Tourism development remains one of Government's priorities. We are continuing with the implementation of initiated projects aimed at making Macedonia an attractive tourism destination, said Economy Minister Valon Saracini after Monday's meeting with representatives of travel agencies.

Tourism subsidies in 2011 amount to Denar 49 million (EUR 800,000), whereas lowering of VAT from 18 to five percent for tourism services as of September 1 should result in reduction of prices for domestic guests and secure more budget funds.

"Tourism has an enormous effect on the country's economic development, plays an active role in the creation of new jobs and attraction of investments, increases the foreign currency inflow, and stimulates SME development", said Minister Saracini.

According to the Hotel Association of Macedonia (HOTAM), the Government measures are already yielding results, while tours for foreign tourists also include Strumica, Negotino, Kavadarci, Stip, Demir Kapija besides the established Ohrid and Struga.

"The effect from subsidies is evident, and we expect the same from the tax reduction. That is why we have signed three-year agreements with foreign tour-operators", said HOTAM president Donco Tanevski.

At least 15,000 Dutch and 1,600 Finnish tourists are expected to land at the Ohrid airport this season.

Today's meeting also focused on further support between the ministry and travel operators, who presented ideas over the use of European pre-accession fund for development of rural and alternative tourism.