Rail and river traffic By train to ship, by rail over river Kargo 10 unites the rail systems of three states - Croatia, Slovenia and Serbia
Income and employees rising Despite legal questions, private medical practice is still a good business proposition with banks lending to them
Interview: Olgica Spevec, President, Council for The Promotion Of Market Competition Sentencing is not an end in itself
GOODS TRANSPORTATION
PRIVATE MEDICINE
INTERVIEW
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Croatian Business & Finance Weekly Established in 1953 Monday / 20th September / 2010 Year III / No 0122 www.privredni.hr
S U P P O R T E D
::: news Končar introduces new low-floor train
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
INSOLVENCY DEBTS SOAR TO €4.29 BILLION
NO END IN SIGHT
Total corporate indebtedness now stands at €1.72 billion
Končar and Croatian Railways recently presented their new low-floor electro-engined train for regional and city transport. A total of 250 experts worked on its development, and the prototype was designed in co-operation with TZV Gredelj. The train will be exhibited in Berlin at the world fair of transport industry and technology. One prototype has already been delivered to B&H Railways. Portuguese-Croatian Chamber A Portuguese-Croatian Chamber of Economy has been established in Lisbon at the initiative of the Croatian Embassy. The ceremonial signing of the Chamber Statute was attended by representatives of the Portuguese Ministry of Foreign Affairs, the Portuguese agency for subsidising foreign investment and promotion of foreign trade, Portuguese entrepreneurs and foreign trade attachés, according to a statement from the Ministry of Foreign Affairs and European Integration.
Vesna Antonić lliquidity continues to rise in Croatia slightly faster compared with June, and it seems its end is nowhere in sight. According to FINA data published in the latest edition of Economic movements by the Croatian Chamber of Economy (CCE), outstanding debt stood at €4.29 billion. This is €0.14 billion more on a monthly level, and €1.16 billion year-on-year. These figures relate to a total of 70,218 organisations and companies, employing around 68,776 staff.
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More precisely 30,500 insolvent companies, employing 42,909 staff, owed €5.3 billion, which is €121.9 million more compared with June. On a monthly level, the number of insolvent companies increased by 925, whilst the number of employees decreased by 1,362 (3.1% less than June). Year-on-year, the amount of outstanding debt soared by 40.1%, and the number of insolvent companies by 30%. Three dominant activities Concerning private individuals, 39,718, employing 25,867 peo-
ple, did not settle debts of €0.79 billion in July, a 2.4% increase on a monthly level. In relation to July 2009, outstanding debt increased by almost 25%, insolvent craft companies by 16.1%, whilst the number of employees is 10.5% higher. The highest share of outstanding debt is that outstanding for over 360 days (79.3%). Three areas of activity dominate the outstanding debt, which amounted to 70.6% at the end of July, trade (34.7%), construction (19%) and the processing industry (16.9%).
2 VIEWPOINT
Privredni vjesnik Year III No 0122
GARI CAPELLI, MAYOR, MALI LOŠINJ
Mali Lošinj is without competition A high quality approach to the modern tourist is only possible through programmes which exceed all expectations ven though beautiful nature and the geographic advantages of Mali Lošinj have been attracting tourists for years, they have not been sufficient for the repositioning of Mali Lošinj as a top quality destination on the global tourist map. Therefore, we decided, five years ago, to present Mali Lošinj as a tourism brand, which will continually bring more tourists from throughout the world. Over a million overnight stays this year, and two million in 2009 (4% more in relation to 2008), many awards for tourism, (Silver Flower of Europe 2009, Tourism champion of Croatia 2007 and 2008), and international awards for responsible tourism (Premio di turismo responsabile 2010), all prove that this effort has paid off. We dedicated ourselves to sustainable development through ecological projects. As a top destination, which aims at excellence and the sustainable development of tourism, we nurture the cultural heritage and sights which Mali Lošinj offers. A high quality approach to the modern tourist is only possible with a programme which exceeds all expectations. To achieve this, branding of destinations is vital, where Mali Lošinj is one of the national leaders with superb results. The fact that 250,000 tourists visited the Lošinj archipelago proves this. We are handling foreign competition quite easy, using modern marketing and PR tools and active communication to all involved. We also manage to promote what we do best as well as
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IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
(€10,000 foun in Kargo 10
RAIL AND RIVER TRAFFIC
BY TRAIN OVER RIV
The main aim of the Kargo 10 project, which unites the rail reduce the duration of cargo rail transport from Ljubljana to draw in cargo transport from Corridor IV passing through Hu Drago Živković hen Hido Biščević, senior secretary of the Council for Regional Cooperation said in his recent interview for Privredni vjesnik that the reconstruction of railways is a key precondition for connecting markets and industrial development, he actually repeated the old mantra from several industrial and traffic experts. The renovation of the rail system and its linking with a system of intermodal traffic, in addition to road, river, sea and air traffic, has been promoted for many years, especially after the completion of the motorway system. Whilst Croatia started this venture by introducing the National Programme of Railway Infrastructure through to 2012, its achievement slowed due to the burgeoning budget deficit. The condition is no better in neighbouring countries, especially Serbia. Not even Slovenia has made any significant progress. Not a single national rail operator in ex-Yugoslavia is competitive, the moreso since rail cargo transport is too time-consuming. As funding for any necessary investment is lacking, rail operators are forced to deepen their cooperation to increase efficiency.
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all those features which distinguish us from other global tourist destinations. All our promotion activities, fairs and cultural programmes, consisting of around 250 events every year, benefit tourism, whilst our numerous seminars prove our constant desire for improvement. We support open dialogue, innovation and quality service and deal with all problems in the field as quickly as possible. The recent 27th world spearfishing championship offered us a great opportunity for additional destination branding. This was one of the biggest sporting events in Croatia and we used it as an opportunity to position Mali Lošinj as the world spear-fishing centre.
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
EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr
COUNSELLOR, INTERNATIONAL OPERATIONS, LANGUAGE EDITOR Ray Fletcher fletcher@privredni.hr
Collective decision making The consequence of this is the recent establishment of the joint company Kargo 10. According to the board president of Croatian
Railways (CR), Zlatko Rogožar, Kargo 10, as a joint project of Serbian, Croatian and Slovenia rail operators, will start by the end of September. The first train could leave from Ljubljana on October 1. Ljubljana will also be the centre of the company, since Slovenia is the only EU member of the three countries. The company will have three directors who will collectively make all business decisions. Profit will be shared accordingly, since each member will have a third share (€100,000), whilst annual membership is €20,000. The main aim is to shorten the time for cargo rail transport from Ljubljana to Istanbul, from 70 to a maximum of 40 hours. This should draw in
www.privredni.hr Business & Finance Weekly
nding share
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(October 1
first joint train to leave from Ljubljana
TO SHIP, BY RAIL VER
systems of three states (Croatia, Serbia and Slovenia), is to o Istanbul from 70 to a maximum of 40 hours. This should ungary, Romania and Bulgaria
work on the Vinkovci-Tovarnik section should be completed next year. The completion would also mark the beginning of work on the Novska-Okučani section, which should last for no longer than two years. Connection to ports Linking up with other types of transport is based on market principles. It is directed towards the customer and offers complete logistic solutions, says Rogožar. In addition to the existing road
cargo transport from Corridor IV passing through Hungary, Romania and Bulgaria. Since Kargo 10 has no access to larger investment for now, this will have to be achieved through the optimisation of customs procedures, production, and later, inter-operability. With the state budget of the three countries and additional, possible PPP, the joint company will certainly compete for crossborder projects financed with EU funds. Croatia is already using pre-accession EU funds for projects on Corridor X, and renovation
As finance for the necessary investment is in short supply, rail operators are forced to deepen their cooperation to increase efficiency network, river transport and ports should play an important role, since a major section of Corridor X passes through
Corridor X section the main section of the X panEuropean corridor connects Salzburg and Solun, through Villach, Ljubljana, Zagreb, Beograd, Niš and Skopje. The main section is linked to four other branches: X.a: Graz - Maribor - Zagreb X.b: Budapest - Novi Sad - Belgrade X.c: Niš - Sofia - Dimitrovgrad - Istanbul X.d: Veles - Prilep - Bitola - Frolina - Igoumenitsa Corridor X has road, rail and water routes. The water route in Croatia is the river Sava, which is navigable from the Serbian border to Sisak, and the future Zagreb river port in Rugvica is also scheduled to open.
the valley of the river Sava. The International River Sava Basin Commission (Sava Commission) has been promoting the Sava as a traffic route for five years. The connection of ports and countries in the Sava basin has been positive for now, which is why the deputy secretary of the Sava Commission, Željko Milković, sees no reason not to strengthen it. Considering that the establishment of the new company is expected to improve rail services, Milković believes that connections with river ports, which encompass a degree of rail cargo, will also grow. The infrastructure for inland navigation on the Sava is in a poor state as a result of its interruption during the war, a lack of maintenance of the navigable route and insufficient investment. Supported by the EU, the Sava Commission and ministries of the Sava basin countries responsible for transport have initiated a se-
ries of international financial initiatives for the rehabilitation and development of the navigation of the river Sava. The states are required to implement all necessary activities on the renovation of the route within a set time framework; a feasibility study has been completed as well as the conceptual design for a navigable route from Belgrade to Sisak. Co-operation continues between Slovenia and Croatia regarding the expansion of the navigable route towards Slovenia. Authorised ministries from Croatia, Slovenia and B&H are nearing the finalisation of preparations for the main project of the route which is planned to be financed through IPA funds. The financial infrastructure for performing the work on the navigable section has also been developed. The project for increasing port capacities are also under preparation. Regardless of any decreased capacity of the navigation route and ports, both ports and railways are co-operating, and the new rail company means greater co-operation, of which river ports will certainly take advantage, concludes Milković.
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Privredni vjesnik Year III No 0122
( 174 private
health institutions in Zagreb
( almost €127.4 million
total profit made by polyclinics and clinics in 2009
INCOME AND NUMBERS OF EMPLOYEES RISING
Private practice a good business Despite legal questions, private medical practice in Croatia is still a good business proposition which banks are willing to support as they increased their income by some €13.7 million in 2009, with the number of employees increasing by 7.85% Jasminka Filipas ven though the slow service within the public health system benefits private clinics and polyclinics since more people opt for paying than long queues, there are still some difficulties in private practice. However, they mostly relate to legal gaps, from which private practitioners suffer. And they are not easy to count. According to the Avidus Group, there are 417 private clinics and polyclinics in Croatia, but 361 according to the Ministry of Health. “We are more than satisfied with the Health Protection Act, but we are displeased with the lack of equality between private health institutions and other economic operators,” says the director of the largest Croatian private polyclinic, Medikol, Dr. Ivanka Trstenjak-Rajković. According to the Health Protection Act, they should operate as nonprofitable organisations. According to the Taxation Act, they must pay taxes as do other companies, and according to the Investment Promotion Act, they are not treated as any type of economic activity. As a result they do not enjoy any benefits when investing as other businesses do, explains Trstenjak-Rajković.
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Banks gladly support them However, due to their positive business results, Medikol’s investment has been supported by local and foreign banks. Investing in training, state-of-the-art equipment and renovation has proved to be the right path of development, says the director of Medikol, which employs over 160 staff. “Croatia does not lack high quality workers. However, we believe that at least 50% more students need to enrol in medical
universities and colleges due to the approach of accession to the EU. When this happens, overtime work, working after being on-call and similar will be prohibited,” says Ivanka Trstenjak-Rajković. The Svjetlost clinic, which should be awarded with the status of a special hospital for ophthalmology and an ophthalmologic clinic by the Faculty of Medicine in Rijeka this year, did not complain about the law. As Privredni vjesnik was advised by the director, Nikica Gabrić, they have invested €7 million in new facilities and equipment. From the outset they co-operated with Zagrebačka banka, which supported them in the construction of the building and offered them reasonable interest rates. Growing figures “In addition to Zagrebačka banka, we would also like to point out its sister companies Locat leasing and BKS leasing, which offered favourable conditions and interest rates for the construction of the building and the ability for us to be supplied with state-of-the-art equipment,” stressed Gabrić. He is pleased with the level of business, since they achieved 40% growth last year, and 20% to date this year. They are also aware of their social responsibility, and offer 20% to 30% of free check ups and operations for people with lower living standards. The director of the Sunce polyclinic, Mladen Jukić, feels that nothing should change in legal terms, since EU accession will change everything which is not good now. The development of this Polyclinic, which includes nine clinics, has not been supported by banks,
but through capital from a private insurance agency. “A great deal has been invested, so that each insured person, client or patient,
Number of employees increased from 2,254 to 2,431 in 2009 is satisfied. All our buildings are eye-catching; we have state-ofthe-art equipment and top doctors as well as technical staff. Our Polyclinics employ 80 doctors of various specialisations and subspecialisations. We rarely need to consult with colleagues from other institutions,” pointed out Jukić. He notes that they rely on personal voluntary health insurance policies and numerous health services which they offer to individuals and companies. Accord-
ing to data from the Avidus Group, total business income of all polyclinics and clinics amounted to almost €127.4 million in 2009. Last year, income totalled €113.7 million. The largest number of private health institutions is situated in Zagreb (174), whilst the county of Požega and Slavonia has only one. Compared with 2009, the number of employees has increased by 7.85%, from 2,254 to 2,431.
www.privredni.hr Business & Finance Weekly
INTERVIEW
5
would rather increase prevention and have fewer sentences “ We and develop the market faster. ” INTERVIEW: OLGICA SPEVEC, PRESIDENT, COUNCIL FOR THE PROMOTION OF MARKET COMPETITION
SENTENCING IS NOT AN END IN ITSELF Those who operate price-fixing rings and cheat competitors and consumers must be held responsible for infringements of the law, says Olgica Spevec. From October 1, the Agency over which she presides will have the authority to pronounce sentence Igor Vukić fter October 1, the Agency for The Promotion Of Market Competition (APMC) will gain a more powerful weapon for fighting entrepreneurs who break the law on market competition, operate price-fixing cartels or who participate in unfavourable contracts through their position and influence, or jeopardise market competition in any other way. A new law on promoting market competition will enter into force in October. The Agency will thus gain new authority, and the current method of identifying infringements to the law will be changed. Privredni vjesnik discussed this with Olgica Spevec, President of the Council for The Promotion Of Market Competition who presides over the APMC.
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What are the most important changes to the laws on promoting market competition in relation to current practice? One of the most important changes is the Agency’s authority to hand down sentences. Until now, the Agency has raised charges in courts for minor offences after identifying any infringements to the law. Then new evidential procedures would take place. Entrepreneurs had to again hire lawyers and go through the process yet again. Thereafter they could appeal to the High Court For Minor Offences. All these procedures were costly and the system was inefficient since courts for minor
offences would rule differently and with unequal sentencing. Cases would also quite often end up outside the Statute of Limitations. What will the procedures look like under the new law? The Agency will run them according to its official duty. An entrepreneur, with a complaint against the behaviour of another entrepreneur will initiate the process, and the Agency will decide whether there are grounds for pursuing it. The Agency then takes over the procedure, and the entrepreneur who initiated it has no further responsibility. If the Council of the Agency finds any infringement of the law, then sentencing will be put in motion, where the investigated company will be able to co-operate. A hearing will be organised, and the company will have the right of defence. However, only the amount of any penalty will be discussed and mitigating cases of both pros and cons will be set out. What is the sentence prescribed by the law? The highest sentences can be 10% of annual income achieved by the organisation which has infringed the law. Sentence will be described in detail in a government regulation on our proposal after the law comes into force on October 1. The procedure of sentencing will comply with European rules, in a manner that a foreign company will have the same legal environment in Croatia, when we join the EU.
Do you expect the new model of quicker sentencing will arouse the greater interest of entrepreneurs in your work? Sentencing is not for its own sake. We would rather increase prevention and have fewer sentences and to develop the market more rapidly. This is in everyone’s long-term interest. Entrepreneurs need to understand that this law is as equally important as the rest. When someone is price-fixing or cheating either competitors or consumers, then they need to be held responsible for infringements under the law. We wish to encourage those who see such infringements to report them. Indemnification for damages, for those who have been damaged, is specifically prescribed by law. All those suffering damage - from competitors to consumers - can file for damages in the trade court. How will you obtain reliable information on the existence of illegal cartel agreements? We have the possibility to find those who own up to their infringements and whose sentence may be absolved if they plead guilty and offer information on other accessories to the event in the chain of illegal activities. The first to deliver credible informa-
tion might be free or the sentence be considerably extenuated. The possibility of impunity for such individuals in Europe and America has proven to be the only right method of fighting cartels. What would be the effects of your work if you had had that kind of attitude previously? The rise in the amount of unpaid penalties is visible in the Agency reports. Will this trend accelerate? In 2009 we exceeded €0.14 million in handed-down sentences, whilst the total amount between 1995 and 2008 was only €41,000. We had to work hard with the judges in order to accustom them to this problem. Terms, like “dominant position in the market”, “illicit agreement” and similar, fall into new legislative categories which many still find quite innovative. Entrepreneurs should also be given time to adjust to the work of the Agency. They have already started visiting us, asking questions and seeking advice before making uncertain moves and asking whether they can be included on the Agency agenda. Many entrepreneurs are therefore co-operating with us, even board chairmen or the key people in Agrokor, HT, Adris Group and many others.
6 WE PRESENT HONORARNI-POSAO.COM
Privredni vjesnik Year III No 0122
MASIVNI NAMJEŠTAJ, ZAGREB
Modern life for ancient oak Oak must “rest” for between 2,000 and 7,000 years before turning into a highly valuable commodity
A site to find parttime work We wish to encourage the concept of part-time work as a specific life-style, where part-time workers may be free and financially independent f you are looking for a parttime worker in Croatia, visit the new portal of www.honorarni-posao.com. It has recently been established by a non-profit association Pomicanje granica (in English expanding boundaries) from Zagreb with the aim of becoming a reference place for those offering and seeking parttime work. This is the first such initiative in Croatia. Until now, there were no facilities where one could seek or offer work, such as editing or graphic design. “Our services are free; we are financed through donations and advertising on the portal,” says the marketing manager, David Kelečić. He opines that portal is the simplest and most efficient way of connecting companies with talented and professional freelancers throughout the region, from artists, photographers, programmers or writers, to thousands of other freelancers.
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Presenting yourself Registration on the portal and job advertising is relatively simple. You only need to follow instructions, with part-time workers being offered free advice on how to present themselves when seeking work. The portal offers a good cross-section of educational articles about everything a part-time worker ought to know, and why it is sometimes good to be one. For example, one of the
advantages presented is flexible working hours, selecting working conditions and the possibility to avoid potential bad relationships with colleagues. There is also advice from experienced part-time workers, advice for part-time writers as well as com-
The portal offers a wide range of articles about everything a part-time worker should know, and why it is sometimes good to be one panies, as to when and why hire freelancers. “We wish to promote the culture of part-time work as a specific life-style, where parttime workers can be free and financially independent, whilst employers can receive top quality service,” stressed Kelečić. Amongst other things, the portal is quite specific about on-line manners. Therefore, content which violate the provisions of the penal code (insults, swearing, incitement to criminal act), the Act on the protection of youth, the Act on intellectual property and so forth, are strictly forbidden. The founders of the portal have made it available on social networks, so honorarni-posao. com can also be found on Facebook. (J.F.)
entennial and petrified oak are the most highquality materials for solid furniture, which the market has recently rediscovered. Many global furniture fairs are offering more space for the rustic style, and modernised designs of solid furniture brings additional value. This is precisely what the company Masivni namještaj (in English ‘solid furniture’) have done. They produce oak furniture using state-of-the art machinery in a fully-equipped production plant in Zagreb, have a showroom in Hotel I and ten employees. “Our co-operation with young designers and
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Modern design for solid furniture gains additional value several well-known design names has led to original solutions, which have already been applied in flats, houses and other areas,” says the company co-owner, Davor Ilić. “We produced furniture for the cult Berlin restaurant Ciao as well as crosses, one of which has been given to Barack Obama by an American congressman. No one in Croatia produces such specific furniture from centennial or petrified oak, so we decided to offer an exclusive product fully in compliance with global ecological and aesthetic standards, adds Ilić.
“Rather than sculptures, jewellery, and chairs, we created a concept which encompasses all types of furniture, hotel interiors, restaurants and business premises.” Through the help of rivers Centennial oak, especially that which has been petrified, is a very popular wood in the production of musical instruments, in exterior and interior design due to its chemical and aesthetic features. “As a result of its most important feature - age - it is a priceless material with a high aesthetic value and long survival life, making it practically everlasting. It is not easy to come by, since this wood has to be aged for between 2,000 and 7,000 years, and has often rested in river beds for a considerable time, covered with metres of gravel, sand and silt. Therefore, the excavation of petrified oak is extremely difficult and complicated work. Its curing is equally demanding, which makes it expensive,” he adds. “It is simpler to obtain centennial oak, mostly from demolished old wooden houses. This is a high quality wood, which has been exposed to the elements for over 100 years and in all possible weather conditions, which makes it more resilient and robust than any newly-sawn wood. This characteristic makes it the perfect material for top quality furniture,” stresses Ilić. (K.S.)
www.privredni.hr Business & Finance Weekly
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CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
Kuna exchange mid-rate
EUR
7.31
5,241947 5,422206 6,464975 5,459592 8,705466 5,544782 7,284734 WEEK SEPTEMBER 18, 2010
USD
5.70
15.9.
16.9.
17.9.
5.66
5.62
7.29
5.62
5.58
7.28
5.58
5.54
7.27
5.54
5.50
18.9.
4.50 14.9.
15.9.
16.9.
17.9.
LOW INFLATION ESTIMATED FOR ENTIRE YEAR
August inflation rate 0.9% Rise is slightly lower than July when consumer prices increased 1% year-on-year
verage annual inflation rate measured by the Consumer Price Index for August stood at 0.9%, slightly less compared with July, when consumer prices increased 1% year-on-year, according to the latest data provided by the Central Bureau for Statistics. Regarding groupings of consumption, the price rise is mostly due to higher energy prices. In terms of living expenses, water, energy, gas and other energy resources increased by 6.7%, mostly caused by the price rise of gas (16.4%) and liquid fuel (16%). Higher fuel prices affected transport, which
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increased 1.2% year-on-year. The fall in consumer prices was mainly attributable to lower prices for food and soft drinks
Lower prices of food and soft drinks had the biggest effect on consumer prices (-0.7%), which comprise 31.3% of the consumer basket. Lower prices for clothing and footwear (which decreased 4.8% year-onyear) also contributed. Since it is difficult to expect any significant recovery in local demand
5.66
7.30
7.26 14.9.
CHF
until the end of the year, the inflation rate will remain low. This is also evident from the government announcement that the price of electricity will not rise this year. Furthermore, the recovery of developed economies has slowed and as a consequence any pressure on the rise of crude oil prices, as the main production raw material, is smaller. Low inflation pressure should mark the entire year, as a consequence of the low level of local demand. Therefore, the average inflation rate should be slightly over 1%, according to RBA analysts. (V.A.)
18.9.
5.46 14.9.
15.9.
16.9.
17.9.
18.9.
::: news
Banco Popolare to give credit to entrepreneurs Banco Popolare Croatia and the Croatian Bank for Reconstruction and Development (HBOR) have signed a business co-operation contract covering the HBOR project Microcrediting, which relates to a credit of €4.5 million intended for micro, small and medium-sized enterprises as well as private individuals and companies which meet EU conditions. The funds are part of a contract between HBOR and KFW Bankengruppe for 2010, supporting the development of SME’s up to €20 million. According to the new contract two types of credit will be approved; one covering the financing of craft businesses (up to €30,000) and an investment credit of up to €250,000, which assumes financing up to 100%. Income fall at insurance companies According to data provided by the Croatian Insurance Office, insurance agencies registered a gross fall in premiums of 2.1% during the first eight months of 2010. The deficit in August 2009 amounted to 1.5% over 2008. Of the five organisations with the largest market share (Croatia, Allianz, Euroherc, Jadransko, Kvarner VIG), only Allianz finished January 2010 with a modest rise in premiums of €0.08 million, whilst the other four registered falls of between €0.12 million and €1.64 million. For Allianz, premiums decreased by €0.14 million at the end of August, whilst Kvarner VIG reduced its deficit by €1.1 million. Croatia osiguranje plummeted €15.48 million in August year-on-year.
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Privredni vjesnik Year II No 0122
KINDERHOTELS EUROPE - ANOTHER MEMBER JOINS ::: news Zagreb hoteliers suggest destination prices It is in the interest of all hoteliers to increase income, not lower prices, since in the short term this means profitability for an hotel, but in the long term it destroys hotels and tourist destinations. This was pointed out at a recent session of the Council of Hoteliers of the Croatian Chamber of Economy. The possibility of agreeing on destination prices for all hotels in Zagreb along the lines of Vienna, Budapest and Prague was suggested at the session. The need for additional training of hotel staff was also discussed, as was co-operation of hoteliers on the project ‘Advent in Zagreb’. It was suggested that all Zagreb hoteliers should adjust their prices and create targeted packages in order to attract more tourists during that period. Grawe receives status of Superbrand Grawe Croatia insurance agency has been included amongst the top Croatian market brands and was granted the title of Superbrand. “We are especially happy that consumers played an important part in the selection, since their opinion and recognition, with all due respect to the profession, are the most important,” noted Board President, Igor Pureta. Ina Group lets go 1500 workers
The board of the Ina Group has made a decision on drafting a programme for sacking 1500 redundant staff. This is roughly 9% of the total of 16,300 employees. According to the Group statement, the programme will be drawn up in co-operation with all the three Unions, who will work together during its implementation. The amount of severance packages was not mentioned in the statement, only the fact they will be higher than previously.
FOR QUALITY Hotel Vespera on Mali Lošinj is the only hotel on the Adriatic Sea specialising in programmes and equipment for holidays for parents with small children Sanja Plješa
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he tourist industry is directing more towards families with children, which is why the hotel programme has been created to fit the needs of these guests. Accommodation, food, activities and entertainment in the hotel have all been adjusted to the needs of families with children. Hotels and tourist resorts frequently compete in their packages to attract this targeted group. One specialised company for family holidays is the Austrian tourist group Kinderhotels Europe. Hotels within this group are of the highest standards, guaranteeing parents and children excellent vacation time during their stay. In order to maintain high accommodation and service standards, Kinderhotels are frequently visited by inspectors, since everything needs to be at a high level for children. Rather than being categorised by stars which describe the category of hotel, they use “smileys” and the number tells guests the level of facilities they can expect. For example, hotels with five “smileys” guests have an all-inclusive package. In these hotels for children everything is arranged to fit family needs, which includes, amongst other things, equipment for babies and a kitchen for parents. Child entertainers have an educational background. Chil-
dren are catered for with various playrooms, wellness and activity programmes adjusted to their age. Furthermore, the environment of the hotel is designed as a completely safe area for children. Vespera – the only hotel for children in Croatia To complement the already 50 plus hotels from the Kinderhotels Europe Group in Austria, Germany and Italy (South Tirol), on January 1, 2010 the group was en-
Child entertainers have an educational background. Children are catered for with various play rooms and wellness and activity programmes adjusted to their age larged by the addition of the only hotel in Croatia of this type - the Family Hotel Vespera on Mali Lošinj. After the complete renovation in 2009, at a cost of €16.9 million, the hotel has been turned into a facility with four stars, said PR manager, Vesna Hocenski, from the tourist company Jadranka hoteli. “During the renovation special attention was paid to the specific needs of families with small children, especially the small details. Accordingly, the hotel has an extremely wide range of programmes for children and adults,”
she states. The Family Hotel Vespera currently is graded at three “smileys”, and four stars as the official category. Which “smiley” category a certain Kinderhotel is awarded, is decided by the Board of Kinderhotels, after a detailed examination of the hotel, its programmes and the level of equipment. Additional evaluations cover equipment and location, equipment and size of family rooms, the area and menu range of the hotel restaurant, play area and services (laundry, babysitting), organised programmes for children and family and stroller-rental. Three years of exclusive rights Family Hotel Vespera is currently graded at three “smileys”, and the management aims to achieve a level of five, until the final goal is reached - turning Vespera into a brand for family holidays in Croatia. Jadranka hotels do not plan for any of their other hotels to join the Kinderhotels group, since hotels of this tourist company are directed towards a different type of guest. “According to strict rules and the contract with the Kinderhotels Grouping, a hotel from another tourist company on the Adriatic is allowed to join the group after three years, and this is guaranteed in our contract. Therefore, Family Hotel Vespera enjoys exclusive rights for now,” concluded Vesna Hocenski.