A changing face The cinema business has become more than just watching a film, entering into marketing, sales, food and drinks
Ivo Mustać, Tankerska plovidba Shipbuilding is not only a question of ten thousand employees but would adversely effect our entire environment
Where Danube meets Drava Kopački rit Nature Park is becoming an increasingly popular tourist destination
CINEMA INDUSTRY
SHIPBUILDING
NATURAL TOURISM
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Croatian Business & Finance Weekly Established in 1953 Monday / 30th August / 2010 Year III / No 0119 www.privredni.hr
S U P P O R T E D
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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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E C O N O M Y
FOREIGN INVESTMENT IN CROATIA REACHES €59.48 MILLION IN THE FIRST QUARTER
AUSTRIA THE MOST IMPORTANT INVESTOR Are wood producers the first to exit the crisis? ccording to statistics for the first half of the year, Croatian wood and furniture producers should be satisfied. During the first six months, the export of wood products increased by 5.8%, and furniture by 17.5% when compared with the first six months of 2009. Product prices dropped; during the first three months, furniture was 5.5% cheaper, and wood products 5.3%. At the beginning of this year, the growing number of orders indicated by certain managers in the sector, showed that the crisis was reaching its end, and that total 2010 data might show that wood producers, which were the first to be hit by the crisis, would be the first to exit. (K.S.)
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Direct investment in financial intermediation, in addition to insurance and pension funds accounted for 56.9% of total investment oreign investment in Croatia in the first 6 months of this year was €434.2 million, down 0.7%, as shown by primary data of Croatian central bank. However, the structure significantly changed to benefit equity capital. Furthermore, equity capital and reinvested earnings increased during this period from €28.3 million to €311 million year-on-year. As opposed to the first quarter of 2009, when a drawback in reinvested earnings was recorded, this year the trend continues to grow. Other investment decreased by almost 70%. According to the CNB, the growth of new equity capital mostly relates to that achieved by additional capitalisation in the financial sector. This is confirmed by data according to activity, where direct investment in financial intermediation accounted for 56.9% of total investment, in addition to insurance and pension funds. Wholesale and trade operations, specifically the sector which together with financial agencies attracted most of the direct foreign investment, registered only €3.4 million of direct investment in the first quarter. Considering
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foreign investment according to country, the most significant investor in Croatia is Austria with
€195.8 million, which accounts for 45.1% of total direct investment. (V.A.)
2 VIEWPOINT
Privredni vjesnik Year III No 0119
JOHN WOLFGANG, PRESIDENT OF THE BOARD, URBACH HACKER YOUNG INTERNATIONAL LTD
Greed is a strong motivator
MILK PRODUCTION
Less, but better
Financial companies will have to be rational when tak- During the first six months of 2010 imports of milk, ing on risk. Risk is an important factor which is often dairy products and eggs increased year-on-year. Imoverseen when greed steps in ports are up 2.5% at €39.15 million he recession hit many parts of the world. No one could ever have believed that governments would have to invest in private enterprises and financial institutions, preventing their potential failure and further decline in wealth, only to bring back trust in the market. Despite this, it seems the lesson has not been learned, since even after recent events in Greece, there is real danger that several governments will have to occupy themselves with these examples. This clearly shows that the work was not only transparent, but that governments may not have been honest regarding financial transactions and presenting facts. Until new working opportunities arise in companies, the entire economy will be in a dire situation. Employment is a key factor in creating a strong and motivating atmosphere, where fear of economic collapse subsides, and consumer faith restored in investing; they start spending again, buying goods and services, strengthening thus the economy. Let us hope investors will be more responsible in their choice of investment. We will have to understand the real goal of investing before capital for a project is allocated. Financial companies will have to be more rational when taking risk. Risk is an important factor which is often overlooked when greed steps in. Greed is a strong motivator and governments will have to properly regulate certain industries, such as banks and investment companies, in order to partially control the level of acceptable risk and present the correct
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IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
Krešimir Sočković ilk is too cheap, and there is too much on the market. Its quality is poor, incentives are insufficient and it is not worth producing. This is a feeling that reflects certain recent media statements. Statistical data might actually show the real market situation and potential. According to data provided by the Central Bureau for Statistics, 675,289 tonnes of raw cow milk was pooled in Croatia last year, which is 2.7% more than the year before. The repurchase of goat milk also increased (by 5.2%) to 4,209 tonnes, whilst sheep milk is declining by 0.1%, or 2,743 tonnes. Data on the production of fresh dairy products, compared with last year, show a drop in the production of consumable milk (by 3.9%), fermented products (by 5%) and other fresh products (by 0.9%). The production of buttermilk increased by 44.8%, cream by 1.7% and milk beverages by 64%. Due to an excess of milk on the market, the production of butter and similar products increased by 13.2%. Last year, Croatian producers reduced the production of almost all types of
M facts to those who entrust them with their life savings. Financial results must be presented transparently and comprehensively. Correct financial information enables users to bring decisions which will result in good investing and successful projects. That is why I believe we need a set of global standards which would be used for obtaining financial reports. I believe this crisis and its eventual continuance will make us more careful regarding our consumer and investment habits.
FOR PUBLISHER Nikola Baučić +385 1 4846661 uprava@privredni.hr
IMC MANAGER Dea Olup +385 1 5600028 olup@privredni.hr
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TRANSLATION Tr@duco traduco@zg.t-com.hr
EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr
COUNSELLOR, INTERNATIONAL OPERATIONS, LANGUAGE EDITOR Ray Fletcher fletcher@privredni.hr
cheeses. Consequently, the production of cow cheese declined by 3.1%, whilst the production of other types of cheeses declined even more. Quality rising Last year, the quality of milk rose, which is evident by the content of milk fat which increased by 3.1% and goat milk by 7.2%. The quantity of sheep milk fat maintained the level of 2009. According to production data, the fall continued this year. For example, 53,527 tonnes of cow milk was pooled in June, which is 8.8% less than in the same month of 2009. This year’s milk is somewhat fattier (3.92%), whilst the level of proteins has decreased by 3.33%. In relation to 2009, the production of milk beverages decreased (-0.4%), cream (-28%), fermented products (-13.6%) and cheese (-13.6%) whilst imports of milk, dairy products and eggs increased during the first six months of 2010. Imported goods are currently valued at €39.15 million, some 2.6% more than in 2009. Simultaneously, Croatian milk and egg producers exported €25.10 million of products, down 2.7% from the previous year.
www.privredni.hr Business & Finance Weekly
3
( 75
cinemas operating in Croatia in 2009
(7
classified as independent
CINEMA INDUSTRY
A CHANGING FACE
The cinema business has become more than just watching a film, entering into marketing, sales, food and drinks and organising events Boris Odorčić uring the past ten years, the cinema industry has experienced many changes. The consequences are that a large proportion of old cinemas, where one film would be shown two or three times each day, stopped working. New centres started to emerge, with several auditoriums where visitors can choose between some 20 film titles. However, since the beginning of the new millennium the number of people frequenting cinemas has been oscillating. Some of the blame is definitely due to the technological development of home theatres, which can offer a cinematic experience to viewers at home at a reasonable price, plus cable TV, which offers its users the possibility to choose films sitting on the sofa, ordering over the Internet and illegal downloading as well as copying blockbusters. Damir Milinić, Board director and executive director of Cinestar, points out that cinema industry in Croatia does not lag behind European and world standards. “The cinema business is no longer about showing films. It has turned into more than merely watching films, entering into marketing, sales, food
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and drinks and organising events. The development of the cinema industry also caused technological changes in the showing of films, which resulted in considerably larger investment in this activity, increasing the risk of a good
More screenings and viewers In 2009, 75 cinemas operated in Croatia, six less than in 2008. Of the total number of permanent cinemas, 58 have one screening area, four have three to six and three have over eight. According to data from the Central Bureau for Statistics, there were seven independent cinematographers last year and 68 cinemas within the system of other business bodies. Of the total number of cinemas, 53% show films throughout the entire year, and 12% show two for two months or less. In relation to 2008, the number of screenings increased by 7.2% in 2009, and there were 7.3% more viewers. The share of Croatian films did not change in relation to 2008, totalling 2.7% in 2009. An interesting detail is that from a total of 204 film projectors, 40% were produced over the last 20 years, whilst 25% were produced before 1970.
investment. In addition to this extremely high investment, the problem we are facing is lack of support from the local community to which we are offering content which enriches their cultural life. They can support us in many different ways. There are, for example, financial relief for investing into new jobs, and the local community could also set aside part of its budget for educating the cinema audience,” he suggests. Multiplex as a solution Cinemas as they once were up to the ‘90’s are bankrupt, ventures Milinić. One of the reasons is that content was financed by local authorities, since cinemas with one auditorium and two or three screenings each day can no longer cover all expenses. In the
economic situation then present in Croatia, during the war, cinema was certainly not a priority for financing. Only a very few cinemas survived in the biggest cities. Smaller town lost cinemas and this makes everyone sad, points out Milinić. He confirms that technological developments enabled a higher quality of film production. Therefore, cinemas which were technological dinosaurs, ended up with no work. Multiplex cinemas are the solution to the problems which caused the shutting down of cinemas across Croatia. With several auditoriums, diversified programmes, top video and sound technology, more and different products offered in conjunction with a film, multiplex cinemas have brought people back to the cinema.
4 IINTERVIEW NTERV
( €7 million
Privredni vjesnik Year III No 0119
to be invested into Viktor Lenac
( Ninsko blato
– project worth around €60 million
IVO MUSTAĆ, BOARD PRESIDENT OF TANKERSKA PLOVIDBA
SHUTTING DOWN SHIPYARDS WOULD BE CATASTROPHIC Shipbuilding is not only a question of ten thousand employees but would adversely effect our entire environment ronment. I dare says that at the moment we are producing ships to a global level. Experts in our shipyards are more highly skilled than those in the Far East. Now, the government only needs to decide what it wants to do with the shipbuilding industry. Korea decided to be the world leader in shipbuilding and it is doing everything to become that. Whatever the state of our shipyards, they are still our biggest exporters.
Jozo Vrdoljak rivredni vjesnik spoke with Ivo Mustać, Board President of Tankerska plovidba, about company business, the shipping industry generally and the perspective for the Croatian shipbuilding industry. Tankerska plovidba has 12 tankers and 10 bulk carriers, for transporting dry loads. The company is co-owner of the Viktor Lenac shipyard, and is investing in one of the most significant tourist projects in Croatia – Ninsko blato.
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How was business for Tankerska plovidba last year? Last year was a year of deep recession and shipbuilders were saved by the early and unusually long lasting period of upbeat economic activity. Tankerska plovidba invested a great deal in fleet renovation, due to the accumulation of funds over this very good period. We have built and are still building ships in local, Chinese and Korean shipyards. Despite the slump in freight, we ended last year with positive results. Furthermore, we did not cancel a single ship order and finished all scheduled programmes. What are your expectations for this year? This year will be better than last, and there is even mention that the crisis and recession are behind us. However, due to constant market oscillations, we are still careful, even though the results for the first quarter of 2010 are better than expected. They are even better for the second. If this trend continues, we could end
the year in profit, regardless of having planned for a €12 million loss. Which segments of sea transport have recovered? First the market for dry load transport recovered. This is not overly profitable, since we signed a long-term lease on our ships during the period of positive economic activity. The market for tankers lagged a few months behind in recovering. Therefore, our tankers are not operating on the verge of profitability. It is thought that the Croatian government might order ships from Croatian shipyards. What are your views? I completely agree with those
who suggest that this could help the shipbuilding industry and the government. The fact is that the government would make a profit on these ships in a few years, and our shipyards would not be out of work. Not a single shipyard in Europe, including ours, can survive without support from the government. It needs to be openly said that EU country members are subsidising their shipbuilding industry to a great extent. What would happen if our shipyards stopped working? It would have catastrophic consequences for our economy. Shipbuilding is not only a question of ten thousand employees, but it would also have an extremely adverse effect on our entire envi-
Are you satisfied with the situation concerning the takeover of Viktor Lenac? It is known that we are, together with Uljanik plovidba, the majority owners of Viktor Lenac, the company which went bankrupt. Together with our partner, we need to finish an investment worth some €7 million. We believe that Viktor Lenac is a solid and competitive company, and we plan to take it over completely. The model for the take over of Lenac is a good model. All partners - workers, the state and we as investors, have an interest in this work. In trying to please all partners, this resulted in the survival of the shipyard and its good work. What is the project Ninsko blato? The project is worth around €60 million, and we are currently in the phase of procuring the necessary documentation. We have been contacted by many potential partners, since medical tourism is an attractive activity. However, we slowed down with the conclusion of the project, since we can pool certain funding from the EU when we join the European Union.
www.privredni.hr Business & Finance Weekly
5
( €52.85 billion
total assets of all credit institutions
CREDIT INSTITUTIONS
Profits exceed €0.30 billion
During the first six months of 2010, Zagrebačka banka recorded the largest pre-tax profit of €90.61 million. It was also first in terms of assets, standing at €12.83 billion Vesna Antonić ccording to provisional and unrevised data from the Croatian National Bank (CNB) published recently, credit institutions in Croatia (32 banks, 2 savings banks and 5 housing savings units) achieved pre-tax profits in excess of €0.31 billion during the first six months of 2010. Of the 39 credit institutions, seven banks, two savings banks and one housing savings organisation registered losses. Concerning banks, Zagrebačka banka recorded the highest pre-tax profit during the first six months (€90.61 million), followed by Privredna banka Zagreb (€58.92 million), Erste&Steiermaerkische Bank (€46.08 million). Raiffeisenbank recorded €30.99 million, and Société Generale Splitska banka €26.95 million, with Hypo Alpe-Adria-Bank ranking sixth at €25.32 million. Combined total assets of all
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Croatian credit institutions stood at €52.85 billion at the end of June. Considering assets, a similar picture unfolds with Zagrebačka banka with €12.83 billion, Privredna banka Zagreb (€8.74 billion), followed by Erste&Steiermaerkische Bank, (€6.69 billion), Raiffeisenbank with €5.44 billion, Hypo Alpe-Adria-Bank with
€5.47 billion and Société Generale Splitska banka with €3.69. Concerning housing savings organisations, CNB data showed they achieved pre-tax profits of €3.37 million. The highest pretax profit was achieved by Prva stambena štedionica (the First Housing Savings), totalling €1.96 million. PBZ Housing Savings registered €1.03 mil-
conjunction with NATO are now officially open, considering the fact that only companies which have undergone the necessary checks and qualifications may participate in official tenders of the alliance.
erator underlines further sales development of Ericsson Nikola Tesla on the B&H market, which started during the first half of the year. It will also strengthen partnership with BH Telecom as the Board President of Ericsson Nikola Tesla Gordana Kovačević pointed out.
lion and Wüstenrot with €0.17 million, whilst HPB Housing Savings recorded €114,500. During the first half-year, Raiffeisen Housing Savings showed a loss of €45,750. Combined total assets of housing savings associations stood at €0.88 billion in the first six months.
NEWS INsig2 meets NATO standards INsig2 has signed an association agreement with the NATO agency NC3A in Brussels. This agency is responsible for the supply of advanced ICT technology and infrastructure, according to the company report. INsig2 therefore becomes the first Croatian company for which tenders in
Ericsson Nikola Tesla: Contracts with BH Telecom worth 50 million Ericsson Nikola Tesla has signed a contract with BH Telecom for the expansion of the 2G and 3G mobile networks and elevation of the BH Telecom core network to the most advanced level. The contract is worth €6.85 million. The contract with the biggest B&H telecommunications op-
Industrogradnja: Gross profit of €71,000 in the first half year During the first six months of this year, the Group Industrogradnja (industrial construction) achieved a gross profit of €71,000. This is significantly less than the €0.68 million nett profit from 2009, according to business
results published by the Zagreb Stock Exchange. Total income of the Group amounted to €9.34 million, which is an 83% rise year-on-year, whilst business income doubled, totalling €8.66 million. Total expenditure stood at €9.27 million, up by 110% over 2009, whilst business expenditure amounted to €8.58 million, increasing by almost 150%.
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Privredni vjesnik Year III No 0119
CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
7.282
5,076490 5,402631 6,752787 5,590732 8,874103 5,721332 7,274102
USD
5.76
24.8.
25.8.
26.8.
6.00
7.279
5.75
5.58
7.276
5.74
5.56
7.273
5.73
5.54
7.270
5.72
5.52
7.267 23.8.
WEEK AUGUST 28, 2010
CHF
27.8.
5.71 23.8.
24.8.
25.8.
26.8.
27.8.
5.50 23.8.
24.8.
::: news
CROATIAN NATIONAL BANK
HBOR records profit The Croatian Bank for Reconstruction and Development (HBOR) recorded a profit of HRK51.5 million during the first half of 2010, according to their financial report published on the Zagreb Stock Exchange. During this period, total income amounted to €60.48 million, and expenditure to €53.43 million. During the first six months of 2010, HBOR registered income of €59.64 million, a 7% decrease over 2009. At the same time, expenditure from interest rates totalled €40.42 million or 1% less.
CREDIT REACHES €36.03 BILLION
HRK185 million profit for Hypo Alpe-Adria-Bank During the first six months of 2010, Hypo Alpe-Adria-Bank saw their balance sheet rise to €5.33 billion, which is a 0.4% increase over 2009. Profit before loss reserves was €53.29 million, which is 13% less compared with 2009. Pre-tax profit during the first half of 2010 amounted to €25.34 million. Leasing companies are increasing the number of contracts Notwithstanding the economic crisis, some leasing companies signed contracts during the past eight months, covering activities in real-estate, cars and equipment. One of the biggest leasing companies HypoLeasing Kroatien shows an increased number of contracts of all types. The number of signed contracts for personal vehicles increased from 469 at the end of April to 1,084 at the end of July of 2010. The value of contracts doubled, from €6.2 million to €12.7 million. The value of contracts on equipment rose from €1 million to €5.3 million over this period.
25.8.
26.8.
27.8.
It is difficult to expect a stronger and long-term recovery for credit without recovery in the labour market and local demand, evaluate RBA analysts ccording to data provided by the Croatian National Bank (CNB), total credit stood at nearly €36.03 billion at the end of June. This is a rise of €0.34 billion (0.9%) on a monthly level, and €1.39 billion (4%) rise year-on-year. At the end of June, credit approved to companies reached €14.20 billion, which is a 6.6% rise over June 2009. Regarding private individuals, after eight months of negative annual interest rates, lending rose by 0.3%, amounting to €17 billion at the end of June.
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Housing loans rise This growth was mainly caused by growth in housing loans, which relates to 44.4% of total loans approved to private individuals. They rose by 5.9% year-on-year, totalling €7.55 billion at the end of June 2010. On the other hand, state credit reduced, ending June at €4.36 billion. Although data in June show intensified credit activity by companies and private individuals, it is still difficult to discuss any significant recovery. Personal credit demand is primarily determined by accessible income and movements in the labour market in general, whilst the corporate sector is limited by weaker local demand and low credit rating. It is thus difficult to expect a stronger and long-term recovery in credit activity without recovery in the labour market and local demand, evaluate RBA analysts. (V.A.)
www.privredni.hr Business & Finance Weekly
WE PRESENT 7
AGRICULTURAL COOPERATIVE TRS, ILOK
Quality supplies
ARTUR ERCEG, SPLIT
Presenting Croatia The project encourages decentralisation, the transparent work of local administration, local tourism, regional development and the strengthening of smaller and rural areas
From its beginning the co-operative Trs promoted acceptable prices regardless of their wine being supreme he co-operative Trs was formed by the merger of two family-owned farms - Bošnjak and Faletar. The cooperation between the young oenologist Zlatko Bošnjak and Marijo Faletar started in 2003, when they produced 30,000 litres of wine. Three years ago, they started their marketing under the joint name Trs, and during that time the co-operative added two more members (wine producers) in addition to four members from the two families. Bošnjak and Faletar own a wine cellar with a capacity of 120,000 litres and 33 hectares of vineyards. Last year they planted ten new hectares of vineyards and are purchasing grapes from a further ten hectares owned by their regular subcontractors. “We are basing our production on seven quality wine varieties, with white wine being predominant (graševina), chardonnay, Rhine Riesling and traminac. Red wines include frankovka, cabernet sauvignon and cabernet franc,” points out Zlatko Bošnjak, manager of Trs. Marijo Faletar warns about the difficult situation on the wine market regarding increasing supplies which result in price reduc-
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tions. “For now, we are not experiencing such problems since we initially started with highly acceptable prices, regardless of the fact that our wine falls in to the supreme category,” explains Faletar. Wine tourism Trs markets its products in Slavonia and Zagreb. Unlike most of their colleagues, they have not moved towards the coastal area of Croatia. “Considering the fact we will have an ample quantity of wine in a few years, we are planning to spread through this area more thoroughly and start exporting to Bosnia and Herzegovina as well as Serbia,” adds Faletar. Bošnjak and Faletar have high expectations from increasing tourism in the Ilok area. Therefore, they have taken over a fine building of the former and oldest wine co-operative in Ilok. “We are planning to totally renovate it and develop wine tourism. We have already renovated the tasting rooms in the building and plan to do the same with several suites. Gradually, we plan to reconstruct the cellar using our own funds,” points out Bošnjak. (J.V.)
rtur Erceg is a family owned company with 17 years of experience in marketing and promotion, which has lately been developing its own ideas and creations into web and brand projects. They were the first Croatian agency in political marketing engaged in the presidential campaign in a foreign country. They founded portals izbornerazlike.com and izbornimarketing. com and presented a project of branding Split as a world sport port and Prokurative as the square of Dalmatian music. They are announcing new interesting projects with a highly social mission, and are causing a high degree of interest with the project Local Croatia. “We are presenting Croatia in one place, from the smallest village to the capital. Actually, with the announced abolition of certain municipalities, every record of many locations in state bodies will be lost. For a long period now, cities have not even recognised their own neighbourhoods, let alone newly built and remote areas,” says the president of the association Meri Kraljević. By visiting small and large places,
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the association has processed over 150 municipalities across Croatia. Real-time broadcasting At their site, www.lokalnahrvatska.hr, Croatia is presented starting from basic municipal data, the development vision to links for local web sites and entrepreneurial zones. Broadcasting news in real-time, automatically and directly from the web sited in Baška, Biograd, Brdovac, Cetingrad, Karlovcac, Rijeka, and Poreč, we created a truly unique informative space. The project has recently been joined by the Association of family-owned and small hotels, whose president, Šime Klarić, immediately recognised its potential for tourism. There is no discrimination between the small and large, or national politicians or media celebrities,” says Tihana Alfirević, vice-president of the Association. “This is a project with several goals, from encouraging decentralisation, transparent working of local administrations, the strengthening of smaller and rural areas, encouraging internal flexibility and local tourism and general regional development.” (J.V.)
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Privredni vjesnik Year II No 0119
KOPAČKI RIT NATURE PARK
Where Danube kisses Drava Kopački rit Nature Park is becoming an increasingly popular tourist destination due to its natural uniqueness and biological diversity
Svetozar Sarkanjac hilst recent summer floods caused significant material damage to many people as well as human losses, an abundance of water is a true blessing for the nature park of Kopački rit. What is Kopački rit and where is it situated? The floodplain of Kopački rit was created by the flow of two rivers in the Croatian part of Baranja, where the Drava flows into the Danube. It should be noted that the altitude of Baranja never exceeds 250 metres, and the area in which the Nature Park is situated is in its lowest part, where the altitude of the land ranges between 78 metres (the bottom of the Kopačko Lake) and 86 metres. Hence why many say that the area of Rit is actually the remains of the ancient Pannonian Sea.
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Birds, fish, reptiles Data on the diversified flora and fauna show the value of this area. Moreover, permanent and tem-
porary residents of Kopački Rit include 300 species of birds, 44 of freshwater fish, 11 of amphibians and 10 of reptiles. Mammals are also numerous in Rit, with 54 species. This great biological diversity is due to the flooding of large areas of the Nature Park. During floods, such as this summer, waters from the Danube and the Drava enter the Rit, and the entire area takes the form of a delta. This is one more unique feature, since the Danube thus creates an internal delta in its middle waterway, with the help of the Drava. No such phenomenon is familiar in other European rivers, and it gives this area a global significance. If Kopački rit is ever to be listed in the register of World Natural Heritage, it will be so mostly through this phenomenon, which is not seen in larger and more important world rivers. Due to its preserved state as a rare ecosystem, immense biological diversity and exceptional scientific and ecological value,
Kopački rit has been protected with the status of managed natural reservation since 1967. Seasonal attractiveness Nine years later, the narrow area of the reservation (an area of 7,700 hectares) received the sta-
portance, in compliance with the Ramsar convention. The area of international importance encompasses parts of the floodplains of the Danube and the Drava outside the borders of the nature park. Even though it is difficult to say when Rit is the most beautiful,
If Kopački rit is ever to be listed in the register of World Natural Heritage, it will be so mostly through this phenomenon, which is not seen in larger and more important world rivers tus of special zoological reservation, whilst the remaining part became a nature park. The international importance of Kopački rit was confirmed in 1989, when it was listed as an area of ornithological importance, and in 1993, when it designated on the list of Wetlands of International Im-
without any doubt it is the most attractive when the water level is high. At the beginning of summer, half the total size of Kopački rit (23,000 hectares) was flooded. Thus, the Nature Park was interesting to many enquiring people, tourists and explorers over the past summer days.