination for Western markets, were opened. We also expect to see a surge in domestic overnights as pent-up spending, huge supply of higher-end accommodation and favorable pricing urged domestic guests to book their holiday.
The value of taxable invoices decreased by 12% in period from 5 April till 11 April 2021 compared to preceding week (29 Mar till 4 Apr 2021). Mostly, it was driven by decrease in wholesale and retail trade of 15% while accommodation and food services were up 11%. Relaxation of restrictions in Croatia came in force on March 1st 2021 but lately number of infected and hospitalizations is growing again so restrictive measures were introduced back again. Furthermore, we expect restrictive measures in Croatia to continue thanks to higher numbers of hospitalizations, especially in some areas like Primorje-Gorski Kotar County where they are in force again from 26 March.
