Dr. Goran KuĹĄec, professor, Faculty of Agriculture, Osijek Are we eating dangerous food media scandal or real alarm?
Blueberry craze The lack of blueberries in Croatia and Europe increases demand for Hellea fruit from Zagreb
Croatian-Polish Economic Forum Until September 2010, direct investment from Poland into Croatia totalled â‚Ź38.4 million
INTERVIEW
AGRICULTURE
ECONOMY
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Croatian Business & Finance Weekly Established in 1953 Monday / 21st February / 2011 Year IV / No 0141 www.privredni.hr
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pvinternational pv international C R O A T I A N
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CORPORATE LOANS, BAD DEBTS AND SAVINGS ALL INCREASE
Corporate lending accounts for 50% of overall lending increase Corporate loans have increased 9.6% year-on-year and central government loans by 16.7% otal gross loans were up 8.2% last year, mostly due to a boost in corporate loans which accounted for almost 50% increase in total lending. Corporate loans increased 9.6% year-on-year, mostly due to a rise in private company loans (+10.6%). Central government loans have continued growing as in 2009, resulting in an increase of 16.7% at the end of last year. Personal loans were 3.8% up, yet the real interest rate is negative at about -1%, whilst the nominal figure is mostly a result of the strengthening of the Swiss Franc which covers about 40% of housing loans or about one quarter of total personal loans. A negative rate is clearly indicated a decrease of 12.5% in credit card loans and car loans which decreased by 18%.
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Reduction in loan quality Bank credit portfolio continued its downward trend throughout last year, mainly due to reduced economic activity which led to company liquidity problems, particularly in small and medium-sized companies, as well as lower household income. The share of loans classified as B or C category was 7.8% up at the end of 2009 and 10.2% in the third quarter in 2010, where
personal loan share amounted to 7.5% and corporate loans to 15.9%. With respect to personal loan types, the highest share of bad loans (11.1%) related to other loans (general purpose loans, consumer lending, overdrafts), whilst bad loans share covering housing loans, car loans and credit card loans was considerably lower at 4%.
Interest rate level has a considerable impact on lending movements This reduction in loan quality led to a considerable increase in expenditure of adjusted value in banks, yet, according to preliminary HNB data, banks managed to increase nett profit in one year by almost 18% which was achieved by the consolidation of revenue and transaction expenditure, as was pointed out by PBZ analysts. Concurrently with a corporate lending increase via domestic banks, foreign corporate borrowing saw a significant slowdown, so last year the foreign debt increase was mainly due to increased government borrowing. In October gross foreign debt was a mere 0.1% up with respect to the end of 2009. (V.A.)
Loan and deposit increase again this year This year, analysts anticipate a slightly dynamic loan and deposit increase and stabilised bad debt growth. They do not anticipate dramatic changes in household behaviour and expect restraint in loan demand as well as an increased inclination to saving due to lower incomes. Increased corporate lending is anticipated; concerning interest rates within good liquidity conditions, a stagnation of passive interest rates is expected and thus a slight downward trend in active interest rates, analysts pointed out.
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Privredni vjesnik Year IV No 0141
ZDENKA ZRILIĆ, MARKETING DIRECTOR, NATURAL SPRING WATER SANTA
Interview: Dr. Goran Kušec, professor, Faculty
Competition has never been stronger
ARE WE EATIN MEDIA SCAN
The consumption of spring bottled water has increased by a remarkable 376%
ven though Croatia has extremely high quality drinking water in households, analyses have shown that the water market has been growing unstoppably during the past several years. According to 2009 data, Croatians consumed 327.8 million litres of bottled water, of which only 17.8 million litres was imported. They consumed 171 million litres of sparkling water and 139 million litres of natural spring water. Even though this data might suggest Croatians prefer mineral water, for the past seven years its consumption has plummeted by 24.3%, whilst the consumption of natural spring bottled watered skyrocketed by an amazing 376%. Croatia granted companies around 30 concessions for water pumping and sales, which caused exception-
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IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
ally strong competition on the market. Total local production of mineral and spring water has increased by 33.8% during the past seven years and now stands at 364 million litres. There is no research which could give an accurate answer to what caused this high demand for bottled spring water; perhaps the global trend towards healthy living, investment in marketing communication or something else, but water is definitely a category which has been successful in overcoming the economic crisis and recession. Four brands hold almost 90% of the Croatian market and in the segment of sparkling water the competition is even weaker, with only three brands sharing the same percentage. However, there are more small players on the market who are earning their share and so we decided to market a new brand called Santa. After several years of harmonisation with EU standards, ecological and technical standards of construction and equipment, last summer we opened a new factory, situated near the nature park of South Velebit. We thus offered the market water which is pumped next to a spring of the Kupa River, from a 33 metre deep well. Even though the process of obtaining a licence was a complicated process, bringing the infrastructure to the level of normal performance took even longer. We are proud of our factory today, where the entire production line consists of materials meeting the toughest EU standards and regulations.
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I believe there is no real difference between us and the EU r from foreign companies Svetozar Sarkanjac r. Goran Kušec, professor at the Faculty of Agriculture in Osijek, director of Institute for special zootechnology and head of specialist studies “Quality and Safety of Animal Products”, is actively trying to practice his great scientific experience gained in Croatia, Germany, Norway, Slovakia, Austria and Macedonia, participating in efforts to solve problems in Croatian agriculture. Kušec was a member of the Croatian negotiating team during the EU accession processes regarding the chapters of Agriculture and Rural Development, Food Safety, Veterinary Medicine and Phytosanitary Control.
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The fear of contaminated food of animal origin is spreading across Europe and especially Germany. Hundreds of poultry and pig farms have been closed. What happened exactly? There have been several scandals in Germany in the past, ranging from antibiotics in pork to what is happening today regarding dioxin and similar. However, this problem is not exclusively related to Ger-
many. Let us remember similar situations in Belgium, Italy, Spain and other EU countries. Since the occurrence of bovine spongiform encephalopathy (BSE), or mad-cow disease and its connection with a new type called Creutzfeld-Jacobs human disease, food especially animal products – meat, milk or eggs has started to be closely monitored by the media. This does not mean similar problems had not occurred in the past, but rather our approach changed. Governments were falling be-
If we are already talking about fear, I only worry about our small-sized breeders and how they will cope with lowered prices cause of these problems. I feel the safety of food is greater than before and that these scandals do not occur as often. However, when they do occur, they have a strong public impact, which is good since it keeps us alert. Many are saying that if this could happen in Germany, then
www.privredni.hr Business & Finance Weekly
INTERVIEW 3
y of Agriculture, Osijek
NG DANGEROUS FOOD DAL OR REAL ALARM?
egarding food qaulity of animal origin. Our products are healthy, nutritional and do not lag behind similar products the EU regarding food quality of animal origin. Especially when we are discussing local big producers; our products are healthy, nutritional and do not lag behind
The safety system of food today is such that all responsibility falls on the producer. If they gain a bad reputation, then this can be a real problem
what are we actually eating in Croatia? An interesting concept. We do not have such large scandals, even though food safety systems in accordance with those of the EU are implemented much later. Not so long ago we would cook pasteurised milk and trichinellosis was much more common than to-
day. The number of microorganisms has not been a criterion for forming prices and traceability systems had been more developed. Perhaps it is because our agriculture is still not as intensive as it is in west European countries. I believe there is no real difference between our production and products imported from
the same products from foreign companies. Our main problem is that Europeans are ready to offer lower prices, especially concerning meat. If we are already talking about fear, I only worry about our small-sized breeders and how they will cope with lowered prices. A possible way out is forming associations based on different interests, such as protection of authenticity or geographical origin of agricultural products, which can then achieve higher prices. In any case, I believe that small livestock breeding, without being processed into quality products, will not be sustainable. The fear regarding health is justified only if you buy on the black market where traceability is impossible.
Small can survive too, but… Associations of small-sized producers are a verified recipe in developed countries. Are there similar cases in Slavonia? Good examples are associations of sausage producers, such as the Kulen/Kulin Association, which initiated the protection of authenticity of Slavonian kulen, or Baranja kulen, which is undergoing the process of obtaining protection of geographical origin of their product. The protection of indigenous animal species is also not a bad idea for small-sized producers, but unfortunately we do not practice it. In the German region of Baden Württenberg, in 1988, several families started to breed a local indigenous breed of pigs (Schwäbisch-Hällisches Schwein). Their goal was to produce quality meat based on ecological and sociological principles, to take over the entire chain, from production to consumer, and to support small-sized farms. In ten years, the Association increased from 8 to 340 members, achieving €20 million of turnover annual. They sell most of their products to hotels and independent butcheries with which they signed exclusive contracts. Just think how much could be earned by selling products with proper protection and marketing on our coast, including meat from the black Slavonian pig to ready-made products such as Slavonian kulen.
What can ordinary people do - those who buy food on the market and supermarkets? Supermarkets sell food of animal origin which can be traced to farms where the cattle was bred, since this is what regulations prescribe. Regarding markets, it would be sensible to buy directly from producers, those with a label of family farm origin. Thus, we are able to trace food back to the producer. The safety system today is such that all responsibility falls on the producer. If they gain a bad reputation, then it is a problem. Not only do they face legal sanctions, but their survival on the market becomes questionable too. You have the experience of EU negotiations, but also personal experience gained during your education in European countries. How is it possible to bypass such strict criteria and regulations on food safety? Food production systems, especial of animal origin, are very complicated, whilst the quantity being produced is enormous in accordance with market demand. Hence there is always room for errors, despite the strictest of rules. Furthermore, it rarely occurs that a risk factor enters the food chain somewhere in the middle of technological procedure of processing. This is mostly due to human error and happens at the beginning of the food chain. Sometimes ignorance is to blame, or knew scientific discoveries. The animal component in forage before the occurrence of BSE was quite common in terms of meat or meat-bone flour. We all know about prions today, but this was not the case in the past. Food scandals are mostly caused by lack of knowledge at a given moment, or neglect of professional ethics.
4 ::: news Simpler procedures for sailing tourism This year there have not been many changes in regulations relating to sailing and compensation prescribed by the state for this type of tourism have not been increased. This was pointed out at a meeting the Ministry of Tourism representatives, the tax administration, the CCE and the Croatian Employers’ Association. This season it will be possible to register visitors using an internet system e-Nautika, and not tourist agencies. From next year, it will be possible to register foreign yachts and boats directly from marinas, from agents and sailors. This type of registration is now possible only through port authorities. Ingra losses of €12.33 million Last year, total income for Ingra amounted to €41.91 million, and losses which will be covered from reserves, amounted to €12.33 million. According to Ingra, losses are a consequence of quite slow infrastructural works in Croatia and the unexpected prolongation of deadlines of contracting work abroad. In 2010, Ingra completed two important projects in Croatia: the hydro power plant Lešće and business-residential complex Dvori Lapad in Dubrovnik. Ingra’s priority markets include North Africa, the Middle East and Russia. Within these markets, Ingra currently holds 12 active offers, with real prospects for contracting work, and by the end of the first quarter will open its representative office in Russia. New technologies fair in May In Split, between 26th and 29th May, IFONT – International Fair of New Technologies will be held with the goal of presenting and popularising modern technologies as well as pointing out new economic possibilities. As was already recently announced, one of many foreign partners of the fair includes Beltrade, the economic and trade office of Belgium in Croatian. Many conferences, lectures and seminars will take place during the fair.
P Privredni vjesnik Year Y IV No 0141
( 20,000 seedlings nursery capacity
BLUEBERRY CRAZE
European certification and vacuum drying facility attract foreign customers The lack of blueberries in Croatia and Europe increases demand for Hellea fruit from Zagreb Jasminka Filipas even years ago Hellea from Zagreb expanded its core activity, which comprised trade, consulting and real estate intermediation, into the agricultural sector, specifically growing blueberries. Currently it can satisfy neither local market demand nor meet foreign orders, revealing a sound business niche with room for other producers. Hellea has a plantation of American blueberries on four hectares of their own land in the vicinity
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The company is a Global GAP international certificate holder of Zagreb. It also has a blueberry nursery for seedling production of high-bush blueberry. This variety is not common in Croatia and according to Diana Lehovsky, Hellea Director, the company received the information on growing and quality of this variety from Canadian and North American growers where it is most widespread. Growing demand Our current investment has proved the growing to be demanding and the need for initial capital, stated Diana Lehovsky. After the initial investment into the plantation, the company and its Slovenian partner have bought the technology required for planting out blueberry seedlings, which are sold only as three year or perennial plants, she added. The nursery capacity is about 20,000 seedlings and there are 11 varieties of American
blueberry grown. The nursery provides the best possible growing conditions through automated temperature regulation, air moisture and light intensity. Production and certification of agricultural planting material is carried out under the professional surveillance of the Osijek Institute for seed production and nursery. Investment into cold storage plant and vacuum drying facilities Wishing to close the production circle, the company has in the meantime invested into a cold storage plant and vacuum drying facility for fresh blueberry and other fruit and vegetable processing. It is a special drying technology which enables the preservation of all nutritive values almost in their entirety. In addition, to ensure better market sales the company had undergone a process of assessment and now holds the Global
GAP international certificate guaranteeing satisfactory agricultural practice. The certificate guarantees that the product is safe for consumption, produced under controlled conditions and that throughout the production process special attention has been paid to environmental protection and hygiene conditions. It has aroused significant interest from foreign consumers, whose markets, as with the Croatian market, are not adequately supplied with this fruit of very high quality. Scientific research has shown that blueberries contain wide a range of vitamins and minerals, especially calcium, phosphorus and iron as well as an extremely high antioxidant level. The quality and value of blueberry has been recognised by the Centre for quality at the Croatian Chamber of Economy who awarded the company the Croatian quality mark. It guarantees a top quality product and service in its class.
www.privredni.hr Business & Finance Weekly
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CROATIAN-POLISH ECONOMIC FORUM
Poland offers co-operation on green technologies Polish tourists rank sixth according to arrivals and overnight stays. Until September 2010, direct investment from Poland into Croatia totalled €38.4 million Igor Vukić roatia and Poland might form strong co-operation in the area of technologies for environmental protection, according to the Croatian-Polish economic forum held recently in the Croatian Chamber of Economy. Around 60 Croatian and Polish companies partici-
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(to $118.9 million), and imports from Poland reduced by 5.3%, totalling $403.4 million. The deficit was reduced by 9%.
Croatia is in need of new investment and there are many opportunities for Polish investors pated. The Polish minister for environmental protection, Andrzej Kraszewski, presented the project GreenEvo, which encourages SME’s to create innovations in the area of green technology. Waldemar Pavlek, Minister of Economy, noted that this country also had to reform and privatise shipyards as a condition for joining the EU. Due to these reforms, Poland welcomed the global crisis with dynamic entrepreneurs, which quickly adopted
competitive technologies for environmental protection. They lost quite a substantial number of jobs during the crisis. Opportunity for both sides The president of the CCE, Nadan Vidošević, invited guests from Poland to investigate the considerable potential of Croatian ports for traffic in the Mediterranean region. Croatia is in need of new investment and there are many opportunities for Polish investors, noted
Vidošević. The Minister of Economy, Đuro Popijač, presented some of the opportunities: construction of hydro and thermal power plants, the railway Rijeka-Zagreb, the renovation of Zagreb Airport and an expansion of oil and gas infrastructure. Popijač added that Croatia especially welcomed investment in production sectors. In 2010, trade between Croatia and Poland totalled $522.4 million, decreasing 3.2% over 2009. Exports from Croatia increased by 4.7%
More tourist arrivals Until November 2010, Croatia was visited by 454,035 Polish tourists or 8.8% more than in 2009. Polish tourists registered 2.89 million overnight stays, up 7.8% compared with the year before. Polish tourists rank sixth according to arrivals and overnight stays. Until September 2010, direct investment from Poland into Croatia totalled €38.4 million, and Poland ranks 26th according to foreign investment in Croatia. Croatian investment in Poland amounted to €132.3 million or 3% of total Croatian foreign investment. Poland ranks five according to total foreign Croatian investment.
Profit of €131.23million for INA last year
On the way to profitability NA nett profit in 2010 totalled €131.23 million, as announced by company senior officials last week. Total revenue was up by 15.2%, to €3.81 billion. EBITDA saw an increase of almost 80% with respect to 2009, totalling €0.69 billion. Ina had recorded a nett loss of €53.69 million a year earlier. “We have reconstructed our company, we have returned it on the way to profitability and now it is again a company of regional standing, of which Croatia can be proud”, stated Zoltan Aldott, Board President. The positive result was achieved due to increased gas production in the North Adriatic and Syria, higher refinery margins and considerable savings in
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business activities. Cutting expenditure in the oil industry to an average level contributed to over €61.64 million savings. New tenders for suppliers’ decreased expenditure by €13.70 million, pointed out Bojan Milković Ina Executive Director. The gas business is still having a negative impact on the company as it achieved a loss of €45.89 million. An additional negative impact of €110.96 million was due to exchange rate differentials, particularly the dollar increase. €53.29 million was paid out for the redundancy programme. Notwithstanding shareholder relationships between MOL and the government, Ina will proceed with its invest-
ment programme and refinery reconstruction as proposed by the Ina Board. €0.19 billion has been invested into exploration and oil and gas production in 2010 and a further €0.18 billion in the reconstruction of refineries. An improvement in business effectiveness is the target over the forthcoming period. New exploration of oil and gas fields are anticipated as well as more extensive investment into the reconstruction of the petrol station network emphasised Zoltan Aldott. (I.V.)
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WE PRESENT
UPONOR, ZAGREB
Privredni vjesnik Year IV No 0141
EUROART93, SISAK
Creativity at every click Web creation sees rapid change and quality staff are an imperative
How to decrease energy consumption Specially adapted building materials for additional reduction of energy waste ponor is one of the leading international suppliers of water, domestic and commercial air conditioning systems for residential and commercial buildings, with 18 subsidiaries in 11 countries and a representative office in Zagreb opened two years ago. Its products, ranging from sanitary water pipelines to radiator and floor heating, has been available in Croatia for several years branded as Polytherm, Unipipe, Velta and Wirsbo. Uponor is a leading pipe supplier for utility infrastructure in Scandinavian countries and its key products are sold in about one hundred countries. “Uponor has used its products in construction of many well known buildings throughout the world, such as Bangkok and Hamburg airports. A state-of-the-art de-icing system was installed under the
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Uponor produces over 10 million metres of pipes annually restored Osijek main square. It is a system of floor heating for deicing the square during the winter. In addition, Uponor floor heating and cooling systems with gas boiler rooms were installed into a sports house and the building was designed as energy efficient,” pointed out Vedran Gojčeta, head
of the Uponor representative office in Zagreb. A heating system was also installed in the Ovčara Memorial Centre, near Vukovar and it was incorporated into the architectural solution. Large savings Total Uponor nett sales in 2010 amounted to €749.2 million, outperforming results from 2009 by 2%. Profit totalled €52.4 million, indicating an increase of 27%. Uponor produces over 10 million metres of pipes annually and there are currently over one million buildings where its floor heating has been installed. Use of renewable energy sources and environment protection have become inevitable in our lives and Uponor constantly develops new technologies for energy saving. “Uponor heating system enables 20% energy saving with respect to conventional heating systems. Building materials have been specially adapted for additional reduction of energy waste and the possible shortcomings in heating and cooling system regulation have been eliminated by the Uponor DEM system (Dynamic Energy Management),” added Gojčeta. “Integration and optimisation of the work of all the systems and structural elements can result in household energy consumption savings amounting to 60%.” (S.P.)
he overall business activities of EuroART93 encompass the creation of web applications. The on-line presence of a company does not only cover its web pages but also a range of increasingly important elements such as the creation of mobile and “Facebook” applications or web shops, proposed Jurica Vuković, Chief Executive and Creative Director of this marketing agency. “Most clients are looking for a complete solution to their web presence and this is achieved through considerably more communication channels than in the past. Certainly, a web page is still the basis and the foundation upon which to build all other modules,” he explained. This Sisak-based agency, founded in 1993, currently employs 11 creative staff working on projects for mostly medium-sized and large companies. Originally, the company dealt with graphic design and in 1999 started dealing with web design and web applications. Over 150 web pages have been created by the company over the last 10 years.
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Start-up project Web market and web agencies in Croatia are increasingly active, according to Vuković. “There are premium agencies working on genuine projects, with their own programming solutions, which
can stand side by side with any web agency in the world. There are few such agencies and we have a very good business relationship with them. Each of them has its own competitive advantage and the market functions accordingly. There are also lowbudget agencies with their own clients who are attracted by the extremely low price of services,” he pointed out, adding that the
Over 150 web pages designed by EuroART93 creative staff web sector has seen rapid changes and stressing the extreme importance of quality staff, engaged in continuous learning and keeping up-to-date with web technology. The innovations comprise the launch of the agency new web page, after its first seven years of activity, with a clear overview of references and services. Future activities will be to integrate its own web start-up project which would require fresh capital, he reveals. “We need to employ three or four new staff to achieve this idea. Therefore, we are still looking for ways of dealing with the financial aspect of such an intricate project and considering different types of financing”, concluded Vuković. (B.O.)
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CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
7.43
5,509669 5,516668 6,660416 5,678773 8,814812 5,565746 7,382405
USD
5.51
16.2.
17.2.
18.2.
19.2.
5.74
7.42
5.49
5.72
7.41
5.47
5.70
7.40
5.45
5.68
7.39
5.43
5.66
7.38 15.2.
WEEK FEBRUARY 19, 2011
CHF
4.41 15.2.
16.2.
17.2.
18.2.
INSURANCE REPORT FOR JANUARY
19.2.
5.64 15.2.
16.2.
17.2.
18.2.
19.2.
::: news
Gross premiums totalled €117.51 million
Income growth for Atlanska plovidba Group Last year, the Atlantska plovidba Group achieved total consolidated income of €127.01, some 11.8% higher compared with the year before. According to the published and unrevised consolidated financial report of this company, published at the Zagreb Stock Exchange, 70% of income relates to maritime transport, 23% to air transport and 7% to hotel activities. Expenses were 1% higher, at €121.70 million. Group profit equalled €5.43 million, of which €8.78 million relates to maritime transport, €2.74 million in losses to air transport and €0.62 million in losses to hotel activities. The Group operates with a fleet of 19 ships, with an average age of 8.5 years and owns shares within the framework of tourism, specifically hotels - Grand Hotel Imperial (81,57 %), Lapad (99,66%), as well as Atlant Travel Agency (100%) and Dubrovnik Airlines 70%. EBRD invests €350 million in Croatia
Classical life insurance premiums increase by 3.5% ccording to the Croatian Insurance Office, 26 insurance companies recorded gross premiums of €117.51 million in January this year, down €10,275 compared with the same period last year. Non-life insurance gross premiums stood at €93.37 million, 0.8% down year-on-year and comprised 79.46% of total premiums (whilst in the same period last year it was 80.10% of total gross premiums). Obligatory third-party liability insurance recorded gross premiums of €26.90 million 2.7% up on the same period a year ago. Over the same period, 2,857 con-
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tracted insurance policies was recorded a growth of 2.4%, which also resulted in slightly higher average premiums from €216.33 to €217. Life insurance Life insurance premiums recorded growth of 3.2% with total gross premiums standing at €24.12 million (a share of 20.54% of total premiums) whilst in January 2010 this aspect accounted for 19.90% of gross premiums). Classical life insurance had the highest share with premiums increasing by 3.5% with respect to the same period last year and stood at €21.11 million,
followed by annuity insurance with gross premiums of €75,876 (28.5% down); supplemental life insurance accounted for €1.66 million in gross premiums (8.8% up); marriage or birth insurance
Non-life insurance comprised 79.46% and life insurance 20.54% of total premiums premiums of €95,383 (10.3% up) and life or annuity insurance gross premiums of €1.17 million or 6.6% down over the same period last year. (V.A.)
EBRD headquarters
This year, the investment plan of EBRD for Croatia ranges between €300 million and €350 million, said Zsuzsanna Hargitai, director of EBRD for Croatia recently at open lecture for Banka magazine, on opportunities and challenges of Croatian EU accession. She explained that they are working on the project of the hydro power plant Ombla, on credit lines for energy efficiency and SME’s. They are also interested in transport-related projects, such as the modernisation of Split port.
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Privredni vjesnik Year IV No 0141
::: news
Croatian-Spanish co-operation
Hotel Allegro in Rabac awarded for top quality service
Tourist love at first sight
At the recently held tourist fair Holiday World 2011 in Detenice in the Czech Republic, the Czech tour operator Vitkovice Tours awarded Hotel Allegro from Rabac for top quality services in 2010. The competition included all accommodation facilities Vitkovice Tours had included in its offer last year, more precisely around 200 Croatian hotels and some 20 hotels and tourist complexes in Montenegro. The recognition for top quality service for best Adriatic hotels is the result of customer and expert evaluation and appreciation for successful cooperation. Zagreb County to subsidise organised arrival of tourists Zagreb County invited a public tender valued at €41,000 for subsidising organised tourist arrivals to the county. Tourist agencies situated in Croatia and which organise excursions and overnight stays in the Zagreb County are eligible to apply for this tender which closes on December 15 2011. Total tender is worth €41,000, and tourist agencies can obtain €5 per tourist. 13% more foreign visitors to Zagreb in January
In January, Zagreb was visited by 28,766 tourists or 8% more compared with the same month of 2010. They registered 52,250 of overnight stays, which is 6% higher, according to data from the Zagreb Tourist Association. In January 2011, foreign visitors registered 13% more arrivals to Zagreb, and 12% more overnight stays compared with 2010.
Croatia, Spain, Portugal and probably Slovenia will participate at tourist fairs on distant markets. Their joint promotion could begin in 2012
Sanja Plješa ven though Spain’s tourist history is not old, today it is one of the leading tourist countries on the Mediterranean and in Europe. Tourism is one of the main sources of income. Last year, it was visited by 52.6 million foreign tourists, some 1% more compared with 2009. This is also the first mild growth since 2007. Even though there were fewer tourists from Great Britain, Germany and France, the British and Germans still show the greatest number of arrivals. Last year, the tourism income of Spain amounted to €54 billion. Yet ten years ago they earned over €60 billion. The Spanish government allocated €780 million from the state budget for this year, compared with €400 million three years ago. Invited by the Head Secretary of the World Tourist Organisation (UNWTO), Taleb Rifai, the Croatian Minister of Tourism, Damir Bajs, visited Madrid and Barcelona last week. This is the first time in history that a Croatian Minister of Tourism has visited this organisation. He met
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with the State Secretary for Tourism and Trade of the Kingdom of Spain, Joan Mesquido Ferrando. They came to an agreement on organising a working team, which will meet in Croatia this year and decide on the form of their joint approach to more distant markets, which might begin in 2012. This marks further progress, which Spain started with Portugal, Italy and France, and it is expected that in addition to Croatia, Slovenia might also join this initiative. Thus regional co-operation for presenting the Mediterranean to more distant markets will be completed. Spaniards enjoy Croatian hospitality Spanish tour-operators also anticipate further co-operation with Croatia. They also met with Minister Bajs and concluded that Croatia is a growing tourist destination with ample interesting resources. Spaniards view Croatia as a beautiful country with amazing nature and a rich cultural heritage and hospitable people. However, there are things they resent, which include the lack of accom-
modation in hotels and cars to rent during the high season. Furthermore, Spaniards might help prolong Croatia’s tourist season, since they are interested in cultural tourism, and not only sun and sea, said Gabriel Costa from Panavision Tours. He suggested that Spanish people like to travel in pairs and groups, and a few years ago they preferred charter flights, whilst today they tend to opt for regular airlines. That is why they hope Croatia will work on improvement and introduce more direct lines between Croatian and Spanish tourist destinations. For now, Zagreb and Dubrovnik are connected with Madrid, but there are also plans to introduce a line between Barcelona and Split. More arrivals There are no small or big, but only quality tourist destinations. Spain is not only a competitor country for Croatia, but also a
Spaniards visiting Croatia resent lack of cars to rent during the high season vast market. More tourists have been arriving from Madrid, Barcelona, Bilbao, Valencia and Seville. Croatia enjoys a positive image in this country. Last year, 200,000 Spanish tourists arrived, 15% higher over 2009. However, the success of such result should not end with one season. Croatia must take into account remarks from Spanish colleagues in order to become more competitive and hospitable to tourists, pointed out Bajs. It is anticipated that this year there will be between 15% and 20% more Spanish tourists in Croatia than in 2010.