WEBVTT

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State Secretary at the Ministry
of Economy, Tourism and Sport,

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Matevž Frangež, will present

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the Hospitality Industry
Draft Act adopted today.

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Thank you. The Government
of the Republic of Slovenia

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has adopted
a new Hospitality Industry Act.

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As you know, the preparation
of the Act took a long time,

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and we also had
an intensive public debate,

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during which we obtained
more than 500 opinions,

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as well as many intensive discussions
with various stakeholders.

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I'm singling out
the landlords in particular.

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The public debate has shown
diametrically opposed views.

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On the one hand from those
opposed to the regulation,

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who believe
that it is either unnecessary

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or dispute the way
it is being carried out.

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On the other hand, there are
those in favour of the regulation,

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as well as individual doubts that
the regulation is not radical enough.

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The key changes
to the Act are:

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the regulation
of short-term rentals,

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the relaxation of the regulation
of the regular opening hours

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of catering establishments,

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and increasing the quality
of our accommodation

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through professional categorisation
of higher quality categories.

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Let me say that Minister Matjaž Han
decided yesterday, following

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an agreement with the Chamber of
Craft and Small Business of Slovenia,

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to withdraw the provision
on the free drinking water

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for the guests
of catering establishments.

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The regulation
of short-term renting ...

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Let me preface this by quoting
some of the findings of a study

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by the Manchester
Metropolitan University

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Institute of Place Management,
which prepared

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one of the two studies
that provide

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the technical basis
for this regulation.

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The restriction of short-term renting
in Slovenia is necessary,

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as the concentration
of privatised housing

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and the low availability
of rental housing

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make it difficult for vulnerable
groups to access housing.

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They also note that the fivefold
increase in the last eight years

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and the professionalisation
of the activity point

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to a trend of long-term
exclusion of housing

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from the long-term
rental market,

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which calls for urgent regulation to
protect the affordability of housing

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and to prevent disturbances
in the housing market.

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In this respect,
a clear answer to the question

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of why we are introducing
the regulation of short-term rentals

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is to ensure affordable housing
for young Slovenian families,

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to return apartments that have
been built for the purpose of a home

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back to their
original purpose.

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We have 700,000
occupied apartments in Slovenia,

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91% of which
are owner-occupied.

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9% are rental apartments.

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About a third
are public rentals,

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a third are market rentals,

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and a third are service
or staff apartments.

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When we look at the third
that are market rentals,

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that leaves us with
just over 40,000 apartments.

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And here we find that 70% of these
are long-term rentals,

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while as much as
23% of these apartments

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are short-term rentals.

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So for every three
long-term rental apartments

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we have one
short-term rental apartment.

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This ratio clearly shows the need
for regulation in this area.

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In 2019, we had 2,500
short-term rental apartments,

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in 2023, we already had 13,000
short-term rental apartments.

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So a fivefold increase
in five years.

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In 2018,
the short-term rental industry

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generated a turnover
of just over 66 million euros,

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and in 2022,
almost 175 million euros.

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What's more,

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as the study by Manchester
Metropolitan University found,

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in Slovenia,
given the European trends,

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in the absence of regulation,
if nothing is done,

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there could be a further 185%
increase in this phenomenon by 2030.

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It would therefore reach
300 million euros.

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Opponents of the regulation
say that we are excessively

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interfering with their constitutional
rights. We want to dispel that myth.

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In the public debate,
there was a widespread belief

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that the state is unconstitutionally
interfering with their rights,

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with free economic initiative
and with private property.

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We would like to point out that
constitutionally protected values

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must be properly weighed
and any interference with rights

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must be regulated
in a proportionate manner

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by carefully weighing
constitutionally protected values.

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Article 74 of the Constitution of
the Republic of Slovenia stipulates

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that economic initiative
shall be free.

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But the same Article also provides
that economic activity

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may not be carried out
contrary to the public interest,

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and that acts of unfair competition
are prohibited.

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Article 67 of the Constitution of
the Republic of Slovenia establishes

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the manner in which property may be
acquired and enjoyed in such a way

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as to ensure its economic,
social and ecological function.

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Article 78 of the Constitution

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provides that the state
shall create opportunities

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for citizens
to acquire adequate housing.

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The point of the regulation
is to return the apartments

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to permanent
forms of habitation.

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Due to the
unaffordability of housing,

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and the fact that there
is a housing crisis,

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the regulation is justified.

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The regulation
is proportionate in a way

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that minimises interference with
constitutionally protected rights

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and eliminates negative effects
with an appropriate legal basis.

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The causal link between increased
housing unaffordability, high prices,

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the withdrawal of
a significant proportion of housing

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from the housing market,

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and the phenomenon of short-term
renting has been demonstrated

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both by the study
of the Centre of Business Excellence

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of the Ljubljana
School of Economics,

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and by the aforementioned study

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of the Manchester
Metropolitan University

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Institute for Place Management.

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By regulating short-term renting,
the state is creating the conditions

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for mobilising the housing stock
for permanent forms of housing

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and shifting savings

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into more productive forms
of entrepreneurial investment.

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There are
some problems with this.

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In 1994, the state

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designated room letting
as a clear exception.

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This has so far
not been time-limited,

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so modernisation of the regulation
in this area is urgent.

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Especially since the activity
has grown tremendously

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since the creation of this exemption,
especially after the emergence

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of online platforms that have
made it much easier and faster

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to find rooms
and conclude transactions.

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As a result, we are witnessing
a strong impact

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on the affordability of housing,
on the strain on infrastructure,

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and on the economic,
social and tourist

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development of local communities.
However,

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the impact of owners
in multi-apartment buildings

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on the phenomenon
of short-term renting

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and the impact of the activities
on them, their lives

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and their assets
remains limited.

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The phenomenon and its effects
vary across Slovenia.

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The situation in Ljubljana,
at the seaside,

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or in some municipalities
in the Gorenjska region

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is not identical to that
in other parts of the country,

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so we are allowing
local authorities

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to choose a different restriction in
accordance with their competences.

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They can relax the restriction
or tighten it further.

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The regulation
of short-term renting is aimed

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at returning apartments
to their primary purpose

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as permanent forms of housing.
The solutions allow

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for the legitimate
right of owners

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to rent out their own property
within the limits.

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We take into account the specifics
of each type of property

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and the different regulation
for one- and two-family houses

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from the regulation
in multi-apartment buildings,

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where we have
a more limiting approach,

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with the clear assumption

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that this phenomenon
is significantly more present

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in the concentrated type of housing
in multi-apartment buildings.

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Local communities
are thus allowed

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to relax or tighten the general
restrictions imposed by the Act

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in line with the housing and tourism
development needs of their area.

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The general restriction
is a maximum of 60 days

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of letting the apartments
in multi-apartment buildings,

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where a maximum
of eight beds is allowed,

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subject to 75% consent
of the owners,

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by the way, today,
a 100% consent is needed,

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but at the same time, the consent
of all the neighbouring apartments.

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On the other hand, the regulation
for one- and two-family houses

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is not as strict.

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There, we allow
a maximum of 150 days of letting,

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and a maximum of 15 beds

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with the consent
of potential other owners.

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The Government
has slightly modified the regulation

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from what we presented
two days ago.

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The restriction on status
and residence has been removed.

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These requirements
are therefore no longer in the Act,

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precisely in the hope of
perhaps reaching an agreement

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with the representatives
of the landlords

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through reasonable compromises.

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As mentioned, local authorities
have the possibility

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to tighten or relax
these restrictions.

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In multi-apartment buildings,

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they can opt for just 30
or up to 90 days per year,

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while in one-
and two-family houses,

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they can opt for just 30
or up to 180 days,

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i.e. half a year.
By the way,

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this is more generous
than the previous restriction

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on the status of landlords.

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What can
the local community do?

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A municipality can set a maximum
number of rented apartments

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per calendar year in a general
act adopted by the municipal council

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for a specific area
or for the whole municipality.

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This decision must not be
arbitrary at the will of the mayor,

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but must be based
on the municipality's assessment

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of the state of the housing market
and the need to develop tourism.

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To this end,
when adopting a general act,

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the municipality
must take into account the zoning,

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the municipal planning acts in force,
an analysis of the acceptable changes

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with an assessment of the effects on
the number and quality of visitors,

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on the overall development
from an environmental,

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social, cultural
and economic point of view,

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as well as the availability
of housing in the municipality

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or the state
of the rental market,

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and finally the capacity
of the municipal utilities

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and public infrastructures,

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including e.g. car parks
in a particular neighbourhood.

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Here, we want to show
in a clear, graphic way,

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the separate regulation
for multi-apartment buildings

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and one- and two-family houses.

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The overall limit
is 60 and 150 days respectively.

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Maximum number of beds
is 8 and 15 respectively.

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In multi-apartment buildings,
only natural persons

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with the status of landlord,

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while in one and two-family houses,
we have decided,

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also with the desire to reach
reasonable compromises,

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to allow all types
of potential providers,

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i.e. persons
with the status of landlords,

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sole traders, or legal entities,

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while municipalities
have the possibility of

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the aforementioned
relaxation or tightening.

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As mentioned, 75% consent
of the owners is required,

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and full consent of all
the neighbouring apartment owners.

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These consents
are only valid for three years.

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It is very important that
when an accommodation

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is entered in the register,

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it will also be given
a special sticker,

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with which apartments intended for
short-term renting will be marked.

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In this way, it will also
be clear to other owners

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that short-term renting
can take place in that apartment.

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The sticker will indicate
that 75% consent has been obtained.

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In this way, the owners
will have the opportunity

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to bring this to the attention
of the inspectorate,

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which will then check the actual
existence of the consents given,

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as well as the required quota.

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Okay, I will not go into detail.
To this end,

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we are upgrading the register
of accommodation establishments.

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The introduction
of the so-called ID number

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is absolutely necessary
in order to be able to

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link the regulation in the
Hospitality Industry Act accordingly

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with the regulation on short-term
rentals at European level.

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With the suspension
of the validity of the ID number

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for exceeding
the number of days allowed,

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there are a few other situations
predicted in the Act,

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an advertisement and a reservation
for a specific calendar year

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on platforms
such as Airbnb or Booking

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will be temporarily disabled.

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The Act also provides for
a way of collecting the data,

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as well as the possibility
of direct access to this data

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by the competent inspectorates,

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the Surveying and Mapping
Authority and so on.

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The database will also be permanently
linked to the building cadastre,

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so it will be
a fully digitised

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and, as far as possible,
automated digital solution,

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which will enable
the effective implementation

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and control
of the provisions of the Act.

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Thank you very much.
Press questions.

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Please introduce yourself.
-Hello, Nejc Krevs, RTV Slovenia.

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On Tuesday you said

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that it has to move forward
and the Law has to be implemented.

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You've gained 3,000 signatures
and met with landlords.

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Has anything changed
in these two days

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or could you somehow
comply with the landlords

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and heard them? Their main request
was a public debate, extension etc.

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Where did you try to adapt
to find a common ground?

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In the introduced solutions
there are some changes

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in comparison
with the Tuesday's version.

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We would like
to reach a compromise

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with the representatives
of the landlords.

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But the government was clear that
the room for compromises is limited

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with the effects that the government
wants to achieve with the regulation.

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To return most of those apartments
in a domain of long-term lease.

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We hope to achieve a decrease
in rental prices

00:16:08.294 --> 00:16:12.374
or a value of such assets

00:16:12.540 --> 00:16:15.987
to ensure a bigger
availability of housing.

00:16:16.200 --> 00:16:20.920
Luckily, with the representatives
of the landlords we have agreed upon

00:16:21.220 --> 00:16:24.967
to prepare their solutions
in the form of amendments.

00:16:26.700 --> 00:16:30.934
For any part of the Law.
And that we will meet again.

00:16:31.174 --> 00:16:35.134
As you know, the legislation
procedure is only beginning now.

00:16:35.300 --> 00:16:39.727
Until the National Assembly completes
the voting on the last amendment,

00:16:39.900 --> 00:16:42.207
everything is still on the table.

00:16:42.440 --> 00:16:47.480
The government want to find
an agreement, if it's possible.

00:16:49.554 --> 00:16:53.307
A possibility to achieve an agreement
is limited with the objectives,

00:16:53.520 --> 00:16:58.814
which force the government
to regulate this area.

00:16:59.247 --> 00:17:03.487
If constitutional review happens
you are prepared?

00:17:03.860 --> 00:17:09.287
The law is well-founded
and endorsed by two studies.

00:17:09.480 --> 00:17:14.927
I believe they are displaying
the right to intervene

00:17:15.167 --> 00:17:19.280
and on the other hand
with a proportionate...

00:17:20.440 --> 00:17:22.320
A proportionate arrangement.

00:17:22.494 --> 00:17:28.900
And it gives the local community
an opportunity to regulate the area

00:17:29.060 --> 00:17:32.920
with a limitation
or escalation of conditions.

00:17:33.160 --> 00:17:38.560
We are well-prepared
for a possible constitutional review.

00:17:38.894 --> 00:17:40.640
Maybe also about water.

00:17:40.914 --> 00:17:44.174
You've talked a lot
that this is a constitutional right.

00:17:44.467 --> 00:17:49.294
How do you answer the critics that
you've complied with the caterers?

00:17:51.967 --> 00:17:54.087
Drinking water is
a constitutional right,

00:17:54.274 --> 00:17:58.334
but you and I have to pay
for this water at home.

00:17:58.527 --> 00:18:01.330
We had to listen to
the representatives

00:18:01.450 --> 00:18:04.967
of the Chamber
of Crafts and Small Business.

00:18:05.174 --> 00:18:08.074
If something is a constitutional
right it doesn't mean

00:18:08.301 --> 00:18:12.281
that the caterers
have to provide it and pay for it.

00:18:13.121 --> 00:18:15.694
I have to say that a majority

00:18:16.107 --> 00:18:20.747
of Slovenian caterers
provides a free water

00:18:20.854 --> 00:18:24.501
as a complimentary offering
to the other catering range.

00:18:24.694 --> 00:18:29.914
I'm sure they were angry
by the intent to make it obligatory.

00:18:30.167 --> 00:18:34.134
The fact is
that it's already happening

00:18:34.300 --> 00:18:37.820
and we are all a part
of their hospitality,

00:18:38.034 --> 00:18:42.794
so this is unfair. I think it's right
that we crossed that provision out

00:18:43.100 --> 00:18:47.254
and met the interest
of Slovenian caterers.

00:18:48.020 --> 00:18:49.787
Thank you very much.

00:18:52.840 --> 00:18:55.307
Linda Mozetič, Info360.

00:18:55.714 --> 00:19:00.060
My question is not about this topic,
but you are the only representative

00:19:00.274 --> 00:19:05.320
of the government today.
Is there anything yet

00:19:05.407 --> 00:19:08.727
about the consent
for Marijan Papež?

00:19:11.100 --> 00:19:12.774
Thank you for the question.

00:19:12.894 --> 00:19:16.447
The director of the Government
Communication Office can address it.

00:19:16.600 --> 00:19:21.300
We didn't get this material.
We can ask the Ministry,

00:19:21.774 --> 00:19:25.787
what is going on
and they can provide the documents.

00:19:25.974 --> 00:19:29.160
After the press conference.
-Yes, please. Thank you.

00:19:29.680 --> 00:19:31.680
Thank you very much.
-Thank you.

00:19:31.840 --> 00:19:35.420
This is all for now.
Have a nice day and goodbye.