BR/10/2020

RENTS IN BIG CITIES REMAIN UNCHANGED DESPITE PANDEMIC-HIT ECONOMY

October, 2020 / Volume 24, Issue 9

www.business-review.eu

6

ROMANIAN COMPANIES CONTINUE TO SCALE GLOBALLY

16

STARTUP INVESTMENTS TO PLAY BIG PART IN ROMANIA’S ECONOMIC RECOVERY

18

REMOTE WORKING SHAPING NEW MODELS AMONG PR AGENCIES

30

A CONFIDENT VIEW OF THE NEXT QUARTER-CENTURY

www.business-review.eu Business Review | October 2020

EDITORIAL 3 REAL ESTATE

• Editorial •

Anda Sebesi

6 Rents in big cities remain

• Editor-in-Chief •

unchanged despite pandemichit economy

COVER STORY

A

Let’s stay healthy

8 A confident view of the next quarter-century

ENTREPRENEURSHIP

ccording to the State of Health in the EU - Romania Country Health Profile report released by the European Commission in 2019, our country spends less on health

than any other EU country, both as a share of GDP as well as in per capita terms. Although health spending has constantly increased in recent years, Romania spent just EUR 1,029 per capita in 2017, less than half the EU average of EUR 2,884. This is even more important in the context of the SARS-CoV-2 pandemic, which puts a lot of pressure on public healthcare. It should be clear for authorities that

18 Startup investments to play big part in Romania’s economic recovery

20 Proptech startups making their way into Romanian real estate market

MACROECONOMY

Romania must improve its healthcare system, including in terms of infrastructure, to cope with the current pandemic as well as future outbreaks. However, having lots of free beds in intensive care units doesn’t necessarily mean that a medical system is better prepared

22 New opportunities in

for epidemics. I recently read an interesting interview with Tunde

the age of big projects

Szabo, a healthcare economist from the European Investment Bank’s life sciences division. Szabo, who was recovering from the coronavirus back in April, talked about the strain the coronavirus has put on hospitals. “Pandemic preparedness isn’t about having more intensive care beds or even unoccupied hospital beds. It is

CITY 34 Entrepreneurs in

an international effort where a flexible team of healthcare profes-

Bucharest defy pandemic to open new restaurants

sionals and equipment must be able to very swiftly go to the place

36 Something old,

where the outbreak happens.”

something new, something bubbly: The potential of wine tourism in Romania

In these difficult circumstances, it is clear that the private medical sector plays a crucial role in consolidating the entire system.

This is why we’ve decided to write a cover story about private

38

Cultural calendar

healthcare network Regina Maria, one of the pioneers of the local medical services scene.

EDITOR-IN-CHIEF: Anda Sebesi JOURNALISTS: Aurel Constantin, Mihai Cristea, Romanita Oprea, Oana Vasiliu CONTRIBUTORS: Ovidiu Posirca, Sorin Melenciuc, Claudiu Vrinceanu COPY EDITOR: Anca Alexe PHOTO EDITOR: Mihai Constantineanu PHOTOS: Dreamstime ART DIRECTOR: Raluca Dumitru PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania­­­­ LANDLINE: 031.040.09.31 SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: Mara Dragoiu EVENTS & MARKETING MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRI­­BUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution Business Review is a member of Fwei

Publicație auditată pe perioada Apr 2015 - Mar 2016

ISSN NO. 1453-729X

www.business-review.eu Business Review | October 2020

4 NEWS

WHO’S NEWS BR welcomes information for Who’s News.

Submissions may be edited fo­­­r length and clarity.

Get in touch at mihai.cristea@business-review.eu

Auto adspend to drop more than twice as fast as total ad market

By Mihai Cristea tion to their supply chains, as lockdowns shut down manufacturing in different countries at different times. Faced with pressure on both supply and demand, car brands cut their ad budgets very sharply when the

Ary Naïm was appointed Regional Manager for Central and Southeast Europe by the International Finance Corporation (IFC), a member of the World Bank Group. Naïm will be based in Belgrade and will oversee operations in Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Slovenia, Kosovo, Montenegro, North Macedonia, Poland, Romania, and Serbia.

A French national and a former banker, Ary Naïm has been with IFC for 17 years, having worked for the organisation in countries such as Morocco, the US, the Dominican Republic, Haiti or Mexico.

Cornelia Nicolae is the latest addition to the Fashion House Group team in Romania. An experienced retail veteran, Cornelia became the Retail Operations Director in Bucharest. With 24 years of fashion retail experience, she joined Fashion House Group from Italian fashion brand Stefanel. As Retail Sales Manager for Eastern Europe, she managed the retailer’s operations in Romania, Turkey, Germany, Austria, and Poland, overseeing significant revenue growth across 59 direct stores, seven outlets, and 350 people. page 5

severity of the crisis became clear. The months of April and May had the greatest decline in most markets. Year-on-year declines have since eased, and Zenith expects them to moderate progressively over the rest of the year. The situation is

Car brands cut their ad budgets very sharply

also reflected in Romania – the media budgets for the automotive sector are influenced

Automotive advertising expen-

many, India, Italy, Russia, Spain,

by the health crisis. After a

diture is forecast to shrink by

Switzerland, the UK, and the US,

promising start to the year,

21 percent in 2020 across 10 key

which collectively account for 57

during the state of emergency,

markets, according to Zenith’s

percent of all global adspend.

most customers in the segment

Automotive Advertising Expen-

The spread of the coronavirus

have significantly reduced their

diture Forecasts. That’s two-

and its effect on the global econo-

budgets. However, automotive

and-a-half times faster than

my have left consumers uncer-

adspend is poised to outper-

the decline of the ad market as

tain about their financial futures

form the market in both 2021

a whole in these markets. The

and unwilling to commit to large

and 2022, with 10.5 percent

markets included in this survey

purchases. Car manufacturers

growth in 2021 and 11.4 percent

are Australia, Canada, Ger-

have also suffered from disrup-

growth in 2022.

TotalSoft launches HR Reporting as a Service under an initial investment of EUR 300,000

By Mihai Cristea TotalSoft, one of the leading pro-

port companies in obtaining the

viders of business information

most relevant information related

systems in Central and Eastern

to their employees. The service

Europe, has launched a new HR

is dedicated to HR operational

Reporting as a Service solution

teams, top management, and

(in SaaS mode). The investment

other departments. By creating a

in the new reporting service so

comprehensive reporting applica-

far amounts to EUR 300,000 and

tion that includes the most im-

will increase in the future to sup-

portant KPIs in human resources,

The investment will support companies in obtaining relevant information about their employees

www.business-review.eu Business Review | October 2020

NEWS 5

Electrogrup develops smart urban mobility project in Bistrita

By Mihai Cristea Electrogrup, a member of the

Yovav Carmi was appointed President of the GTC Management Board. Carmi has over 26 years of professional experience in finance and real estate and has been working for GTC for 19 years. Upon joining GTC in 2001, Yovav Carmi was initially responsible for financial operations as the CFO in CEE and since July 2015, he had been the COO of GTC.

E-INFRA group, will develop a complex smart urban mobility project worth over EUR 6 million, in association with MIS Grup and Drumserv. The project aims to significantly develop Smart Mobility in Bistrita and includes: turnkey implementation of an adaptive traffic management system; intelligent video surveillance and access control system; an advanced command centre for

People living in Bistrita will enjoy safer and more effective transport

the management of implemented smart systems; a smart

verticals and bring us closer to

traffic, public transport, and the

management lighting system;

the goal of becoming the number

quality of mobility services.

modular bus stations and infor-

one integrator on the Romanian

At the beginning of the

mation panels in stations along

Smart City market,” says Dragos

year, Electrogrup started the

with computers and on-board

Nedelea, Smart City & Telecom

implementation of another

displays in buses. The project

Development Director at Elec-

smart urban mobility project in

also covers the civil works

trogrup.

Piatra Neamt that aimed to upgrade public transport stations,

required for the implementa-

Through this project, people

tion of the above-mentioned

living in Bistrita will enjoy safer

worth over EUR 4.3 million.

systems.

and more effective transport and

In addition, the company has

smoother traffic with less conges-

started the development of a

continuation of our efforts

tion, while local authorities will

smart road traffic management

to deliver integrated projects

be able to easily manage in real

system in the same city, which

that combine various smart

time all aspects related to road

is worth EUR 5.5 million.

“This new step is a great

Jan Zahumensky is the new CFO of Mars in Central Europe. After 5 years as CFO of the Austrian branch of Mars Multisales, he is moving to Prague where he will be responsible for financial management across the four countries included in the Central Europe region: Romania, Hungary, the Czech Republic, and Slovakia.

Florin Frunza was announced

by MET Groups as the new CEO for MET Romania Energy SA, the Romanian subsidiary of the Swiss-based energy company.

TotalSoft provides companies with the opportunity to track all the stages of workforce management, from business planning of recruitment applications to employment, onboarding, development, evaluation, promotion, and separation. “The development of this reporting service is based on the needs of our clients and was supervised by our HR experts, business consultants, product designers, technical consultants, and managers,” said Radu Ciuca, Head of Business Intelligence at TotalSoft.

Florin Frunza came to MET from OMV Petrom, where he had worked since 2007, having been appointed CEO of OMV Petrom Gas SRL in 2015. Since 2019, in parallel with his CEO duties, he was also Business Development Vice President for Downstream Gas.

www.business-review.eu Business Review | October 2020

6 REAL ESTATE

Rents in big cities remain unchanged despite pandemic-hit economy Almost 14,000 apartments were listed for rent in early September in the largest cities and university centres in Romania. Rent values for these apartments slightly has stagnated or even gone up slightly compared to prior months.

By Aurel Constantin II. At the opposite end, there are areas such as Braytim or Unirii Square, where you will pay between EUR 400 to 470 per month for a onebedroom apartment.

Lower rent levels are found in Iasi, where prices have remained similar to those recorded in 2019. Areas like Frumoasa, Dacia, Alexandru cel Bun, and Canta are offer one-bedroom apartments for less than EUR 300 per month, while in the Civic Centre, Independence or other ultra-central areas, the monthly asking price is around EUR 400.

IN NEED OF NEW DWELLINGS All the prices above are calculated for old apartment buildings, since those represent the majority of dwellings in these cities. A report by Cushman & Wakefield Echinox shows that only 13 percent of the 9.1 million housing units in Romania were built in the last 30 years.

Only 13 percent of all dwellings in Romania are built after 1990, while 87 percent are old houses and apartments

O

There are only three counties where the share of homes built within the last 30 years exceeds the 20 percent threshold: Constanta

ver half of these dwellings were

big institutions going online. This means that

(22.1 percent), Cluj (22 percent), and Suceava

available in Bucharest, according to

demand from incoming students for studios

(21.4 percent). At the opposite end are Teleor-

data collected by imobiliare.ro and

and one-bedroom apartments is lower than it

man (5.6 percent), Hunedoara (5.6 percent),

was in previous years.

and Caras-Severin (4.1 percent), where the

centralised by Analize Imobiliare. As the biggest city in the country, the capital unsurpris-

Cluj-Napoca, a city that needs a lot of new

ingly also has the largest rental market. Those

dwellings to cover its rapidly growing econo-

whelming share of dwellings over 30 years

who are looking for a one-bedroom apart-

my, has around 2,660 apartments listed. The

old.

ment but have a fairly small budget should

average rent in Cluj-Napoca is just slightly

search in areas like Ferentari, Resita Square or

lower than it was in September 2019, but still

homes built between 1990 and 2019 reaches

Alexandriei, where average is below EUR 300

the highest in the country. For a one-bedroom

16.8 percent, with a significant difference

per month.

apartment, the lowest rents can be found in

between the capital city (10.3 percent) and

areas like Floresti, Baciu, Gruia or Dambul

Ilfov county (46.1 percent), a fact that illus-

Rotund, averaging EUR 400/month.

trates the city’s high appetite for expansion

September is usually the month when the rent market peaks, as it’s the period when university students are getting ready for the

Over 2,000 apartments were awaiting new

residential stock is dominated by an over-

In the Bucharest-Ilfov region, the share of

to neighbouring towns, such as Popesti Leor-

new semester. However, 2020 is different, as

tenants at the beginning of September in

deni, Chiajna, Bragadiru or Voluntari. In gross

the pandemic is changing the way universi-

Timisoara as well. Among the cheapest areas

numbers, in both Bucharest and Ilfov, 90,000

ties are delivering their courses, with several

are Freidolf, Traian, Maria Square, and Plavat

residential units have been built over the last

www.business-review.eu October Business Review | May 20162020

COVER REALSTORY ESTATE14 7

30 years. After Bucharest and Ilfov, the largest

for low prices or luxury dwellings in very ex-

lowest prices on the new buildings segment,

residential markets of the last 30 years have

pensive areas. This is not a good situation for

EUR 850/sqm, are found in the city’s suburbs,

been Cluj (77,074 new homes), Constanta

the residential market, but it could be fixed by

while prices in the Astra and Tractorul areas

(66,645 units), Iasi (59,948), Suceava (58,557),

expanding the city limits, with proper infra-

inside the city can reach EUR 1,100 – 1,150 per

and Timis (48,714).

structure and public transportation.

sqm. The most expensive areas are centre, with EUR 1,400/sqm, and Poienii Avenue,

“Despite the constant development of the

with EUR 1,630/sqm.

last 4-5 years, the residential market in Roma-

BRASOV BEGINS EXPANSION

nia remains underdeveloped, with the stock

Brasov’s residential market saw good results

still dominated by old apartments, which

in 2020, with prices and total transactions in-

throughout 2020, with approximately 85 per-

mostly have small surfaces, lack parking spa-

creasing slightly compared to 2019, when the

cent of units sold prior to their delivery dates.

“General absorption rates remained high

Brasov’s residential market is still attractive to investors, even amid a drop in tourism-related occupancy to less than half of 2019 levels. Even so, the potential yield that can be obtained by renting units on the free market can reach 6 percent per year.

Brasov has over 25,000 students and perhaps the biggest growth potential in the medium to long term, taking into account all major public investments due to be completed in the future, form the new Brasov International Airport to the PloiestiBrasov highway,” says Razvan Calita, managing partner at SVN Romania | Brasov.

The residential sector is one of the most important pillars of Brasov’s regional economy, with yearly deliveries stabilising at a level of approximately 3,000-3,500 units. ces and a low quality of construction in terms

best results in the market’s modern history

Approximately 3,250 new homes could be

of facilities and common areas. In cities with

were recorded, according to a report released

delivered this year in Brasov and its surround-

better economic development, such as Bucha-

by real estate consultancy SVN Romania.

ings, slightly decreasing compared to 2019,

rest, Cluj, Iasi, Constanta, Timis or Sibiu, the

The results recorded by the residential

due to a lower number of permits issued in

new residential share is above the national

sector in Brasov, one of the main regional

recent years, following several legislative

average, but even in these counties there is

residential markets in Romania, is all the

changes.

still enough room for development in order to

more positive as the market was significantly

Over 80 percent of the new residential

improve living conditions. In addition, other

affected by the two months of travel restric-

units are located in the city, while neighbour-

counties such as Bihor, Dolj or Prahova have

tions during the State of Emergency.

ing areas attract the delivery of 600 to 800

positive demographic and macroeconomic in-

However, the total number of transac-

new homes every year – the most developed are Ghimbav, Tarlungeni, and Sanpetru.

dicators and a new residential deficit, so they

tions closed on the residential segment at

have good potential for residential develop-

county level in the first eight months of 2020

ment,” says Mihaela Pana, Residential Agency

increased slightly compared with the similar

sov is represented by units targeting the mass

Partner at Cushman & Wakefield Echinox.

period of 2019, by 0.8 percent, according to

market segment, with projects located in the

official figures. At the same time, transaction

suburbs or on the outskirts of the city and

ing the same problems as they did five or

prices for dwellings located inside Brasov,

prices that can go up to EUR 1,100 per square

ten years ago: a lack of demand due to low

regardless of segment – new or old – or deliv-

meter. At the same time, approximately 32

purchasing power and a lack of affordable

ery date, has increased slightly in the last 12

percent of the new stock targets the middle

land. This means that new residential build-

months, by 2.1 percent.

market segment, characterized by better loca-

But new residential buildings are fac-

ings tend to either be built on the outskirts of cities with small apartments that can be sold

The average transaction price in Brasov reached EUR 1,195 per square meter. The

The biggest share of the new offer in Bra-

tions, bigger surfaces, and average transaction prices of EUR 1,200 per square meter.

8 COVER STORY

www.business-review.eu Business Review | October 2020

A CONFIDENT VIEW OF THE NEXT QUARTER-CENTURY Celebrating its 25th anniversary on the local market this year, REGINA MARIA has been able to maintain its leading position on the local private healthcare sector by focusing on four major development pillars - investments in infrastructure, medical leadership, education, and digital leadership.

Operating on a very competitive market, innovating in the corporate subscriptions segment and pioneering some of the most courageous medical interventions have always been at the core of its strategy. Its commitment to meeting the needs of its patients while using state-of-the art technology has made REGINA MARIA a leader of its market segment, who is thus able to confidently look forward to the next 25 years.

By Anda Sebesi

www.business-review.eu Business Review | October 2020

COVER STORY 9

A

ccording to State of Health in the EU - Romania Country Health Profile report released by the European Commission in 2019, our country spends less on health than any other

EU country, both as a share of GDP as well as in per capita terms.

Although health spending has constantly increased in recent years, in 2017 Romania spent EUR 1,029 per capita on health, less than half the EU average of EUR 2,884, or 5 percent of GDP compared to the EU average of 9.8 percent. The same report says that Romania also spends very little on prevention, with only EUR 18 per person in 2017, or 1.7 percent of total health spending, compared to 3.1 percent in the EU. While plans to reform health care have moved forward in recent years, the process has been perceived by patients and health care professionals as being fragmented and poorly coordinated. More specifically, stakeholders say that policies have been excessively focused on addressing financial issues, at the expense of long-term performance. Political instability has also raised a challenge: since 2009, the country has had 15 different health ministers, which has undermined continuity and led to fragmentation and paralysis in reform initiatives.

As for infrastructure, according to the National Institute of Statistics (INS), there were over 63,000 medical units (both public and private) in Romania in 2019, of which 51,000 were located in urban areas and the remaining 12,000 in rural ones. The same source says there were 532 hospitals nationwide, compared to 524 hospitals in 2018. Out of 693 hospitals and medical units assimilated with hospitals, only 344 were large medical units with a capacity of over 100 beds, while 268 were smaller (less than 50 beds).

In such a complex context, characterised by a significant lack of infrastructure and investments in the local healthcare system, the role of private health care providers is crucial for improving the population’s access to quality medical services. In addition, it responds to the problems related to the effectiveness of the medical practice in Romania and encourages prevention among citizens, as it is easier and cheaper to prevent than to treat. Medical subscriptions are just one tool launched by private medical players on the local market, and they make a significant contribution to prevention, especially among the active population, who tends to pay more attention to health.

FROM A SMALL OFFICE TO A NATIONAL NETWORK With fierce competition on the private medical services scene, REGINA MARIA had a major contribution to the creation and development of this sector. Founded back in 1995, the private healthcare network is celebrating its 25th anniversary on the local market this year, having been the first major provider of private medical services on the Romanian scene. It all started with a small medical office in the Unirii area of Bucharest, which recorded exponential year-onyear growth as a result of continuous investment, innovation, and a permanent focus on meeting the needs of Romanian patients. “We built our future step by step and I am happy that we’ve managed to become leaders in terms of the quality of our medical services as

www.business-review.eu Business Review | October 2020

10 COVER STORY

well as in terms of our initial vision and strategy, which was based

in Central and Eastern Europe, which has been operational since the

on three pillars: quality medical services, a highly effective national

beginning of this year at the same hospital.

medical infrastructure, and medical subscriptions,” says Fady Chreih, the CEO of REGINA MARIA. Under the tagline “For 25 years we have been investing in the next 25” (“De 25 de ani investim in urmatorii 25”), REGINA MARIA

At the same time, the REGINA MARIA Central Laboratory is equipped with the latest technology available in Europe with all REGINA MARIA labs having an annual capacity of 50 million tests.

In addition, in the context of the SARS-CoV-2 pandemic, all five

is one of the longest-lived

REGINA MARIA molecular

investors on the local market,

biology labs have a com-

having made major invest-

bined capacity of 3,400

ments in medical infrastruc-

RT-PCR tests per day, with

ture. Ongoing innovation,

over 200,000 tests having

access to state-of-the art

been provided since the

equipment, and a permanent

beginning of the SARS-CoV-2

focus on training are some

outbreak.

of the main factors that have

As for REGINA MARIA’s

brought it so much success.

current portfolio it includes

In addition, the company

corporate clients, special

has been pushing the pedal

packages for SMEs and

of digitalization in its operations to recognise the fact that technol-

startups, and individual subscribers. “In addition, we are a trustwor-

ogy has become an integral part of our day-to-day lives. “We are in

thy partner to many diplomatic missions in Romania and thousands

continuous development and our main goal is to follow international

of companies which represent 620,000 subscribers. This trustwor-

standards of quality and effectiveness in our field. I think that excel-

thiness makes us even more determined to prove that Romanian

lence in medical services is crucial for the global medical system and

medical practice is at the same level as what expats are used to,” says

we want to permanently improve in order to confirm the beliefs we

the CEO. The company was a pioneer in launching medical subscrip-

had when we started 25 year ago,” Chreih adds.

tions on the local market, hence contributing to prevention among Romanians.

THE ROAD TO SUCCESS IS PAVED WITH BIG INVESTMENTS

In terms of the amount spent on prevention per person, Roma-

Since its inception, REGINA MARIA has invested over EUR 130 mil-

nia recorded the second-lowest level in the EU, only overtaking

lion in the development of its medical system by upgrading clinics

Slovakia. In addition, the report says that in Romania, the preven-

and opening new locations, acquiring high-performance medical

tion component is a low priority in most national health policy

equipment, and training its medical teams. “Most of this investment

programmes, such as those addressing cancer or maternal and child

has come from our reinvested

health, while the focus pre-

profits, and it is also based on

dominantly lies on curative

the thousands of companies

care. Moreover, the popula-

who have contracted medical

tion does not have equitable

subscriptions from REGINA

access to health promotion

MARIA. Our profits stay inside

and education resources.

the country and are utilised

Last but not least, mortality

to further develop the health

from both preventable and

care system,” says Chreih.

treatable causes is very high

As a result, the medi-

in Romania. The country’s

cal provider now has over 4

preventable mortality rate

million patients, it is present

was the fourth highest in Europe in 2016, highlighting

in 20 counties with its own clinics and reaches national coverage through its over 300 part-

the need for effective public health and prevention interventions,

ner locations. “In recent years, we have accelerated acquisitions

while the rate of mortality from treatable causes was the highest in

and investments in order to serve our patients’ interests amid the

the EU. This result reflects the considerable challenges faced by the

constant growth of the private medical sector. We want our services

health system in providing appropriate and timely treatment. Con-

to be available across the country,” adds Chreih. According to him,

sidering this situation, subscriptions are a valid tool developed by

the EUR 60 million the company has invested in medical equipment

private medical players meant to encourage the prevention among

and cutting-edge technology has played a crucial role. It is about

Romanians. As Chreih says, 71 percent of REGINA MARIA subscrib-

the DaVinci robot, which the doctors have used for more than 1,200

ers visit a doctor at least once a year, compared to just 54 percent of

surgeries at Ponderas Academic Hospital, and the first MAKO robot

non-subscribers.

www.business-review.eu Business Review | October 2020

COVER STORY 11

MEDICAL LEADERSHIP AT THE CORE OF REGINA MARIA’S BUSINESS

In addition, we will focus on digitalization, multidisciplinarity, and

One of the company’s main achievements is that it performs com-

explains the CEO of REGINA MARIA.

telemedicine as directions for the future of the health care sector,”

plex surgeries of the sort we’ve only seen in other countries, meeting top international standards and maintaining conditions of maximum

BANKING ON HIGHLY QUALIFIED PROFESSIONALS

safety. “Some of our doctors have been the first in Romania to per-

When it comes to education, REGINA MARIA is involved in training

form groundbreaking surgeries,

and mentoring new gen-

which means they saved pa-

erations of doctors and nurses

tients who had been told they

according to international

had no chance. We have highly

standards. The company wants

trained doctors who train the

to create an environment that

future generations with the

encourages medical profes-

support of the latest medical

sionals to stay in Romania,

equipment,” says the CEO of

which is a crucial endeavour

REGINA MARIA. He also notes

considering that despite in-

that the company has been in-

creases in the size of the health

ternationally recognised for the

workforce over the course of

quality and safety of its medical

the last decade, the Romanian

services, having received 12 accreditations. “It may be just a number, but these accreditations represent a guarantee of the medical act, as evaluated and monitored by remarkable international institutions, which in turn have been

health system is still suffering from shortages of doctors and nurses.

The same EU report shows that there were 2.9 practicing doctors per 1,000 population in 2017, the third lowest figure in the EU (the

endorsed by the World

Union average was 3.6),

Health Organization,” adds

and 6.7 nurses per 1,000

the CEO.

population (EU aver-

For example, Ponderas

age 8.5). The migration

Academic Hospital is the

outflows of medical staff

only hospital in the world

seeking better career and

to hold seven interna-

remuneration prospects

tional accreditations, and

abroad have contributed

it has five teams who are

to the development of

qualified to operate the

a domestic shortage of

DaVinci robot. Meanwhile,

health professionals, with

Euroclinic Hospital is the

negative consequences for

sole Center of Excellence

the accessibility of care.

in Romania specialised in

In response to this issue,

minimally invasive gyne-

the government has taken

cologic surgery as well as

measures to try to improve

a Center of Excellence in

retention and increase the

Breast Pathology. Both are

attractiveness of employ-

accredited by the SRC. On

ment in the health care

similar lines, the Baneasa

sector.

Maternity was the first

“In the past 25 years, we

hospital in Romania to be

have been investing in the

accredited by the Interna-

next 25. I strongly believe

tional Joint Commission

that permanently invest-

for quality of care and

ing in the quality of the

patient safety. Last but not least, REGINA MARIA’s Endoinstitute and

medical act and placing the patient at the core of all our actions will

Gastromond clinic in Constanta are two other major business arms

generate the expected results. And this has already been proven in

for the company, offering high-quality medical services on the local

our case. Our goal was – and always will be – to be the best. Over the

market. “In the future, in terms of medical leadership, we aim to get

last 25 years, we’ve succeeded in providing medical services at inter-

an international accreditation for our hospital in Cluj-Napoca and

national standards as well as in training the best teams,” says Chreih.

get more of our physicians recognised as Surgeons of Excellence.

For example, the Surgical Training Institute (STI) at Ponderas

12 COVER STORY

www.business-review.eu Business Review | October 2020

Academic Hospital is used to train specialists in the field of mini-

MARIA, where patients are able to get online check-ups and medi-

mally invasive surgery and operations assisted by robots or endo-

cal monitoring. Currently, the Virtual Clinic is the most complex

scopic devices. It has trained over 2,500 participants so far (2,000

and the only fully integrated medical platform on the Romanian

physicians and 500 students from medical schools in Romania and

market. Medical examinations and tests are saved in the patient’s

abroad). “Without education and investments in training the future

digital medical file along with recommendations and a complete

generations of professionals, we cannot have a high-performing

medical report. The Virtual Clinic can be accessed from anywhere in

medical system,” Chreih argues.

Romania or abroad for examinations, tests results, second opinions,

The European Nursing Academy is the first academic programme

certificates, prescriptions, references, and monitoring of chronic

for nurses and offers a diploma from an

diseases. The platform has already

international university. “Founded in

registered more than 100,000 medical

cooperation with Coventry University

appointments, over 440 doctors, and

from the United Kingdom, our acad-

40 medical specialties. According to

emy provides a three-year programme

Chreih, the patient’s overall level of

in English, similar to the one available

satisfaction reaches 80 percent. “This

to nurses in the UK,” Chreih adds.

is a confirmation of the success of

REGINA MARIA also supports the Royal Club of Physicians to provide

telemedicine,” he adds.

As a matter of fact, according to the

specialist training to medical staff

Commission of the European Commu-

within a series of workshops, sympo-

nities, telemedicine could contribute

siums, conferences, hands-on courses

to the improvement of the quality of

or congresses. Furthermore, REGINA

life for Europeans, be they patients or

MARIA offers scholarships to students

doctors, at the same time enabling the

in years 5 and 6 of medical school from

medical system to face current chal-

Cluj-Napoca, Iasi, Targu Mures, Craio-

lenges. Improving access to specialised

va, and Constanta. “We aim to develop

treatment in countries or areas where

the European Nursing Academy and

there are few specialists or where ac-

STI to provide more medical profes-

cess to medical services is otherwise

sionals in Romania with training and

limited and contributing to an increase

experience using the latest technolo-

in the effectiveness and productivity

gies,” says Chreih.

of the health care system are among the main benefits. The same docu-

ACCELERATING DIGITALIZATION

ment shows that telemedicine could

Chreih says that digitalization contin-

have a significant contribution in the

ues to be a priority for the company.

EU economy as a whole. Finally, as the

The aim of REGINA MARIA’s digitali-

European population is getting older,

zation process is to educate patients

telemedicine could improve access to

and allow them to have more control

more frequent medical assistance.

over their own health. “REGINA MA-

The REGINA MARIA website is an-

RIA intends to create generations of

other important digital tool, designed

confident patients who consider their

as a medical educational platform

health to be both a responsibility and

which provides answers to a wide

a priority.” Digitalization also sup-

range of medical questions. Among

ports corporate subscribers, who can

other tools it offers access to three

now implement occupational health

sections: My Account, Ask a Doctor,

services online and benefit from a series of medical facilities for

and the Edu Section. Finally, the mobile app developed by REGINA

their employees. “In addition, the digitalization of our services and

MARIA is one of the most complex apps in the healthcare area. It

communication has allowed us to combine the education pillar with

integrates a series of facilities for patients: medical appointments

empowering patients when it comes to their health. As part of this

and bill payments, facial recognition for authentication and account

initiative, we have developed a series of webinars and online cours-

validation, linking parents’ and children’s accounts, and a chatbot

es within educational health programmes. Companies can now use

for support. Considering that the local healthcare market is very

the HR portal to monitor the status of their subscribed employees

challenging for all players, either public or private, it is clear that an

from an occupational health service perspective,” Chreih notes.

accelerated innovation in the field and a focus on the needs of the

The Virtual Clinic is another example of digitalization at REGINA

patients could give an impetus to the entire sector.

www.business-review.eu Business Review | October 2020

14 FOREIGN INVESTMENTS

Romania’s to-do list after two years of FDI stagnation and 2020 decline Foreign direct investments (FDI) have had a consistent contribution to the modernisation of the Romanian economy over the last 21 years, but they are no longer on the radar of decision makers or large private organisations in Romania today. We hear a lot of talk about entrepreneurship, which is healthy for the economy, but Romanian companies cannot accelerate their growth without any new names appearing on the foreign investors’ map.

By Claudiu Vrinceanu of visibility, suggesting that Romania is not very interested in FDI, and providing limited resources to promote Romanian exports.

MORE CREATIVE INCENTIVES Romania currently has two state aid schemes that contribute to the attraction of FDI. The first is the scheme for new (greenfield) investments which has the role of attracting new investments with a major economic impact of at least EUR 1 million, while the second scheme is designed to support investments that lead to the creation of new jobs.

Internationally, specialists are discussing how states and communities could rethink in-

I

Romania today does not have interactive online platforms

vestment incentives and seek more cost-effective solutions. Infrastructure subsidies and

n the context of falling FDI in Romania,

these economic indicators, each government

workforce training are just two examples. The

not only is the public sector reluctant

has a strong investment promotion agency

former are usually implemented to increase

to build a strong and proactive institu-

or structure. Let’s take just the example of

the accessibility and attractiveness of a target

tion aimed at attracting investments through

Enterprise Estonia, Invest Lithuania, and

location for investors. This may include the

marketing actions, incentives, and training

CzechInvest, the top award-winning institu-

construction of roads, railways or ports that

specialists in the state apparatus, but neither

tions specialising in foreign investments

are designed to meet the investor’s needs. As

are large private organisations rushing to

in Europe. Solid organisations with tens or

for the latter, if a foreign investment brings

create platforms and promotional projects

hundreds of employees and solid protocol

a new type of operation to the host country,

that could create new strategic investment

and promotion budgets. For comparison,

there could be potential problems with the

opportunities in our country.

the public institutions currently tasked with

supply of skilled labour.

Three economic and governmental priori-

promoting Romanian exports and attracting

ties stand out and should be prioritised in the

foreign investments are three undersized Di-

ONLINE PLATFORMS

coming year.

rectorates: the General Directorate of Foreign

Whether we are talking about the public or

Trade, the Directorate of Tools and Pro-

the private environment, Romania today does

CREATING INVEST ROMANIA, A TRULY CONSOLIDATED GOVERNMENTAL INSTITUTION

grammes for Export Promotion and the Direc-

not have interactive online platforms, with

torate of Foreign Investments, all within the

real-time information about target destina-

Two important indicators we must constantly

Economy, Energy and Business Environment

tions for foreign investors. An English-lan-

look at are the volume of foreign direct

Ministry. The fact that these two important

guage marketplace where all local authorities

investment and the value of the subscribed

areas – exports and foreign investments – are

would publish investment opportunities on a

share capital in new companies with foreign

just parts of small public departments means

monthly basis would increase the chance for

participation, which reflects the attractive-

that the institutions that should promote the

international specialists to generate a “pipe-

ness of the Romanian business environment

internationalisation of Romanian companies

line” of new investments for Romania in the

and foreign investors’ perception. To grow

and attract foreign investors suffer from a lack

coming years.

www.business-review.eu Business Review | October May 20162020

PRIVATE COVEREQUITY STORY 14 15

An overview of private equity in 2020 Confidence among private equity (PE) firms has hit its lowest level since the global financial crisis as a result of the COVID-19 pandemic, but deal-doers these days are more optimistic than they were during the 2008 crisis.

By Claudiu Vrinceanu

GOOD NEWS FROM PRIVATE EQUITY IN 2020 Even though the last six months have been Investment funds remain among those most able to cope with a crisis

P

turbulent for all economic actors, who have seen differences in consumer behaviour generated by the pandemic, we have heard good

rivate equity specialists forecast a

enough to take risks,” said Radu Dumitrescu,

decline in market activity and worsen-

Financial Advisory Partner-in-Charge at

ing economic conditions given that

Deloitte Romania.

news from the private equity area.

Morphosis Capital Fund I, a PE fund focused on Romanian SMEs, announced the closing of a new investment in Medima

regional economies, which are largely consumer-driven, are expecting significant GDP

DIFFICULTIES IN CLOSING TRANSACTIONS

Health SA, a Bucharest-based chain of

contractions in 2020 amid drops in demand

Some private equity funds have encountered

medical clinics specialised in imagining and

caused by the rise of unemployment.

difficulties either in negotiating and signing

radiology.

The pandemic is creating a buyers’ market,

transactions or in the closing phase in the

Meanwhile, Victor Capitanu and Andrei

with 74 percent of the latest Deloitte CE

case of transactions structured in two stages,

Diaconescu, the founders of the real estate

Private Equity Confidence Survey believing

signing and closing. For example, problems

development firm One United Properties,

that 2020 would be a good vintage. Nearly

appeared during due diligence processes

launched a private real estate equity company

half (45 percent) of them believe vendors

when a virtual database could not be organ-

in Switzerland, in partnership with CC Trust

have decreased their price expectations over

ised or when the due diligence process also

Group, owned by Swiss entrepreneur Claudio

the last six months, and over half (51 percent)

involved an operational analysis. “It was

Cisullo, to invest in the Bucharest real estate

think they will continue to do so. As a result,

problematic to relocate production units in

market.

the share of PE firms expecting make new

Romania as part of a transaction given the

investments in the coming months remains

traffic restrictions imposed at national bor-

period, we can say that thanks to structural

relatively high, reaching 45 percent.

ders. Some investment funds have requested

advantages, investment funds remain among

revaluations of companies in which they

those most able to cope with a crisis, and

most deal-doers also went through the 2008

are interested or have begun renegotiating

their capital and expertise can be pillars that

financial crisis and many of them are well-

payment in installments or on the basis of

support and help relaunch certain economic

capitalised, which can help them navigate

earn-out mechanisms – all choices that have

sectors. Finally, we can expect investment

this period of uncertainty. As any crisis does,

risen among investors’ preferences,” says

funds to take more niche approaches in the

the current one also opens up opportuni-

Alexandra Radu, Partner at law firm Bulboaca

future, depending on the industries that will

ties to those players who are positioned well

and Associates.

have best adapted to the new realities.

“Although they are walking on quicksand,

Despite the inherent difficulties of this

www.business-review.eu Business Review | October 2020

16 BUSINESS

Romanian companies continue to scale globally For many Romanian firms, now is a great time to go further in their global scaling efforts.

Four more Romanian tech companies recently announced new internationalisation plans.

By Claudiu Vrinceanu nection infrastructure for the banking system to ensure the transfer of funds and interbank settlements. NIBSS processed 1.1 billion electronic transactions in 2019, totalling over EUR 235 billion.

EMAG eMAG has continued its international expansion by diversifying its sales channels and opening a showroom in Sofia, Bulgaria, having opened its first showroom outside Romania in Hungary three months ago. The company is planning to open three more showrooms in the first part of next year. The growing interest from Romanian sellers in taking their products to other markets is also key to the company’s international expansion: in Bulgaria alone, there are currently over 400 Romanian merchants using the constantly-expanding eMAG Marketplace platform thanks to the ease and speed it provides. eMAG facilitates Romanian sellers’ access to new markets through content eMAG has continued its international expansion by diversifying its sales channels

translation services, as well as assistance with product listing.

TAILENT

specialized in software solutions, is accelerat-

DOCPROCESS

Just a few months after securing their first in-

ing its global expansion on the African market

With an established presence in Romania,

vestment round from Neogen Capital, Roma-

through a new project aimed at strengthening

France, Belgium, and Luxembourg, DocPro-

nian startup Tailent started its international

the security of the infrastructure and opera-

cess, a Romanian technology company with

expansion by creating the Tailent Automation

tions of a key Nigerian institution. The new

an international footprint, is now ready for

Platform Studio for robot development and

project marks an important stage in expand-

a new expansion phase as it aims to reach

the Tailent Automation Platform Control

ing the Trencadis brand to foreign markets.

beyond Europe and gain new clients in the

Center for robot management in production

The Romanian company already has opera-

United States. The company has offices in Bu-

environments, both available to clients and

tions and projects in Switzerland, Croatia,

charest, Brasov, Paris, and Grenoble and over

partners all over the world. The Tailent Auto-

Albania, Nigeria, Ghana, and Senegal.

50 employees. The development strategy en-

mation Platform (TAP) offers unprecedented

Nigeria’s new Trencadis project will be im-

compasses a growing market share in France

flexibility, performance, and scalability in

plemented for the NIBSS Nigeria Inter-Bank

as well as further expansion to Benelux

developing and using software robots.

Settlement System (NIBSS), an organisation

countries, followed by the UK and the United

owned by all Nigerian banking institutions,

States. To accelerate this process, DocProcess

TRENCADIS

together with the Central Bank of Nigeria

wants to access new financing rounds from

Trencadis, a Romanian technology company

(CBN), whose mission is to provide intercon-

reputable international investment funds.

www.business-review.eu Business Review | October May 20162020

COVER BANKING STORY 17 14

There is only one way in banking: the digital way Ufuk Tandogan, CEO Garanti BBVA Romania explains the importance of the digitalization process for both the bank he manages and the entire local banking system and highlights the main achievements of the lender in this direction.

By Anda Sebesi How would you describe the importance of digital channels in this uncertain period?

Social distancing and isolation rules adopted by the Romanian authorities have led to a much higher need for digitalization and digital literacy. In order to maintain a sense of stability and connection to our everyday lives, acquiring and using digital skills has proven to be paramount. Although this pandemic has had a strong impact on humankind, from many points of view (social, economic, politi-

tions in the first half of 2020 by our mobile

million digital clients. BBVA was recognized

cal etc.), it is undeniable that it has brought

retail customers, over the same period of

last year by Forrester Research as the global

the future sooner than expected. I strongly

2019. Moreover, between January and June

mobile banking leader, within the review of

believe that the need and preference for digi-

2020, for the retail customers and all digital

the mobile apps of 54 retail banks across the

tal channels and digital banking will continue

channels - mobile and online, the number of

world.

the upward trend on the long run.

transactions grew with over 23.5%, while the volume of transactions increased with 15.2%,

Speaking of digitalization. How do you think this trend will evolve in the future?

How do you see the influence of this trend in your business?

compared with the same period from 2019.

Garanti BBVA has always been a visionary

What are your long-term plans regarding digital channels development?

period the importance of digital channels

player and we have constantly deployed our resources in order to innovate and bring add-

The success of our digital channels would not

handy solutions. This is why I am confident

ed value to our customers’ lifestyles. There-

have been possible without all the years that

that this trend will continue, not because

fore, we bet on our digital channels - Garanti

preceded 2020, when we invested heavily

people will be afraid of physical contact, but

BBVA Online and Garanti BBVA Mobile - years

and constantly in our platforms, as we believe

because online/mobile banking is so conve-

before their utility appeared as critical.

that there is only one way in banking - the

nient and, above all, safe.

We have observed that this digitalization

digital way. Our strategy is to continue to

trend is strongly present among our clients

invest and develop our digital services, as we

have to continuously improve its facilities,

and all this is confirmed also by the results

see that during these challenging times our

in order to respond to the customers’ needs.

obtained in 2020. Thus, for example, in the

clients prefer our easy-to-use and safe digital

Thus, the increase in demand of digital bank-

first month of lockdown, the number of mo-

channels. In developing the digital channels,

ing adds more pressure to innovate and to

bile banking transactions grew by over 60%

Garanti BBVA Romania relies on the support

speed up the adoption of digital technologies.

over the same period of last year. Further,

and significant know-how of its sharehold-

This is a period when customers want to have

during the first half of 2020, Garanti BBVA

ers. Garanti BBVA Turkey (TGB) has over 8.9

the ability to conduct their entire financial

recorded a 47.7% increase in volume and over

million active digital customers, while Banco

activities, safely and easily, on their mobile

47.4% increase in the number of transac-

Bilbao Vizcaya Argentaria (BBVA) reached 34

phones and desktops.

I believe that people have realized during this and now they know that these are simple and

On the other hand, the banking sector will

www.business-review.eu Business Review | October 2020

18 ENTREPRENEURSHIP

Startup investments to play big part in Romania’s economic recovery With the Romanian economy estimated to grow by 4 percent in 2021, partially recovering this year’s drop in output which is estimated at 6 percent, the entrepreneurial sector could support the growth trend by attracting fresh funding and generating new jobs in dynamic sectors ranging from tech to healthcare and e-commerce.

By Ovidiu Posirca

S

tartups’ growth potential will be important across Europe. The economy of the European Union will slip into

recession due to the coronavirus pandemic, lowering its GDP by 8.3 percent this year. In 2021, the EU economy will grow by 5.8 percent, according to Eurostat estimates.

In the first half of 2020, venture capital investment remained resilient in Europe despite the economic contraction, but the outlook became rather uncertain as we moved into the second semester. Additional challenges could stem from the ongoing impact of the healthcare crisis and the issues related to Brexit, according to professional services firm KPMG. “Investors doubled down on companies expected to do very well in the short-term due to the impact of the pandemic, including those focused on e-commerce, healthtech, and remote education,” wrote the firm’s analysts in a report.

LOCAL STARTUPS CONTINUE SCALEUP EFFORTS INTO 2021 In H1, the median funding size provided by an angel or seed fund grew to USD 1.1 million, compared to USD 800,000 in 2019, according to the KPMG report. This type of financial support is critical for early stage startups.

Gains were also recorded on funding rounds in later stages.

Locally, funding conditions are good to support the growth of the startup market in 2021, suggests Vladimir Aninoiu, technology director within the consulting practice at Deloitte Romania. “Nevertheless, investments The capacity of startups to have a major contribution to economic growth is limited

in startups strongly depend on the economic recovery, and a slow recovery will negatively

www.business-review.eu Business Review | October May 20162020

ENTREPRENEURSHIP COVER STORY 14 19

influence investments in tech startups,”

economic recovery, and not just in Romania,

and horizontal/backbone services for online

Aninoiu told BR. He adds that the startup in-

but in other countries as well.

retail.

dustry could boost the share of IT&C services

“The advantage in Romania is that a lot of

in the country’s GDP to above 7 percent. “We

its young enterprises or startups are usually

expect startups to contribute more substan-

either tech firms or companies that signifi-

TOP FUNDING ROUNDS CLOSED BY EUROPEAN STARTUPS DURING THE PANDEMIC

tially to export business than to in-country IT

cantly rely on technology for their business

In the second quarter, the biggest funding

consumption,” says the technology director.

model (e.g. platforms, marketplaces, B2B

deal went to Deliveroo, the London-based

or B2B2C models, etc.). As a result, a lot of

online food delivery startup. The firm got

products and services, capital to grow, good

these companies currently have very good

USD 575 million in a series G round to ex-

technical universities to recruit engineers

and positive

from, a well-designed legal framework to

dynamics

attract investors, and big markets to service.

in terms of

Therefore, their capacity to have a major con-

revenues

tribution to economic growth is limited, ex-

and profit-

plains Cristian Munteanu, managing partner

ability, as

of Early Game Ventures. “Relying on startups

in many

to boost the economy when the country has

cases they

absolutely no history in encouraging startups

have been

and investments is unrealistic,” Munteanu

positively

told BR.

influenced

Startups need time to test their innovative

In 2019, private equity investments in Ro-

by the

mania amounted to EUR 551 million, with the

COVID-19

country recording one of the biggest funding

crisis, with

volumes in Central and Eastern Europe

increased

(CEE), according to an Invest Europe report.

demand for their technologies, products or

pand its engineering teams and enhance its

In fact, PE investments in Romania account-

services through digital channels,” Ghenea

delivery platform. To date, the startup’s total

ed for 0.25 percent of GDP last year, above the

told BR.

funding exceeds USD 1.5 billion.

CEE average of 0.17 percent. Such investment

The wave of business digitalization trig-

Fintech N26 from Berlin secured a USD

firms place bets on promising startups, but

gered by the coronavirus crisis could also

570 million investment to expand to new

they can also fund more established firms

boost some of these tech startups. More firms

markets in Europe, the US, and Brazil. The

will have to invest in

startup’s attractiveness in the eyes of inves-

technology in order to

tors was boosted by the increase in online

upgrade their interac-

payments since the start of the coronavirus

tion with customers and

pandemic.

employees as a result

275 million to continue its work on an on-

place to reduce health

demand electric air taxi service. The startup

risks.

aims to connect cities within a region at a

“Locally, some strong enough startups have

fraction of the cost of traditional infrastructure.

proven they can launch

French startup ContentSquare raised USD

or grow despite the un-

189.1 million to support further investments

certainties of this global

in its core predictive analytics platform. The

health and economic

firm’s product helps brands understand how

crisis,” Dan Mihaescu,

consumers interact with their websites and

founding partner of

mobile apps.

GapMinder VC, told that haven’t gone public.

Elsewhere, Munich-based Lilium got USD

of the restrictions set in

In the UK, Cazoo got over USD 156 million

BR. He cites TypingDNA, FintechOS, and

in an early VC funding deal. The startup

DeepStash as some of the GapMinder-funded

acquires used cars which it sells online and

partner of Catalyst Romania, says that both

startups which will scale up and boost their

delivers directly to the buyer’s home.

during and after a crisis like the current pan-

operations in 2021. The fund will continue to

demic, startups – and young enterprises more

analyse new investments in startups doing

raised USD 10.1 billion from investors in Q2,

generally – have a major contribution to the

machine learning, cybersecurity, fintech,

according to KPMG.

Conversely, Marius Ghenea, managing

All in all, European VC-backed companies

www.business-review.eu Business Review | October 2020

20 ENTREPRENEURSHIP

Proptech startups making their way into Romanian real estate market Startups providing innovative technology keep emerging on the Romanian real estate market, whose investment potential could go north of EUR 1 billion per year. Proptechs can help developers sell their properties more quickly and aid Romanians in renting or buying a home.

By Ovidiu Posirca

Right now, there are few proptech solutions on the Romanian market

G

lobally, proptech startups have

5.3 billion, already lower than last year due to

the interaction of multiple parties, including

raised over USD 43 billion since 2012,

the ongoing coronavirus pandemic, accord-

state institutions,� says Vladimir Aninoiu,

according to a Deloitte study. The

ing to data by CB Insights.

technology director within the consulting

future of the proptech sector is promising,

“We are probably seeing a limited number

practice at professional services firm Deloitte Romania.

considering that the field has the same fund-

of such firms in the Romanian economy

ing size as the fintech sector did in 2013, hav-

because the return on investment and profit

ing registered a compound annual growth

margins are limited. Another factor influenc-

rate of 44.8 percent since then.

ing the number of startups in the property

TECH-ENABLED STEADY GROWTH FOR COMMERCIAL REAL ESTATE

sector is that the process of acquiring or

Having just entered the local property mar-

selling properties is complicated and involves

ket, Czech startup Realpad has already inked

In the first eight months of 2020, funding to real estate tech companies reached USD

www.business-review.eu Business Review | October May 20162020

ENTREPRENEURSHIP COVER STORY 14 21

deals with two developers. The company pro-

of demands for most companies in search of

have the critical mass to make these new

vides a platform which residential develop-

office space as well as for potential investors.

technologies prove their value. On the other

ers can use to make their sales process more

“These technologies vary from property

hand, the big players simply can’t adopt too

efficient.

management applications to IoT solutions

many new technologies at once,” Munteanu

for buildings and managers. While this is a

told BR. Right now, there are few proptech

manager at Realpad, says that the market

very attractive type of business, it has a very

solutions on the Romanian market because

potential is significant as there are more than

niche scope and this is why we have not

there is a limited number of people who are

250 active residential projects in Bucharest

seen it developing too much in Romania so

willing to invest time and money into getting

alone.

far,” Marius Ghenea, managing partner of

to know the real estate sector, says Florin

“I can see clear signs that developers are

Catalyst Romania, told BR. He says that real

Stoian, CEO & founder of Milluu, a mobile

starting to realise that innovation can – and

estate developers could become investors in

app for apartment rentals.

will – play a significant role in their future.

such startups through existing or emerging

COVID-19 has shown us that innovative

venture capital funds.

Jakub Licak, business development

companies with digitalized processes had a

This fall, Skanska was set to launch an in-

“Moreover, most players have an antiquated approach to both day-to-day operations as well as overall market behaviour. Therefore,

much better response to the crisis and many

teractive 3D visualisation platform for one of

developing the right solutions for a market

developers are now starting to source new

its office projects in Bucharest based on tech-

that is so hard to change is very challeng-

technologies,” Licak told BR.

nology from proptech startup Bright Spaces.

ing,” Stoian told BR. The entrepreneur argues

Technology is already embedded into the

This was the first major deal inked between a

that the proptech market is still in its early

new stock of office and high-end residential

large property developer and a startup doing

days, so investment funds and developers

buildings on the market. Developers have in-

proptech in Romania.

might need more time to analyse its business

vested in new solutions to make their build-

potential. “Proptech solutions are mostly

ings green and have implemented digital

MAKING PROPTECH WORK ON THE ROMANIAN MARKET

tools to more easily manage the consumption

Startups in the Romanian property sector

who value their time, and want a convenient

of energy and other resources in their proj-

must be aware of the particularities of this

solution for renting, buying or investing in a

ects. Interaction with buildings is facilitated

market. While the commercial real estate

real estate property,” says Stoian.

by smart interfaces and a growing number

segment has a handful of large domestic

of Romanians want their homes to be fitted

and international players controlling major

tion volume of the local real estate market

with smart kits that allow them to control

projects, things are different on the residen-

remains on a steady path this year and might

security or heating systems remotely.

tial segment: there are established players

exceed last year’s result of more than EUR

developing large scale compounds, but also

600 million in closed deals. One deal alone,

sionals have become more accustomed to

smaller investors who may build a couple

involving the sale of four office buildings,

digital tools that enable virtual tours as well

dozen houses or a small number of apart-

has been valued at EUR 294 million. Through

as other platforms that provide location intel-

ment buildings. The local market has a

this transaction, NEPI Rockcastle, who owns

ligence for new investments.

limited absorption power, according to Early

a portfolio of shopping centers, exited the of-

Game Ventures managing partner Cristian

fice sector. The buyer of the office stock was

Munteanu.

AFI Europe Romania, who also has ongoing

In the past few months, real estate profes-

Representatives of real estate consultancy CBRE Romania suggested that it was only a matter of time until green certifications and advanced technologies would be on the list

“On the one hand, small players are not interested in new technologies and don’t

dedicated to people who are open to change,

Meanwhile, the investment transac-

investments in retail and residential projects, aside from its office parks.

www.business-review.eu Business Review | October 2020

22 MACROECONOMY

New opportunities in the age of big projects Romania has been allocated a total of EUR 80 billion through the EU’s resilience mechanism programme and 2021-2027 budget. Most of this large sum will be spent on large infrastructure projects including roads, railroads, hospitals, energy, and urban regeneration.

By Sorin Melenciuc projects in Romania, the new contracts will mean that at least 375 km of motorway or expressway will be under construction in 2021 (compared to less than 100 km in 2019), and the financing will mainly come from EU funds. These projects could trigger a bonanza of construction, with large local companies such as UMB, Selina, Arcada, Erbasu, Marcotim or Deme very well placed to secure large contracts and enjoy a golden age in terms of their profits.

The main beneficiary of this boom is by far the UMB Group, owned by Dorinel Umbrarescu, called “the king of the asphalt” in Romania. In the past few years, UMB has won some motorway projects and managed them very well compared to other construction companies. UMB is already working on two main projects: the Bacau ring road (31 km, of which 16 km of motorway) and one of the four sections of the Craiova-Pitesti expressway (DX12).

But this year, the company has secured many other contracts: one section of A0 (BuThis year, Romania increased its motorway network by almost 25 kilometers

charest Orbital motorway), 3 sections of A3 (Nadaselu-Poarta Salajului), 2 more sections of DX12, the Galati ring road, and the Galati-

HARD WORK

Most experts say that Romania’s construction

Braila expressway. These new contracts could

In fact, Romania is already experiencing a

boom, overtaking regional peers, is a logical

push Umbrarescu’s UMB to become a true

construction boom, despite the Covid-19

consequence of its lack of infrastructure.

engineering champion in Romania and even

pandemic. Construction works in Romania

This year, Romania increased its motorway

in the region, as it has become by far the larg-

rose by 12.2 percent year-on-year in July and

network by almost 25 kilometers – 2 sections

est and best-equipped construction group in

by 18.1 percent in the first 7 months of this

of the Transylvanian A3 motorway – to a total

the country.

year, with the main driver being the engineer-

of 873 km, below Hungary or Serbia. But the

ing works sector (+25.5 percent year-on-year

speed of infrastructure projects seems to

being among the beneficiaries of this boom.

in January-July 2020).

have accelerated this year as the new Liberal

Selina Group, based in Oradea and owned by

government has signed several contracts for

local entrepreneur Beniamin Rus, completed

new projects.

its first motorway section this year as a main

According to the latest Eurostat data, Romania has registered by far the largest increase in this sector among the 27 EU member states – and this deserves an explanation.

But other, smaller groups are also seen as

According to the Pro Infrastructura As-

contractor (a 5.3 km connection between Ro-

sociation, an NGO monitoring infrastructure

mania and Hungary near the city of Oradea)

www.business-review.eu Business Review | October May 20162020

MACROECONOMY COVER STORY 23 14

and has signed another contract for a 28.5 km

(Turkey, Moldova or Ukraine) as well as from

inconvenience as possible during hospitalisa-

section in the western county of Bihor with

southern Asia (Vietnam, Sri Lanka, India or

tion, allowing people to remain connected to

CNAIR, the state-owned company that man-

Nepal). In urban regeneration projects, the

their lifestyles, passions, desire, social lives,

ages the country’s roads.

workforce shortage is even more obvious: the

and even to their work, if their health allows

Other local construction companies

workers laying down new pavement in the

it,” he adds. This highlights new trends in

generally work as subcontractors for larger

central area of Oradea are Italians, as Roma-

hospital projects, with these new ideas hav-

Romanian or foreign companies – such as

nia has very few trained masons.

ing landed in Cluj through a bold partnership with a Spain-based firm. The Pinearq office

UMB, Astaldi, Strabag, Porr, Max Boegl, Pizzaroti or Aktor.

But this is only the beginning of a larger,

ARCHITECTURE BOOM IN SIGHT

decade-long boom in the sector. The gov-

But other companies

ernment is now preparing some really big

will profit as well, and

projects that could truly change Romania

that includes architec-

over the next ten years. These include three

ture firms. Public and

trans-Carpathian projects: the Pitesti-Sibiu

private projects need

motorway (sections 2,3, and 4), the Meses

the input of profes-

bridge (a section of A3 motorway with a 3 km-

sionals from various

long tunnel, the largest in Romania), the A8

branches. Romania has

motorway (connecting Moldova and Transyl-

a decent architecture

vania through the Oriental Carpathians) and

school at the European

the A7 – a motorway connecting Bucharest to

level but local firms lack

Moldova.

the know-how needed

When completed, these multi-billion infrastructure projects will allow Romania to achieve a higher goal: becoming a truly

for some of the projects in sight.

As an example, major

developed nation. Even if the country’s

healthcare projects are

construction growth is singular in the region,

planned for the next

its neighbours could benefit from it as well.

decade, from large

Romania produces only 20 percent of its

regional hospitals in

needs in bitumen, a ke building material in

Cluj, Iasi, and Craiova

road infrastructure, and the rest is imported,

to smaller urban hospitals or county-level

in Barcelona, managed by architect Alberto

mainly from Ukraine and Poland.

emergency units. But some architects have

de Pineda, specializes in health projects, and

already acknowledged the potential and are

their know-how is already at work in Roma-

URBAN REGENERATION, WORKFORCE SHORTAGE

thus seeking partners abroad in countries that

nia. But Romania will certainly need more

have developed a lot of healthcare projects

such expertise during the next decade, with

Another sector that is now at the beginning of

in the previous decades. In a first, Cluj-based

many other projects planned.

a period of rapid increase is urban regenera-

architecture firm Dico & Tiganas won the so-

tion. Many large cities in Transylvania are

lutions contest for a large new public hospital

1.6 billion will be delivered in Romania, and

already in the midst of large projects targeting

in its home town – the 300-bed Integrated

the current government programme plans a

the creation of pedestrian spaces replacing

Transplant Center – and became the first local

EUR 3.6 billion investment in the construc-

crowded streets, restoring old Secession or

architecture firm to gain expertise in health-

tion or modernisation of local hospitals. The

Art Nouveau-style buildings, creating new

care projects.

project includes 1,450 medical centres, 25

parking spots and cyclist-friendly public

“Hospitals are far from easy to build.

By 2027, three major hospitals worth EUR

county hospitals, and 110 city hospitals – by

roads. Following in these cities’ footsteps,

The functional complexity, the technology

far the largest health modernisation pro-

many more municipalities are already plan-

being used, the requirements related to the

gramme seen in Romania in decades.

ning similar projects, based on EU funds,

multiple flows of people and materials and

which translate into opportunities for local

especially the rapid and continuous evolu-

would trigger a boom in several sectors – in-

and foreign businesses. However, to achieve

tion of medical science and practices make

cluding construction, logistics, transport, and

these goals, Romania must overcome a huge

hospitals the spaceships of the construction

architecture – both in Romania and abroad.

challenge in terms of its workforce shortage.

sector,” says Serban Tiganas, partner of Dico

Such large projects will also generate intense

& Tiganas and co-author of the winning

international competition, so local companies

ers in the Romanian construction sector are

project. “Hospitals must be as comfortable as

should already be making plans if they want

from other countries – both from the region

possible for patients and cause them as little

to receive a big slice of the pie.

Even during pandemic times, many work-

But if all these projects materialised, they

www.business-review.eu Business Review | October 2020

24 ENERGY

Burning gas to turn green: what does the future hold for Romanian gas?

Romania’s energy sector will be under pressure from the European Union to become much greener over the next decade, but there is an opportunity to make this process less painful: using gas as a transition energy source.

By Sorin Melenciuc

For Romania gas exports could turn out to be a bad choice in the long term

GREEN DEAL

Germany, where Green political groups have

when the European Commission is preparing

Even though the European Commission’s

much more traction, as well as by environ-

to launch the Just Transition Fund, supported

first version of the European Green Deal did

mental NGOs.

through the recovery fund and the EU budget,

“It’s just not explainable to the public,”

to help fossil fuel-dependent regions in the

sources which would be eligible for financing

said German Green party lawmaker Niklas

EU shift to cleaner energy sources. The goal

through EU funds, the European Parliament

Nienass, as cited by Reuters. Experts say

is to achieve net zero emissions by 2050, but

voted on September 16 to allow some gas

that gas emits around 50 percent less CO2

this also implies a tougher 2030 target for

projects to tap into the EU’s green transition

than coal when burned in power plants, but

emission cuts.

fund.

it is also associated with leaks of methane, a

not include gas among the transition energy

In fact, the Parliament decided to back an amendment making some gas projects

greenhouse gas.

However, the Parliament decided that EU

TRANSITION ENERGY SOURCE If this European Parliament decision remains

eligible for aid as long as they were located in

member states would be able to access Just

in force, Romania may become a major

coal-dependent regions and complied with

Transition Fund money if they pledged to

beneficiary of this new policy. In fact, the Ro-

the EU’s 2030 emissions target. This decision

become climate-neutral by 2050 – a condition

manian government is already making plans

was welcomed by countries like Romania or

targeting Poland, the only country that has

to capitalise on this policy, as the Eastern

Poland, both with coal-heavy regions, but

not signed up to this EU-wide goal. The Eu-

European country has large gas resources as

criticised by other member states such as

ropean Parliament’s decision comes at a time

well as a chance to secure additional sources

www.business-review.eu October Business Review | May 20162020

COVERENERGY STORY 25 14

from Black Sea offshore projects. These plans

and Gabriel Comanescu’s GSP Power in west-

Hungary-Austria), but it is being blocked by

include two main objectives aiming to use

ern Oltenia. These new projects are important

the conflicting geopolitical options of the

much of the gas locally: new pipeline projects

because they reduce Romania’s reliance on

“partners” involved in the project. In fact,

to connect cities and rural areas to the nation-

coal and allow the government to restructure

Hungary has decided to change the route of

al gas grid and building new gas-based power

the two major coal-based electricity produc-

the pipeline to have it go through Slovakia

plants. The first objective is underpinned

ers (Complexul Energetic Oltenia and Com-

rather than stick with the initial route going

by the low share of households in Romania

plexul Energetic Hunedoara) and shift them

directly to Austria’s Baumgarten gas hub.

which are connected to the gas grid – only a

to cleaner energy. Currently, one quarter of

This choice directly hurts Romania’s goal to

third – one of the lowest rates in the region.

Romania’s electricity output is generated

gain access to western markets through the

in coal-based power plants. This transition

Austrian hub.

“Only 35 percent of Romania’s population is connected to the gas network. Romania

from coal to clean energy could prove painful

has gas but is has almost no petrochemi-

for the regions where the two companies

be completed based on the its initial plans. “I

cal industry. (…) We have to try to use this

operate, but using gas as a transition resource

believe that Hungary will build its part of the

resource more wisely. First of all, we must

could ease the process.

project in the end. They’ve come up with an

connect as many households as possible to the natural gas network,” Romanian prime

Another market for local gas is export, and this could become more attractive following the completion of the Iasi-Chisinau Pipeline – a project allowing gas

Romania has been calling for the project to

alternative, but I think that they will eventually meet their obligation,” Economy minister Virgil Popescu recently said.

Another important phase is the gas pipe-

exports to the Republic of Moldova –

line interconnection between Bulgaria and

and especially through the Arad-

Greece, now under construction, which will

Csanadpalota pipeline – allowing

allow Romania and other countries in the

gas exports to western markets. In

region to be supplied with gas from alterna-

September 2020, Romania exported

tive sources – Azerbaijan or other countries –

gas to western Europe through the

through the Turk Stream pipeline and BRUA.

Arad-Csanadpalota pipeline for the

Romania needs these projects to be complet-

first time in the last couple of years

ed for several reasons. Besides gaining access

as the gas price on the local market

to major export markets, the country is also

went below the Baumgarten refer-

aiming to become a major transit route for gas

ence price in Austria. Romania has

and a regional gas hub. But other countries

an interest in being more present

in the region have similar – and thus conflict-

on the western market in order to

ing – objectives, as well as often divergent

attract foreign investment in pro-

geopolitical views.

duction and transit facilities on its

Romania is currently the only country

territory. Another goal is to expand

in the region with strong relationships with

its gas storage facilities so as to avoid

both Brussels and Washington and a poor

reliance on foreign suppliers during

relationship with Moscow. However, the EU

harsh winter periods.

has failed to create a unified energy policy in the block, mainly due to divergent interests

THE GEOPOLITICAL FACTOR

among its member states. The biggest failures

minister Ludovic Orban said in September.

But for Romania, gas exports could turn out

in this area were the Nabucco project, which

Two new projects were launched this year to

to be a bad choice in the long term. In fact,

was abandoned, and the Nord Stream 2 pipe-

expand the local gas pipeline network, aiming

the country faces a much bigger challenge: to

line, which is almost completed but serves

to provide gas to tens of thousands of new

get better use for its gas and avoid the Dutch

Russia’s interests. The biggest challenge for

households. The second option is to invest

disease – an economic relationship between

Romania now is gaining support from the EU

in new gas power plants in Romania, and the

the accelerated development of the natural

for BRUA and the two key interconnections to

European Parliament’s decision may prove a

resources sector and a decline in other sectors

Baumgarten and Greece.

key support factor as it allows such projects to

like manufacturing. This challenge is also

use EU funds.

associated with rising difficulties in building

reliance on Russian gas in the region and hurt

If completed, these projects would limit

a real regional network and a real regional

Moscow’s interests. However, Russia still

in the planning or development stage: a new

market connected with western Europe and

has many options at hand and it has been

gas power plant in Iernut (Transylvania) being

supplied by as many sources as possible.

trying to block these projects through friends

There are also two gas power plant projects

built by state-owned company Romgaz and the Halanga project developed by Romgaz

For Romania, the key pipeline now under construction is BRUA (Bulgaria-Romania-

and proxies in the region such as Serbia or Hungary.

www.business-review.eu Business Review | October 2020

26 TECHNOLOGY

Riding the pandemic wave: Essential apps in the age of social distancing The COVID-19 outbreak has created a new space for video conferencing, and might have completely changed the way people communicate going forward. In the span of a few months, the video call has gone from an occasional practice to being an essential part of our daily lives.

By Aurel Constantin and the now mega-popular Zoom, were mainly used by businesses to streamline communication with customers and teams in different locations.

Where voice-only conference calls fall short in terms of what they can communicate (just like texting), video comes to fulfil the need of seeing the other person in order to have a better experience.

SWITCHING TO DIGITAL COMMUNICATION With dramatic fluctuations in supply and demand, the pandemic has also represented a stress test for the power of platforms.

Outcomes have varied by sector, Geoffrey Parker, a visiting scholar at the MIT Initiative on the Digital Economy, said during the MIT Platform Strategy Summit in July. Information technology, communication services, and discretionary consumer companies — including platform companies like Amazon, Facebook, Apple, and Netflix — had seen market cap gains in the range of USD 401 billion as of June 2020, said Parker, who presented research conducted with fellow platform Video comes to fulfil the need of seeing the other person in order to have a better experience

strategy summit co-chairs Peter Evans and Marshall Van Alstyne.

T

video communication systems were

munication platforms to choose from based

130 billion, as 18 of the top 25 market cap

tech pioneers who saw the impact

on your needs. Some video tech providers

losses were in the financial or energy sectors,

that video conferencing could have on busi-

have had more experience with the public

following a drop in oil demand. In other ar-

ness and our personal lives. But when cloud

over the years. Pretty much all the social

eas, ride-sharing platforms also saw dramatic

computing hit the scene, any company that

media platforms have incorporated video

drops, while other companies pivoted to

could develop an easy-to-use tool with a

into their messaging apps to allow users to

meet changes in demand.

good interface had just as much of a shot at

see each other at the click of a button.

he first companies that built modern

being successful in this space.

In the finance and energy sector, market In 2020, there are numerous video com-

Other video systems, like Cisco’s WebEx

cap losses had been in the range of up to USD

There are three archetypical ways in which platform companies have responded

www.business-review.eu October Business Review | May 20162020

COVER TECHNOLOGY STORY 27 14

to the pandemic, demonstrating that the

had already adopted one of these platforms.

up to 100 “envelopes”, meaning you can have

platform model might be uniquely positioned

Profits however have been soaring, with

multiple documents sent out for signatures

to survive disruptions. First, it is about “Ride

Zoom reporting USD 186 million in net profit,

in the same envelope. This is a great option

the wave”: companies that saw increases in

mainly driven by high-end corporate clients.

for businesses who need to obtain legal sig-

demand have been riding the wave, accord-

The situation was similar in Romania,

ing to Parker. Explosions in demand “can be

where the usage of Zoom, Microsoft Teams

every bit as disruptive as the demand falling,

and Webex is still at very high levels. Though

MICROSOFT

because you’re trying to scale rapidly,” he

not at the same rate as apps in the busi-

Microsoft is offering six months of free

natures while working remotely.

explained. Companies

ness communication

Microsoft Teams, its communication and

that experienced these

category, the likes of

team collaboration platform, with Microsoft

shocks included Insta-

WhatsApp, Skype, and

365 Business Basic, which you can now also

cart, which went on a

Viber also experienced

get for free for six months if you make an

hiring spree to meet

significant increases in

annual commitment. The license costs USD 5

demand during the

their user base in the

per user/month after the first six months and

first few months of the

first 2-3 months of the

includes web versions of Office apps, such as

pandemic, and online

pandemic. Interest-

Word, PowerPoint, and Excel.

communication tool

ingly, however, some

Zoom, which topped

of these platforms not

GODADDY

weekly download charts

only slowed down their

GoDaddy provides a number of free tools to

for weeks on end.

exponential growth, but

support small businesses’ online marketing

Second, it is “Weather

they even started losing

efforts. Get a free website as well as free ac-

the storm”: Compa-

some of their users

cess to GoDaddy’s marketing tools for email

nies like Uber, Lyft

around late April - early

marketing, Google Business, and Facebook.

or oil companies, whose demand dropped

May, when most countries lifted their strict

If you already have a website, check out Go-

suddenly and who didn’t have the ability to

lockdowns and allowed people to begin mov-

Daddy’s social media design tools with a free

serve other markets, had to hunker down

ing around again.

three-month Over subscription, including

and weather the storm, by quickly going into

Google also decided to set up Google

resource conservation mode, which included

Meet, which is not among the most popular

furloughing employees. Last but not least, it

apps, but Google Classrooms is being used

MAILCHIMP

is about “Rapid pivots”: The third type are

widely. On the social platforms side, TikTok

Mailchimp is also offering a free, custom

companies that carried out a rapid pivot, tak-

saw so much growth that it got US president

website domain for up to five years. In addi-

ing their assets to supply other markets.

Donald Trump to order

tion, the popular email

a shutdown of the app

marketing platform

BUSINESS COMMUNICATION

in his country if the net-

is making its website

Among the first effects of the pandemic was

work remained under

builder platform free

the closing of offices and schools, leading to

the control of Chinese

until May 31, 2020. This

tens of millions of people having to adapt

company ByteDance.

is a great way to set up

access to the design content library.

But there are tons of

an e-commerce store or

its own challenges. As people set up home

big enterprises offering

landing page quickly to

offices, the use of e-Signature apps such as

help to smaller vendors

promote your business.

DocuSign and Adobe Fill & Sign spiked in

and entrepreneurs

the first weeks of COVID. But there was one

through discounts or by

PAYCHEX

kind of app that stood above all, and that is

offering their tools for

This payroll and ben-

videoconferencing. Zoom quickly became

free. Below are some

efits platform is offering

the most popular video communication app,

free tools you can access

three months free for

with a customer growth of nearly 500 percent

to make running your

payroll and unemploy-

in the first month.

business on a budget a

to working from home, which came with

Zoom and rival apps Microsoft Teams

little easier.

and Cisco Webex have all seen a big surge in

ment benefits, as well as two months of free HR support. Paychex is also advertising support and resources

usage since coronavirus lockdown measures

DOCUSIGN

to help small businesses come up with a

were imposed earlier this year. The growth

New customers who sign up for DocuSign’s

strategy to keep employees on and continue

gradually slowed after May 2020, when

Business Pro e-signature product will receive

to pay as many people as they can while the

things started to settle down and most people

a three-month free trial. This offer includes

economy recovers.

www.business-review.eu Business Review | October 2020

28 INTERVIEW

Kent Orrgren (World Class Romania): We want to help Romania become a healthier nation The COVID-19 outbreak forced all gyms and fitness clubs to close down for a few months, hitting the industry hard. Authorities were reluctant to reopen these venues because they thought the risk of infection was too high. Business Review talked to Kent Orrgren, the CEO of World Class Romania, to find out how the industry is dealing with the pandemic crisis.

By Aurel Constantin keep exercising, whether in health & fitness clubs, at home or outdoors. More Romanians adopting an active lifestyle will actually save the government significant costs related to healthcare, as it has been proven that exercise improves the immune system and helps it fight against respiratory infections.

Romania could benefit from a 9 percent GDP boost and a USD 26 billion GDP impact over the next two decades, about half of which would come from a larger and healthier workforce, according to a McKinsey report.

The remainder comes from expanding the capacity of older people, disabled individuals, and informal caregivers to work as well as from productivity gains as the burden of chronic health conditions is reduced. In Romania, the largest amount – USD 11.5 billion – will be generated by a higher participation of the above mentioned categories, while almost USD 8 billion will be the result of fewer health conditions.

How much have restrictions affected World Class in term of revenue? Do you think you can recover the loss from this period by the end of the year?

has completed the gradual reopening of all

I want to start with the thing that matters

World Class is the largest pool operator today,

most: the health of the nation. All our ef-

with 21 indoor pools and 3 outdoor ones in its

How has your activity been affected by the rules imposed upon reopening? How many of your customers have returned to the gym and what is the situation like today?

forts are directed towards this aspect. The

network of Health & Fitness centres.

More than 60 percent of our active members

pandemic has challenged our lifestyles and

40 of its premium health & fitness clubs in Romania and it is ready to reopen its network of indoor pools when authorities allow it.

The entire health & fitness industry has

have already returned to clubs. Others have

now more Romanians need to make a change

been affected by the COVID-19 restrictions,

decided to continue to train online using

towards a more active way of life, and not

and that includes World Class. However, the

our platform. It is important to know that

just to improve their health, but also to live

way we have tackled the coronavirus crisis

all clubs function under strict health and

longer lives. Dr Robert Sallis, co-director of

by providing alternative health & fitness

safety and prevention rules. Social distanc-

the Sports Medicine Fellowship Programme

solutions like online or outdoor training will

ing, sanitising stations, deep cleaning of

in California, said it best: “COVID-19 has just

actually consolidate and grow our commu-

spaces and equipment multiple times a day.

so vividly exposed our unhealthy lifestyles...

nity while making our network stronger. We

We work with authorities to minimise risks

You go through the list of risks for COVID-19,

strongly believe that we can make a differ-

and provide a safe training environment in

including the risk of dying or getting severely

ence and contribute to making Romania

all of our clubs, regardless of their category,

ill: those are the diseases of INACTIVITY.”

a healthier nation. We are committed to

from Bronze to W. We still have thousands of

In terms of going back to normal, World Class

encouraging and motivating Romanians to

members who are eager to restart their swim-

www.business-review.eu Business Review | October May 20162020

COVER TECHNOLOGY STORY 29 14

ming routine in our indoor pools. According

Alzheimer’s, several types of cancer, and

the core of our services and many of the

to the Center for Disease Control and Preven-

some complications of pregnancy; it helps

safety measures that have proven so effective

tion, “there is no evidence that the virus that

you avoid weight gain, obesity, and related

in these challenging times will certainly be

causes COVID-19 can spread through water

chronic health conditions.

maintained.

in pools, hot tubs, spas or water play areas.”

Only a few lifestyle choices have as large

It adds that treating these types of facilities

of an impact on your health as physical activ-

with chemicals including chlorine “should

ity does. People who are active for about 150

inactivate the virus in the water.” COVID-19

minutes a week have a 33 percent lower risk

Has the coronavirus crisis changed your investment plans? Will World Class continue to open new clubs?

started to train using our www.worldclass.

of all-cause mortality than those who are

We will focus on growth, as always. By

ro/online/ platform are health-conscious and

inactive.

consistently following our social mission and

is an airborne, not water-borne illness, meaning it spreads when droplets fly through the air. Chlorinated pools in particular pose very little risk from swimming because viruses are very susceptible to chlorine disinfection.

Swimming has extraordinary benefits for overall health. It also lowers the risk of diseases that are known to increase the severity of COVID-19. Besides being a great form of cardiovascular exercise, swimming for just 30 minutes a week can protect you against heart disease, stroke, and Type 2 diabetes.

What special measures has World Class taken in order to prevent the spread of the virus? Have customers complied with the new rules?

All health and safety and prevention measures are clear and visible from the moment you enter the club. There is specific signage for social distancing and hygiene regulations.

Every safety rule is in place and the process is continuous. Our members comply with the rules as they understand the importance of safety and prevention measures. All those who have already returned to gyms or have

aware of the fact that exercise is more than weight loss. It has a vital role in treating and

strategically opening new clubs in Bucharest and other important Romanian cities, we’ve

conditions, and respiratory infections. That

How long do you think these rules will remain in place? Do you believe a return to normal will be possible this year?

is why we have started the #ExerciseIs-

We are prepared for this “new normality”

into financial stability for the long term. It

Medicine educational campaign, to get more

to be with us for a long time. Safety rules

is a difficult period, and we will of course

Romanians to understand the health benefits

will certainly remain in place long after

be extremely cautious about expanding the

of fitness and convince them to have a more

the pandemic ends. Hand sanitisation will

network in the coming year as we need to

active lifestyle. We want everybody to un-

become a habit and dispensers will certainly

invest more in existing clubs in order to raise

derstand that when they train, they do it for

continue to be a part of the new normality.

the degree of safety for our employees and

their health, to set an example to others, to

When we say “return to normal” we should

clients. World Class invests in Romania and in

have a longer life, because exercise promotes

take into account the fact that the old normal

educating more people to be active.

longevity.

is gone for good. And to stay successful we

By opening more health and fitness cen-

need to adapt and embrace the new. Health

tres every year and by promoting the benefits

improves your immune system; it lowers

has always been our priority. That is why

of a healthy lifestyle, World Class’s mission is

the risk of heart disease, stroke, Type 2

we launched the #BeHealthy campaign a

to inspire more Romanians to be more active

diabetes, high blood pressure, dementia and

couple of years ago. We will keep health at

more often and live a healthy lifestyle.

preventing a lot of chronic diseases, heart

Here are some of the gains: exercise

built a solid network so far, with tens of thousands of yearly memberships which translate

www.business-review.eu Business Review | October 2020

30 PR

Remote working shaping new models among PR agencies A fifth of PR agency chiefs are planning to reduce their firm’s office space in the aftermath of COVID-19, and one in 10 are thinking of giving up their physical office entirely, according to exclusive new research by PRTheyek. Meanwhile, more than half of the UK’s in-house comms chiefs expect to take more work in-house in the aftermath of COVID-19. And while about onethird say their PR agency budgets have been cut, it is likely that more opportunities will emerge for agencies in the coming period.

By Romanita Oprea for colleagues who want to use them, while enforcing clear procedures for a safe work environment. We are evaluating the situation on a monthly basis and planning to start coming to back the office in shifts in the coming period,” said Andreea Irimia, group communications manager at Oxygen.

For Fabrica de PR, even though they faced all sorts of personal and professional difficulties at the beginning of this pandemic – uncertainty about how projects would develop, the changes that came up in the workflow, events that were cancelled or put on hold – they actually managed to make it work quite rapidly. They were also involved in volunteering projects and were happy to offer their expertise to NGOs during these difficult times. “We did something new for the first time in many years, and discovered that we really liked it. We realised that we were lucky Andreea Irimia, Oxygen

W

Raluca Ene, Chapter 4 Romania

to be able to do our jobs in friendly and safe environments, where we could be closer to nature or to our families. We can now work

hat has work been like for

continued working at full capacity for their

from anywhere and do so efficiently, we can

Romanian PR agencies during

clients.

save time because we no longer waste count-

the pandemic? At Chapter 4

“Our procedures and workflow were defi-

less hours in traffic or in long meetings, and

Romania, the switch to working from home

nitely changed by the pandemic, especially

this means more time to reflect and create.

got organised very quickly; in fact, they had

when we moved to working from home. We

It’s a kind of freedom we believe every human

moved everything online a week before the

had to adjust all our internal and external

should experience at least once in a lifetime

government declared a State of Emergency.

procedures, from brainstorming and client

and decide whether it is good for them,” said

And since they had been practicing remote

meetings to presentations and weekly status

Camelia Cavadia and Alina Sin, managing

working for a couple of years already, every-

reports. Fortunately, we had a lot of tools

partners at Fabrica de PR.

thing went smoothly and efficiently. With

available to help us communicate and we

the exception of a hybrid break of a couple

also discovered a lot of new things about our

to make things work. Generally, we follow

of weeks, they are still working from home,

team and about ourselves as professionals.

a normal daily schedule, but should there

and they’ll continue to do so for the next

We are in work from home mode, but we have

be any interference, we let each other know

few months, as they’ve performed well and

a flexible policy by keeping our offices open

and help each other out to make sure the

“Constant communication is the best way

www.business-review.eu Business Review | October May 20162020

COVER STORY PR 31 14

client is always well served. We have regular

representative. Looking at the entire Roma-

4 Romania’s managing director. Speaking

online team meetings, doubled by individual

nian PR industry, Irimia believes that things

about the industry in general, Ene says that

meetings depending on activities and proj-

have definitely changed for all players, as

it had a short period when it slowed down

ects, plus ad-hoc brainstorming sessions to

most clients have recalibrated their market-

and adjusted to the social realities, but once

maintain our creative flow. Instant messaging

ing budgets or changed the focus of these

we and our clients evaluated all the variables

is constant, but we have a mutual agreement

budgets. This was reflected in the workflow

and started working with different scenarios,

to use it responsibly, to keep work time undis-

and in the ways in which departments were

we found ways to not just move forward, but

turbed as much as possible,” explains Raluca

organised. “However, we were glad to see that

also to push for better results. “The fall feels

Ene, managing director at Chapter 4 Romania.

many brands decided to change their messag-

busy and rich in opportunities, and I think

But what about coming back to the office?

ing and approach to fit the new context. It’s

we’ve also been able to adapt business-wise,

Have perceptions and attitudes around work-

a work in progress and the communications

which is great news for our industry,” Ene

ing from home changed forever? Because

market reacts quickly to changes,” com-

concluded.

At Fabrica de PR, the past months have led them to exclude the option of coming back to the office in the near future. With lots of devices and apps available, things can go very smoothly. But if requested, face to face meetings are not excluded, of course. “For the moment, we no longer see the purpose of having an office. It saves time and energy; we can be more focused on results and less on the means in which to achieve them. The feeling that you can do your job anywhere is a very pleasant one, with positive effects for each team member. In addition, it can also be a wise business decision regarding the management of administrative expenses,” said Fabrica de PR representatives.

They also believe that this

even though the communications industry

mented Irimia. Moreover, Raluca Ene points

new work from home (WFH) experience has

has more openness and creativity than oth-

out that control over the team’s activity has

opened many people’s eyes, employers and

ers, some actions and events or meetings still

by far been the biggest change in the way they

employees alike. “Each company was able to

need to happen face to face.

are organising activity. “The perception that

make its own assessment of the advantages

there was a need for compulsory physical

and disadvantages of working from home

and thinks that a mix between working from

control used to be so deeply ingrained into

during this period. For some of them, the

home and coming to the office will continue

our culture that it seemed impossible to make

budgets assigned to monthly rents suddenly

for an indefinite period. “For some of our

this work. But moving everything online has

became unnecessary, a roadblock to other

colleagues, working from home gave them

forced us to do so, and we did it in a very

possible investments, while for others it

the opportunity to be more time efficient or

effective manner, thus reminding the entire

became clear that the loss of physical contact

more proactive in their work, while for others

society that adaptability is in fact the secret

between employees would be bad for the

it clarified the fact that they need to be at the

to our thriving throughout history. We have

company. As we have seen all over the world,

office to be productive and stay connected

understood that human relations go beyond

companies are considering flexible work

to other people. We are all different and I

the physical aspect – which is always impor-

schedules and hybrid work arrangements,

believe we cannot talk about a change in at-

tant, don’t get me wrong, but the energy, the

workspaces are being redesigned to ensure

titude that will last forever, but about a better

motivation, the positive attitude can all go

safe human interaction, and there’s more

ability to adapt to various conditions, which

through any screen and have the power to

room for choice. Adaptation is again a key

will continuously change,” added Oxygen’s

keep us close together,” explained Chapter

word,” Cavadia and Sin added.

Andreea Irimia argues that flexibility is key

www.business-review.eu Business Review | October 2020

32

OPINION Mihnea Radulescu, Vodafone Romania

SME Digitalisation: Charting a course towards resilience and recovery with additional analysis by Deloitte, provide

more accessible and thereby increase adop-

tangible recommendations for future govern-

tion, not every small business still under-

ment policy.

stands the importance of greater digitalisation. Therefore, there is still a significant role

DIGITAL SUPPORTS RESILIENCE AND RECOVERY

that governments can play to help accelerate

Vodafone Group’s survey of 1,200 SMEs has

adoption in order to unlock further economic

shown that those SMEs that have digitalised

and societal benefits.

are more likely to have found new business opportunities during the pandemic. In fact, the

A TAILORED SME DIGITALISATION FRAME-

most digitalised businesses secured opportuni-

WORK

ties at more than double the rate of the least

The research clearly shows that the govern-

digitalised.

ment in Romania should adopt a clear SME

And it is highly likely that these digital shifts

digitalisation policy framework that:

will drive long term changes. Just as more of us

• addresses availability gaps and take- up

expect to work more flexibly in the future, 44%

of high-speed connectivity. In order to better

of businesses expect the measures they have

facilitate digitalisation of SMEs, it should

It is widely accepted that SMEs are the “back-

implemented in recent months to be perma-

aim to increase overall and rural access and

bone” of the Romanian economy. Small busi-

nent as indicated in another Vodafone Group’s

potentially pair this with short-term voucher

nesses account for 52.7% of total value added

research, Future Ready Report.

schemes to support high-speed connectiv-

and 65.8% of employment in Romania making them integral to innovation and job creation.

What is more open to debate is how gov-

However, too many SMEs have found significant barriers when it comes to the adoption of digital services. They are still much less likely

ity take-up and reduce barriers to further digitalisation; • offers flexible vouchers, grants, or tax

ernments can best support SMEs through this

than larger businesses to take advantage of new

credits for digital investment, so that SMEs

unprecedented period of economic challenge

technologies, even though they connect to the

have the capacity find solutions based on

– and the role digital tools and solutions can

internet at the same rate. Despite the benefits of

their individual needs; and

play in driving greater business stability and

digitalization, the Digital Economy and Society

resilience. At Vodafone, we provide a compre-

Index (DESI) 2020 data found SMEs lag behind

support capability such as an accessible, one-

hensive range of digital services to small busi-

larger businesses in adoption of nearly all tech-

stop shop, particularly providing targeted

nesses in Romania, and so we are well placed

nologies. The largest gaps are in digitalization of

guidance and training for key sectors.

to help identify the solutions that will enable

the internal organizational process, where the

them to achieve the digital transformation

greatest efficiency gains are to be made.

that will deliver long-term growth.

Six months after the first wave of EU lockdowns, now is an opportune time to assess

There are a number of reasons why SMEs have struggled to digitise: • 73% said they had had trouble with the

• delivers additional support measures to

These recommendations will not only help Romania improve its overall DESI score, currently ranking 26th across EU Member States, but will also ensure that SMEs are able to digitalise fully.

As we seek to emerge from the crisis, we

how businesses have been impacted – and

set-up and implementation of new technolo-

governments have reacted – by the Covid-19

gies, integration with existing technologies and

have an opportunity to shape the economic

crisis to date. Vodafone Group commissioned

business processes, migration from previous sys-

recovery in a way that delivers sustainable,

a new study involving 1,200 SMEs from several

tems and decommissioning old technologies; ,

long-lasting, impactful change. The EU recon-

European countries, conducted from the start of the pandemic up until July 2020 with the aim to better understand the main challenges faced by SMEs and how digital has supported

• 51% said that they had struggled to identify

struction plan presents a once in a lifetime

the right technology to use, or the right supplier

opportunity to contribute to this transfor-

• 38% of SMEs said that they needed support

mation. Investing in small businesses, and

with training.

SME resilience during the pandemic crisis. The

However, while there is much technology

learnings highlighted by this study, combined

firms can do to make their products and services

helping them achieve their full, digital potential, will ensure a stronger, future-proofed Romania.

www.business-review.eu Business Review | October 2020

www.business-review.eu

34 GOING Business ReviewOUT | May 2016

COVER STORY 14

Entrepreneurs in Bucharest defy pandemic to open new restaurants As one of the industries that were most affected by the pandemic, hospitality is slowly recovering after two months of lockdown and a series of safety measures that left them with significantly fewer customers and reduced opening hours.

Nevertheless, new places have recently opened downtown, highlighting new trends in urban cuisine.

By Oana Vasiliu Indoors are opened for public since September 1

A GLANCE AT THE NUMBERS

discovering new places to eat, offering a series

partnerships with eight online food delivery

HORA, the largest association of hotels and

of discounts from 15 to 50 percent at more

platforms. In the second quarter, 47 percent

restaurants in Romania, recently pointed out

than 100 restaurants in Bucharest and Brasov,

of its sales in Romania came through delivery,

that the crisis generated by the COVID-19

with the owners’ support. So far, both clients

compared to 7 percent in the same period of

pandemic and the restrictions enforced by

and restaurants have been happy with the

last year.

the authorities led to a 70 percent drop in

festival,” said Cosmin Magureanu, CEO of the

AmRest opened three new Burger King

turnover for local restaurants and bars in the

ialoc app, which allows users to reserve tables

restaurants in a single month, with the new-

first six months of the year. Moreover, 40

at restaurants.

est located at Sudului Square, and with it, the company achieves the final objective of its

percent of operators have suspended their activity altogether. This situation impacts

strategic plan of opening six new restaurants

400,000 employees in the sector. But on

HIGH HOPES FROM INTERNATIONAL CHAINS

September 1, more of the measures were

Recently, Romanian restaurant management

lifted, with restaurants now allowed to serve

company Sphera Franchise Group (SFG), the

their clients indoors while following social

owner of the KFC, Pizza Hut, and Taco Bell

ENTREPRENEURSHIP IN THE HOSPITALITY INDUSTRY

distancing rules.

franchises in Romania and the KFC franchise

Despite the pandemic, some entrepreneurs

in Northern Italy, has been seeing signs of

have decided to go ahead with planned

growing since June 1, when we were allowed

recovery after it recorded consolidated sales

openings and set up their “new in town”

to dine in outdoor spaces, but we have to

of RON 304.6 million (EUR 63.5 million) in the

tag. One of the coolest and trendiest places

consider the fact that for most restaurants

first half of this year, down 31 percent com-

in Bucharest, Bar A1 (1 Piata Amzei Street),

in the capital city, summer is not usually a

pared to the same period of 2019. Sphera thus

recently reopened in Amzei Square, in the

period that boosts sales, as many people are

recorded losses of RON 22 million (EUR 4.5

same location where it started out a few years

away on holiday. However, the numbers on

million) in the first half of the year, compared

back. “I decided to reopen A1 in October 2019,

our app show that more and more people are

to a net profit of RON 18 million in the same

and it was ready by March. (…) The most

using it to book a table. To encourage this

period of 2019. Still, the company has focused

difficult thing for me is the uncertainty. It is a

behaviour, we created a festival dedicated to

on developing news sales channels and closed

general uncertainty, which affects absolutely

“The number of people going out has been

on the Romanian market in the first year.

www.business-review.eu Business Review | October 2020

GOING OUT 35

Breakfast or brunch? Ou Bucharest should be tasted if you are egg-friendly

BAR A1 is the place to be downtown everything until the end of May, when Paul and I decided that we could not wait any longer. Up to that moment we had already lost money, as we paid rent and

Red Angus Steakhouse, said: “We decided

other bills even if we had no activity whatso-

to expand our business in early 2020, before

ever. We somehow knew that we should not

the WHO had declared the pandemic. We

give up on a project with such great potential

saw the potential on the market and planned

in a new community. (…) I think was the most

to invest in casual concepts, targeting wider

difficult thing: to do what we love even in

audience segments who are young, modern,

these troubled times while protecting our-

dynamic, and appreciative of quality. When

selves and our community. We wanted to be

the lockdown came, we were already working

perceived as friends who made an effort for

on the new ideas, but we hadn’t yet spent any

everyone, not just our field, and it doesn’t

the good of the neighbourhood and I hope we

money. Still, it never crossed our minds to

allow us to hire more people, to work on a

were able to accomplish that.”

give up. While I am realistic about the crisis

New opening in Calea Mosilor zone: RUA Espresso Bar

we are experiencing now and the repercus-

more complex menu, to gradually grow as

Andrei Isac, owner of Ou Bucuresti (1 Di-

we would like, to make investments. I am

anei Street), opened his business in mid-Au-

sions of the COVID-19 measures on our

facing an unpredictable scenario. Selecting

gust, with a concept built around four dishes

industry, I believe that a good concept which

the people you want to work with is also very

that all reinterpret the egg. “The business

is well-adapted to the current landscape will

difficult, and I am also emotionally involved,”

had been planned for a year. The location was

deliver medium- and long-term results.

said Anda Mancas, co-owner of Bar A1, for

ready to be opened on March 14, but I decided

Business Review.

not to. During the lockdown period we had

ment in stages and, as a consequence, some

time to perfect our recipes and think of solu-

projects have been delayed. We started with

rest, the city with over 300 speciality coffee

tions for the opening day, so we eventually

RUA Espresso Bar in early September and will

shops. Each and every one of them has some-

did it on August 12. In this period, I believe

continue with a casual chicken rotisserie in

thing specific, so most of them are worth be-

that uncertainty has become far too present

October. The new concept will be focused on

ing discovered. Radu Solo, co-owner of Boiler

in our lives. But there are also beautiful things

affordable, quality products which are suit-

Milk and Coffee (1 Ing. Slaniceanu Nicolae

like rediscovering our country and creating a

able for the whole family, and the focus will

Street), said: “The initial plan was to open in

community around small, high-quality busi-

be on takeaway and delivery, thus responding

March just before the lockdown, but we were

nesses,” he noted. Ionut Ivan of RUA Espresso

to today’s consumption patterns and needs,”

forced to cancel our plans. We postponed

Bar (248 Traian Street), who also co-owns

the entrepreneur explained.

Specialty coffee is still on a roll in Bucha-

(…) We approached new business develop-

www.business-review.eu Business Review | October 2020

www.business-review.eu

36 TOURISM Business Review | May 2016

COVER STORY 14

Something old, something new, something bubbly: The potential of wine tourism in Romania It’s still harvest time in some areas of Romania, for one of the country’s best kept souvenirs: grapes. But is there more to Romanian vineyards than enjoying some grape-picking and wine tasting?

By Oana Vasiliu includes a presentation of the winemaking process, the tasting of five to seven types of wine, and, if the weather allows it, a walk through the vineyards. “Wine tourism can happen at any time of year and benefits wineries in the sense that they can sell some of their wine to visitors, and small wineries may end up selling 10-15 percent of production right on site,” adds Alina.

“Tasting rooms have started to appear lately, as well as more events and a greater interest in the wine business, and that’s good, but the demand is not large enough for wineries to have dedicated staff for wine tourism.

During the summer, tourists also visit on weekdays, but during the rest of the year, It’s the season to enjoy nature at its best and get bubbly all the way

wine tourism remains more of a weekend thing,” Alina Iancu notes.

This year, wineries faced a new challenge,

ONCE UPON A TIME

however, does not leave Romania. In 2018,

besides the drought. “With little to no activ-

Romania has been cultivating grapes for a

the country exported just 3.5 percent of its

ity in the hospitality sector for more than

long period of time, but its history as a wine

total production. “To put this in context, Ro-

three months, wineries have large stocks of

producer is rather fractured. While growing

mania makes more wine than New Zealand,

wines and now, in the middle of the harvest,

grapes dates as far back as 5,700 BC, Roma-

Greece and Hungary, but exports less than

they need to make space for this year’s wine

nia’s modern wine industry only developed

Denmark, Austria, Slovakia, and Bulgaria,”

harvest, so they have to get rid of the stock

once the Communist period ended, meaning

explains Phoebe French from “The Drinks

somehow,” Iancu explains.

it’s barely 30 years old. The once-nationalised

Business”.

wine industry was then privatised and

THE VINEYARD’S SIDE OF STORY

received considerable investment from over-

THE WINE TOURISM BUSINESS

Jardine Hills, located 100 kilometres from Bu-

seas, mainly from Italian, Austrian, German,

One of the biggest promoters of wine tour-

charest, had the best summer on record. “We

French, and British companies, which helped

ism in Romania is Alina Iancu from Crame

were basically fully booked every weekend

build new facilities and replanted vines to

Romania and Revino, who manages a website

after May 15, when the COVID-19 restrictions

increase both the quality and quantity of the

where people can find information about

were eased, as well as on most weekdays. Our

wine.

vineyards, their availability for accommoda-

cottages provide safe and clean accommoda-

The magazine “The Drinks Business”

tion, and other facilities they offer. Last year,

tion near Bucharest for friends and families to

writes that according to OIV data from 2019,

around 70 wineries in seven wine areas of

be able to socially distance while still having a

Romania is Europe’s sixth and the world’s

Romania were opened to visitors. This year,

nice time, so they have become very popu-

13th largest wine producer, yielding 4.9 mil-

about 20 wineries are offering accommoda-

lar. We are currently fully booked for every

lion hectolitres last year. Most of this wine,

tion in guesthouses nearby. A visit to a winery

weekend through to the end of October,” the

www.business-review.eu Business Review | October 2020

TOURISM 37

Chill vibes at Jardine Hills owners tell Business Review. Accommoda-

Road to Crama Liliac

For Avincis, wine tourism started in 2011,

tion starts from EUR 150 and they have eight

when they opened up the manor, the Avincis

rooms available, split between three cottages

winery, 43 hectares of vineyards, several

which are rented entirely.

hectares of forestland, and landscaping sights. This summer was particularly busy for them too, as tourists opted for local destinations. At Vila Dobrusa, the accommodation facility, tourists can choose from 9 double rooms and 3 apartments and also enjoy good meals, wine tasting, a tour of the winery and walks through the vineyard. A package for two people including one night of accommo-

Vila Dobrusa is surrounded by their wineyards

dation, meals, and tasting 5 wines starts from RON 710.

- Dealu Mare - are produced. “The Dealu

The Liliac Winery was founded in 2010

Mare initiative is an exception, and it was the

and had two landmark buildings in the Batos

result of the associates understanding that in

village. One was the winery, located inside

order to protect the name of the region on an

the village, where the magic of transforming

increasingly competitive market, they had to

grapes into wine takes place, and the other is

upgrade standards and communicate a strong

Liliac Lodge, the tasting cabin, located in the

message to the market together. It all started

middle of the vineyard, above Batos, where

with a small group of people - the owners and

you can be enchanted by the vines stretch-

managers of Davino, SERVE, Budureasca, To-

ing over the hills, the fabulous view, and the

hani, Aurelia Visinescu, and Viile Metamorfo-

tranquillity of the place. This Lodge has only

sis, the oldest wineries in the area and among

one room available, with a price starting from

the most reputable – and others soon joined,”

RON 670, all experiences included. Wine

says Cezar Ioan, one of the promoters of the

tastings have been taking place here since the

Association. “I strongly believe that people

launch of the first Liliac wines in 2012, and

visiting wineries and vine plantations to see

they’ve been offering accommodation to visi-

where wine comes from and how it’s made

tors since 2018.

and meet the people who make it is the best way to promote wines and wine culture.

BABY STEPS: DEALU MARE ASSOCIATION PROMOTES BOTH VINEYARDS AND WINEMAKERS

It goes well beyond simple tastings, as

The Dealu Mare Association was the first

and consumers – not to mention the fact

Romanian collective initiative who managed

that this is the best way to educate the people

to enact updates to the legislation and condi-

working in hospitality about wine,” Cezar

tions under which the wines of one region

Ioan argues.

these types of actions establish strong and meaningful connections between producers

www.business-review.eu Business Review | October 2020

www.business-review.eu

38 CITY Business Review | May 2016

COVER STORY 14

Cultural calendar

By Oana Vasiliu will go on stage. On blues&more day, Mike Godoroja, Marius Mihalache, Stones Free, Hot Leeks, and Ceata Blue will take over. Tickets start from RON 75 and go up to RON 150 and they are available through the iabilet. ro platform.

Beta 2020, Timisoara Architecture Biennial Until October 25, Timisoara

Museum of Broken Relationships Until October 17, Fundatia9

dedicated to prominent interna-

Only 500 people can attend this

tional artists who shaped the way

music festival, where Deliric X

art is made, shown, and under-

Silent Strike, CTC, Muse Quartet,

stood today. A selection of 19

Dan Basu, Suie Paparude, Nane,

Beta 2020 highlights the theme

paintings and a series of videos

Macanache, El Nino, Argatu’ &

of responsibility for the pres-

documenting the historical per-

Mos Martin, Bad and Boujee,

ent and future environment,

formance of legendary Austrian

and Dj Kuky will perform live for

whether built or still yet unbuilt,

artist Hermann Nitsch will be on

music lovers. Tickets start from

in an attempt to become a plat-

display at MARe. Nitsch (1938) is

RON 125 and are available on

form that articulates a position

founder and major figure of the

iabilet.ro.

on the ever-increasing pressures

neo-avant-garde group Wiener Aktionismus, which turned artis-

(environmental, social, cultural,

Hope Festival October 16-17, Arenele Romane

economic, etc.) generated by

Organisers of Hope Festival have

found transversally in the events

planned two days of live music,

and in the way this edition was

one dedicated to rock and the

organised, culminating with the

The Museum of Recent Art in

other to blues&more. On the first

“Enough IS Enough” exhibition,

Bucharest (MARe) continues

day, VH2, Proconsul, Spitalul de

curated by Anca Cioarec, Brin-

its programme of solo shows

Urgenta, and Tavi Colen Band

dusa Tudor and Ilka Ruby.

tic practice in the post-war period into an extreme experience. They

the construction sector. The theme of responsibility can be

performed painful acts in thrillThe Museum of Broken Relation-

ing sceneries, fusing together

ships exhibition, which features

religiously-derived rituals, politi-

objects from failed love affairs,

cal targets, artistic provocation,

will stay up in Bucharest until Oc-

and heavily physical and social

tober 17. The project is an inter-

participation, which rapidly be-

national initiative of exploration

came influential worldwide.

and creative expression, with permanent exhibition spaces in Zagreb and Los Angeles, but it

Vest Fest October 9-10, Timisoara

also travels around the world.

Entry is free of charge.

Hermann Nitsch.

Ritualuri/Rituals Until December 6, MARe/Museum of Recent Art