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Confronting the gray economy: Unregulated tourism issues in Serbia

The rise of the gray economy in tourism, particularly through platforms like Booking.com, has sparked significant debate in Serbia. The government is increasingly concerned about illegal operations in private accommodation, with Minister of Tourism Husein Memic highlighting the issue of unregistered rentals that undermine the formal sector.

Booking.com defends its position by stating that it requires accommodation providers to acknowledge their legal obligations upon registering. The company asserts that it has mechanisms to address reported irregularities and will promptly remove non-compliant listings.

However, industry experts, like Aleksandar Seničić from the National Association of Tourist Agencies of Serbia (YUTA), argue that the gray economy poses serious risks, including safety concerns for travelers due to unregulated accommodation standards. He points out that low fines for violations encourage non-compliance, making it more profitable for some to operate outside the law.

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Should Booking.com cease operations in Serbia, there are mixed feelings among hosts. While some express that they would adapt by using other platforms or social media, they also acknowledge the convenience Booking offers. The situation remains tense, with calls for more stringent regulation and enforcement to protect both the industry and consumers.

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