Shellfish farming Reduced production is temporary and will rebound with new practices
Boris Žgomba, President of the Association of Croatian Travel Agencies Annual evaluation of the National Tourist Board
Consumption New clothes a prerequisite €930 per family spent last year on clothes and footwear
MARICULTURE
INTERVIEW
HOUSEHOLDS
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Croatian Business & Finance Weekly Established in 1953 Monday / 26th April / 2010 Year III / No 0106 www.privredni.hr
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pvinternational pv international C R O A T I A N
C H A M B E R
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GOVERNMENT AND ENTREPRENEUR DIALOGUE ON ECONOMIC REVIVAL PLAN
NECESSARY CHANGES IN ACCEPTING PERSONAL RESPONSIBILITIES Many are in favour of changes and making difficult decisions only in the case when they refer to somebody else. It is high time to implement necessary changes, says Prime Minister Vesna Antonić and Igor Vukić ithin the last few days, the Croatian Prime Minister, Jadranka Kosor, introduced her comprehensive Economic Revival Plan, proposing the Government start its implementation in three days. “We should start working very hard and change many things, such as our habits, our relationships towards work and accept our responsibilities. These actions seem to be most important to me”, elucidated the Prime Minister. “Many are in favour of changes, making deep cuts and reaching difficult decisions but only in the case when these actions refer to somebody else. When the same requirements need to be applied to them, they usually reply that their areas of concern cannot or should not be touched and that the anything taken away belongs to them. It is high time to change such attitudes” stressed Prime Minister Kosor. “The programme will be successful as long as its elaboration is clear, concise and accepted, along with its rapid and high level implementation” says Gordana Kovačević, Chairwoman of the Ericsson Nikola Tesla Board. She also added that implementation risks could be reduced if rel-
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evant experts would participate in an open dialogue, related to such areas and activities which require further elaborations and scenarios. Two very different evaluations Members of the National Associations of Towns require an urgent dialogue with Ivan Šuker, Finance Minister. The Association representatives require further clarification to the changes in income tax regulations, as announced in the programme. Initial calculations show that local government will lose at least €35.6 million by the end of this year, increasing to €85.5 million thereafter. Mladen Balić, the owner of Hrastico, a company which produces oak furniture, hopes that average salaries, paid from the budget, will be based on the nett average salary in industry. The Croatian
Employers’ Association has published two very different evaluations of the programme. Vladimir Ferdelji, the CEA president for Croindustrija, believes that, apart from a reduction in specific quasitaxation, the programme itself
does not provide industry with sufficient industry-related concessions. Ferdelji believes that the deindustrialisation process, which has not yet been halted, “will bring us to the position of being economic slaves”. However, other CEA presidents, such as Damir Kuštrak or Ivan Miloloža, the manager of Munja, reacted in a more approachable manner by summing up many evaluations which could have been heard during the previous week - the programme is one step forward, there are some very good elements and acceptable goals, but an accurate evaluation can be given only after full implementation.
Croatian Chamber of Economy: Croatia needs a unified development strategy The sombre influence of the financial crisis has encouraged the Government to propose a wide range of different measures with the basic intention to regain control over expenditure. The measures proposed are rather similar to those proposed by the Croatian Chamber of Economy at the beginning of 2009. “Our goal is to support the Government in the matter of collecting debts and paying bills which opens one of the most important questions - the application of morality and ethics not just in terms of conducting business activities but also in everyday life. This measure has a special resonance, as it creates a framework for the normal, everyday functioning of the economy and society. If the proposed measures are to show results (in our opinion some still require additional modification), Croatia needs a unique development strategy whose creators are not only experts in fiscal politics but also in every other area, especially in monetary politics,” as reported by the Croatian Chamber of Economy.
2 VIEWPOINT
Privredni vjesnik Year III No 0106
IVANA KOLAR, GENERAL MANAGER OF TERME TUHELJ
Thermal resorts as a basis for the development of continental tourism Wellness and spa tourism is very popular in Europe, but thermal resorts should provide a contemporary, varied and quality service nly recently has Croatia has started promoting continental tourism, with its thermal resorts providing a good foundation for future development. As wellness and spa tourism is currently very popular in Europe, many clients are looking for new destinations, where they could spend shorter breaks. However, it is important that resorts provide a contemporary, varied and highquality service. The management of Terme Tuhelj were very much aware of these facts. Hence, its members devoted considerable effort in visiting similar European destinations and experiencing, in person, both efficiency and mistakes. For the last six years, Terme Tuhelj has significantly invested into the renovation of its accommodation and other facilities as well as development and staff training. In order to provide a top-quality wellness, hotel or catering facility, it is not enough to offer interesting architecture and interior décor but top quality attractions, approach and service. Although Terme Tuhelj is the largest spa centre in the continental region, its hotel has not yet been assigned the highest number of stars. However, Terme has identified a considerable increase in the number of arrivals, with visitors showing increasing confidence. The Croatian National Tourist Board and the Croatian Chamber of Economy have recognised its hotel as the best in its category. Last year, Terme was presented an award for not only the best ther-
Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
registered
shellfish farmers
SHELLFISH FARMING
Reduced prod Jozo Vrdoljak
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IMPRESSUM:
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he strategy and national programme of Fisheries Development anticipated that 20,000 tonnes of oysters and mussels would be bred in Croatia in 2010, whereas only 4,000 tonnes of oysters were bred during 2008. According to the Ministry of Agriculture, Fisheries and Rural Development, the total yearly shellfish production for 2008 amounted to 3,000 tonnes of mussels and one million oysters. Although data for 2009 have not yet been compiled, the Ministry believes that production will remain at the same level or show an insignificant decrease. This means that predictions on an increase in shellfish production have not been fulfilled. However, the miscalculations were not made by the authors of the documents. On the contrary, they foresaw the importance and perspectives of shellfish farming, emphasised all problems individual farmers might face as well as identifying the necessary remedial actions to be undertaken in order to enhance production.
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mal resort in Croatia but also a special award for the preservation of the Croatian wellness tradition. Terme Tuhelj was acknowledged as the best thermal resort only four years after its opening, which confirms the importance of on-going quality and services development. New treatments have been developed as well as new programmes. If continental tourism is to show progress in its development, it is important to connect it with other tourist attractions in the surrounding area and create regional products. Krapinsko-zagorska county also needs to be branded in order to make its attractions more available and identifiable to visitors. Despite having many advantages as a region, none of them can be singled out. As a result, many people are not aware that there are numerous castles, churches and museums in the region, as well as beautiful nature, rivers and a highly-developed local gastronomy. In co-operation with Krapinsko-zagorska county, the local Tourist Board and the Croatian Chamber of Economy and leading regional economic agents are currently preparing to present the undiscovered continental Croatia as a destination for all visitors coming to the country.
FOR PUBLISHER Nikola Baučić +385 1 4846661 uprava@privredni.hr
IMC MANAGER Dea Olup +385 1 5600028 olup@privredni.hr
EDITOR IN CHIEF Darko Buković +385 1 5600003 bukovic@privredni.hr
TRANSLATION Tr@duco traduco@zg.t-com.hr
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COUNSELLOR, INTERNATIONAL OPERATIONS, LANGUAGE EDITOR Ray Fletcher fletcher@privredni.hr
Problems with predators “Croatian shellfish farming has reached its nadir. Production is very low as predators have caused huge damage on the farms. This damage cannot be restored as many farmers have not insured their farms”, says Antun Pavlović, a member of the Guild of Fisheries and Mariculture at the Croatian Chamber of Trades and Crafts. Pavlović emphasises that one of the reasons for missing production targets is based on the fact that Croatia does not have a developed infrastructure for shellfish trading. More specifically, the authorities have not ensured
The Ministry of Agriculture fragmented production and the required structures for issuing all necessary trade and export permits. Moreover, regulations on purification centres, as foreseen in EU documentation have been adopted by the Croatian government, but have not yet been built. “The fact that the shellfish industry cannot be
Reduced production was influenced due to shellfish not being able to be sold without appropriate documentation conducted as before, without any necessary documents, most certainly influenced the decrease in production. It significantly affects small entrepreneurs as they do not have sufficient funds at their disposal to invest in infrastructure and ensure sales as required under the regulations”, explains Pavlović. The Ministry of Agriculture, Fisheries and Rural Development believes the main problem lies in obsolescent technology, extremely fragmented production and very strict regulations related to shellfish marketing. Many Croatian shellfish farmers run family farms, which significantly aggravates the situation and raises the price of marketing. “Unfortunately, individual farmers still show resistance towards merging. Hence, many newly founded cooperative movements do not enter the market in a unified manner. If the market is to open, especially after Croatian accession to the EU, expenditure on such production will remain too high.
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tonnes
of shellfish - annual production from one farm
duction is short-term only
describes the problem as obsolete farming technology, extremely d very strict regulations relating to marketing Such individual manufacturers cannot remain on the market without co-operation” says Ivan Pavić, spokesman of the Ministry of Agriculture. The most significant problems in shellfish production relate to the correct definition of farming areas. The production of young oysters in hatcheries should also be taken into consideration in order to ensure continuity of production and reduce risks. “Any shortcomings have been identified and therefore included in IPRAD for the period until 2013. Appropriate investment into fisheries include investment into construction, reconstruction and equipping facilities for the treatment of fish, shellfish and clams as well as into equip-
The most significant problems of shellfish farms relate to the correct definition of space - the farming area
Dužević: Farmers are hostage to regulations Marko Dužević, co-owner of Ostrea-Dalmatina from Zadar, has developed an oyster farm in Novigradsko more together with his partner, Jozo Tomaš. “We have set a high production level as we planned to promote our oysters in the European market. Our optimism has been based on quality products and their demand. Our company was one of the first to comply with European standards. Therefore, we have constructed not just a farm but also a shipping centre. Unfortunately, we have been held hostage by regulations as we cannot export our products”, points out Dužević. Ostrea-Dalatina, with a total production of 200,000 to 300,000 oysters annually, stretches over 6,000 m2.
ment for product cooling, cutting, dry-smoking, smoking and packaging. Also one should include the reduction of waste, application of the appropriate software as well as construction, reconstruction and equipping of distributive centres, including shellfish purification centres”, says Pavić. These measures are directed towards improving technological standards of micro-, small and medium-sized processing plants, so that Croatian standards are synchronised with European regulations in the areas of hygiene, animal welfare and environmental protection. “As
the Ministry has granted favourable funding and offered basic training, farmers have been introduced to all the valid regulations. A Guide with examples of good farming practice as well as good hygienic practice in shipping centres has been developed by the Croatian Chamber of Economy. The Ministry has finalised it with all the necessary links related to EU regulations so that individual farmers may easily cope with the demanding circumstances of this particular industry“, adds Pavić. Manufacturers and infrastructure There are 120 registered shellfish farmers in Croatia, mostly working on family farms where production does not exceed 50 tonnes annually. The current level of production, marketed locally, meets Croatian demands. The number of farmers has shown no increase, primarily due to the fact that Croatian shellfish cannot be exported to the European market, due to very strict sanitary and hygiene regulations. Therefore, the Croatian government needs to be in line with all legal requirements. European legislation in this area has been fully adopted by the Croatian legal system. The required surveillance systems have been applied, as well as official control and classification of manufacturing areas. However, the Food and Veterinary Office as the official inspectorate of the European Commission should give their final agreement and official opinion of the implemented system. According to the information available, this mission has not been planned for 2010.
4 INTERVIEW
Privredni vjesnik Year III No 0106
BORIS ŽGOMBA, PRESIDENT OF THE ASSOCIATION OF CROATIAN TRAVEL AGENCIES
ANNUAL EVALUATION OF THE NATIONAL TOURIST BOARD VAT levels make Croatian travel agencies up to 17% more expensive
schools, stating such holidays do not necessarily have to be organised at the end of August or the beginning of September, as both the number of tours and hotels available at that time are lacking and prices are usually higher. Hence, many pupils opt for foreign destinations. For example, travel agencies, which are members of the Association of Croatian Travel Agencies, have managed to make Croatia attractive for more than a thousand groups of young travellers from Germany, Italy and other European countries, but primarily during the low season. Therefore, we are absolutely positive that our senior pupils do not select Croatia as the destination of these holidays as school principles insist on early dates.
Sanja Plješa he Association of Croatian Travel Agencies has been managed by a new Board of Directors for a year. During this period, it has developed stronger co-operation activities with government institutions. Boris Žgomba, president of the Association, reviews the changes which have occurred
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How would you describe your level of co-operation with the Ministry of Tourism? Our co-operation with the Ministry of Tourism, the Croatian National Tourist Board, the State Inspectorate and other relevant government and public institutions, has intensified during the previous year. The Association of Croatian Travel Agencies cooperates with the relevant Minis-
Experience and adventure need to be sold try at a very high level with our and the Croatian National Tourist Board representatives meeting regularly every two months to analyse completed actions and plan and organise a new set of activities, especially those related to Croatian tourism. The concept on how to promote Croatia in Shanghai and Beijing is also currently being developed. What problems are travel agencies facing today? Agencies are facing a difficult market position due to the more aggressive performance of local partners, especially hoteliers. Anti-competitive behaviour has been evidenced as hoteliers are trying to put travel agencies, as mediators, out of business. The grey market, consisting of certain foreign tour operators, organisers of boat trips and various foreign bus carriers to name but some,
also cause another set of problems. However, we do not seek better but the same prerequisites related to conducting business operations. This includes not just local but also foreign agencies should pay VAT and other taxes. Otherwise, the inspectors could issue a suspension order. Another problem originates with the very high VAT rate in Croatia, now standing at 23% whereas the level of VAT paid by our competitors’ amounts to between 6% and 10%. As a result, Croatian travel agencies provide services which are up to 17% more expensive making them less competitive on foreign markets. How can the problems of initiating agencies be solved? Agencies that sell package tours to Croatians, both for local or foreign destinations, are primarily concerned with the lack of compatibility between winter school breaks and the tourism programmes. Pupils are forced to spend their winter holidays in various destinations during the winter high season. Our calcula-
tions show that Croatian citizens spend around €20 million more than they would if they could travel only one week later when package tours are often cheaper. If families with children would go skiing during the low season period, the difference in the total sum could be used for local utilisation and our VAT take would increase by €4 to €5 million. Many problems also relate to the organisation of senior pupil’s pre-graduation holidays. The Croatian National Tourist Board allocates €25 for each senior pupil’s holiday within Croatia, but pupils still opt for foreign desti-
It is of utmost interest to prolong the tourist season. Quality products should be provided in order to attract tourists nations. We are negotiating with the Ministry of Science, Education and Sport which is to issue a recommendation for secondary
What are the criteria that need to be met for the DMC (Destination Management Companies) certificate? The first Acts on DMC have been recently introduced as part of the Act on Tourist Boards. The following steps include the introduction of regulations which are to prescribe criteria for the DMC certificate. Travel agencies integrate individual products, prepare package tours and distribute them through their channels. However, hotels, restaurants, taxi drivers and many other market players may also create their own tourist products. They should all redirect their attention, learn how to conduct mutual business activities in a different manner and be adequately educated. It is of utmost interest to prolong the tourist season. Quality products need to be provided in order to attract tourists. Almost every destination could prepare such programmes – and this is where destination management companies play a crucial role. If Croatia does not start selling experience and adventure – the season will not be prolonged, that is for certain.
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CONSUMPTION
NEW CLOTHES A PREREQUISITE The average Croatian family spent €930 last year on clothes and footwear which amounts to 8 % of total consumption he more expensive – the better! This can especially be applied to new clothes and footwear. It is a fact that most popular brands are worn no matter what – even when ladies cannot walk in their new Louboutin heels. But they do, or at least they are trying, as this particular shoe brand is a ‘must have’ on the Croatian market. According to a RegioPlan Consulting poll, conducted recently, Croats are considered to be one of the most fashionable people in Central and South-Eastern Europe, borne out by their penchant for expensive for clothes and footwear. A typical Croatian household spends on average €930 on clothes and footwear annually, which amounts to 8% of total consumption. The Slovaks, at €750, are second followed by the Czechs spending €580 and Polish consumers with €520.
beverages decreases. The figure for Croatia was 40% some ten years ago but has dropped today to 36%.
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Croats take the lead even when consumption per capita is taken into consideration. Expenditure and its structure gives some indication of the economic development within a country, according to RegioPlan Consulting. For example, a typical Ukrainian household spends 57% of its income on food and beverages whilst in Slovenia such purchases total only 18%. In economically more developed countries, which show a steady increase in income, the share of consumption relating to food and
NUCLEAR POWER PLANT CONSTRUCTION
Expenditure higher in Croatia Due to the financial crisis, personal consumption for a typical Croatian household has dropped, on average, by 2.5%; they now spend €11,700 a year, more than in Hungary, Bulgaria or Poland. According to the RegioPlan Consulting analysis, Austrian and Slovenian households were principal consumers, spending €34,700 and €22,700 respectively. Interestingly, notwithstanding a decrease in personal consumption during 2009, Croatian households had a higher level of expenditure than those in the Czech Republic, Slovakia or Hungary. However, if consumption per capita is to be taken into
account, the same countries show a higher rate when compared with Croatia, whilst the Czech Republic, Slovakia and Hungary show, on average, fewer numbers of household members. Although the past few years have been very dynamic, most countries in the region experienced a very cruel awakening, which is supported by the CEE/SEE analysis on household personal consumption, conducted in 10 regional countries. Only in a few countries did expenditure show an increase whilst others stagnated or show a mild decrease. “Although economic growth and personal consumption will not grow as before, the process of reaching Western European levels will not be completed for some time”, according to Hanna Bomba-Wilhelmi, manager of RegioPlan Consulting. (V.A.)
Croatian electric cars
THE RIGHT TIME TO MAKE INVESTORS WELCOME the company manu- manufactured robot prototypes A FINAL DECISION facturing XD electric cars, used in mine clearance, mining Dok-ing,
roatia should very soon make a final decision on the construction of a nuclear power plant as two new nuclear power plants may be built in Slovenia and Hungary, Consequently, the possible construction of a Croatian nuclear power plant will not be financially justified, according to experts who gathered at the Croatian Academy of Sciences and Arts for a conference on the construction of a nuclear power plant. Nikola Čavlina, professor at the Faculty of Electrical En-
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gineering and Computing in Zagreb, singled out Finland, which is very similar in size to Croatia, has four nuclear power plants and is currently constructing a fifth. The decision on the construction of a Croatian nuclear power plant will be reached by the end of 2012. If the decision is positive, the plant would employ 500 people and production would be €200 and €300 million annually, which makes it a very lucrative investment, according to Čavlina. (D.Ž.)
could start with their mass production in spring 2011, as a result of governmental support for the project and search for future buyers and investors, as announced by Prime Minister Jadranka Kosor, at the formal introduction of the concept Croatian electric car in Zagreb. At this event, organised by the Trade and Investment Promotion Agency, Doking was presented an award for developing the concept of the first Croatian electric car. To date this company has
industry and fire-fighting, with the development of the XD starting in 2009. Company representatives suggest a further €150 to €200 million would be required for mass production. The XD is a small city electric car, powered by two 45 kW electric motors. It weighs 1,100 kg. and can reach 100 kilometres per hour in eight seconds. (E.D.)
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Privredni vjesnik Year III No 0106
CROATIAN FOREIGN CURRENCY MARKET Currency
Kuna exchange mid-rate
AUD CAD JPY CHF GBP USD EUR
5,023005 5,447501 5,824669 5,057335 8,360287 5,442186 7,251713
Source: HNB
EUR
IGH to take over MBM Termoprojekt
IGH Institute, through its affiliated company IGH Projektiranje, has finalised the acquisition of MBM Termoprojekt. The Institute now owns 60% of MBM core capital, as stated in the IGH notification for the Croatian Financial Services Supervisory Agency (Hanfa) and the Zagreb Stock Exchange, confirming that the takeover cost €0.22 million. Average salary in February €706 The average monthly nett salary per employee amounted to €706 for February this year, according to preliminary data published by the Central Bureau of Statistics. At a monthly level the average nett salary for February this year nominally decreased by 1.9% or €14 when compared with the average nett salary for January this year. When compared with the same period last year, the 2010 February nett salary decreased by 1.4%. March unemployment rate hits18.4% The registered unemployment rate for March 2010 rose to 18.4%, according to the Central Bureau of Statistics, the highest rate since January 2006, when it also amounted to 18.4%. The unemployment rate for March this year increased by 0.1% over February, whilst on an annual basis it showed an increase of 3.4%.
USD
5.46
20.4.
21.4.
22.4.
23.4
CHF
5.08
7.27
5.44
5.07
7.26
5.42
5.06
7.25
5.40
5.05
7.24
5.38
5.04
7.23 19.4.
WEEK APRIL 24, 2010
::: news
7.28
4.36 19.4.
20.4.
21.4.
22.4.
23.4
19.4.
20.4.
21.4.
22.4.
23.4
CROATIAN NATIONAL BANK
BANK ASSETS IN EXCESS OF €10.49 BILLION The largest share of total bank assets consists of international reserves, which have noted a continuous increase since September 2009
ccording to the most recent data obtained by the Croatian National Bank in March this year, total bank assets of the central bank continued to show an increase, in excess of €10.49 billion at the end of the month, an increase of €113.4 million or 1.1% in comparison with the end of December. The growth in international assets was primarily noted in March, when central bank assets increased by more than €0.45 billion or 4.4%. The largest proportion of total assets consists of international reserves, which have noted a constant increase since September 2009 and amount to 99.99% at the end of the first quarter this year. The end of March showed a €10.5 billion surge in international assets, which is an in-
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crease of €115.6 million or 1.1% when compared with last December. Bearing in mind that international reserves are primarily held in Euros, kuna growth in relation to the above figure, has been improved with the growth in kuna value in relationship to the Euro by 0.64 % when compared with the end of December. The effect of international exposure Due to the extreme international exposure of Croatia, the Croatian National Bank is trying to increase the ratio of international reserves to total external debt, which is one of the reasons why international assets play such a predominant part in total bank assets. In addition, its second most important component, payments
due from banks, significantly decreased in September. Loans decreased in September to €1.85 million (from €0.37 billion in August) and maintained the same level in the following period. At the end of March, payments due from banks totalled €1.83 million whilst payments due form the local sector (mostly companies) slightly decreased by €0.01 million. The highest amount of liabilities, central bank money, after showing an increase in January and February, decreased at the end of March to €7.49 billion, a decrease of €0.20 billion or 2.6% when compared with the end of December. International liabilities slightly increased and totalled €1.16 million at the end of March. (V.A./RBA)
www.privredni.hr Business & Finance Weekly
WE PRESENT 7
KOŽUL, SLAVONSKI BROD
POLJANA FISH FARM, KANIŠKA IVA
Dutch delighted by Slavonian eel Some one hundred tonnes of first class edible eel marketed mainly to the Netherlands every year
The right tool for the job The company has developed its own brand of hand tools Max, and is also the general agent for several renowned international manufacturers ax hand tools are manufactured globally - in the Czech Republic, India, Italy, China, Korea, Germany, Pakistan, Poland and Taiwan. The quality level is strictly controlled with production technology constantly being improved. This information would not be of a particular interest for Croatia had this product not been a Croatian brand of hand tools, produced by Kožul, a company founded in Slavonski Brod in 1994. The company has been listed among some of the best small and medium-sized company employers in Croatia for two consecutive years. From its headquarters in Slavonski brod it manages 63 employees, 17 are employed in Gleter-Max, a daughter company in Belgrade and a further 10 work for Kožul BH in Sarajevo. Cromax, a company specialising in finishing work in the construction industry, is also part of Kožul Group.
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Two different product ranges Krunoslav Pavičić, executive director, states that Kožul is primarily engaged in the sale of hand tools and equipment in Croatia, Bosnia and Herzegovina, Montenegro, Macedonia, Slovenia and Serbia. Max hand tools was registered as a brand in 2003 and its range has been continuously developed and improved since. Currently, Kožul sells more than
1,500 different items within the Max hand tools brand. Individual products have been adapted to ‘personalised’ individual sales in shopping malls and have been divided into two types. “One set has been designed for a wider target group, including DoIt-Yourself enthusiasts as well as professionals. The second set is intended for a smaller group of more demanding professionals and users with specific requests regarding functionality, quality and special work conditions”, explains Pavičić. The company has developed Max as its own brand of hand tools, but is also the general agent for several renowned international manufacturers. This includes Hitachi power tools, Dassy protective equipment, Merida cleaning agents as well as the Carat range of professional diamond cutting tools. Pavičić notes that Kožul tools are more oriented towards the construction industry, which is anticipating a decrease of 40% or more in overall business. “Of course, this may cause certain problems when conducting business activities. However, our high quality and professional employees ensure we can respond quickly to market changes and redirect our attention towards other sectors, which have not or are not expected to face significant changes until the end of the first quarter of 2011,” concludes Pavičić. (B.O.)
ilan Božić, the managing director of the only fish farm of edible eel in Croatia and the region, claims Poljana produces more eel than the Neretva river. Although eel farms are not typical for this little town, some one hundred tonnes of first class eel from the fishfarm are marketed mainly in the Netherlands. The first eel were bred here in 2006 with technology from the most developed eel fish farm in Eastern Europe, worth €2 million and has been founded as part of a Dutch Government project which provided funds for East European countries. Until then, it had been almost inconceivable that eels could be bred anywhere else in Croatia other than the Neretva valley, according to Božić.
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A well-rounded production cycle “The artificial breeding of European eels has not been fully developed yet. The fry come from nursery grounds in the Sargasso Sea. The larvae drift towards the European coast and rivers, where they are caught and transported in special containers. The breeding cycle, ranging from 9 to 12 months, is based on Dutch high quality technology” explains Božić. He also adds that the company intends to obtain a building permit for a facility which would be used for fish treatment and smoking.
The production cycle will in future be well-rounded and the fish-farm will be marketing processed fish at a higher price. Smoked eel fillets can be sold for some €50 per kilogram whilst fresh eel brings around €10. The fish-farm has been breeding many different fish varieties for more than a century and has outstanding experience in both wholesale and retail of catfish, carp, pike-perch, pike, bighead carp and many others. Their production, which amounts to more than 1,000 tonnes every year, covers over more than 1,300 hectares of an ecologically intact pristine environment, surrounded by the Ilova, Toplica and Čavlovica rivers. Live fish are transported to Croatian and international markets, with between 30% and 40% of total carp production, having the label of ‘Croatian Creation’, is exported to Austria, Germany, Italy, the Netherlands, Serbia, Bosnia and Herzegovina, Slovenia and Hungary, with plans for exports to Israel. Božić claims that their fish is of an internationally acknowledged quality and has been awarded ISO quality standards and Poljana itself has been rated as the most successful freshwater fish farm in Croatia. (E.D.)
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Privredni vjesnik Year II No 0106
ROLAND BERGER VIEWS ON CROATIAN TOURISM
::: news Atlantic Grupa to acquire Droga Kolinska
Opatija - the only town where the tourist season never ends
Atlantic Grupa has informed the Zagreb Stock Exchange and the general public that it has filed a non-binding offer for the acquisition of the Slovenian company Droga Kolinska, whose major owner is Istrabenz. Atlantic group representatives pointed out that “this potential acquisition would turn Atlantic Grupa into one of the major food processing companies in south-eastern Europe with a turnover exceeding €650 million and 4,300 employees”. Industrial output decreases In February this year, total Croatian industrial output slumped by 23.2% when compared with the same period 2009. The total number of newly placed orders also showed a decrease of 23.4%, according to data published by the Central Bureau of Statistics. Such a decrease was first noticed after January output and orders upticked by 5.7 % and 8.2% respectively on an annualised basis. Žitnjak decreases losses
Žitnjak, part of the Agrokor corporation, posted a €1.25 million loss in 2009 which is less than the 2008 loss of €1.73 million, according to the company financial report, published at the Zagreb Stock Exchange. Total income fell to €14.70 million, a decrease of 29.6 %. Sales accounted for the majority of total income but reduced by 28.8% to stand at €13.56 million.
Eight out of top ten Croatian destinations are situated in Istria and Kvarner rofessionals working in tourism industry, stress that long-term development of destinations is a key factor for attracting visitors during the current downturn. The relationship between visitors and destinations, which should be established over a longer period of time, is the only assurance that visitors will readily come. At the end of 2009, Roland Berger Strategy Consultants, one of the leading consulting companies worldwide, analysed the most popular Croatian destinations on the Adriatic coast, according to the number of arrivals in 2008 with the aim of presenting how important arrivals are for Croatian tourism and to emphasise the problem of high and low season influxes destinations face. Dubrovnik, Poreč, Rovinj, Opatija, Umag, Zadar, Medulin, Pula, Mali Lošinj and Crikvenica are the top ten destinations registering the largest number of arrivals during 2008. This shows that eight of the top ten Croatian destinations are situated in the wider Istria-Kvarner region. Du-
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brovnik, with 509,000 arrivals in 2008, is the leading Croatian destination overall, followed by Poreč with 406,000 whilst Crikvenica, with 233,000 arrivals, concludes the top ten list. When the number of overnight stays is considered, the leading destination is Poreč with 2,594,000 followed by Rovinj with some 2,577,000 overnights and Zadar, with 963,000 overnights brings up the last of the top ten destinations on the list. Dubrovnik, Zadar and Opatija are showing a decrease in the number of overnight stays which is characteristic of not only more exclusive destinations, such as Dubrovnik, but also of destinations, such as Opatija, which are situated near outbound towns, or Zadar, which is primarily a startpoint for onward destinations. The end of summer brings a symbolic number of tourists The main shortcoming of Croatian tourism relates to a very short high season with a large number of tourists visiting
during the two summer months; when June and September are compared with July and August, in a best-case scenario there is a 50% falloff in the number of visits. The number of arrivals in other months is merely symbolic, estimate Roland Berger. When considering the seasonality of the Croatian top destinations, Roland Berger compared the ratio of August arrival numbers with January and May respectively. The fact of seasonality (the August-January ratio) shows disconcerting facts which relate to Croatian tourism in general. All Croatian top destinations, with the exception of Opatija, note an astounding disproportion in the number of arrivals. Rovinj shows 257 times more visitors in August than in January, Medulin 83 times more and Dubrovnik, as the most significant destination, a still frightening 17 times more in the summer months. Opatija can actually set an example as to how a destination can prolong its tourist season throughout the whole calendar year, concludes the Roland Berger analysis. (V.A.)