Three concessionary models in Croatia Public or private, not rivals Rules about public-private partnerships are clear
Mladen Perak, director of Feravino The state needs to help with the branding of Croatian wine exports
The Caffeine Ritual Not giving up on black nectar Croatian consumption of coffee did not decrease during the crisis
PUBLIC-PRIVATE PARRTNERSHIP
INTERVIEW
COFFEE INDUSTRY
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Croatian Business & Finance Weekly Established in 1953 Monday / 13th September / 2010 Year III / No 0121 www.privredni.hr
S U P P O R T E D
Dun&Bradstreet
CROATIA MAINTAINS CREDIT RATING
B Y
T H E
pvinternational pv international C R O A T I A N
C H A M B E R
O F
E C O N O M Y
REPORT ON GLOBAL COMPETITIVENESS: CROATIA RANKS 77 OF 139 COUNTRIES
TRYING TO CATCH UP BUT SINKING LOWER
The implementation of inter-synchronised policies and measures will result in inevitable structural changes, notes president of NCC, Ivica Mudrinić n its latest report International Risk & Payment Review, which includes the business risk covering 132 countries, the crediting agency Dun&Bradstreet has assigned Croatia a DB3d rating with a positive outlook. This puts Croatia amongst those countries having a slight business risk, according to a report from the credit rating agency BonLine. Business with Croatian companies is still at risk due to reduced lending activities of local banks, a higher number of bankruptcies and vulnerable economic surroundings. Payments by companies remain unchanged, partly as a result of more stringent credit conditions of suppliers and new government measures, which improved payments within the public sector. Higher expenditure, combined with lower income has resulted in a larger budget deficit than estimated, changing the economic situation in the country. In order to finance the deficit, the government issued bonds totalling €1.8 billion for a period of 10 years, carrying an interest rate of 6.6%. This is only a temporary measure to help the state, although it increases the level of foreign debt in GDP, which will exceed 100% by the end of the year, according to D&B. (V.A.)
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roatia is sinking deeper and deeper on the scale of global competiveness. This year it ranks 77 of 139 countries, between Botswana and Guatemala. It sank five places in relation to 2009, and 16 places in relation to 2008. “Croatian competitiveness is still in decline. Whilst other countries successfully progress in a competitive sense, we are standing still. Moreover, we are lagging behind. Problems are obvious, and it is vital that Croatia recognises that changes are necessary, that it actively manages them, thus avoiding further backwardness.
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The implementation of inter-synchronised policies and measures will result in inevitable structural changes, pointed out the president of the National Competitiveness Council, Ivica Mudrinić. Changes needed Within the research, entrepreneurs blame the poor efficiency of public administration, tax rates, tax regulations, corruption and access to financial resources as the most problematic factors for business in Croatia. “Next year, Croatia will drop even further down the competitiveness scale. It is not necessary to wait
until next year to panic. Now is the time to do something about it,” says Željko Perić, Economy Adviser to the Prime Minister. He feels Croatia needs someone to initiate changes, and this might be the NCC due to its political neutrality. Gordana Kovačević, board president of Ericsson Nikola Tesla, feels however that an analysis which would show what we have and have not done is missing. “We should not run after the world and Europe, they should run after us. In order to achieve that, we need a transparent and competitive economic policy,” stressed Gordana Kovačević. (V.A.)
2 VIEWPOINT
Privredni vjesnik Year III No 0121
NADA BARIŠIĆ, DIRECTOR OF ŽITOZAJEDNICA
THREE BASIC CONCESSIONARY MODELS IN CR
Purchasing cheaper bread is a good message
PUBLIC OR
Total income of the bread industry decreased by 5% last year, with losses increasing to almost €6.16 million e believe that a detailed analysis of the condition within the bread industry might explain why the price of bread is rising. We actually feel that the message from Prime Minister Jadranka Kosor to buy bread from cheaper producers is not a bad message. The market is now overwhelmed with a wide range of bakery products, which vary in quality and price. Whether people buy cheaper or dearer bread will be decided by the true ratio of price to quality. It was decided at the meeting with the minister of Agriculture, Petar Čobanković that the price of bread will not currently rise. However, it will occur in the forthcoming period. Prices will change minimally, and this will not have a significant effect on standards to the Croatian public, whilst specific types of bread (standard white and brown) will not increase even then. The quality of the local bread industry does not lag behind that of Europe. Considerable investment has been made in the modernisation of bakeries and the renovation of outlets. We feel the problem lies in the perception of the consumer and the general attitude that everything can become more expensive, except bread. The price of flour has been mentioned as one of the reasons behind the increase in the price of bread. However, the price of energy has soared in the meantime (gas by 50%) as well as all input expenditure. In addition to the price of grain, or rather flour, the price of a loaf of bread is formed by a series of other expenses. For
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example, salaries, water, electricity, gas, petrol, machinery and equipment, depreciation, and others. Additionally, bakery companies do not receive any benefits in relation to other producers. The price of flour and grain in Croatia are almost identical to those in the EU, whilst the price of the finished product is two to three times lower. The industry profit is minimal or almost nonexistent. Total income in the bakery industry fell by 5%, whilst loss soared from €2.19 million in 2008 to almost €6.16 million in 2009, according to data provided by the Financial Agency. The bread industry in Croatia is in an extremely dire situation. It is not realistic to expect that industry which does not have positive results, repays the Croatian public with its own losses.
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Rules about public-private partnerships and concessions are Drago Živković he recession emptied treasuries of both state and local administrations, opened to political authorities new horizons in their search for financing the necessary investment. The exit from a difficult dilemma about how to satisfy appetites without new taxation or debt is now seen by many as through publicprivate partnerships, concessions and similar models of alternative financing. Circumstances for the Croatian state now show that it is a reasonable manager, since it completed the legislative framework for alternative financing models before the recession. The Act on Public-Private Partnerships came into force at the end of 2008, and the thoroughly reformed Act on Concessions, at the beginning of 2009. The rules are now clear, and it is a completely different matter that many find them too complicated. The state, cities and municipalities interest in PPP is obvious: using the public good to receive
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funds which cannot be pooled by taxation or indebtedness. Whether this interest is also in the interest of private investors depends on the individual case. Fixed and flexible Regarding concessions, the law has three basic models: concessions for the economic use of common good (public beaches and ports), concessions for public works (building sports halls, schools and medical centres) and concessions for public services (public transport and waste management). In practice, concessions for economic use of public goods are the most common. The procedure is not simple: the provider of the concession must first evaluate its value and design a study of justification in order to be able to draw up the documentation and invite tenders. Since concessions are actually a form of public procurement, the Act on Public Procurement directly applies if the value exceeds €4.93 million (VAT excluded). If it is less, a shorter procedure is ap-
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3
ROATIA
PRIVATE, NOT RIVALS
e clear and it is different matter that many find them too complicated plied for public procurement of lower value. The basic selection
criteria for the most suitable offer are economic (from the point of
PPP is not for the hasty Concessions and public private partnership overlap in one aspect. The concession for public works or services is thus simultaneously an instrument for implementing public private partnership, for which criteria are prescribed by law and the evaluation is performed by the Agency for Public Private Partnership. The temporary director of the Agency, Kamilo Vrana, says they are currently processing over 10 projects in various stages of preparation. They concern projects covering traffic, social welfare, culture, health, sport and urban infrastructure. Three projects are in the final stages of approval, and at least one is expected to be approved by the end of the year. There are only a few suggested projects based on the model of an operational loan. Most of them assume the granting of a concession, and one presupposes applying a status model, or rather establishing a joint stock company. In the case of granting a concession, private partners of the offered service directly bill end-users. This means the return on investment for constructing a certain infrastructure is not a load on the budget. Therefore, Vrana believes it is logical that projects based on the granting of a concession are the most common, especially during the crisis. In countries with a far more developed infrastructure for applying PPP than is the case in Croatia, three years pass between the concept and contracting of a certain project, according to data provided by Vrana. However, the advantage of a developed infrastructure is that it enables a constant flow of quality projects, contracting thus several projects a year, which attracts potential investors, and makes the market for PPP more competitive and efficient.
view of the concession provider) and naturally, the highest offered compensation for the concession. Fees for concessions are divided into part fixed / part flexible. It can change during the term of the contract, and compensation is strictly forbidden. The duration of the concession is not specified by law and varies in practice. Strengthen the role of cities and municipalities One of the most typical concessions, at least in coastal Croatia, is a beach concession. The company Tuber Forum from Vodnjan obtained a concession for a beach in Medulin two years ago. The experience has so far been good, since they are supported by the Medulin municipality and the Tourist Agency, says the director Mišel Rojnić. During the first two years they invested heavily in the renovation of the 250 metre long beach, and Rojnić is convinced it will pay dividends during the next two or three years. Most of the income derives from renting deck chairs
and beach umbrellas as well as various vessels. Rojnić believes that the existing legislative framework should be changed so that concessions are allocated by cities and municipalities, and not counties, since local administration is more flexible and faster. In practice, concessions are allocated for various public services. Some cities grant concessions for managing animal shelters, which usually include kennels. Virovitica, for example, granted a concession for this activity to the Feliks company, which owns a veterinary unit and surgery for small animals. The concession will last 15 years, and Feliks took on the responsibility of catching stray dogs and cars, removing carcasses from public areas, organising accommodation for animals and euthanasia. According to the concession contract, Feliks pays the city of Virovitica a fee of €342 a year, whilst the city pays for the removal of carcasses and any disinfection (€52,000 a year).
4 INTERVIEW
( €1.78 millio invested since 1995
Privredni vjesnik Year III No 0121
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In 1962 wine cellar Feričanci was founded
MLADEN PERAK, DIRECTOR OF FERAVINO
The state needs to help with the branding of Croatian wine Drago Živković he wine cellar in Feričanci near Našice was founded in 1962, and it has been operating as part of the Nexe Group since 1995. Since then, €1.78 million has been invested in the planting of vines, equipment and an expansion of the cellar, with the goal of turning Feravino into the leader on the market of continental Croatian red wines. Moreover, the tradition of producing white wine has not been neglected, especially graševina, which their victory at the recent Graševina Festival confirms. The winning graševina was named Dika (pride), which especially points out its Slavonian identity, says the director of Feravino, Malden Perak.
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The proclaimed Feravino strategy is to become the leading continental Croatian producer of red wines. However, you won the first big award for your white wine. Red wine requires a longer period of production. We actually started producing quality wines in 2008 and we are still working on quality. The 2008 vintage of red varieties includes syrah, frankovka and zweigelt. These wines are still in the cellar. They have not been bottled, except syrah, which was an experiment. And this experiment was the champion at several fairs. The first true vintage of syrah was 2009, and this wine will enter the market in a year or two when we evaluate that it is ready. Even though they are still in the cellar, we already consider frankovka and zweigelt as good wines, since we tested them at fairs. At a tasting in London, the 2008 frankovka received the same
I am quite sad when I think of Austria and their huge scandal with ethylene glycol some twenty years ago but now their export of wine is five times that of Croatia mark as graševina – for the best continental Croatian wine, not only amongst red wines. In London we had a couple of continental wines top marked by important people who are not obsessed with brands. As a company, we are still not a brand, but we think we will become one. It is difficult to find Croatian wines in world wine catalogues. The branding of Croatian wine depends on the state: one winery can hardly do anything in another country, since marketing is too expensive. Austria and Bulgaria help their wine makers. Even Macedonia, a country far less developed than Croatia, has wines throughout Europe, because somebody there recognised them as a product that needs to be marketed. I am quite sad when I think of Austria and their huge scandal with ethylene glycol some twenty years ago, when Austrian wines were thrown away across Europe. De-
spite this, in the past 20 years they have managed to increase their exports to five times that of Croatia. We cannot compete only on quality. What is situation concerning exports for Feravino? We export some, but not satisfied. We are trying to export to Russia, Germany, America and Bosnia and Herzegovina. Our wine has recently been exhibited at a fair in China, and we plan soon to attend presentations and meet potential importers in Hong Kong. We are aiming at this mar-
ket also. People say red wines are more accepted there, yet they drink more white wine. You have great ambitions. Where do you see Feravino in five to ten years? In five years, when somebody wants to have a glass of red wine, and does not want Dalmatian varieties, since they are different, I want the red wine of Feravino to be the first to come to mind. This is our goal. Naturally, we will also have magnificent white wine, which we proved with the winning graševina.
Results down from last year What were your financial results for the first six months of this year? Poorer than last year. We certainly have better wine, but our results are 15% down over for 2009. The first half of the year usually brings a third of total annual income, so we hope we will be able to compensate our loss in the second half. We won the award for graševina proving we have excellent wine. Whether the market will recognise this is yet to be seen.
www.privredni.hr Business & Finance Weekly
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The Caffeine Ritual
NOT GIVING UP ON BLACK NECTAR
six months, this year, however, might be better than last. During the first six months of 2009, 506 tonnes of coffee and coffee products were exported ($2.8 million).
Krešimir Sočković cup of coffee is an inevitable ritual with which most Croatians start the day, and often repeat several times. Whilst the crisis might have changed consumer habits regarding leisure, clothes, footwear and other items, it failed to do so with coffee. Although the import of coffee decreased slightly in 2009, according to the Central Bureau for Statistics, and this trend continued during the first half of 2010, during the last 12 months Croatians consumed 10.6 million kilograms of coffee, worth $146.48 million, according to the MEMRB agency. According to statistics, between 2005 and 2008 the import of raw and processed coffee and coffee beverages increased from $40.2 million to $65.3 million. The trend stopped in 2009, with imported coffee and related prod-
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The consumption of coffee has not decreased during the crisis and the announced price rise will not deter coffee lovers ucts worth $56.3 million. The first half of 2010 also registered a drop from $26.9 million to $24.1 million in relation to the same period. The same trend was also expressed in quantity. In 2005, 21,200 tonnes of coffee and coffee products were imported and 21,900 tonnes in 2007, followed by a drop to 20,100 tonnes in
DELOITTE ANALYSIS
2009. At the same time, Croatian coffee producers show a similar exporting trend. In 2005, 899 tonnes of coffee were exported, worth $3.9 million. In 2008 the figure increased to 1,138 tonnes and US$7 million. Last year, 971 tonnes of coffee and related products were exported ($6 million). According to reports for the first
Turkish coffee the most popular According to the results of a survey of 407 people of a nationally representative sample conducted in July by the magazine Ja trgovac and the Hendal agency, the announced price rise will not bring considerable changes or make local consumers give up their favourite drink. According to the same research, Turkish coffee is the most popular (70%), followed by instant coffee and cappuccino (12%). Franck is the strongest brand on the market. Half of the population consumes their coffee. They are followed by Nescafe and another Croatian brand Glorija.
JOINT RAILWAY COMPANY OF SERBIA, CROATIA AND SLOVENIA
16 Croatian companies amongst Kargo 10 coming the largest in Central Europe ithin the 2010 list of the 500 largest central European companies, published by Deloitte, there are 16 companies from Croatia compared with 11 in 2009. As last year, the highest-positioned company is Agrokor, ranking 18 on the regional list, up seven places over 2009. In the banking sector, Zagrebačka banka ranks amongst the top 10 of the strongest banks in the central European region, whilst Croatia osiguranje is top insurer. Furthermore, Deloitte compiled the list according to total sales income achieved during 2009. Croatian companies included on the list mainly come from the sectors of goods for wider consumption, energy and telecommunications, whilst Končar is the only company from the production sector which is included on the list of regional leaders according to sales income. The Agrokor consortium main-
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tained the leading position amongst Croatian companies. Last year it achieved income of €3.6 billion and took 18th posi-
tion on the list. Agrokor is followed by the Ina Group (32), the HEP Group (76), Konzum (80), the HT Group (119), Pliva (274), Zagreb Holding (287), HEPProduction (327), HEP-Operator (352), VIPnet (356), Podravka (359), Croatian Railways (376), Vindija (457), Adris (458), Tisak (478) and Končar (485). The HT Group is the most profitable Croatian company even though it ranks five according to income.
ecently in Belgrade, railway operators from Croatia, Serbia and Slovenia signed a protocol on establishing a joint railway company Kargo 10. This is a continuation of talks supporting the establishment of a joint company for faster transport along the pan-European transport Corridor X. The protocol is to be ratified by the three countries. The headquarters will be in Ljubljana with Robert Vuga as its first director. The first train will leave Ljubljana on October 1, according to the Serbian agency Beta. Each country will own a onethird share in the newly formed joint company, and profit will be divided accordingly. Vuga said each of the three countries within the joint system would have 5% of total trains operating and that further infrastructural investment is not planned during the initial stage despite the need. Kargo 10 will be a significant
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player in railway transport, said Vuga. He also announced that the length of customs procedures at border crossings will be shortened to enable faster transport of trains of the joint company. As was explained, Montenegro and Macedonia did not agree to enter the joint railway company. They will, however, be a part of the wider alliance and benefit from it.
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Privredni vjesnik Year III No 0121
CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
7.31
5,294059 5,548481 6,820029 5,592351 8,840135 5,725073 7,285155
5.74
7.9.
8.9.
9.9.
10.9.
CHF
5.70
7.30
5.72
5.67
7.29
5.70
5.64
7.28
5.68
5.61
7.27
5.66
5.58
7.26 6.9.
WEEK SEPTEMBER 11, 2010
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USD
4.64 6.9.
7.9.
8.9.
9.9.
10.9.
5.55 6.9.
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8.9.
9.9.
10.9.
ANALYSIS
€210 million loan to Ina The European Bank for Reconstruction and Development (EBRD) is raising the standards in the Croatian oil sector with a loan of €150 million approved to Ina. It is intended for the modernisation of the refinery and programmes for the development of energy efficiency. The project is co-financed by ICF – Debt Pool with €50 million and Cordiant Capital Fund with €10 million. The project will help Ina complete the first phase of the programme of the modernisation of the refinery, which will enable production of oil products meeting EU quality standards. This will create easier access to EU companies. Dalekovod: contract in Norway worth over €20 million The Dalekovod company and the Norwegian state operator of the Statnett transmission system signed a contract on the construction of the 420 kV Sima Samnanger transmission line, 90 kilometres long. The value of installation work is over €20 million. Work is expected to start on October 1 2010. The construction includes building and installing steel grid pillars and electrofitting works. The purpose of the transmission line is to increase the reliability of delivering electricity to consumers. Industrial products prices rise In August, prices of industrial products from producers were 0.3% higher in relation to July. Compared with August 2009, they were 3.3% higher. During the period January to August, they rose 4% compared with the same period of 2009, according to data provided by the Central Bureau for Statistics. Total number employed in the industry was 7.2% lower than July of 2009.
Unemployment rate trending towards 18% It is obvious that the rate of growth in the number of unemployed is mainly of a seasonal character. The number of unemployed individuals actually decreased by 4.9% year-on-year ccording to data provided by the Central Bureau for Statistics (CBS), average nett salaries stood at €724.25 for the first six months of this year. This is a decrease of 1.3% over 2009. If the effect of the special crisis tax is taken into consideration, the real decrease reaches some 4%. Considering that only two months have passed after the lower tax rate had been abolished and new tax rates applied to income, this period is too short to evaluate the consequences of these changes. However, retail business results in July point to a slight increase in consumption, so it is possible that an element of the growth is due to the slightly higher
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income of employees in addition to tourists, suggests Ana Lokin, PBZ analyst. Therefore, we are still registering a fall in the numbers of unemployed (by 4.9%) year-on-year and after the season ends we are expecting a further rise in the number of unemployed, perhaps to 18%, says Lokin. Slower growth of salaries In the second half of 2010, nett salaries should grow due to legislative changes (which will decrease salaries for some employees), considering that the current level of economic activity would not result in their increase. With expectations of reduced GDP growth during the next few years,
growth in salaries will be slower than in the past period. Nevertheless, it is difficult to estimate its pace, since high unemployment creates a counterbalance to growth of salaries. Therefore, a longer period of stagnating salaries is possible, estimates Lokin. She believes that salaries will vary according to activities, as they have in the past. For example, the recurrence of fastgrowing cycle in certain sectors (construction, trade, real-estate and financial services) is not expected in the medium term. It is also uncertain whether salaries will grow in the public sector, considering the present fiscal deficit. (V.A.)
www.privredni.hr Business & Finance Weekly
WE PRESENT 7
CRAFT COMPANY HM, ZAGREB
LIMES PLUS, ZAGREB
Office products delivery The company offers over 7,000 office products, such as toners, photocopying paper, writing material and staples amongst others
Indigenous collection not imported kitsch The collection of Čudić represents some 40 indigenous Adriatic species of shells and snails carrying educational, artistic and tourism themes s a country with thousands of kilometres of sea coast, most people are only vaguely familiar with the diversity of the Adriatic seabed. Shells and snails, sold along our coast as local Croatian souvenirs, are often tropical species imported from China and the
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Pupils can learn about protected Adriatic shells and snails, which can only be seen on photos in their school collections Philippines. “As an admirer of our seabed and long-time collector of Adriatic shells and snails, I wanted to change that,” quotes Stjepan Čudić, owner of the craft company HM and a professor of physical education. This is the background to the idea of creating his own collection of shells and snails, adding to them educational, artistic and tourism overtones. “After designing my first collection for the school in which I work, I decided to dedicate myself seriously to this work. I registered my own craft company HM in 2005. Čudić states that his collections represent a range of some 40 indigenous Adriatic
shells and snails. A short description is found with each species in addition to the Croatian and scientific names. University of Science helped to classify and describe species The collection, he points out, was reviewed by the University of Science in Zagreb, and Professor Tatjana Bakran-Petricioli contributed greatly in classifying and describing the species, with great enthusiasm. The Education Agency recommended the collection as a teaching tool for biology. Pupils can learn about protected Adriatic shells and snails, which can only be seen on photos in their school collections. With the help of various companies and donors, city and municipal governments have already provided the collection to many schools. Today, with the help of divers, fishermen and collectors from throughout Croatia, Čudić also designs collections for hotels, restaurants, tourist agencies and offices. “The Croatian Chamber of Economy displays our collection at many international fairs with the aim of promoting the Adriatic seabed and Croatian tourism,” points out Čudić. (J.F.)
imes Plus is the first Croatian company specialising in the sale of office supplies via catalogue. It was founded in 1991 by its present director, Dubravko Pavlešić and his wife, Marija. Over the years it has developed into a company which supplies over 5,000 customers and offers over 7,000 products, such as toners, paper, writing material, staples and lever arch files amongst others. They pay particular attention to quality, offering major global brands, which reduces complaints and offers their users quality materials. “Our services are used by many companies, foreign representatives, embassies, multinational corporations and smaller companies often with only one employee. We deliver ordered goods to various locations, even to offices. We own a graphic studio where we design and print business cards, memos, labels, brochures and catalogues,” points out Pavlešić.
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Personal car fleet The entire business is operated from a new, modern distribution centre covering 3,400 m2 in Dugave, Zagreb. They also own outlets in Rijeka and Split. It should be noted that Limes plus, with 40
workers, owns a car fleet of 14 vehicles. “It is not easy to work in times of crisis, opines Pavlešić, “however, we are satisfied, since customers recognise there are advantages to be had in terms of savings. The number of customers is increasing, which somehow makes up for losses,” he adds. Since competition is fierce, their biggest problem is that buyers find it difficult to change their habits and accept a better option. They often look for the cheapest product, not taking quality into account. Nevertheless, the lowest price in general means the poorest product, explains Pavlešić.
Our services are used by many companies, foreign representatives, embassies, multinational corporations We wish to spread in the region, since we are quite familiar with the market and we know we can be extremely competitive anywhere. We are also open for co-operation with strategic partners, with a prerequisite to maintain quality, Pavlešić concludes. (B.O.)
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Privredni vjesnik Year II No 0121
COMBINING TRADITIONAL AND URBAN
A LAID-BACK A PROACH Sanja Plješa
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odern tourists are becoming less interested in mass tourism, since this kind of holiday is not treated as the experience which tourists actually want. Therefore, slow-tourism emerged as a counterpart to mass tourism in Croatia two years ago, promoting the return to a slower life-style. This form of tourism also accepts a “laid-back” approach, where tourists are able to enjoy in peace every aspect of their destination. People who go on such holidays are dissatisfied with uniform tourist packages and wish to explore places by themselves.
As a counterpart to mass tourism, slow tourism emerged in Croatia two years ago, supporting and promoting a return to the concept of a slower life-style
Urchin as a symbol The first Slow Tourism Club was established in 2007 in Italy, during the implementation of the cross-border project Rural Fairs with partners from Bosnia and Hercegovina, Croatia and Italy. “Partners from these countries wanted to set joint goals directed towards promoting local fairs, customs, traditional products and handicrafts. They summed up ideas on which classic continental tourism is usually based in an unconventional approach to tourism, based on a slower life-style as a counterpart to the fast and urban life-style,” says Ana Radman, president of the Slow Tourism Club, a tourism cluster from Velika Gorica. She notes that the club is responsible for the implementation of the international concept and a new form of tourism as well as its brand. It is also using its logo - a symbol of urchin, used by members of the international initiative of slow tourism. Their members also raise awareness on the individual responsibility of tourists regarding environmental protection. The club promotes less visited, but equally valuable destinations in Velika Gorica and Turopolje. It also works with the Zagreb tourist agency Scrinium, which developed a series of “slow” routes through Turopolje, consisting of six programmes under the name Wandering Around Turopolje. Recently tourists have been able to use an electronic travel guide in order to get to the desired destination. An adventurous spirit is understandable.
::: news 12.9% more unemployed in August The Croatian Employment Agency registered 283,330 unemployed at the end of August. This is 0.2% more than in July, and 12.9% more over 2009. The highest number of unemployed is within Zagreb (13.1% of the total), and 54.6% of women are unemployed. Regarding education, the structure is dominated by people who finished three-year
or four-year high-schools (61%). According to age, young people (up to age 24) comprise 17.9% of unemployed, up to 49 years of age 54.7% are unemployed and 27.4% over 50. Sports centre Višnjik increases losses Sports centre Višnjik from Zadar finished the first six months with a €0.32 million deficit. In the same period in 2009 the defi-
cit amounted to €84,000. Even though income at €0.67 million stayed at almost the same level as last year, expenditure increased from €0.75 million to €1 million. Increased profit for ACI During the first seven months of 2010, ACI achieved profits of €2.56 million. This is 25% up from the previous year. Numbers in three categories of berth services registered a 2% drop (annual
berth), 4% drop (daily berth) and 8% drop (monthly berth). Other nautical services increased by 23%, resulting in a total increase of 23%.