Despite ongoing negotiations, the online accommodation platform Booking.com still cannot be compelled to comply with Serbian domestic regulations. According to Jelena Mićić, a leading competitiveness advisor at the National Alliance for Local Economic Development (NALED), Booking.com does not directly cause the growth of the gray economy in Serbia but facilitates easier operations for unregistered hosts by providing them a platform to advertise.
Booking.com is not registered in Serbia, which prevents authorities from imposing local regulatory obligations on the company. The Serbian tourism inspectorate has held multiple talks with Booking.com to introduce measures that would link advertisers on the platform with those registered in the national “e-Turista” system, which serves as the Central Information System for tourism and hospitality. While the number of illegal accommodation providers is unknown, legal providers are registered through “e-Turista,” managed by the Ministry of Tourism and Youth.
Booking.com, originally a small Dutch startup, is now one of the world’s leading travel digital platforms, offering millions of accommodations globally. However, in Serbia, the platform advertises unregistered accommodations, contributing to the gray economy. Although Booking.com has committed to complying with national regulations in all countries it operates, it has not done so in Serbia. The Ministry of Tourism has proposed that only properties providing a unique identification number from the “e-Turista” system should be allowed to advertise on Booking.com, effectively ensuring registration, but the company has so far rejected this proposal.
Serbia may seek a solution at the European Union level, as other countries like Croatia, Austria, and some Scandinavian nations have also sued Booking.com for similar issues. Turkey, for instance, banned the platform until it agreed to comply with local laws.
Booking.com’s current payment system involves guests paying the platform, which then pays hosts after deducting commissions. Hosts are expected to pay taxes themselves, but many are not officially registered, resulting in lost tax revenues for the state and lost tourist tax income for local governments.
NALED warns that unregistered accommodation providers contribute to the gray economy, harming public revenues, fair market competition, and the overall business environment. This situation negatively affects Serbia’s reputation, especially among foreign tourists, who may perceive the system as dysfunctional.
Legal accommodation providers face disadvantages as they pay taxes and undergo inspections, while unregistered providers avoid these obligations and can offer lower prices, creating unfair competition. This influences guest choices, often leading them to select cheaper, unregistered accommodations unknowingly supporting the gray economy.
Despite these challenges, Mićić notes that Serbia’s gray economy is shrinking. The country marked ten years since the establishment of the Coordination Body for Combating the Gray Economy, which has overseen national programs now showing over 70% implementation progress. Serbia is progressing toward a goal of zero tolerance for the gray economy, which currently represents about 21% of the country’s GDP—equivalent to several billion euros annually outside formal economic flows. Effective inspection work is essential, though many inspection positions remain vacant.
