Diplomacy and Commerce No.7

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July-August 2018 | ISSUE No. 07-08 | FREE COPY

9772466380002

CLOSER THAN EVER

H.E. D. EDUARDO AZNAR CAMPOS

Spanish Ambassador to Croatia

COZY LUXURY OF ‘STORIES HOTELS’ WAITING TO BE DISCOVERED

04 UNITED STATES JUL

INDEPENDENCE DAY

CROATIA IS A COUNTRY OF DIVERSE TOURISM GARI CAPPELLI

Croatian Minister of Tourism

ŽELIMIR KRAMARIĆ

Director of Tourism Department at Croatian Chamber of Economy

YOUTH IN THE SERVICE OF BETTER FUTURE

BEST INTERESTS OF CRAFTSMEN ARE PRIORITY DRAGUTIN RANOGAJEC

President of Croatian Chamber of Trades and Crafts (HOK)

Montenegro

France

FOCUS ON

TANJA NINIĆ

President of the Junior Chamber International (JCI), Zagreb

H.E. BORO VUČINIĆ Ambassador of Montenegro to Croatia

H.E. CORINNE MEUNIER

French Ambassador to Croatia

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ED ITO RI AL

CO N T E N T S

Hit the North!

Dear readers, Lately we have witnessed two major diplomatic breakthroughs that made us a bit more optimistic about the future on this planet: the first was the meeting between the two “archenemies”, Donald Trump and Kim Jong Un, and the subsequent détente, denuclearisation of North Korea and many praises and criticisms from all sides.

“They deserve a Nobel for peace” said the Trump's fans, “Trump is naive and it is a victory for Korea”, said the hawks, “Trump will trick you and step back like in the case of Iran”, said the anti-Trump skeptics. But it was a compromise nevertheless: refuting nukes in exchange for safety. At the same time, the southermost Yugoslav former republic agreed to be renamed North Macedonia, making nationalist on both sides furious: some Greeks refuse even to hear the name “Macedonia” outside Grek identity, opting for something African-sounding like “Central Balkan Republic” instead. The Macedonians rejecting the name hate the prefix although it is quite obvious that what constitutes Republic of Macedonia now is approximately 1/3 of geographical region of Macedonia and the prefix is needed. Of course, dissatisfied people are all around. But it is an essence of compromise, as we pointed out in the analytical article inside of this issue: in real, good compromise, there should always be both sided partially happy and partially angry. If one side is perfectly happy with the deal, it is not a compromise and it will lead to a new war and new tensions and that's definitely not a solution.

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POLAND’S PRESIDENT WANTS A REFERENDUM ON THE EU Flerting with Polexit

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CROATIA IS A COUNTRY OF DIVERSE TOURISM GARI CAPPELLI

Croatian Minister of Tourism

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BEST INTERESTS OF CRAFTSMEN ARE PRIORITY DRAGUTIN RANOGAJEC

ROBERT ČOBAN

Director

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COZY LUXURY OF ‘STORIES HOTELS’ WAITING TO BE DISCOVERED ŽELIMIR KRAMARIĆ

Director of Tourism Department at Croatian Chamber of Economy

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DEMOCRATIC TOOL OR POPULIST DEMAGOGY JAGODA POROPAT DARRER

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TANJA NINIĆ

BOBAN SPASOJEVIĆ Executive editor

PERSONAL BRANDING AS A MARKET BRAND

President of Croatian Chamber of Trades and Crafts (HOK)

YOUTH IN THE SERVICE OF BETTER FUTURE www.diplomacyandcommerce.hr

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President of the Junior Chamber International (JCI), Zagreb

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CLOSER THAN EVER H.E. D. EDUARDO AZNAR CAMPOS Spanish Ambassador to Croatia

Business Communications Professional

HOTEL FRANCHISES – OPPORTUNITY FOR CROATIAN TOURISM PETAR PETRIĆ Licentiate in Law

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BETWEEN BEING EXOTIC AND CLOSE MIRJANA POLIĆ-BOBIĆ PhD

sven@diplomacyandcommerce.hr

Predstavnik za RH

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ROBERT ČOBAN Director

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ISSN 2466-3808 = Diplomacy & Commerce COBISS.SR-ID 303269895

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F L IRT IN G WIT H P O L E X IT ?

Poland’s President Wants a Referendum on the EU Most Poles are keen to stay

TWO years ago Poland looked on in disbelief as the British voted for Brexit. Now the country may face its own vote. Andrzej Duda, the president, wants to tackle the question of Poland’s relationship with the EU in a broader referendum on constitutional reform this autumn, on the centenary of Polish independence after the first world war. With relations between the ruling Law and Justice (PiS) party and Brussels fraught, and Brexit looming, the proposal has raised eyebrows. If the referendum gets the Senate’s go-ahead, Europe will be watching.

Mr Duda, a former PiS member, has long argued that Poland’s 1997 constitution needs updating. On June 12th he proposed 15 questions spanning a hotch-potch of subjects, from social policy to food security, adding a reference to “Poland’s and Europe’s over-thousand-year Christian heritage” to the preamble. Two of the questions focus on Poland’s relationship with the EU. The first asks whether Poland’s EU membership should be constitutionally guaranteed.

The other asks whether the constitution should enshrine its own primacy over international and European law.

The timing is awkward. The Polish govern-

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ment is locked in a protracted dispute with the European Commission, which has warned that its judicial reforms undermine the rule of law.

Twenty-seven out of 72 Supreme Court judges will be forced to retire at the start of July. Time is running out: Warsaw has been given until June 26th to assuage Brussels’ concerns. If not, Warsaw might in theory have its voting rights

LIKE VIKTOR ORBAN, THE HUNGARIAN PRIME MINISTER, PIS OPPOSES WHAT HE RECENTLY CALLED “DELUSIONAL NIGHTMARES OF A UNITED STATES OF EUROPE” in the EU suspended, though that remains unlikely. More realistically, the European Commission wants to establish a mechanism that could cut EU funds, of which Poland is the biggest beneficiary, for countries where the rule of law is at risk.

Neither Mr Duda nor PiS is calling for a “Polexit”. But since PiS came to power in 2015 Eurosceptic rhetoric has surged. Like Viktor Orban, the Hungarian prime minister, PiS opposes

what he recently called “delusional nightmares of a United States of Europe”. “Sovereignty” is the buzz word in Warsaw. In a speech last month, Mr Duda went so far as to liken EU membership to the 1795 partition of Poland, which wiped the country off the map for 123 years.

Poles remain broadly pro-European. Some 70% of them think that EU membership is good for the country, above the EU average of 60%, according to the latest Eurobarometer survey.

Few want Poland to leave the EU (11%, compared to 83% for staying in). Meanwhile, enthusiasm for the referendum remains low. Even PiS has kept its distance, fearing a poor turnout.

Still, Mr Duda’s questions have caused a stir. Among liberals, they have stoked fears that PiS is leading the country towards Polexit.

Meanwhile, on June 16th, the (tiny) National Movement announced efforts to lead Poland out of the EU. Mr Duda argues that enshrining Poland’s EU membership in the constitution will “strengthen” its presence in the bloc. Yet, as Britain’s referendum shows, he is playing with fire.

From The Economist, published under licence.

The original article, in English, can be found on www.economist.com

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Croatia is a Country of Diverse Tourism Croatian tourism has the potential to achieve even greater results and I believe we will be year-round successful. The most important moment is the change in attitudes and consumption habits of our visitors, who, besides the sea and the sun, enjoy gastronomic, health, nautical, wellness and cycling tourism GARI CAPPELLI Croatian Minister of Tourism

"Our goal is everybody to be satisfied - tourists, investors and local residents," says Gari Capelli, Croatia's Minister of Tourism who, in an interview for D & C, talks about the Ministry and the government's ambitious plans to make tourism one of the developmental branches that are the driving force behind many other economic segments.

Are you satisfied with the tourist season so far?

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— We are extremely pleased with the fact that, in the first few months of this tourist year, we have recorded a double-digit rise in guest arrivals, and that we have surpassed the world and European average. We especially welcome the

sea" offer. There has been a shift in the attitude and spending of our visitors, and this reversal has been achieved primarily because of the stronger development of selective forms of tourism such as gastronomic, health, nautical, wellness,

THE FINANCIAL TIMES HAS RANKED CROATIA AMONG THE TOP TEN COUNTRIES IN THE WORLD WITH THE BEST INVESTMENT POTENTIAL IN TOURISM fact that such growth is achieved in the off-season, which is one of our main goals. The reasons for such good results lie, first and foremost, in the quality of our offer, which now includes much more than the traditional "sun and

cycling tourism and many others, which positively contribute to accommodation occupation figures throughout the tourist year, in the pre- and post-season. This tourist year has been bolstered thanks to new, high-quality investments,

excellent marketing positioning in emitting markets, and an increasing number and frequency of flights, as well as owing to extension of the flight season. I believe that we are at the threshold of yet another record-breaking, historic tourist year that will make Croatia even better positioned on the map of the world's tourist destinations.

How much does Croatia have to invest annually to make its offer even more competitive? Who are the key investors in tourism and how does the state support them?

— Croatia is already an extremely interesting to investors, but we are working every day to create an even better image and attract more investors. According to the prestigious financial daily, the Finan-

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Photo: Robert Anić

I NTERVIEW

You said you wanted to see young and creative people involved in tourism promotion.

What are your expectations from such staffing changes?

— Over 150,000 people work in Croatian tourism today, and the needs are growing day-on-day. The key to the success of our tourism

How popular is Croatia as a chosen destination of top, elite tourists?

Photo: Boris Kačan

cial Times, which ranked Croatia among the top ten countries in the world with the best investment potential in tourism, Croatia is recognized worldwide as a very attractive destination for filmmaking tourism and as one of the countries with the greatest advances made in improving tourism infrastructure, accommodation, tourism development initiatives and hotel investment and investments in hotels and the cruising segment of nautical tourism. The great interest shown by investors in tourism is validated by positive trends in the value of the investments made in recent years. This year, we have almost 1 billion euro worth of investments in the pipeline, up 40 percent relative to 2016.

In order to boost this amount even more, my team, in the ministry, and I will continue to talk with potential investors and help them to tackle the challenges they may face while making it easier for them to enter the Croatian market.

I recently had a chance to meet with the representatives of the Four Seasons hotel group. I attended the signing of a contract between the investor and the Marriot hotel chain in Split, and during the summer, I will meet with the representatives of Corinthie. The arrival of the world-famous hotel brands in Croatia will also stimulate domestic companies to invest in quality.

I WOULD REALLY LOVE TO SEE FOR THE SUSTAINABLE, YEAR-AROUND TOURISM TO BE TRULY IMPLEMENTED IN ALL TOURIST DESTINATIONS, WITH A STRONG EMPHASIS ON CONTINENTAL TOURISM WHICH HAS AN EXCEPTIONAL POTENTIAL lies precisely in each of these people, and in the future generations of young people; in their creativity, innovation and flexibility. We have to provide them with resources and opportunities for growth and development. My wish is to encourage young people in tourism to innovate and nurture creativity from the very beginning of their education. In the Ministry of Tourism, we are continuously working on the popularization of tourism and hospitality occupations, and we are implementing a programme for secondary vocational schools with the aim of promoting, strengthening competences and raising the quality of human resources. In the last eight years, we have allocated almost HRK 3.2

million for tourism projects and vocational schools initiatives.

We are also actively working on the promotion of education through the establishment of a better quality, work-based learning system and by connecting with potential employers, professional associations, institutions and other partners. This summer, we have also started implemented the main stage of establishing competence centers in tourism and hospitality.

This is a new and modern approach to education whereby, through the formation of competence centres across Croatia, we are putting emphasis on improving students' entrepreneurship and innovation skills and on promotion activities in the tourism and catering sector.

— I would say that Croatia is more recognizable as a country of diverse tourism, meaning that we have several places that offer luxury tourist content and accommodation. By the same token, we are also adapting our offer to the habits, needs and desires of all our visitors, in line with their financial capacities. All our tourist destinations have one unique feature, and that is that Croatian tourism is not focusing on volume but quality. In this sense, we are making progress every year. For instance, high-end hotel capacities are constantly increasing, and the Robinson Crusoe-style tourism is also being developed, which attracts those tourists who want adventure and accommodation in authentic huts, lodges, tents and the like.

What are you going to do to compel foreign investors to restore neglected hotels they acquired?

— The majority of the neglected hotels are in very attractive locations and we are working towards their valorization and revitalization because they are of great importance to our country. A small part of these hotels, as well as the old army barracks, have new owners who are working at a certain pace on restoring and making these facilities functional. We, in the Ministry of Tourism, are providing all the support and assistance they need.

The whole point is to preserve and increase the value of their assets by defining a new purpose and putting them in the function of economic and general social development, first locally, then wider, as soon as possible. I believe that,

THE MOST IMPORTANT MOTIVATIONAL FACTORS Tourism is associated with a number of other economic branches such as agriculture and transport. To what extent has Croatia managed to achieve this synergy? Did the „Let's Buy Croatian“ campaign yield desired results?

— As a tourism minister and a person who has been living and breathing tourism for nearly forty years, I have been very aware of the importance of Croatian products for Croatian tourism.

Horizontal tourism networking with wood processing, construction, agriculture, food, service and many other industries incorporates the top domestic products into tourism, thus offering tourists an indigenous and unique experience of our country. Today, we already have a number of hotels in Croatia, where as much as 90 percent of the products they use come from domestic production and family farms. Both our Ministry and the Croatian Chamber of Economy, which imple-

mentes the "Let's Buy Croatian" campaign, have a commong goal to make this number even greater and ultimately, for Croatian products to prevail in interior and exterior decoration of tourist facilities and food preparation.

Over 640 hotels in Croatia have continued demand and service needs throughout the year, and we want to connect partners interested in cooperation, and provide them with nearly 18 million opportunities, which is how many visitors we have in Croatia annually, to present Croatian products to people from around the world who have been staying in our country. I think that great advances have been made in this respect, which is validated in the latest research which shows that gastronomy has become one of the most important motivational factors for visiting Croatia, as well as the fact that many Croatian restaurants are included in the globally renowned gourmet guides.

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I BELIEVE THAT WE ARE AT THE THRESHOLD OF YET ANOTHER RECORD-BREAKING, HISTORIC TOURIST YEAR THAT WILL MAKE CROATIA EVEN BETTER POSITIONED ON THE MAP OF THE WORLD'S TOURIST DESTINATIONS Knowledge Network. Can these successes be transposed at a national level?

— I would really love to see for the sustainable, year-around tourism to be truly implemented in all tourist destinations, with a strong emphasis on continental tourism which has an exceptional potential. We have to think about the future today, and that was our guiding thought on Mali Lošinj too.

In a desire to attract as many visitors as possible and position the island as a year-round tourist location, the main guiding principle was to achieve a synergy between the locals and the visitors, i.e. to make sure that the domestic pop-

population of Lošinj who contribute with their work, responsibility and creativity to the higher quality of service, education and the shared vision of the archipelago.

Ultimately, every destination needs to determine what kind of tourism it wants to develop, and we, in the Ministry, will support their quality development and work to create the most competitive conditions for tourism business.

What economic measures do you intend to apply to further stimulate the development of tourism?

— Tourism has the potential to stimulate the overall economic system of any country, and it has often

been the overwhelming advantage of other countries, particularly in the time of economic crisis. Tourism has major importance for the Croatian economy, and is perhaps even more important for the entire Europe and the European Union as it employs 24 million EU residents and takes up 10 percent of the GDP. Nevertheless, I think that tourism does not occupy an adequate position in the institutions of the European Union and is one of the few branches which has no financial framework to stimulate its further development through financial support, or to encourage or start a debate about employment, youth and the ever-present workforce problem. Therefore, with the support of the Government of the Republic of Croatia, we have launched an initiative for the establishment of a unique European Tourism Fund and the Working Group, so that tourism and Europe, as the strongest tourist region in the world, will get their deserved place and representation. This initiative has a great importance to Croatia as one of the leading tourist destinations in Europe, and its implementation will create numerous financial and development opportunities for the Croatian tourist system. The European Parliament gave its strong support by providing recommendations to the European Commission, and calling for the establishment of a financial support line for tourism. The fact that thirteen EU Member States have been involved in bilateral meetings; Italy, Portugal, Spain, Cyprus, Romania, Slovakia, Lithuania, Latvia, Malta, Poland, Greece, Bulgaria and Slovenia as well as the World Tourism Organization, was also welcomed.

In Croatia, our government has recognized tourism as one of its main economic drivers, and this is why we intend to build the highest quality, competitive tourist system in the upcoming period.

Photo: Ante Verzotti

— Just like other countries in the region, Croatia too faces the lack of workforce in tourism and hospitality industry in summer months.

The problem of labour shortages is not only related to tourism but is a global problem common both the public and private sector. This year, according to certain estimates about Croatian tourism, there is a need for additional 10,000 to 15,000 workers. Apart from activating local population to work in tourism, through re-qualification and better connectivity with potential employers through our, now traditional, Tourism and Catering Day, organized by the Ministry of Tourism with partners throughout Croatia, this year, the Government of the Republic of Croatia has activated quotas for engagement of foreign workers.

The interest and needs are very high, so with the forecasted 4.660, the number of foreign tourism workers, as stipulated in the agreement we signed with Bosnia and Herzegovina and Ukraine, will be increased to 8,660. It is in the best interest of both the Ministry of Tourism as well as the Government of the Republic of Croatia to provide enough workforce in high season, but it is even more important to have this throughout the year. I would also like to highlight the tax relief for all business owners who provide their seasonal workers with accommodation and a warm meal as the most significant measure devised by the Government of Croatia early this year. This meas-

During your work on Mali Lošinj, you have turned this archipelago into a year-round destination and its tourist board became an associate member of the World Tourism Organization (UNWTO) and a full member of the UNWTO

ulation does not suffer because of tourism. Taking into account over 130 destination and overall quality management indicators, our aim was to satisfy the guests and the popuolation of the Lošinj archipelago and to uphold the quality of the service and infrastructure at this destination. The crucial thing was continuously cooperating with the

Photo: Alexandar Gospić

How are you coping with the lack of workforce this year, and which kind of policy in this segment would provide the permanent solution to this problem?

ure will save 300 million kuna in the tourism sector.

Photo: Alexandar Gospić

with the successful collaboration between the public and private sector, we will find the best solutions for the quality, efficient realization of the planned investments.

Photos source: Croatian National Tourist Board

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PO LITIC S

Text: ŽELIMIR MARAŠ

Ups and Downs of European Policy Success after many failures nistria. Moldova refrained from the weapons. The plan established the discontinuous Autonomous Unit of Gagauz Yeri, for the Turkic speaking Orthodox microanation within Moldova.

1995 – Z-4 - FAILURE

The recent success with the negotiation over the name of the southernmost former Yugoslav republic (which will be called North Macedonia), brought back memories of great successes and tragic failures during the last 30 years. Here are a few of them!

1990 – THE UNIFICATION OF GERMANY – SUCCESS

After the decades of having East and West Germany, bitter rivalries, the Berlin Wall, the things melted down rapidly with Gorbachev's perestroika towards the end of the 1990s. The Wall fell down, and the former GDR just disappeared, assimilating with its Western neighbour. So, the backlash was about this not being a real unification, but rather an annexation of the East, with NATO's eastward movement being a big problem, and something that Gorbachev completely forgot to mention.

1991 – SOVIET

PERESTROIKA – FAILURE

All in all, Gorbachev did many things wrong, and his transformation of the USSR into Union of Sovereign Republics never materialised, since the referendum was not even held in all republics (some boycotted it), the coup in Moscow brought a new superstar, Yeltsin, and the Union of Slavic States was formed in Bieloviezha Forest, to be later transformed into CIS. USSR died surprisingly quickly, with

many clashes that are still ongoing, and thousands of dead.

1992-1994 CUTILHEIRO PLAN, VANCE-OWEN PLAN, OWEN-STOLTENBERG PLAN FAILURE

After the bloody war in Croatia in 1991, a year later, in 1992, the superpowers tried to prevent it from happening in Bosnia and Herzegovina by cantonising it. In 1992 in Lisbon, Alija Izetbegović withdrew his signature from the document, triggering the Bosnian war. Later, the Vance-Owen Plan of 10 national cantons was rejected by the Bosnian Serbs, and in 1994, the Owen-Stoltenberg Plan of three national states forming a loose federation was rejected by Bosniaks.

The war lasted 4 ½ years.

1993 – DISSOLUTION OF CZECHOSLOVAKIA SUCCESS

Czechia and Slovakia first formed a weak federation, then started negotiating about a new deal, which did not succeed, with the both constituent countries losing patience and rushing towards independence, which peacefully came to effect in 1993 after an agreement. No blood shed.

1994 – GAGAUZIA – SUCCESS

The breakaway republic of Gagauzia in Moldova tried to prevent the unification of Moldova and Romania, and just like Trans-

The Z-4 plan, concocted in Zagreb, was supposed to ensure the peaceful reintegration of the self-proclaimed Serbian breakaway Republic of Serb Krajina, creating highly autonomous cantons, separate currency and many other features. The plan was rejected under rather inconspicuous circumstances. The military operation “Storm” followed soon after that and the war was over, resulting in many refugees and no autonomy for Serbs at all.

1995 – DAYTON AGREEMENT – SUCCESS

After many casualties and massacres, the great powers summoned the presidents of Serbia, Croatia and Bosnia in Dayton, Ohio, together with the political leaders from the Bosnian warring factions.

signed a new flag, like in the case of Bosnia, and suggested a loose federation modelled after Dayton. Unfortunately, the matter of property was crucial, and although the rebelling Turks approved the plan, the Greeks rejected it on the referendum. 14 years later. No progress has been made since.

2003-2006 - DISSOLUTION OF SERBIA AND MONTENEGRO – SUCCESS

This was a bit more complicated than the Czechoslovakian model, but it was pretty close. Also, this is why Miroslav Lajčak, a Slovak diplomat, was appointed to deal with it. In 2003, the FR Yugoslavia was successfully trasnformed into State Union of Serbia and Montenegro, moving from a federation to a confederacy. In 2006, Milo Đukanović pushed independence, and the referendum threshold was set at 55%. „Yes“ won by a very narrow margin.

However, not a single person was injured, let alone killed in this separation. From 2008, the two countries have had rather cold relations because of the Kosovo dispute.

THE GOOD AGREEMENT IS THE ONE THAT MAKES BOTH PARTS PARTIALLY SATISFIED AND PARTIALLY DISSATISFIED The result was Belgian-like federation of two entities, 49% for Serbs and 51% for Croats and Bosniaks.

Since everybody is complaining about it, it must be good.

2004 – KOFI ANNAN PLAN FOR CYPRUS – FAILURE

The Dayton Agreement was subsequently used as a good model for other two-sided conflicts. One of the most enduring was the one in Cyprus. The UN Secretary General, Kofi Annan approached the negotiations optimistically. He even de-

2008 – AHTISAARI KOSOVO PLAN – FAILURE

Appointing Martti Ahtisaari, one of the “hawks” from the 1999 negotiations during the Yugoslav War, was not a good sign for compromise. Ahtisaari favoured the Albanian side from the start, rejecting all other proposals other than “supervised independence”.

The plan was not approved by Serbia, and Kosovo unilaterally declared independence, which has been causing a lot of tension ever since.

PARTIALLY HAPPY So, what is the punchline? The good agreement is the one that makes both parts partially satisfied and partially dissatisfied. Just like in the case of North Macedonia. The extremists from both sides are unhappy, and that's exactly the idea.

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I NTERVIEW

Best Interests of Craftsmen are Priority The data on craft companies in 2018 shows that 198,350 are employed in craft firms

DRAGUTIN RANOGAJEC President of Croatian Chamber of Trades and Crafts (HOK)

It is extremely important to create a positive entrepreneurial climate and an atmosphere that attracts investments. The concrete measures proposed by the Croatian Chamber of Trades and Crafts are aimed at creating an environment that will keep young people in the Republic of Croatia and allow them to create a pleasant life for themselves and establish a successful business - says Dragutin Ranogajac, President of the Croatian Chamber of Trades and Crafts (HOK) What are the biggest obstacles for your members in achieving business success today?

— Currently, owners of craft firms in Croatia are facing several challenges. At present, the most prominent problem is the shortage of skilled workers. This is an issue that the Croatian Chamber of Trades and Crafts has been talking about for a long time, warning about the need to constantly care for one's employees, primarily through their education. The seriousness of the problem was noticed three or four years ago, and in the last two years, the situ-

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ation has escalated to the point of jeopardizing craft businesses. The sectors that are seriously lacking workforce are the hospitality and tourism sector and construction.

The transport sector follows where there is a chronic shortage of drivers both in freight and passenger traffic.

These sectors are not the only ones which suffer from shortage of skilled workers. We have come across examples of craft companies who have to reject taking on manufacturing and other commercial projects, due to lack of workers.

even this increase is not enough.

Another long-standing problem is unfair competition from unregistered companies which, according to some estimates, make up 35% of all companies in Croatia, because they hinder the business of those craft companies that operate in a legal manner and fulfill all of their obligations. Following the initiative launched by the Croatian Chamber of Trade and Crafts, the Law on on Prohibiting and Preventing Unregistered Company Activities was adopted, which came into force in 2011, in an attempt to mitigate this negative phenomenon.

However, the law has not been fully implemented in practice.

Tolerating unregistered companies is protecting socially vulnerable groups only on the surface while jeopardizing those who legally operate and struggle to find their place in the market.

IT IS EXTREMELY IMPORTANT THAT CRAFTSMANSHIP IN CROATIA IS AGAIN RECOGNIZED AS AN IMPORTANT SEGMENT OF THE ECONOMY AND THAT TRENDS IN CRAFTSMANSHIP ARE FINALLY POSITIVE The Croatian Chamber of Trades and Crafts' position is that the needs of craft firms, as employers, should primarily be addressed through training available but unemployed workers in Croatia.

Therefore, we are not the advocates of the „overproduction“ of workers.

But, given the current situation, we had to ask for an increase in the foreign workers quotas for the past and this year. The government has partly acknowledged these requirements, particularly in catering and construction, but it is evident that

Conditions that make it difficult for the craft companies to do their business are also linked to inaccessible development funds and the burden from taxation and public contributions. It should be noted that the implementation of the tax reform has only partly reduced this tax burden. For example, at the proposal of the Croatian Chamber of Trades and Crafts, the threshold of revenue that makes company eligible for paying VAT has been raised and now many of craft companies pay flat-rate tax. We expect

the tax reform to continue in terms of further reduction fo tax burdens.

How ready were domestic companies for Croatia's accession into the EU?

— Adapting to new conditions was easier for large companies who have developed logistics and those who have been exporters even before the accession. For small businesses and craftsmen, the adjustment has been rife with obstacles - starting with language barriers and common EU regulation, through to administrative procedures, and the fact that in the case of craft firms, a single person the craftsman – is the sole company manager. Throughout this period, craft companies have been gradually adapting, and the Croatian Chamber of Trades and Crafts is always at disposal to its members to help with information and advice in order to meet the requirements of individual member states.

How many of your members were ready to take the advantages that come with the opening of such a large market to them?

— Croatian craft companies were realistic in terms of the expected effects. The situation has been slowly changing for better over the last five years, and the growing number of craftsmen are now interested in using EU contacts and trying out their business luck in new market circumstances. Craft companies are particularly interested in providing cross-border services where they can continue their regular business and keep their headquarters in Croatia while occasionally placing their products and providing services in the member states.

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In the view of your assessments of the macroeconomic situation and the business climate, what are the key moves that the government can make to help craft companies to do better?

— The Croatian Chamber of Trades and Crafts aims to be more involved in the process of adopting regulations and devising economic policy measures. The partnership relationship between the Croatian Chamber of Trades and Crafts and the Government of the Republic of Croatia and its ministries is important for creating a common environment that will be more favourable for craft companies.

In terms of this burning issue of workforce shortage, we propose concrete measures with an emphasis on training for simpler professions in hospitality and construction, in order to help the unemployed. In this regard, together with the Croatian Employment Service, HOK is willing take part in employee training at the premises of craft companies, i.e. in the workplace.

As far as the shadow economy is concerned, HOK's proposal is to amend the current Law from 2011 and to legally allow the control of private premises in a simpler way than in the past (which involved a lengthy and complex court process), so that inspectors can be more effective.

As part of the ongoing tax reform, we have sent proposals to the Ministry of Finance which stipulate that all catering services are taxed at a reduced VAT rate of 10% since the current VAT rate, which stands at 13%, and as such creates a difference in the way different business entities are taxed. For instance, the rate of 13% is applied to hotels with a bed and breakfast or board service, while for the same non-accommodation services, restaurants and other catering facilities pay a 25% rate which results in uneven market position.

We have also proposed lowering the rates of mandatory wage con-

tributions in order to increase the workers net salary.

The Croatian Chamber of Trades and Crafts (HOK) has been implementing a dual education model for the three-year vocational schools since 1996.

With such experience, how can we address the problem of the shortage of quality workforce in certain professions?

education. If we do not have sensible employers, we cannot create enough space for practical teaching. In 2003, this resistance and misunderstanding led to the creation of a unique education model, which is, in a way, modified dual model, and is being implemented in some schools. We now propose that this unique eduction model should be used as the Croatian model of dual education.

THE CROATIAN CHAMBER OF TRADES AND CRAFTS AIMS TO BE MORE INVOLVED IN THE PROCESS OF ADOPTING REGULATIONS AND CREATING ECONOMIC POLICY MEASURES — Indeed, in 1996, HOK started implementing the dual eduation system. But we have encountered great resistance from the very beginning,, both from schools and education institutions. Namely, such a way of education requires meeting certain prerequisites like a smaller number of teachers and their greater engagement. In co-operation with parents, it is necessary to establish cooperation with mentors from business world, to connect the theoretical knowledge to practical teaching, and to establish a link between what is taught at schools to what is being done in business. Additionally, there are certain businesses that still don't realize how important it is to be actively involved in

We advocate this kind of education because we are firmly convinced that, among other things, it can solve the problem of the shortage of qualified workforce, which is validated by numerous studies. This education model provides training to students so they can work independently in their chosen profession, as well as the application of professional theory in practice, a better understanding of the professional-theoretical content learned in school, the acquisition of "on-the-spot" entrepreneurial skills, the acquisition of a number of social competences and most importantly, faster employment after high school graduation, i.e. greater employability of young people.

What does the chamber system offer to its members? How does the Chamber change to suit market demands?

— The Croatian Chamber of Trades and Crafts is an organization which task is to represent the interests of all craftsmen in Croatia, to get acquainted with their everyday problems and to persist in fighting to overcome business obstacles.

Crafts sector is very diverse so our task is extremely complex and requires a lot of effort to harmonize everything, then coordinate it with economic policy measures and legal regulation.

It is extremely important that craftsmanship in Croatia is again recognized as an important segment of the economy and that trends in craftsmanship are finally positive.

The Croatian Chamber of Trades and Crafts members have access to a full range of services and benefits that the membership brings. They are continuously informed, and we also provide free business consultancy in the area of business regulation, taxes and contributions. The Chamber also focuses on lifelong vocational education and carries out artisan and professional qualifications examinations. It organizes joint appearances at trade fairs in the country and abroad for craft companies, plus various meetings, seminars, education and business panels. While taking into account the implementation of guild and professional rules of operation, the Chamber also provides the services of the Court of Honour, and serves as the settlement centre dealing with alternative dispute resolution.

It is important to mention the HOK - Common Procurement Project cooperates with various service providers and suppliers who provide our members with the benefits when using their products and services. By ensuring more affordable resources, depending on the business activity of a crafts company, we are enabling various cost cuts.

NEW JOBS AND SELF-EMPLOYMENT OPPORTUNITIES How capable is your sector of creating new jobs?

— The data on crafts companies in 2018 shows that 198,350 are employed in craft firms. We should bear in mind that this number is even higher because the majority of owners of crafts companies are also company workers, so they are not included in the mentioned number. Also, family members often assist owners of crafts businesses in carrying out their activities. If we compare this data with the same

data collated on 31st December 2017, when there were 176.805 documented workers in the crafts sector, this is an increase of 21,545 newly-employed persons. Part of the increase is due to the increase in the number of crafts comapnies, and part due to the increase in the number of employed persons, of which a significant part is seasonal employment.

We can conclude from this data that crafts sector does create new jobs and offers the opportunity for self-employment..

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NATIONAL DAYS

ARRI VALS & D EPAR T UR E S

JULY

H.E. LARS SCHMIDT

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Ambassador of the Kingdom of Sweden

Bachelor of Law from Lund University. He is familiar with the region since 1990s when he was a member of the UN forces and performed the function of the Head of Information Office at the Zagreb Headquarters.

After transferring from the Swedish Ministry of Defence to the Ministry of Foreign Affairs at the end of 1990s, he had a mandate in Belgrade, and he also performed different diplomatic functions in Rome, Brussels

– with the Permanent Representation of the Kingdom of Sweden to the EU, as well as in Dublin. He took over the office in Croatia in September of 2013, and since then until today he witnessed many political changes in the youngest member of the European Union, and in neighbouring countries. He has a wife and two sons. After 5 years as the Ambassador of Sweden, he is now leaving Zagreb.

PERU

National Day

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MOROCCO National Day

AUGUST

01

SWEDEN

Confederation Day

02

H.E. THOMAS E. SCHULTZE

MACEDONIA National Day

Ambassador of FR Germany

He graduated from law school at the Johannes Gutenberg University in Mainz, did a semester abroad, seminar and practice in Dijon, Thessalonica and New York. In May 1993, he joined the diplomatic core. From 1995 – 1998 he was an advisor to the Economic Embassy in Riyadh, from 1998 – 2001 General Consulate in Istanbul, Consul, Head of the Legal Affairs Department and media advisor. From 2001 – 2004 Ministry of Foreign Affairs of Federal Republic of Germany, the Minister’s cabinet. From 2004 – 2005, Kunduz Afghanistan, civil head of Provincial Reconstruction Team (PRT), head

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of the dislocated office of Germany Embassy in Kabul, from 2009 – 2012 Embassy in Ankara, head of Legal and Consular Affairs Department.

From 2012 – 2014, Ministry of Foreign Affairs, head of the OESS Department and Council of Europe, Political Affairs Administration. From 2014 - 2015, Ministry of Foreign Affairs, head of the Department for Turkey and EFTA Countries, Political Affairs Administration. From September 2015, he was the Ambassador of FR Germany in the Republic of Croatia. He is married, with two children. He will continue his diplomatic career in Canada.

JAMAICA

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ECUADOR National Day

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PAKISTAN

Independence Day

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INDONESIA

Independence Day

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UKRAINE

VELJKO OSTOJIĆ Director of Croatian Tourism Association

Elected by the Administrative Board of the Association, as the Director, Ostojić will be in charge of its operative management. President of HUT Tomislav Popović, Chairman of Maistre Management, was elected earlier at the Founding Assembly.

HUT was established to deal with strategic issues of the most important Croatian industry that brings 18% of GDP and more than 10% of employment in Croatia.

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KRISTIAN ŠUSTAR

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Unilinea Director of Development

Kristian Šustar, previous member of HUP-Zagreb d.d. Hotel Company Administration and Chairman of Dubrovačka rivijera d.d. Hotel Administration, took over the function of Director of Development at Unilinea, the greatest Croatian tour operator, from July 01, 2018. Šustar has more than 20 years of experience in leading positions in the hotel industry. He

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started his career in the Bonavia Hotel, continued in luxurious hotels on the Adriatic, then Adria Resorts, Maistra, Dubrovačka Rivijera Hotels and HUP-Zagreb, where he was in top positions and managed key projects focused on growth and development of companies and destinations where these companies operate.

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Nacionalni park · National Park

Public Institution Kornati National Park

Butina 2, HR - 22243 Murter • Tel: +385 (0)22 435 740 www.np-kornati.hr • kornati@np-kornati.hr kornati_national_park

Kornati National Park

13

EC O NO MY

Text: ŽELIMIR MARAŠ

Give Other Cultures a Chance The world of not imposing values

The West is falling apart in terms of economic cooperation (at least Trump's America is drifting away from the rest of the allies in G-7), and the unlikely harmony is emerging in the East, in the mighty land mass of Eurasia.

WESTERN VALUES

Donald Trump might have been the world's worst nightmare when it came to the Iran nuclear deal, but he surprisingly the North Korea issue quite well, after all his half-childish tweets like “my button is bigger, so are my rockets”.

In this part of the world we are not that affected by the economic relations between the USA, the rest of the big economies from the G-7 and the other “first league players” like the Netherlands, Spain or Sweden. We are in the second league, anyway, so the waves are crushing on the G-7 and the westernmost members. But this is the big deal over there! Billions are at stake, and when the elephants fight, the grass is the first to suffer.

In the West, from 1945 onwards, the main cohesive factor was the fact that the core was formed by all the countries from the Judeo-Christian tradition, the liberal parliamentary democracies, like the UK, the USA, France, the Netherlands, Belgium, Canada etc.

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All the others were basically defeated countries in the World War II that had to adopt liberal values, namely Germany, Italy, and Japan.

The others that joined were also the “converts” from non-democratic values such as the former dictatiorships of Greece, Spain and Portugal. The values they all shared were quite obvious - gradual globalisation, anti-isolationism, and anti-damping economies.

True to his “America First“ say-

ment in the US. Trump thinks he is right, ready to face six other leaders from the G-7 and then leave, make a surprising peace deal with the Koreans, and even causing someone to nominating him for the Nobel Peace Prize. Erratic as he may be, Trump is here to stay at least for the next two and a half years.

Some have even proposed forming G-6, with America kicked out. Lo and behold, the relations between Russia and the EU suddenly became warmer. The trouble is that the Western world is so compact in values and the way of thinking and doing business that the slightest disharmony leads to big waves. Unpleasant ones, at that!

EASTERN VALUES

The East decided they did not agree on so many things. The religions are very different – from Eastern Christianity to Buddhism, Islam and Hinduism. The state systems are also so different – some Eastern countries are full-fledged parliamentary democracies, some are republics with strong leaders,

THE SCO IS INCLUSIVE, EVER GROWING, AND MEMBERS ARE NOT IMPOSING VALUES ON EACH OTHER. THAT WOULD BE FUTILE ANYWAY ing, Trump is not refraining from building walls between the US and another NAFTA member, Mexico (it's only a promise, so far), imposing taxes against the EU and Canada as his closest allies (cue angry tweets against Justin Trudeau), and insisting that De Niro is “a person of low intelligence” since has failed to notice the record low unemploy-

some are single-party states, some are Islamic republics, and some secular and even atheists. No common ground at all. Also, in some countries the market rules, while in others, the almighty state controls everything. Or the majority, at least! So, the first Eastern idea was that there is no idea encompassing them all. Or, rather, they are a mo-

saic of ideas, that used to be in conflict for centuries, but now want to cooperate. What is the reason behind this? Why all of a sudden?

They are fed up with being poor and underdeveloped. They want to lead the world. They don't want to impose their values on others, because theat is futile anyway.

At the upcoming 18th Meeting of the Council of Heads of Member States of the Shanghai Cooperation Organization (SCO)—the first summit since the expansion of its membership in 2017 when India, Pakistan, the People’s Republic of China, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, the Republic of Tajikistan and the Republic of Uzbekistan joined - India and Pakistan, that used to be fierce enemies for decades, joined the club under the Chinese leadership, although they had serious misunderstandings with some members (India, at least). That was pushed aside!

In the meantime, they have launched the SCO University, and cultural and educational cooperation programmes. Investing and amassing welath are the main goals, as well as getting to know each other and respecting one another. Not imposing values, like in the West. Also, if someone “derails” a bit, it's no big deal. Arts, media and youth-exchange programmes are the next step. The basic ideas are “reciprocal trust, mutual benefit, equality, consultation, respect for cultural diversity and pursuit of common development, as well as new concepts of security and cooperation” as advocated by China, and visible in One Road, One Belt initiative.

INCLUSIVENESS IS GROWTH The SCO has become inclusive and is ever growing, with a possible extension to Iran. Maybe the West was more like that after the WW2.

It seems like Orwell's Eurasia is emerging, albeit in a in a benevolent form.

The West is yet to resolve the bitter inner conflicts. We wish godo luck to both of them! Give peace and different cultures a chance!

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I NTERVIEW

Youth in the Service of Better Future Our organization's vision is to create young leaders that will be the bearers of positive societal changes TANJA NINIĆ President of the Junior Chamber International (JCI), Zagreb

Our association operates on a voluntary basis and is financed exclusively through donations and sponsorships. All of our projects are largely financed by sponsors, which are ofter very difficulty to find. The influence that we have on our society, especially young people, is priceless - Tanja Ninić, President of JCI Zagreb, believes.

You are at the helm of the global Young Professionals and Leaders Network in Croatia. What are your main tasks and goals in Croatia?

— The JCI members are young, intriguing citizens who act in 4 main segments - social projects, business projects, personal development projects and international action. Our members were J. F. Kennedy, Kofi Annan, Prince Albert of Monaco, Bill Clinton and many other influential and famous people. At the international, national and local levels, JCI operates on the "one year to lead" principle, meaning that each year, we change our management and the president in order to give proactive members the opportunity to lead the organization and further develop their leadership skills.

How many members do you have, how do you recruit them and what are your basic membership criteria?

— Currently, we have 35 active members and 15 candidates for membership. Once a year, we organize the Open Day where interested candidates can apply for membership. Over the past two years, due to the large number of interested participants, we started

to hold the Open Day mostly for the people we consider capable of creating added value for our organization, which we contact through LinkedIn, or who are referred by our standing members, but we always appreciate all those people who are interested in joining us.

Given that the goal of the Junior Chamber International, Zagreb is that all members actively participate in our projects, we don't aim to go for quantity when it comes to our members, but but rather for quality.

Interested persons are given a candidate status for the period between 3 and 6 months, and if druing this time, they excell in their proactive attitude and the work they do on projects, they become full-fledged members of the JCI. Our goal is for our members to act and convey the JCI's long tradition and heritage.

What plans and projects do you have in the pipeline?

development workshops, we will continue the series of lectures for our members only. In the first part of the year, professors Berta Šalaja and Marijana Grbeša, from the Faculty of Political Science, gave a lecture on the growth of populism in Europe and the world and the impact of populism in the media.

In the second part of the year, we intend to hold a lecture on financial literacy and to play hosts to people that we consider to be positive examples in the Croatian society. The goal of our association is to develop future young leaders in our society and to ensure that they have the required knowledge no matter what sector they operate in.

If we are talking about social projects, we are continuing to hold design thinking workshops in ele-

JCI WAS FOUNDED IN THE UNITED STATES 103 YEARS AGO. TODAY, IT HAS MORE THAN 200,000 MEMBERS IN MORE THAN 120 COUNTRIES — In November this year, we plan to continue with the cycle of our business panel discussions called „Croatian Leaders“ which we have successfully organized for two years now with the participation of the leading Croatian business people.

The last panel, titled "Failure as a Part of Success", was organized in April this year in the European House. In terms of personal

mentary schools under the auspices of the Designathon project. Design thinking is a modern approach to development and learning that through solving the given problem which facilitates the development of critical thinking and creativity.

We will continue implementing the HappyFeet project that focuses on socializing and helping children from children's homes.

SYSTEM HAS TO BE DEVELOPED What problems and disadvantages you have often encountered in Croatia and what are your suggestions for solving them?

— Unfortunately, the system still does not sufficiently support young people and youth associations in Zagreb. Our organization consists of young professionals who, through various activities and projects, contribute to sustainable development and create positive changes in the world. We are creating a new, healthy society, but by the same token, we lack the support of the institutions in the Republic of Croatia.

What kind of issues do young people in this part of the world have to deal with and what role does your organization play in resolving these issues?

— The Millennials have a huge problem with finding their own identity. Young people today spend a long time searching for their personal purpose and fulfillment which they cannot find in their work place.

JCI Zagreb enables young people to work on their personal development and to contribute to the development of the society in which they live. Our members have the opportunity to be a positive change in our society. We help socially vulnerable groups and children - through conferences and panels we encourage youth entrepreneurship,while through education and lecture we help develop critical thinking and we discuss economic and political issues that have a direct impact on us, as well as look for ways to we can contribute to solving them.

What is your message for young people, but also to those who make decisions about their lives in Croatia? What should they focus on and what direction should they take?

— The biggest problem for young people in Croatia is that they complain too much, but they do not want to make changes themselves.

Change starts with every one of us. We cannot wait for society to change, we must change it. My message to all young people would be to get out of your comfort zone - find the job you love and that you are passionate about, travel, get to know different cultures and people, listen to and respect other people's opinions, expand your own horizons, be socially active and bring about social change. The world depends on the so-called "little" man.

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I NTERVIEW

Closer Than Ever

The accession process has brought our two countries much closer than what we could have ever imagined

H.E. D. EDUARDO AZNAR CAMPOS Spanish Ambassador to Croatia

The European common space has opened new venues for cooperation between Spain and Croatia in every aspect, and made two countries much closer, says H.E. D. Eduardo Aznar Campos, the Spanish Ambassador to Croatia, with whom we spoke at the end of his tenure.

In terms of the countries that devise European policies, we mostly refer to Germany and France. What is Spain’s position in creating and shaping the European future?

— We certainly find Germany and

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France at the core of the European construction. However, this is an open process, where all Member States have been, and are contributing in many and different degrees. Talking about Spain, Europe’s projection towards Latin America or the Mediterranean Southern Rim is a direct consequence of Spanish efforts to

tic diversity, are also directly linked to our active role in the Union. And when it comes to Europe’s future, my country has always given solid support to a deeper political and economic integration.

What did Croatia’s entry into the EU bring to the European family and to the Croatian citizens?

WITH CROATIA IN THE UNION, EUROPE HAS BECOME MORE SENSITIVE TO THE IMPORTANCE OF THIS REGION FOR THE STABILITY AND PROSPERITY OF THE WHOLE CONTINENT broaden Europe’s foreign policy.

Other fundamental aspects of the EU, such as cohesion funds, the promotion of the European security and defense identity, a common space for justice and home affairs, the fight against terrorism, or the promotion of cultural and linguis-

— Croatia, like Spain, is recognized as one of the Member States with the strongest pro-European feelings, and this mere fact is already a great contribution. On the other hand, with Croatia in the Union, Europe has become more sensitive to the importance

of this region for the stability and prosperity of the whole continent.

As for Croatian citizens, I think Croatia’s entry into the EU meant a great boost for the modernization process of their society and the promotion of the values upon which our free and democratic societies are based.

Is today’s Europe to your liking?

Do you think that the anti-European political forces that have gained significant support from the electorate, like AfD in Germany or the Five Star Movement in Italy, are strong enough to jeopardize the further survival of the EU as we know it?

— Since its very inception, the process of European construction has been evolving, reaching new levels and improving its institutions. As in our own societies there is always room to do things better, to adjust and to advance. This has always

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happened and will always happen in the EU. However, what is important is that the true connection between the European ideals and the European citizens is upheld. I therefore see the present situation as a challenge to improve ourselves and the Union.

In which aspects has Spain supported Croatia’s accession process the most, and how has this process got the two countries closer to each other?

— If you look at different statistical indicators, you will notice that after Croatia’s joining the Union our bilateral economic relations increased considerably. But, what has been more significant is that during this accession process we have come to know each other much better. The Spanish presidency of the Union in the first

CROATIA’S ENTRY INTO THE EU MEANT A GREAT BOOST FOR THE MODERNIZATION PROCESS OF THEIR SOCIETY AND THE PROMOTION OF THE VALUES UPON WHICH OUR FREE AND DEMOCRATIC SOCIETIES ARE BASED

literature, cinema, music, dance or theatre. Our presence in all cultural festivals in Croatia is permanent. I would just like to highlight the success of our participation as partner country at the Varazdin Baroque Evenings of 2016.

How did Croatia’s accession to the EU affect the bilateral and economic relations between Spain and Croatia?

Both Spain and Croatia have a developed tourism. Could you draw parallels between the two?

Are the two countries rivals, or are they offering different tourist content?

semester of 2010 gave Croatia’s entry a major push. And during the process of accession, after Germany and Austria, Spain played a major role in modernizing Croatian structures, from customs to the health care system, thanks to a series of twinning projects.

The constant presence of Spanish experts in Croatia, working with, but also learning from Croatian counterparts created a network of personal relations that have brought our two countries much closer than what we could have ever imagined.

— Being part of the common single market has fostered our economic relations. The value of our bilateral trade exceeded EUR 500 million in 2017, and its growth has been constant for the past years.

The European common space has also promoted a better and closer interaction between our civil societies and cultural circles. We are witnessing this process every single day in such segments as

— I think Croatia has learnt from our success in promoting Spain as a main tourist destination, but has also learnt to avoid some of our mistakes. In some aspects we are competitors, but I think competition will help us to improve our tourist industries. As you know, we always need that kind of challenge that brings out the best in us.

THE WARMTH OF CROATIAN PEOPLE At the end of your tenure in Croatia, could you tell us which word do you associate the most with Croatia?

What memories do you have of your life in Croatia?

— Without a shred of doubt, human warmth is the first thing that comes to my mind. All my memories of Croatia are linked to that feeling, and to the beauty of the country and its people possessing excellent characteristics, both privately and professionally.

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CA N S H A RE , WO N ’ T S H A RE

Why Japan’s Sharing Economy is Tiny Hotel rooms are in short supply yet regulations hamper Airbnb and other sharing platforms

AIRBNB, an American platform for booking stays in other people’s houses, can barely conceal its frustration. A law passed last year for the first time legalised minpaku, or home-sharing, in Japan, but also sharply restricted it. From June 15th hosts can rent out their property for a maximum of 180 days each year, provided they register with the local authorities. Most hosts will not meet that deadline because they are still obtaining their registration numbers, and on June 1st Japan’s main tourism body unexpectedly decreed that any without them had to cancel reservations at once. Airbnb accordingly eliminated four-fifths of its roughly 60,000 listings in Japan. Holidays are at risk.

The experience illustrates the country’s hesitant approach to the sharing economy, in which people rent goods and services from one another through internet platforms (a broader definition includes companies renting out goods they own, such as bikes, for a short time). A generous estimate of the sharing’s economy value in Japan is just ¥1.2trn yen ($11bn), compared with $229bn for China. “It’s a very difficult situation,” says Yuji Ueda of Japan’s Sharing Economy Association.

Opportunities certainly abound. Almost 29m tourists visited Japan last year; the goal is to attract 40m by 2020, when Tokyo hosts the Olympics. But the number of hotel rooms is not keeping up with demand. Japan’s government reckons that sharing could also help it to provide public services such as transport, especially in rural areas, as it struggles with a declining and ageing population.

Successes do exist. There are thriving platforms to share meeting rooms, office space and parking spots. One popular site is Laxus, which lets cash-poor city dwellers share designer handbags. Airbnb’s own offering of “experience sharing”, in which people sell and buy experiences such as city tours and cooking classes, is more successful in Japan than almost anywhere else, says Mike Orgill, its head of policy in Asia, as foreigners in particular seek a window into the country.

Yet regulation, which tends to favour big companies and industries, is a key obstacle to faster and more mainstream growth. The minpaku law’s 180-day limit, which local authorities have the right to tighten further, is a nod to powerful hotel chains. Shinjuku, a ward in Tokyo that is popular with visitors, is banning home-owners in residential areas from renting out their homes from Mondays to Thursdays.

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Uber, a ride-hailing firm, is prevented from offering anything but its premium services, such as black cars with professional drivers, thanks in large part to the objections of established taxi fleets. There are ways to get round it—a local ride-sharing app, Notteco, has avoided the regulations by getting passengers to pay for petrol and tolls rather than a fee for transport, for example. But the rules hinder growth.

THE EXPERIENCE ILLUSTRATES THE COUNTRY’S HESITANT APPROACH TO THE SHARING ECONOMY Another hurdle is the attitude of the Japanese public. Many people are simply ignorant of the existence of sharing apps. Others reckon they may be illegal. “Public anxiety is the main factor impeding the development of the sharing economy,” thinks Yusuke Takada of the government’s Sharing Economy Promotion Office. Another barrier is social custom. Chika Tsunoba, the head of Anytimes, a local platform where users share skills from gardening to baby-sit-

ting, says women in particular feel they should be doing everything themselves, pointing to criticism she attracted after hiring a cleaner through the site. Mr Ueda says the Japanese fret that sharing platforms will not provide the high level of service they are accustomed to. Because of this, the Sharing Economy Association has developed a “trust mark” to give consumers more confidence.

International firms are also adapting their tactics. Airbnb is “partnering with areas that don’t get as much love as they might like,” says Mr Orgill. It worked with the authorities and locals in Kamaishi, on the north-east coast, to attract tourists, even creating a local guidebook. As for Uber, helping established firms is not something the firm does anywhere else, notes Ann Lavin, who heads policy in Asia-Pacific for the firm, but it is piloting a ride-hailing programme for local taxis on the remote island of Awaji, near the city of Kobe. This caring, sharing approach may pay off, but it will take more time.

From The Economist, published under licence.

The original article, in English, can be found on www.economist.com

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C O RPO RATE DHL

Add Value to Your E-commerce Proposition

An international express shipping option can increase e-commerce basket value by up to 70%, helping merchants boost revenue and tap new markets, says DHL Express

DHL Express, the world’s leading international express service provider, has launched “Where Everything Clicks,” a global digital campaign to grow its e-commerce business and guide web merchants as they access the booming global marketplace. DHL helps sellers navigate an increasingly international landscape, in which 70% of online buyers have made a purchase from an international site in 2017, up 6% from a year earlier. DHL Express is aiming its campaign at companies ranging from start-ups to large enterprises, advising on how to enhance international e-commerce shipping capabilities and how to target internet-savvy buyers like millennials – 68% of whom are likely to choose a retailer based on delivery options offered.

“International e-commerce is growing at a remarkable pace, and we want our customers to grab their share of the market – that means adding value to their e-commerce proposition,” states

John Pearson, CEO Europe and Head of Commercial for DHL Express. “Our customers’ success is closely tied to their buyers’ satisfaction with the delivery experience and the delivery options offered. DHL has developed services that both enhance the customer experience and that support web merchants as they access new markets. Our global marketing

addition, DHL can compare website engagement metrics to those of competitors, identifying opportunities to reduce bounce rates with the addition of a cross-border express delivery option. With a checklist-based approach, DHL Express advises merchants on how to optimize their websites for international sales and how to create a competitive advantage via

GLOBAL DIGITAL ADVERTISING CAMPAIGN “WHERE EVERYTHING CLICKS” EDUCATES BUSINESSES ON HOW TO INCREASE THEIR SHARE OF THE TRILLIONDOLLAR GLOBAL E-COMMERCE MARKET

campaign will showcase those services, from On Demand Delivery, with its flexible delivery options for buyers, to intelligent website analyses tailored to merchants.”

Using advanced market intelligence tools, DHL can quickly identify shopping sites that receive traffic from international locations, thus flagging potential sales outside of the seller’s core market. In

shipping options offered.

With On Demand Delivery, buyers are notified proactively via email or SMS about a shipment’s progress. Receivers can schedule delivery for another day, arrange delivery to a nearby DHL Service Point or an alternate address, and even request that a shipment is held during vacation. DHL Express offers On Demand Delivery in over

100 countries, with about 50 more coming this year.

“Where Everything Clicks” includes how-to videos, white papers, customer and trend videos. The campaign will reach multiple online marketing channels, including organic and paid search, rich ad placements, programmatic advertising, online PR and influencer marketing. “’Where Everything Clicks’ reveals purchasing habits of online shoppers, including always important delivery preferences, and shows merchants how to use this information to increase sales.

We want to educate current customers and to convert potential international web merchants,” says Pearson. “We’re convinced that cross-border e-commerce has a huge upside that many merchants –B2C and B2B –have not yet tapped.

Our aim is to support web sellers as they go global and to stand as the international express provider of choice for e-commerce.”

You can visit “Where Everything Clicks” at: https://discover.dhl. com/e-commerce.html.

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C O LU MN DANIJEL KOLETIĆ

CEO of Apriori World

APRIORI WORLD

PERSONAL BRANDING AS A MARKET BRAND Anyone who reads this column can find here more information about the possibilities of branding. In the latest column, I decided to write about personal branding. I started to participate in the creation of a personal brand of Rajko Dujmić, the Eurovision Song Contest winner, very early. Namely, 26 years ago I was honoured to become his executive producer.

Rajko liked to say that I was his impresario. After that, I worked in the team of Vladimir Kraljević, the Miss Universe license holder for Croatia, where I was in charge of public relations and protocol when Ivana Trump,the ex-wife of the current US President Donald Trump, came to Croatia to chair the jury in the Croatian Miss Universe competition.

Thanks to the referral from Helena Koščica from the Press Clipping Company, ten days before the arrival of His Holiness, the 14th Dalai Lama, they called me from the Tibetan Society of Croatia and I took over their media relations and protocols, which, due to the great public interest, changed literally every minute. One of my greatest achievements in personal branding is certainly the collaboration with the production company Aquarius Records and Nina Badrić, for whom I worked as an Executive Producer. During ten months of the collaboration and over 400 hours of work, my team and I created a regional star with outstanding regional branding from a nationally-known singer who had recorded five albums up to that point.

Because of these practical experiences, I can confidently say that, primarily, personal branding requires a quality personality

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analysis of the of the person you are branding. The biggest difference between branding a state, a product, or an event, and a person is that personal branding requires a 24/7 focus and constantly being prepared to handle a crisis. You need to know the person you are branding, their weaknesses and virtues because you are part of their personal life challenges. The character of a person is certainly a deciding

allocate funds to hire experts to help them realize the planned branding. Digital platforms have greatly facilitated the process of branding people, and the biggest challenge is maintaining constant attention. Owing to their work and success, athletes can create a quality brand for themselves, but also for the country they represent. These days, we are witnessing the great success of the Croatian football team at

THERE IS NO FORMULA FOR SUCCESSFUL PERSONAL BRANDING. IT DEPENDS ON MANY FACTORS, AND PRIMARILY ON THE WORKING HABITS OF THE PERSON WE ARE BRANDING factor because there is a lot of struggle and effort invested in creating the image we present to the public, which is connected to dealing with problems that are a result of the ego that grows along with the success of the branded client. We do have planned branding in this part of the world, but there are very few individuals who are willing to

the World Cup, which as a team and individually, has generated publicity for themselves and their country. In the past, Croatia would have to spend billions of euros to achieve this level of publicity.

You can do personal branding everywhere and on everyone. The price of personal branding has never been lower and simpler

since today there is almost no media outlet in the Balkans that does not offer the option of paid articles, interviews and reportages.

However, there is certainly a question of credibility that is rarely talked about. If we analyze personal branding in the region, we can conclude that Serbia is a leading country in terms of creating media brands, particularly in music. Due to her unusual and somewhat innovative approach during the World Cup in Russia, Croatian President Kolinda Grabar Kitarović has generated international publicity both for herself and for the country she represents.

There is no formula for successful personal branding. It depends on many factors, and primarily on the working habits of the person we are branding.

Behind every branding process lies the content, that is, the story of which the public relations experts are in charge of. Quality communication on social networks and digital platforms, particularly YouTube, is important. Depending on the course of branding, the branding plan changes and upgrades. It is very important that personal branding is not done by default, but is carefully planned. Many individuals from the world of sports, music and culture have achieved remarkable results, but at a crucial moment, they did not have a plan, or a team that would use it skillfully.

Personal branding is important for sponsorship contracts and financial resources. Of course, stars like Oliver Dragojević, Lepa Brena, Novak Djoković, Goran Ivanišević and the Croatian Football Team will certainly be forever remembered in this part of the world.

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C O RPO RATE

Citroën, DS & Peugeot

Satisfied Customers are Our Priority In the past period, we have built a strong trust among manufacturers, distributors and customers TOMISLAV MILETIĆ General Manager for CITROËN, DS and PEUGEOT brands

Our business and approach towards our business partners is based on the following core values: customer relationship, ample expertise, good ratio between investment and return, and high-quality products. Accordingly, in Croatia, we guarantee safety and quality of our offer in the personal and business vehicle segment, in post-sales services and in spare parts delivery - says Tomislav Miletić, General Manager of Automobil Import, for Diplomacy & Commerce magazine.

You have been in this business for two decades now. How much has this sector changed, especially after Croatia's entry into the EU?

— It has changed in a way that the

flow of goods is much faster now while the administrative tasks related to the import of cars in Croatia were reduced. The used car market was liberalized, the import of used vehicles of questionable quality was given a much brighter green light and, as a consequence, there has been a significant increase in their market share. As a result, the sale of new vehicles failed to record a significant growth.

How much have these changes affected the changes in business policies in your sector?

— The brands Peugeot, Citroën

and DS have been present in the Croatian market for many years and some models have gained almost cult status over the past years with our customers, be it passenger or delivery vehicles. Since the end of the 1990's, these brands were represented by PSA affiliates, and since the beginning of last year by the Emil Frey Group. All this time,

the guiding idea in Peugeot and Citroën companies has been the need to offer our customers the best possible quality of service and the ideal investment / return ratio.

We developed this approach and business philosophy within the PSA Group, hence the transition and integration into the Emil Frey Group was more natural and easier for us.

What do you consider a winning combination that leads to an increase of the market share of the brands you represent?

— Product attractiveness, complete service - from sales and financing to maintenance and customer monitoring the moment they become vehicle owners, fostering loyalty through “Citroën Zauvijek” and “Peugeot Zauvijek”

when purchasing passenger cars.

Citroën and Peugeot have always been either at the very top or close to it when it comes to manufacturers of light commercial vehicles, with a diverse gamma that meets the very diverse needs of professional users which have become an integral part of a company fleet not only in small and medium entrepreneurs, but also some of the largest Croatian companies (from the smallest C3 Entreprise and 208 Business, to Berlingo and Partner Furgon, Jumpy and Expert delivery vehicles, all the way to Jumper and Boxer). Companies are mostly interested in the Citroën C3, SUV

WE BUILD CONSUMER LOYALTY THROUGH “CITROËN ZAUVIJEK” AND “PEUGEOT ZAUVIJEK” programmes which offer number of benefits that ensure a more affordable maintenance in the network of authorized service centres.

In which economic segments is the demand for new cars most pronounced and what do you offer in that respect?

— The sales in the segment of

auxiliary construction services segment have increased. The growth in the sale of light commercial vehicles to small and medium enterpriseis particularly noticeable. Our expectations are even greater when the Law on Input Tax Refund entered into force, which stipulates that companies are again entitled to incentives

C3 Aircross and C-Elysée. While, in terms of the Peugeot brand, who has ambition to be the best high class mainstream brand, they are interested in mostly Peugeot 208, 308 and SUVs 2008, 3008 and 5008.

How does the application of new European standards affect the changes in the structure of the vehicle fleet in Croatia?

— Croatia has one of the most

conservative tax policies in the European Union in the domain of car sales, which, apart from VAT, relies on the so-called PPMV, ie Special Tax on Motor Vehicles. Therefore, we are forced to adapt to these legal frameworks, but the fact that the introduction of a new CO2 emission

LOYAL CUSTOMERS Our customers have recognized the Peugeot and Citroën brands' optimum price / equipment ratio, quality and reliability, as well as controlled costs in use, and thanks to many years of hard work and customer stimulation, both brands, each in their own way, have been gaining loyal customers throughout the entire period of vehicle use.

measurement protocol not only in Croatia but also throughout the European Union will have a significant impact on market trends at the time of its entry into force.

What novelties do you have for this year?

— Peugeot has extended its SUV range to include the new SUV 5008, in addition to the SUVs 2008 and 3008. We have also launched the second version of our most popular model in the world, the new Peugeot 308. At the beginning of this year, we launched an urban car Peugeot 108, which is the perfect response to the needs of urban mobility. In a few months' time, we are going to launch the new Peugeot 508, the fastback sedan of the future, which boosts our ambitions in the segment of large sedans.

We launched our new compact C4 Cactus in the Croatian market in May. But apart from this model, we are going to launch another, very important model for the Citroën brand in autumn - the New Berlingo, which transcends a regular car as it has a cult status. At the end of the year, we are going to launch a new SUV C5 Aircross, our flagship in the Croatian market.

How does the recovery of the Croatian economy reflect on the demand for new cars?

— We are closely monitoring the recovery of the economy because we have noticed an increased demand for vehicles, especially in the segment of delivery vehicles.

In financing terms, we have seen a higher share of leasing. The renta-car market has been definitely growing year-on-year, as did the export of so-called "buy back" cars from Croatia. There was also an increased demand for taxi vehicles as a result of new legal framework and the liberalization of this market.

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PEO PLE & EVENT S

25 RECEPTION HELD BY THE PRESIDENT OF CROATIA IN HONOUR OF CROATIAN STATEHOOD DAY

Source: Office od the President

JUN

Croatian President, Kolinda Grabar Kitarović

An official reception in honour of the Croatian Statehood Day was held in Pantovčak, with the representa-

Croatian President, Kolinda Grabar Kitarović, PM Andrej Plenković, Croatian Parliament Speaker, Gordan Jandroković

tives of the Croatian government, diplomatic corps, and a number of public and cultural figures in attendance.

British Ambassador, H.E. Andrew Dalgleish, US Ambasador, H.E. W. Robert Kohorst

29 THE DAY OF CROATIAN CHAMBER OF JUN

TRADES AND CRAFTS

At the Westin Hotel in Zagreb, the solemn academy was held on the occasion of the Chamber's Day. The most prominent craftsmen who, owing to their business activities and cooperation with the Croatian Chamber of Trades and Crafts, have given an outstanding contribution to the development of crafts and crafts institutions, are given awards and acknowledgments every year. The event was attended by a large number of craftsmen, representatives of the Government of the Republic of Croatia, and diplomatic corps.

Recipients of Chamber's awards

04 ELECTORAL ASSEMBLY OF THE JUL

ASSOCIATION OF ITALIAN ENTREPRENEURS IN CROATIA

In addition to a number of members, the Honorary President, the Ambassador of Italy, H.E. Mr. Adriano Chiodi Cianfarani, Adviser Mr. Daniele Borrelli, Representative for the Economy, Mr. Gianluca Di Felice, Director of the ICE Italian Trade Agency, Ms. Margherita Lo Greco and Director of the Italian Institute for Culture, Ms. Stefania Del Bravo all attended the electoral assembly. 9 new members of the Steering Committee, which will run the Association for next two years, were appointed at the Assembly meeting.

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www.diplomacyandcommerce.hr

04 US INDEPENDENCE JUL

DAY

The US Ambassador, H.E. Mr W. Robert Kohorst and Ms. Shelley Allen hosted over 850 of guests at US Independence Day reception.

"California Dreamin" Party took place at the US Embassy in Zagreb.

Miro Kovać from HDZ, Mr Tomislav Ćorić, Environmental Protection and Energy Minister, H.E. Mr. D. Eduardo Aznar Campos, Spanish Ambassador to Croatia, Mr Željko Reinr, Deputy Speaker of Croatian Parliament, Mate Granić, advisor to Croatian president

US Ambasador, H.E. W. Robert Kohorst with family

Sven Darrer from Darrer d.o.o, Boban Spasojević from Diplomacy&Commerce magazine

06 FAREWELL PARTY OF SPANISH JUL

AMBASSADOR

On the occasion of his departure, H.E. Mr Eduardo Aznar, the Ambassador of Spain in Croatia, hosted the farewell gathering. During the get-together, he spoke about different projects in the economic, cultural and scientific segment. Many of them were successfully implemented in the four years of his stay in Zagreb, while various are in preparatory phase.

Momčilo Otašević, actor

10 MONTENEGRO'S JUL

STATEHOOD DAY

Montenegrin Ambassador, H.E. Boro Vučinić

13th July, the Statehood Day of Montenegro, was officially marked by a reception held in the summer garden of the Matis lounge bar. The reception was attended by numerous officials including MPs, representatives the President of the Republic of Croatia and the Prime Minister of the

Republic of Croatia, City Mayor Milan Bandić, Zagreb County Deputy, Nadica Žužak, a number of members of the diplomatic corps, representatives of all Montenegrin associations in Croatia, cultural and public figures, members of the academic community and many other guests.

MORE PHOTOS ON

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PEO PLE & EVENT S

12 BELGIAN JUL

NATIONAL DAY

The reception appropos the Belgian National Day that took place in the garden of the Belgian residence in the evening hours. 200 guests enjoyed a wide variety of Belgian beers and received, upon leaving, a box of Belgian ‘Puratos’ chocolates.

French Ambassador, H.E. Corrine Meunier, Nina Obuljen Kornižek, Culture Minister, Andro Krstulović Opara, Mayor of Split

H.E. Mr. Philippe Benoit, Ambassador of the Kingdom of Belgium, Mr. Damir Hoyka, well known Croatian photographer, and H.E. Mr. Andrew Dalgleish, Ambassador of the United Kingdom of Great Britain and Northern Ireland

H.E. G. Philippe Meunier, French Ambassador to Croatia and the husband of the current French Ambassador Corrine Meunier, Nina Obuljen Kornižek, Culture Minister, Italian Ambassador H.E. Adriano Chiodi Cianfarani

14 FRANCE'S JUL

This year, the fall of Bastille was marked by the French Embassy in Split. Over 200 guests from political, cultural and public life, as well as representatives of the diplomatic corps, enjoyed in the reception held in the garden of the Meštrović Gallery.

Photo: Dalibor Urukalovic PIXSELL

H.E. Mr. Eduardo Aznar, Ambassador of the Kingdom of Spain, Mr. Branko Baricevic, Head of the Office of the Representation of the European Commission, and H.E. Mr. Juan Luis Nilo Valedor, Ambassador of Chile

NATIONAL DAY

16 WELCOME RECEPTION JUL

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FOR CROATIAN FOOTBALL TEAM

After winning the silver medal at the World Cup in Russia, over half a million people have greeted their football idols in Zagreb. The bus with the „Vatreni" team drove from the airport to the city center, cheered by huge crowds of

people for over 6 hours. The Russian and French presidents, Vladimir Putin and Emmanuel Macron, as well as Croatian president, Kolinda Grabar Kitarović congratulated the team on winning the silver medal.

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BUSI NESS NEWS Renault

MANUFACTURING NEW CLIO MODEL IN SLOVENIA French automobile giant will double the production of its Zoe model in their biggest French factory in Flins as part of investment activities in the field of electric mobility, therefore Revoz and the factory in Bursa, Turkey, will take over the manufacture of the Clio model. Renault will invest around one billion Euro in improvement of manufacture of electric cars, and they are scheduled to launch a new version of the Zoe e-car next year, which will be the first renewal of the model since 2012, when this model found its way to the roads as one of the first commercial electric vehicles, Automotive News Europe reports, and Dnevnik daily communicated this news. Zoe is the best-selling personal electric car in Europe between 2015 and 2017, but the lead was recently taken over by Nissan Leaf, however Renault and Nissan have a strategic partnership. Last year, around 30,000 Zoe models were manufactured in Flins, and around 100,000 were completed since the start of production. Now, Renault plans to increase its daily production from 220 to 440.

Ridecar

ENTERING TAXI MARKET, FOCUS ON E-CARS

This rent-a-car company has invested HRK 120 million in its fleet so far, and they plan to invest another 25 by autumn. The new Law on Road Transport has significantly modernized this sector in Croatia, and has enabled many new players to enter the market.

Even though the law, primarily, had to be made to regulate the position of Uber,

with which taxi associations lead an open war, and physical conflicts weren’t lacking either, the new regulation allowed taxi service to become far better, more available, and generally less expensive.

However, additional news is that many companies in road transport sector will be able to organize their operations with greater dynamics.

KTC

NEW PETROL STATIONS

Air Pannonia

VIP FLEET DOUBLED Air Pannonia, the Osijek-based airline, is becoming an increasingly serious player on Croatian, as well as regional, aviation market, especially in the segment of VIP transport with private jets that is experiencing a strong expansion. The company increased its fleet with the new Cessna Citation 525A – CJ2 airplane, which will be used primarily for VIP transportation. According to Zrinka Vlašić Kujundžija from Air Pannonia, this is one of the more comfortable planes in this class, and aside from safety and reliability, it has greater capacity and speed when traveling to remote destinations, which will help them position their place on the European and global market even more.

Air Pannonia was established in 1993 under the name Air Tractor, and its primary business was tied to agricultural aviation, in order to transfer to VIP and medical transportation with airplanes later on.

The company invested more than HRK 27 million in improvement of facilities planned to work 24/7 (cafés from 6 AM to 10 PM). Retail chain KTC from

Križevci, one of Top 10 retailers in Croatia, opened two petrol stations with small shops and cafés on the Križevci-Vrbovec highway.

The company invested more than HRK 27 million in improvement of facilities planned to work 24/7 (cafés from 6 AM to 10 PM).

These are the first two petrol stations on the road leading to Zagreb, and it has been fully functional less than two years. KTC underlines that these are their first two petrol stations that are independent, because the previous 12 stations in as many cities of northern Croatia and Slavonia are part of KTC’s retail centres.

PBZ

PBZ IS THE BEST BANK IN CROATIA - INTESA SANPAOLO WINS “ITALY’S BEST BANK” The Euromoney Awards for Excellence 2018 went to Privredna banka Zagreb (PBZ) as Croatia's Best Bank and Intesa Sanpaolo as Italy's Best Bank. Banks are ranked annually by Euromoney, the leading publication on growth of international finance. The Euromoney Awards for Excellence are given worldwide to financial institutions that provide the highest levels of service, innovation and expertise to their customers. A wide range of qualitative and quantitative criteria was taken into consideration for this award that is seen as one of the most prestigious awards in the global banking industry. At the Euromoney

Awards for Excellence 2018 ceremony in London, Dinko Lucić, Chariman of PBZ Managing Board, received the award on behalf of the bank.

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B USINESS NEWS Viktor Lenac Shipyard

Xiaomi

DISAPPOINTED START AT THE STOCK MARKET ANNULLED

Shares of this mobile phone manufacturer were traded at the Hong Kong SE even at 15% higher price.

After a disappointing start at the SE on Monday, price of shares of Chinese Xiaomi Company went up on Tuesday at two-digit rates. Shares of this mobile phone manufacturer were traded at the

Hong Kong SE even at 15% higher price, in order for their price to be 19 HK$ (2.17 US$) at the end of trading, which is 13% more than the day before. Some analysts think that price leap is partially a result of the announcement that the share will become a part of Hong Kong’s Hang Seng index as of July 23.

Agrokor

BUSINESS PROFIT OF HRK 449.4 BILLION IN THE FIRST 5 MONTHS

The collated data shows that food and agriculture sectors, and retail and wholesale sector recorded positive results in the first five months. Agrokor Group operated with operating profit of

HRK 449.4 million in the first five months of this year, which is 10.5% more than planned, according to information from the latest monthly report of extraordinary administration, from which they pointed out the vote for settlement as the most important news. Commercial Court in Zagreb announced on 6th July the decision on confirmation of the settlement, pursuant to which the deadlines for filing lawsuits last are by 23rd July the latest.

RECORD PROFIT, BUT NO DIVIDEND

Lenac’s established positive business result in 2017 amounts to HRK 37 million, which is stated in the draft decision for its use in the invitation to Lenac Assembly that was published today via Zagreb SE, and with this, the shipyard posted a record-breaking level of net profit in a period of, e.g., last 5 years of business operations. However, since the Management now suggests that the entire amount of net profit posted last year should be allocated to retained earnings, it is most likely that the two-year practice of dividend payment to shareholders will come to an end: namely, according to decision of the Assembly, shareholders were paid the amount of HRK 1.45 million for 2016, which is HRK 0.09 of dividend per share, while from profit from operations in 2015, which amounted to HRK 25.92 million, the amount of HRK 11.99 million, i.e. HRK 0.75 per share, were allocated for dividends to shareholders.

Hrvatski Telekom

FIRST TO INTRODUCE 5G TECHNOLOGY IN CROATIA

Dukat

INCREASE IN PURCHASE PRICE OF MILK

Dukat has announced investments in development of the primary milk production in their buyout territory in the amount of HRK 50 million during 2018, and additional investment of HRK 5 million in grants for procurement of heifers, with

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the intention to incite the production of milk in their buyout territory. Dukat underlines that this announced growth of buyout prices of fresh raw milk is in accordance with milk buyout prices on the markets of the European Union.

With this Croatia sided with the first European countries where 5G functionalities were demonstrated in real infrastructural conditions. The network that operates in the 3.5 GHz spectrum was conducted before the installed 5G system, by using 5G network devices of Ericsson Company, ready for commercial use. With this, Hrvatski Telekom was the first in Croatia to introduce 5G technology. Hrvatski Telekom continuously invests in the latest technology and modernization of infrastructure. Last year alone, HRK 1.745 billion was invested in infrastructure, which is 8.5% more than the year before. In the past four years, total value of investment was more than HRK 6 billion. Public demonstration of 5G functionality in real conditions will be held on 13 July in Pula, the biggest city of the first region where modernization of network for 5G functionalities was completed.

www.diplomacyandcommerce.hr

Charles de Gaulle Airport

NEW BUSINESS LOUNGE PRESENTED Air France will invest more than EUR 900 million in the new business lounge for passengers and in the equipping of passenger cabins in airplanes in order to increase the satisfaction of their clients and allow them new experiences during their travel, but also in between flights. More than 60 million passengers pass through their business lounges, and in order to keep their passengers and adjust to new trends, they decided to invest and modernize their offer. Investment cycle in passenger cabins will last from 2019 to 2021. The new business lounge consists of the central bar Le Balcon, open kitchen where passengers can see the chef and order their meal, wellness area consisting of showers, saunas, cosmetics area in cooperation with the French company Clarins, children’s corner with video games and other entertaining contents, cocktail and detox bar for refreshments and relaxation between flights, quiet rooms and other contents. This business lounge has 540 seats.

Krka

RECORD BREAKING SALES OF EUR 680.5 MILLION

Slovenian pharmaceutical company continued their excellent business operations in the first six months of 2018.

Krka boosted their sales by six percent in the first half of the year, to record-breaking EUR 680.5 million, Slovenian media report.

Net profit went up by 11%, to EUR 101.4 million. On markets outside Slovenia, they sold products worth EUR 636.1 million which is 93% of total sales, and sales went up by 6% in terms of quantity, to 7 billion units (tablets, capsules, injections).

FINA

HRK 60 MILLION WORTH OF REQUESTS FOR WAGE SETTLEMENT

Payten

CARRYING OUT DIGITALIZATION OF RBA IN CROATIA Payten is introducing ATMs with money recycling.

Payten Company, member of the Asseco SEE Company, got the job to digitalize the branches of Raiffeisenbank Croatia. The job includes deliveries of ATMs, automatic teller’s counters and applicative solutions that turn the ATM into a multi-channel place of communication between the bank and the client. Emil Sapunar, Head of Coordination of Raiffeisenbank Hrvatska Business Network, said that they want to create “customer-centric” branches through this project. Ivan Bušić, member of Payten Hrvatska Management, states that they will implement a premium line of ATMs through this project, which has a money recycling function.

FINA has received about 7,500 requests for salary settlement, with 6,391 requests referring to 2017. Received about 7500 bases for payment, 6391 refers to 2017. According to the latest data

collated for a period of 17 moths, i.e. from the beginning of 2017 until the end of June 2018, the Croatian Financial Agency (FINA) has received around 7500 requests for salary settlement referring to the salaries that employers failed to pay, with the HRK 60 million of debt towards workers. The unpaid salaries towards workers on this basis amounted to around HRK 49.8 million, and based on enforced collection due, unpaid salaries were paid last year for a total of 2,558 workers, i.e. around 40% of them.

Apple

CANCELLING PRODUCTION OF TWO MODELS

Apple plans to deliver around 91 million units of new iPhones by the end of this year. BlueFin Research Company underlines that the company from Cupertino plans to stop the production of their last-year’s iPhone X model, as well as the production of now already somewhat out-dated iPhone SE model. According to the Bug, the reason for cancellation of

production of these two models hides in Apple’s decision to focus entirely on production of their three this-year’s new iPhone models that will be officially presented in the autumn. By the end of this year, Apple plans to deliver around 91 million copies of new iPhones, while they plan to deliver around 92 million copies of new iPhones in 2019 (total three models).

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I NTERVIEW

Cozy Luxury of ‘Stories Hotels’ Waiting To Be Discovered Usually, a luxury segment is the most competitive leader among other sectors, and has to find new ways to position itself in the global market with unique stories

ŽELIMIR KRAMARIĆ Director of Tourism Department at Croatian Chamber of Economy

The Stories hotels are located across Croatia, a country of beautiful and pristine nature, where a traveler can experience diversity within a short distance from rolling hills in Istria to the beautiful Adriatic coast and its 1246 islands and medieval towns.

What has Stories – a Croatian brand of unique luxury hotels created by the Croatian Chamber of Economy (CCE) – contributed to tourism?

— Modern tourism is the industry of emotions and experiences and the time of “sun and beach tourism” has been long time ago.

Today’s accommodation facilities are looking to differentiate themselves in many ways and create new destinations’ products with other stakeholders enabling guests to have special experiences. Usually, a luxury segment is the most competitive leader among other sectors, and has to find new ways to position itself in the global market with unique stories.

As you can see, everything today is about “stories and storytelling” that reveal values, experiences, qualities and brands. So, all of the aforementioned has led to the creation of the Croatian brand

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“STORIES” which challenges further development of the “high added value tourism” in Croatia.

The CCE’s Tourism Department has joined this exciting journey.

You started off with 16 hotels in the group, today there are 17.

How interested are Croatian hotels in joining this network and how much can it expand without losing its exclusivity?

— Prominent Croatian hotel owners have recognized the CCE’s Tourism Department as the key partner in this project and have established the Stories Hotels Association with the aim of promoting their boutique hotels together in the international markets and devise some

with the latest one being Horwath HTL’s study “Rethinking Luxury in Hospitality”, show changes in the travel habits of the consumers in the luxury segment. The trends show that nowadays high-end travelers prefer unique and extraordinary experiences rather than material luxury. This shift goes in-line with the vision of “Stories, Unique Croatian Hotels”, an association formed under the auspices

“STORIES” ARE THE BEST AMBASSADORS OF THE YEAR-AROUND-TOURISM AND THAT IS IN ACCORDANCE WITH THE GUIDELINES AND THE KEY GOALS OF THE 2020 CROATIAN TOURISM STRATEGY new projects. All members are active and contribute in different ways to the Association’s growth which is the biggest asset of Stories – the hotels are very diverse, in different locations but possess uniqueness and luxury as their focal points.

Apart from having high qualities amenities and top notch cuisine, every of these hotels should also have an ‘added value’. What do guests stand to gain when they decide to enjoy this offer?

— Recent hospitality analyses,

of the Croatian Chamber of Economy, consisting of 17 remarkable hotels that represent another, still undiscovered side of the Croatian tourism products.

How did you eliminate issues regarding the competition between the hotels and their cooperation on building a common brand?

— Each hotel has a different story to tell and each hotel’s destination has a number of other stories to be experienced. In this situation, there is no competition because they position themselves as a dif-

ferent story and each offer provides the guests with opportunities to visit all of these hotels and have acompletely different experience.

The Stories hotels are found in the most interesting locations - in hidden and secluded coastal coves, tucked away in thousand-year-old, UNESCO protected town centers, or in a Roman Emperor’s palace, or a luxurious castle once belonging to nobles, or a rich merchant’s manor, or among olive groves.

Lluxury is interwoven into their foundation and architecture, with each of them telling a unique story and offering an authentic experience worth sharing. The Stories hotels are the jewels in the Croatian hotel industry.

The association's slogan is ‘You are the Writer', since each of these hotels inspire their guests to participate in an authentic, engaging experience that shows them the legacy, heritage, and warm hospitality of the Croatian Adriatic.

To become a part of the ‘Stories, the Unique Croatian Hotels’, potential members have to meet certain criteria, such as 4 and 5 star rating, maximum 60 hotel rooms, and focus on local gourmet know-how.

What is the spillover effect from the strong growth of the tourism

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industry? Do agriculture, related services and cultural offerings, for example, benefit from this growth?

— 2017 was a great year for the Croatian tourism and the financial revenues from international inbounds were about 9.5 billion EUR. Directly and indirectly, tourism’s share in the Croatian GDP is between 20% and 25%. This makes tourism the No. 1 industry with the spillover effects on other parts of economy that are huge.

But the Croatian tourism is in the crossroads, trying to position itself not just as the „sun and beach“ destination but trying to develop new added value products and offers which all requires time and investments.

Luxury segment is definitely one of the ways to create new products in all tourism segments and „Stories“is leading them in the best possible direction. A team of business visionaries are creating a high benefit product, showing to the others how is possible to have a high quality tourism in Croatia.

They are also brave in a way because they are staking their business future. We would like to invite all the readers to experience their “stories” whenever they can.

PEOPLE ARE REALLY THE KEY FOR SUCCESS IN ANY BUSINESS, AND ESPECIALLY WHEN IT COMES TO CREATING NEW “STORIES” How successful has Croatia been in extending the tourist season to last all year around?

— “Stories” are the best ambassadors of the year-around-tourism and that is in accordance with the guidelines

and the key goals of the 2020 Croatian tourism strategy. Only those products that are shifting away from the sun and beach tourism are the way to succeed in tourism. Other segment, where we expect further devel-

opment and quick gains, are health, nautical, gastronomy and gourmet tourism, as well as adventure, cultural and city breaks. They are all contained within the Strategy and just take time, investments and patience to be realized. This is also tied in to the general business environment and competitiveness of Croatia.

One of the key issues during tourist season is shortage of workforce. What kind of solution does the Chamber have for that?

— Quite a lot of time has passed since Croatia launched its award campaign called „People are Key in Tourism“. Each year, the Croatian tourism industry rewards the best employees in tourism at the Croatian Annual Tourism Event. We think that this answers all the questions about HR and education in tourism industry, just like in any other industry.

Furthermore, the CCE is supporting reform of the vocational education in Croatia with the view of introducing centers of excellence and competence and dual system of vocational education to cater to the needs of the Croatian tourism industry.

People are really the key for success in any business, and especially when it comes to creating new "STORIES".

SUBSTANTIAL INTEREST IN JOINING STORIES There is a substantial interest in joining Stories, with each application carefully examined as it is crucial that we have only members that provide the same level of luxury and hospitality. Many of the members are part of international luxury hotel groups, such as Small Luxury Hotels of the World, Relais and Chateaux.

They are the leading hotels in the world, as well

as members of the Virtuoso Association, so their excellence is internationally recognized.

The Croatian brand of unique luxury hotels comprises of: The Kazbek Hotel, The Pucić Palace and Villa Dubrovnik in Dubrovnik; Adriana Hotel on the island of Hvar; Lešić Dimitri Palace on the island

of Korčula; Vestibul Palace Hotel in Split; D-Resort and Life Palace Hotel in Šibenik; Martinis Marchi castle on island of Šolta and Bastion Hotel in Zadar; Boutique Hotel Alhambra on the island of Lošinj; Hotel Bevanda and Design Hotel Navis in Opatija; Adriatic Hotel, Meneghetti Wine Hotel, San Rocco and Valamar Isabella Resort in Istria.

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CO LU MN JAGODA POROPAT DARRER

Business Communications Professional

PUBLIC OPINION:

DEMOCRATIC TOOL OR POPULIST DEMAGOGY

Which came first: the chicken or the egg? That’s approximately the answer when arguing weather the power of public opinion is one of the foundations of democracy or the way to empower populism. In commerce, the viral spreading of consumer’s opinion is transforming the traditional consumer into prosumer It was Jean Jacques Rousseau who has first introduced the term public opinion, and Edmund Burke the first to use a similar term general opinion in the public address to his voters connecting it with a democratic control of the government and the participation of the people in making executive decisions.

Public opinion and the urge to express our own opinions publicly are explained as a human need to communicate. First the mass media, recently Internet and social media, are the main agents and, according to some researchers, the creators of the public opinion. To paraphrase Umberto Eco, contemporary Italian philosopher and renowned semiotician, social media have given a right to publicly speak to a legion of fools that have previously been talking only in pubs after few drinks and didn’t harm the society because they have been shushed immediately. But now, they are treated equally as Nobel Prize winners. Television has promoted the Simple Simon over whom consumers felt superior.

The Internet instead, upgraded that same Simple Simon in the decision maker.

Political parties and politicians often use the terms "populist" and "populism" as pejoratives against their opponents. Such a view sees populism as demagogy, merely appearing to empathize with the public through rhetoric or unrealistic proposals in order to increase appeal across the political spectrum. In his book “The Rub of Time”, Martin Amis states that “populism relies on a sentimental and, in fact, very old-fashioned view that the uneducated population knows better in its instincts than the over-refined

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elite. That leads to anti-intellectualism, which is self-destructive for everyone. As Marijana Grbeša, Croatian political scientist says “the media for populists are the “oxygen of the publicity” and populists for media are “terrific media meet”.

Another Croatian political scientist, Berto Šalaj reminds us that populism enters the contemporary politics and political theory as left wing term, but today is

dinary" citizens (Morstein-Marx, 2003). In spite of these similarities, in the modern use, these two terms differ.”

The most influential contemporary definition of populism derives from the Dutch political scientist Cas Mudde, and according to him populism is an "ideology that divides society into two antagonistic groups, a common people and a corrupt elite, and which claims that politics should

IN COMMERCE, THE VIRAL SPREADING OF CONSUMER’S OPINION IS TRANSFORMING THE TRADITIONAL CONSUMER INTO PROSUMER related to right wing parties.

“The etymological comparison of democracy and populism leads to the conclusion that these are concepts of similar meaning.

Democracy literally means the reign of people, while populism originates in the Latin word populus or the people. In the Roman Republic the term was used to mark a political movement that represented the interests of "or-

be the expression of the will of the people" (2004). Some authors (Taguieff, 1995, Tarchi, 2002, 2008; Jansen, 2011) believe that populism should be treated as a political discourse or a political style that is inherent in different social and political groups since it is the only common feature of the various populist movements to call upon the people.

It is, above all, a political lan-

guage and rhetoric which insist on simplicity and directness. We read in Britannica that “in the classical democracy of Athens, it was commonly observed that everything depended on the people, and the people were dependent on the word. Wealth, fame, and respect—all could be given or taken away by persuading the populace.” Opinions were also swayed by means of speeches, sermons, and face-to-face discussions.

The influence of public opinion is not restricted to politics and elections. It is a powerful force in many other spheres, such as culture, fashion, marketing, literature, arts, public relations, or consumer spending. Susan Gunelius, for forbes.com writes that the term “prosumer” has transformed from meaning “professional consumer” to meaning “product and brand advocate.” “Rather than simply “consuming” products, people are becoming the voices of those products and significantly impacting the success or failure of companies, products, and brands, particularly through their involvement on the social web. No longer are businesses completely in control of their products, brands and messages. Today, consumers are in control. The leaders of this shift are the members of the social web — bloggers, micro bloggers, forum posters, social networking participants, and so on, which spread messages, influence people around the world, and drive demand.

That’s where the power of the social web and online influencers to drive word-of-mouth marketing further than ever comes into the picture, and that’s the ultimate goal for business leaders and marketers.”

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C O RPO RATE

Hotel Franchises – Opportunity For Croatian Tourism

Out of top 100 global franchising companies, 5 come from hotel business

PETAR PETRIĆ Licentiate in Law

The most famous international hotel brands have completely changed their business model. They are less concerned with the classic hotel-related construction and hotel ownership, and have been increasingly developing and bolstering brands, sales and marketing, while creating a model based on franchise fees, which is designed to increase revenue while reducing investment risk.

Out of top 100 global franchising companies, 5 come from hotel business. Although the majority of them come from the US, with franchising in Europe still not as developed as in the US, we can still conclude that the implementation of franchising and management contracts in Europe is on the rise.

In the Republic of Croatia, we have franchises in hotel business, but still their number is considerably lower than in other countries with developed tourism, which gives us a great development opportunity.

Foreign hotel chains have long waited for a more favourable moment to make a significant step forward in the Croatian market due to some problems in administrative procedures, the unresolved issue of ownership over tourist land, and infrastructure shortages.

But because of the increasingly favourable investment conditions in the Republic of Croatia, the latest survey shows that the global hotel franchise companies are very interested in the Croatian market since Croatia has become an attractive and growing tourist market and a very popular tourist destination.

By entering the Croatian market through franchising, the interna-

tional hotel chains would open the door to a much greater consumer power, despite sevearl existing key domestic hotel and tourist groups already making significant progress in that direction.

The world's largest hotel chains have decided to make the most of their business operations through franchise contracts.

Franchise is a way of doing business that yields good business results for both franchise providers and franchisees. It also provides opportunities for business expansion and profit growth for the existing hotels as the franchisees, while for new franchise subjects it facilitates less risky investments and business launches.

The franchise contract is therefore a contract between the owner / franchise provider or the hotel owner / franchisee.

When the hotel owners, as franchisees, want to join a trademark, they sign a franchise contract with the director of the trademark, as the franchise provider.

The most important elements of the franchise contract are: • fees • r ights and obligations of the franchise provider and franchisee

• r eservation Fees - fees payable for the operation of the trademark reservation system and could possibly include a remuneration paid in fixed amount for staff training.

What does the franchisee get when joining the franchise?

•T he right to use and operate under the trademark • Business know-how • Verified systems and procedures • Quality standards • Central reservation system • Centralized marketing system • Centralized distribution system • Business support (staff, operational support) • Further training of management to maintain the quality level • Lower business risk compared to doing business completely independently • Relative business autonomy

THE GLOBAL HOTEL FRANCHISE COMPANIES ARE VERY INTERESTED IN THE CROATIAN MARKET SINCE CROATIA HAS BECOME AN ATTRACTIVE AND GROWING TOURIST MARKET The franchisee pays the following to the franchise provider: •a ssociation fees - one-time fixed fee and additional fixed amount per room •b onuses - fees paid according to a pre-agreed formula based on the amount of income earned by the hotel •m arketing fees - fees payable against the amount of the revenue hotel generates and used for the promotion of a trademark

• Increased hotel sales and revenue due to the use of protected trademark • Reduced operating costs (joint procurement, marketing, reservations) • Increased funding opportunities due to better credit rating What obligations does the franchisee have?

• Adhere to the trademark rules and standards manual

• Use the trademark • Participate in a common reservation system • Participate in a common marketing system • Ask for permission from the franchisor during construction and renovation of the hotel •S hare accounts and other documents with the franchisee • Pay all fees in accordance with the franchise contract What benefits the franchise provider gets by giving a franchise?

• Contracted fees • Increase in trademark revenue increase in the number of hotels that operate under the name of one brand is affecting the growth and the value of the brand name and therefore the revenue from the sale of the brand name • Reduced overhead - every new hotel that joins a trademark contributes to covering the overhead of the trademark business The choice between franchising or self-managing the business depends on a number of factors, market conditions, and the strategy of a hotel company that decides on the ways to do business.

Despite the fact that the world's largest hotel chains have decided to base their business on franchise contracts to a large extent, and that the franchise way of doing business in hotel business can develop the hotel network and hotel chains in Croatia, the franchising decision that hotel owners or hotel groups in Croatia should make must be based on a comprehensive business analysis.

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T H E P O WE R O F F O O D

Anthony Bourdain's Legacy of Wit and Gourmet The immortal passion

WHEN interviewers dug to the essence of him, Anthony Bourdain said he was a simple man. He knew his life didn’t give that impression.

Much of it was set in roaring, steamy, yelling kitchens, from his first job as a dishwasher at the Dreadnaught in Provincetown, Massachusetts, through the slow climb as prep drone, line cook or sous chef at various eateries round New York, to head chef at Les Halles in Manhattan.

He weathered the hazards of pots, knives and fire, the dread of scorching the demi-glace or spilling a plate, under the half-friendly hail of colleagues denouncing him as a pédé, a maricón, a puta and a motherfucker, the international language of cuisine everywhere.

At Les Halles, he got through by crunching aspirins like sweets. Before that he was high all the time. From his teens he dropped acid, furiously miserable that he was too young and too suburban to have experienced the 1967 Summer of Love. In New York he moved on to heroin, just because it was the most dangerous drug in the room. He would always try anything once, but he used heroin for seven years. Should have died. He quit cold turkey, then stuffed his nose with cocaine. On drugs he was a self-destructive lout. Aggressive, depressive, almost unemployable. A mess.

And when all that changed in the 1990s, most definitively in 1999 when the New Yorker published a piece by him and he became a storyteller, life got no simpler. The piece was called “Don’t Eat Before Reading This”. It reminded finicky New Yorkers that fine cookery was all about cruelty, blood, engorged livers, rot and decay. People liked it, so he wrote a book, “Kitchen Confidential”, mostly at 5am between kitchen shifts, in which all the dirty secrets of restaurants came out. Uneaten bread sent out to the next table. Leftover butter strained of cigarette ash and used for hollandaise. Long-stored fish served up on Mondays. He praised offal and foie gras, cursed fascist vegetarians. People devoured it, and out of that came TV series on three networks. He just floated the idea of going to cool places, eating great food, while they paid. And they bought it.

From that point he travelled seven months a year, to almost every country on Earth. There he’d hop on a boat, a train or motorbike. He rode like a rocker with his gristly, tendony, jujitsu-honed body lean in jeans and T-shirt. He would seek out dim, hidden dives known only

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seawatery oyster on a fishing boat in France, at 12, was an initiation. It determined his future.

As for that nerve-shattering kitchen chaos, it masked the mechanical precision of a submarine crew. Endurance. Achievement. Three hundred eggs Benedict, not one returned. Food imposed absolutes: the things you must do (use a sharp knife) and things you must not do (eat unopened mussels, use a garlic press). And food conferred a place in a hierarchy of the scarred.

Even if you entered as a miserable puta, hard work got you respect.

The power of food was also extraordinarily simple. His aim in his first TV series, “A Cook’s Tour”, was to find the perfect meal. And he knew it wouldn’t be in some five-star restaurant. Food made him happiest if he experienced it in a purely emotional way. It might be the company, the moment, or some memory it evoked: of his mother’s grilled-cheese sandwiches, or his mother-in-law’s meatloaf. A plate of piss-poor peasant food could become something sublime, like feijoada in Brazil.

His perfect meal was the street-stall pho of his favourite country, Vietnam. In “Kitchen Confidential” he warned readers to beware of restaurant dirt. He learned to relish many unwashed hands delving in one pot.

FERMENTED SHARK

GOOD FOOD WAS MADE WITH LOVE, JUST AS GOOD SEX WAS to locals. (Once, in deepest Tokyo, he ate the best seafood of his life in such a place. Twenty courses, a saké shot between each one). As well as eating, he would have adventures. Go sky-diving. Swim in a frozen lake. Hack through leech-filled jungle. Deliberately get lost. For he was famous now. Not as a chef, for he’d never been a really great chef, and he loathed the commercialism of the celebrity-chef crowd; he would rather write “serial wanker” in his passport. But just as his own curious, restless self. His motto was to keep moving, as far as he could. Keep moving. Try everything.

In all this buzzing around, however, one thing was certain. Food had power. He recognised no god, was hostile to any kind of devotion. But “the food thing” ordered his life.

That first taste of a glistening, vaguely sexual,

So much globe-trotting frayed him. And it destroyed his marriages, though few knew better how food could bring people close. In his TV series perfect strangers opened up to him, telling him their stories over meals in their homes. He didn’t go in as a journalist, but as a guest, asking “What do you like to cook? What makes you happy?” In reply they would offer him food steeped in culture, history and memory. It could be vile—fermented shark in Iceland, warthog rectum in Namibia. But he would always eat it. It wasn’t worse (he said) than a Chicken McNugget. And he wanted to return the kindness. On one trip to the Middle East he wondered aloud—as similar feasts were served up by both Jews and Arabs—whether the world’s problems couldn’t all be solved if people just sat down, without fear, and ate together. For good food was made with love, just as good sex was.

To share it was to love one another.

From The Economist, published under licence.

The original article, in English, can be found on www.economist.com

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FATH’S ESSENTIALS COLLECTION

Exclusive in

INSTITUT PARFUMEUR FLORES

Dežmanov prolaz 2, Zagreb, Tel: 0148 14555 Institut Parfumeur Flores

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I NTERVIEW

Between Being Exotic and Close

Mirjana Polić-Bobić, PhD, has found exceptional examples of the Spanish – Croatian cultural ties in the Spanish archives, which possess a wast treasure that researchers from many parts of Europe and the world use to study their national history and culture

MIRJANA POLIĆ-BOBIĆ Author

In the 1990s, when the Republic of Croatia gained its independence, the Literary Society of Croatia launched a series of events and publications called Relations, focused on the ties between Croatia and other cultures and people. The first edition of the book "Croatia - Spain: Cultural and Historical Connections", written by Mirjana Polic-Bobić, PhD, is a part of that series. The second edition, presented as a part of marking the 25th anniversary of the Spanish recognition of the Republic of Croatia and the establishment of diplomatic relations between the two countries, was supplemented thanks to the great assistance from the Spanish side and the Spanish Ambassador, H.E. Eduardo Aznara Campos.

At what point, during the research of the Spanish literature and the history of culture, have you developed an interest in exploring the Croatian-Hispanic relations?

— While looking for the original manuscript of Paletin's "The Right and Justification of the War by the Spanish Principals against the People of West Indies" in Spanish

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archives in 1983, my first major finding - secret dispatches that the Spanish sent to the Republic of Dubrovnik - was purely incidental.

Two books were written on the back of these documents, and they were my starting point. To properly read these documents and convert them into a book, I had to study a huge volume of secondary literature, that is what other researchers have already written about such and similar topics. While doing so, I was quite surprised to find out that Croatia was much closer to Spain and more familiar to it in the past centuries than at the time just before the independence.

the distant parts of that big world, they did exist. There is, for example, the pilgrimage data from Šibenik, a town which patron saint is Jacob, in Santiago de Compostela, dating back to the 14th century. I have probably found the strongest links in the Middle Ages, embodied in the work of Herman Dalmatin at the Toledo School of Translation in the 12th century, based on the research done by Croatian and Spanish experts. Furthermore, I presented the first ever map of the Croatian Adriatic coast, which was produced by the Hispanic-Arabic cartographer, El-Idrisi, who, at the time, in the 10th cenutry, worked on the court of the Norman ruler of Sicily.

The 16th century was hard on the Mediterranean and its hinterland. Everything that happened in that area at that time was, directly

CROATIA WAS MUCH CLOSER TO SPAIN AND MORE FAMILIAR TO IT IN THE PAST CENTURIES THAN AT THE TIME JUST BEFORE THE INDEPENDENCE What kind of connections did the Spaniards and Croatians build throughout history?

— In the Middle Ages, the Croatian and then the Croatian-Hungarian kingdom belonged to the Western Christianity and to the same civilizational circle as the Iberian peninsular kingdoms, which at that time, gradually took over their land from the Arab and the Moorish invaders.

Although we may think today that, in the Middle Ages, there were no connections whatsoever between

or indirectly, tied to the battles between the Western Christian world and the Ottoman Empire. At that period, which saw the strongest attacks by the Ottoman Empire on Croatia, which was transformed into a kind of frontier in itself, Croatia, following a decision made by the Croatian Sabor, came under the rule of the Crown of Habsburg, namely kings Karl I and V, along with large parts of Europe. Thus Croatia, plus some other Central European countries, were ruled

by the same royal family as Spain.

This period is also incredibly interesting and the connections I covered are diverse - from the secret diplomacy and the speeches of the Croatian nobility (Vuk Frankopan) given in front of Karl V to the work done by the Croats in the Iberian Peninsula, Spanish soldier becoming a theme in the Croatian oral teachings in Konavle at the time of the Battle of Herceg Novi, and the heroic death of these soldiers "on the Dalmatian soil" during the Herceg Novi battle which was depicted in the Spanish 16th century epic.

Still, there is still plenty of room for research.

I have also covered two topics from the centuries after that - the so-called Uskok War which ended in the Madrid Peace Accord in the 17th century, and a great topic of Croatian missionaries who, as the part of the so-called foreign contingent of the monks from the Society of Jesus, and thanks to the agreement of the Congregation with the Spanish Crown, were active in the New World and published their studies of the New World in Spain in the 18th century.

The 20th century is a great subject that provides more opportunities for analysis, and I covered it primarily through the prism of art - the art of words, painting or music, and then through publishing and scientific research. There are, in my personal opinion, the most interesting presentations and correspondence analyses (Miguel de Unamuno and Bogdan Radica), a number of travelogues (Ljubo Babić), and particularly interesting

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"war texts" written by two Spanish authors from the early 1990s - Hermann Tertch and Arturo Pérez-Reverte, who were the witnesses of the war against Croatia in the period from 1991 to 1995, as well as August Cesarec's civil war experience from the Republican side.

Some of the texts are based on the research of primary sources, and a part on the new take of the previously researched sources.

How big of research material were they?

— That's right. The „portable" parts of the book are the result of my research of archival material stored in Spanish archives or in Hispanic-American archives that keeps the materials from the time of the Spanish colonial lordship in the New World. I have published this unpublished material, transposed and partly translated into Croatian, in four separate books, from 1994 to 2015. I published two of these four books in co-operation with the academic Franjo Šanjek, O.P., and Professor Mia Korade. Spanish archives, thanks to Spain's great contributions in Europe and the world in the past, is a treasure for researchers from many parts of Europe and the world which they can use to study their national history and culture. These are the so-called primary sources. Spanish researchers had studied these materials even before Juan Bautista Muñoz split them grosso modo into – the „American“ and „Pennisulan“ , i.e. into the European, periodic and great historic topics – in a valiant effort to arrange the Spanish state archives in the 18th century. According to my findings, in 1605, Prudencio de Sandoval was the first to write about the connections between the Spanish ambassador in the Venetian Republic (this was Diego Hurtado de Mendoza, the famed writer and one of the key diplomats of Karl V) and certain individuals from the Croatian coastal towns, primarly with the nobleman Marin Zamagna, in the first ever biography of Karl V. The 20th and 21st century Span-

ish historiography deals with the connections between the Spanish royal families with the eastern Adriatic and the Croatian regions as part of the history of the 16th century. Croatia, on the other hand, has been focusing more on the connection between the Republic of Dubrovnik and the Spanish Crown.

How did the opinions that the Croatians had of the Spaniards and vice versa change over time?

— Imaginaries and concepts are some of my favourite elements of this whole link between the two

hand, in the novel about knights, Claribalte, published by Gonzalo Fernández de Oviedo in 1519, a member of the King's highest trust circle, speaks of the wars between the "King of Albanians" and "King of Croats", and the space in which they live is represented as so far and unknown that the chronicle of these wars was written by an unknown chronicler in the extremely exotic "Tatar" language.

The way we viewed the Spaniards, at that time, was also dichotomous – on one hand, they were the only backbone to the Christian

THERE IS THE GREAT INFLUENCE OF GOYA'S AESTHETICS AND WELL-KNOWN SPANISH MOTIFFS ON "THE PETRICA KEREMPUH BALADS", WRITTEN BY MIROSLAV KRLEŽA, AND ON THE WORK OF LJUBA BABIĆ AND HIS STUDENTS

cultures. I cannot give a simple answer to your question because the changes in the imaginary are slow, always retaining something from their starting point. Sometimes they do change significantly, or a few of them exist in parallel and differ from one another. I will give you a few examples: in secret messages from the mid-16th century until the end of the Uskok War, the concept of Croats is concrete and relatively stable, but there are nuances and differences between, for example, Dubrovnik and the Uskok, or the people from the Croatian hinterland. On the other

world and, secondly, in the folk tradition, the arrogant soliders were very aware that they were fighting on behalf of the strongest Christian ruler at the time.

I would also like to mention two modern authors, Tertch, who is a publicist, and war reporter and novelist Pérez-Revert, who, aware of the gaps in the imagery of what their people think of Central Europe or the Eastern Mediterranean, have bombarded their readers with a very effective representation of the differences between vague stereotypes and the situation that existed in that world in 1991.

You have lectured at several Spanish universities. Did you find there any colleagues who were equally interested in this topic?

— The answer two your question could be really long because the question of linkages between cultures and societies is now being explored by many of the theories and theoretical starting points.

Regarding the links I first investigated, which is the link between the Croatian regions and the Iberian peninsula in the 16th century, I found interlocutors, or better to say teachers, pretty quickly in the group assembled around the Archivo de la Frontera project at Universidad de Alcalá, which is active even today and you can find it online. The issue of „others“, regardless of how far and exotic or close they were, but were somehow always "different", has been particularly present in humanistic and social research in the last forty years. For example, 10 years ago, at the postgraduate studies at the Universidad de Guadalajara in Mexico, I taught a module titled "The Image of Americans in Europe in the Sixteenth Century Based on Written Sources". On the other hand, the issue of the connections is dealt with in many ways, through a number of disciplines. I would just like to mention that back in the 1970s, when I was a student, I learned about languages thanks to Professor Rudolf Filipović, who was one of the pioneers of such research. The second pioneer was August Kovačec, who began a systematic study of the Jewish-Spanish or Sephardic materials and who studied specifically the enclaves in Dubrovnik and in some cities in Bosnia and Herzegovina and Macedonia, as well as the changes they went through in contact with the cultures and languages of the big nations. Today, entire groups of researchers at universities in the United States, Mexico, Spain, Germany, the Czech Republic, Hungary and elsewhere are studying the Jesuits and the interculturality that resulted from their work.

CONTEMPORARY CULTURAL LINKS ARE WEAKER Which segments of the Spanish cultural heritage are visible in today's Croatian cultural production?

— I must admit that I can hardly identify a particularly visible influence in latter times, in relation to the recent creative work. Of those artists whose work I have shown in the book, I would like to single

out the great influence of Goya's aesthetics and well-known Spanish motiffs on "The Petrica Kerempuh Balads", written by Miroslav Krleža, as well as the strong influence of Spanish painting on the work of Ljuba Babić and his students, Croats and Slovenes. However, we are talking here about the artwork that is almost a hundred years old.

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David Byrne, Photo: Julien Duval

MU SI C

INmusic #13 Real Madrid among festivals!

Tired and wet from the rain, with ears full of wonderful music on the beautiful islands of Jarun Lake in Zagreb, next to the Sava River, we managed to catch a breath and let our impressions and images settle in our mind. We were at the INmusic #13, the strongest ever, the most crowded ever, with the most intense “shot through the heart” of all the festivals.

PROLOGUE

INmusic festivals are the wildest during football championships, and when Croatian national team is playing, because the city is entirely red and white and covered with a chessboard pattern, and the festival is full of people with jerseys of the national team, and Croatia’s games are watched at the Hidden Stage, but this often slightly distracts the viewers’ attention from the music until all the commotion around the game is over. However, this line-up was “The Greatest Hits” of all INmusic festivals ever, and there wasn’t much chance for anything to go wrong. Luckily, even though there were talks about how the Russians were shooting at the clouds with their magical devices and something called silver-iodide, like in

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the 1980 Moscow Olympics, which, allegedly, brought nice weather to Russia, and lousy weather west of Kaliningrad, everything went well, because it was raining only at the end of day three.

DAVID BYRNE

There is a song by the Talking Heads, “Once in a Lifetime”. That’s it, right there. You fantasize about seeing David, who has been present in your life since you can remember or since birth, depending on the generation, almost like Bowie. And then you run into him at Jarun.

This Dorian Gray of a man was

turned on the radio (there was no satellite radio or internet radio, you had to catch the one nearest to you), and the radio announcer sarcastically and unwillingly announced their song with “Punk is coming to Nashville, for the first, and hopefully, last time”. World fame was only a few years away from that moment. They were this incredibly famous band that moved limits, then David started playing world music and Latino rhythms, after which he dropped everything and became a bicycle rider and travelled the world on his bicycle, then he became a travelogue writer and he promoted his cycling travels. He then returned to music, where he combined his solo songs and the Heads in his set list. But the way he did it! 12 (in words: twelve) of them in grey, i.e. silver suits, walked around on the stage, many of them were actually the drumline

NICK CAVE IS PLAYING SOMETHING THAT NO ONE UNDERSTANDS FOR YEARS, AND AFTER 30+ YEARS EVERYONE GETS WHAT HE WANTED TO SAY first in some New York art school, after which he started a new wave with their Talking Heads, side by side with Blondie in America. Only then it was called “punk” and not “new wave”. There is an anecdote that shows how misunderstood they were, where the Talking Heads were coming to Nashville (or to some other place in the Deep South full of country music) and they

and they were wearing a complete set of drums on them. There were guitars and base-guitars and players of wind instruments and what not. They walked around, in a whirl of the greatest hits, ending with “Burning Down the House”. After that, we saw at home (for some reason there is no hot spot at INmusic for the second year in a row, which is a great flaw, because people tend

to lose each other in the crowd if they don’t have roaming service) that this big boy with a slender stature, boyish face and hair (except that he is completely grey) was born on May 14, 1952. Wow! 66 years old! Unforgettable, Dave.

THE KILLS

If David is a legend, then The Kills are a modern walking rock’n’roll story that is becoming a legend with time. Cool as Schweppes with ice cubes, the two of them, Jamie Hince and Alison Mosshart, rule the stage singing one after another a line of energetic hits, a blend of indie rock and blues and what not. They are charismatic, sexy, photogenic, r’n’l, born for the stage and born to be watched! Englishman and an American woman, like in Oscar Wilde’s novels. It is very difficult today, when there aren’t many guitars around, to have a guitar band that rocks and gathers different generations, but this creative duo makes it work. Jamie said after Kragujevac “I wish bands started using guitars more again”. So would I. so would we. But the way you, kids, use them. Alison is the top of how a woman should look like and act, not only in rock&roll.

The Kills killed it. (haha, nice, ha?)

QUEENS OF THE STONE AGE

Here’s that moment when you look at the line-up at a festival, and you realize that, as a fan of the British alternative scene, you are

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enjoying the best festival yet that doesn’t have any British bands.

Aside from half of The Kills and these Superorganism new kids, who, essentially, like Cave, live in England a little. Everyone are mainly Americans. Nick is from Melbourne. Since the time I was little, in 1980s, when the “Second British Invasion” took place, and in 1990s with Brit-pop, the Brits made a huge mistake somewhere.

The best bands have been coming from USA for 15 years already, and they sound British. Maybe we can’t say that entirely for Queens of the Stone Age, but we can certainly say it for Interpol. Chick alt-rock and the biggest crowd ever at INmusic.

SUPERORGANISM

This is the best surprise of the festival. At the Hidden Stage, which is really hidden from Stribor’s forest, a multi-ethnic attraction, Superorganism, appeared. According to her accent and appearance, I thought that the singer is a Chinese from America, and she turned out to be Japanese from the UK. It was as though the 1980s were reincarnated in rebellious and colourful light and enjoyment in every note.

As through Beck sang his “Loser” once again. The Superorganism and their “Everybody Wants to Be Famous” is the same for the new new generation as the “Loser” was for our generation: childish, smart, trash rebellion, hymn of the generation. Andy Warhol said that in the future (presumably, we are in it now), everyone will be a star for 15 minutes. He didn’t say that everyone will want to be a star. With personal accounts on Facebook and Instagram, everyone has their broadcast channel. I’m sure Andy wasn’t referring to this, but it happened. Everyone is a star and everyone suffers for fame, even if they have to throw poo at each other in a reality show. I can’t wait for more songs from the Superorganism!

are supposed to sound like. She sounds like Placebo with more electronics, or like Eurhythmics with more guitars. She plays the guitar excellently and innovatively over a dominating electronic background. The 4 of them are lined up on stage somewhat like Kraftwerk.

Like The Hurts. The lovely singer lifts us to a wonderful level necessary for the performance...

NICK CAVE AND THE BAD SEEDS

You can never get enough of Cave, this is my third time with The Bad Seeds, and I saw the Grinderman once as well. Anyway, Nick introduces us into a trance with his depressing poems, reflections about good and evil, God and Devil, and other dichotomies. Whenever he mentions “the Devil”, the stage turns red. Like that Black Lodge in Twin Peaks, or like a lobby of an elegant Hell. Nice touch. New

(Ok, David Byrne is fine too. Whatever comes first.)

ALICE IN CHAINS

If you listened to Alice in Chains in 1993, you didn’t really think that you will see them 25 years later equally perky, but that’s what happened. Old American grunge.

They are all old-time rockers. Some are bearded men with hats, some wear long hair. I can see exactly how I learned to love the American rock in time. I guess in the general feminization of men and waxed smoothie-drinking guys from the gym, you want to say: I want to see a retrosexual from a saloon or a pub, drinking beer and shooting pools. Retro is refreshment after metro. We remembered our early youth. What a party! The singer sounds the same as the unfortunate one before him. The singer is a mulatto but he sounds white. Rock was invented by the blacks, and it’s great that they took it back a bit. I don’t know who convinced them that hip-hip is theirs and guitars are white. This is the real, inclusive, rock America. Well done for Alice.

PORTUGAL.THE MAN

Queens of the Stone Age. Photo: Julien Duval

NO EPILOGUE. WE’LL SEE EACH OTHER! IF THIS FESTIVAL IS GROWING AND IMPROVING ITSELF LIKE THIS, WHAT WILL HAPPEN NEXT YEAR? NME SAYS: ZAGREB, THE PARTY YOU HAD! SEE YOU IN 2019! LOVE YOU INMUSIC, MORE THAN EVER

ST VINCENT

St Vincent is either a saint or an island in the Caribbean Sea. Well, it’s also a band. A few months ago, this young American (who again sounds British, in accordance with all the traditions since 2003 until today) performed alone on the stage, with a matrix and a guitar, and there were all kinds of comments. I found it to be great, innovative. She is here now with a four-member band, graphically perfect. Wonderful in terms of music. This is now a band and a songwriter from the 21st century

fame came to him with Peaky Blinders and Red Right Hand. Since I was in Belgrade in November, I have an idea of how he will end the performance. I said out loud “Push the Sky Away will be the last one”, but Nick tricks me again and returns again to play some more.

Festival performance extended by 15 minutes, and he played for a total of 1:45h. What a man, what energy! That’s how you do it. You play something that no one understands for years, and after 30+ years everyone gets what you wanted to say, and you fill the Belgrade Arena or Jarun, and young people know everything by heart. At the end, he took to the stage about a dozen young people who were singing all the songs even though they are 18 or 20 years old. According to Wikipedia, this Libra will turn 61 on September 22. Your Honour, I want to change my statement. When I grow up, I want to be Nick Cave.

Nick Cave. Photo: Julien Duval

Alice in Chains. Photo Julien Duval

When I heard that the band is from Alaska, I thought that was great. When I heard that they have 6 albums, I thought it was great they were persistent enough to reach stardom. They came to Zagreb with “Feel It Still”. Now they found their sound, and they should stick to it, because it is great.

INTERPOL

And here are the apostles of darkwave. My favourite expression is “Joy Division lives as long as the Editors and Interpol exist”. And New Order as their direct heir, but that is another story. I found it extremely interesting that at the time when I was listening to Joy Division, for a long time there was no band that was directly inspired by them, and then, at the start of the 21st century, two appeared.

Interpol came in the golden age of the alternative, mid 2000s: Franz Ferdinand, The Strokes, The Killers, Editors, Interpol, and the others. Again, they seem British.

They say that we will yet hang out.

Disco ball emits light to the crowd.

It’s starting to rain, and an amazing game of light is created through the rain curtain. Dark music, darkwave and other directions, that’s existentialism, that’s Kafka, that’s Sartre.

Through music. A brilliant end to the festival. We are running home, soaking wet.

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C ULTURE NEWS

Grand Opening Of 65th Pula Film Festival Source: Cropix, Photo: Danijel Bartolić

Grand opening of the 65th Pula Film Festival was held on Saturday night at the Pula Arena, with an appropriate ceremony and traditional fireworks.

Opening the Festival, envoy of the Prime Minister, State Secretary at the Ministry of Culture, Krešimir Partl, said that the 65th edition of the Festival celebrates also the rich tradition of Croatian filmmaking of all the authors, creative, film workers, who enabled and ensured the quality and continuity of this Festival. After thanking all the film workers who made, created and finished their films in the past year, and who brought them to this, most beautiful, film stage, Director of the Pula Film Festival Gordana Restović especially mentioned the Pula audience which, as she said, “has followed all the films in the past 65 years, and has paid tribute to the film art in this magical temple”.

Among the many guests and invitees at the opening of the festival were actresses Milena Dravić and Neda Arnerić, who arrived in Pula as part of the crew on the film “Aleksi” directed by Barbara Vekarić.

Source: Dubrovnik Festival

'Nabucco' to open 64th Split Summer Festival

Source: HNK Split

Grand opening of 69th Dubrovnik Summer Festival The operatic ensemble of the Croatian National Theatre from Split opened the 64th Split Summer Festival with their premiere performance of Verdi’s opera ‘Nabucco’ in Peristil Square under the conduct of Maestro Ivo Lipanović. This is a redirecting and adaptation of the play that was directed by the recently deceased director Georgij Paro in 2003. Now, the performance was prepared by his assistant Jelena Bosančić. Leading role was given to baritone Devid Cecconi, the role of Abigaille is played by soprano Daniela Schillaci, tenor Domagoj Dorotić is Ismaele, and soprano Antonija Teskera plays the role of Fenena.

By raising the Libertas Festival Flag accompanied by the lyrics of The Hymn of Freedom in front of St. Blaise's Church, the 69th Dubrovnik Summer Festival was officially opened. The opening ceremony for Dubrovnik Summer Festival grew on a collective memory of the carnival, a season of the year when traveling actors, troubadours and others could enter the City and entertain the citizens with their plays and performances until the holiday of Ash Wednesday. Duke of the Dubrovnik Republic presents the keys to the City to actors and thus symbolically allows performances in the City. The Festival lasts until 25th August, and approximately 2000 artists from all over the world will perform around eighty music, dance, folklore and other programs in 47 days on 20 locations.

The “Oldest Known Fragment” of Odyssey Found in Greece

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Source: Pixabay

Archaeologists in Greece found, as they believe, the oldest known fragment of Homer’s poem Odyssey. Greek Ministry of Culture announced that a group of Greek and German archaeologists found an engraved clay tablet in ancient Olympia, the home of the Olympic Games in Peloponnese. The tablet contains 13 verses from the 14th book where Odysseus speaks to his friend Eumaeus. The first estimates date the finding back to the time of Roman Empire, probably before the 3rd century. The date is yet to be confirmed, but the tablet is nevertheless a great archaeological, epigraphic, literary and historic monument, the Ministry states.

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