Olive cultivation Croatian producers of olive oil should focus on the production of high-quality extra virgin oil and not lower their sights
Josip Milavić, supervisory board president, National Retail Chain Local products are present in our retail stores as much as possible
Debt accumulates Around €3.84 billion of debt to be refinanced this year which will require another appearance on the bond market
AGRICULTURE
RETAIL TRADE
ANALYSIS
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Croatian Business & Finance Weekly Established in 1953 Monday / 28th March / 2011 Year IV / No 0146 www.privredni.hr
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pvinternational pv international C R O A T I A N
C H A M B E R
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E C O N O M Y
Market competition and the EU
Shipyards in final stages If negotiations between DIV and Croatian Privatisation Fund on Brodosplit do not end in privatisation we will go back to where we started
everal years of push-pull discussions about restructuring and privatisation of state-owned shipyards, which is a prerequisite for closing negotiations with the European Union on the chapter of market competition, has not yet been completed as it is evident from several announcements in public and newspaper articles. The Agency for the protection of market competition (AZTN) and the European Commission have approved the restructuring programme for Bro-
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Uljanik is the exception and the only shipyard without business problems dosplit and Shipyard for special vessels (BSO) which has lifted the ban from making new deals in these shipyards. Nevertheless, the ban is still in effect for Brodotrogir, Kraljevica and 3. maj. It is important be aware of the fact, as pointed out by AZTN, that the approval for Brodosplit and BSO applies to the programme presented by their potential new owner DIV from Samobor. If negotiations between DIV and the Croatian Privatisation Fund (which is turning
into an Agency for state-owned property management) on Brodosplit do not end in privatisation, we will go back to where we started. Support for coastal land AZTN and the European Commission could express an opinion on the programme for restructuring of Brodotrogir by the end of April, followed by an opinion on Kraljevica and 3. maj at the beginning of May. The assessment depends on the investor, entrepreneur Darko Končar, and his preparedness to further improve the presented programmes. Some issues are non-negotiable, as emphasised by AZTN, such as concession fees, which were defined in the documentation for the tender, as well as the investor contribution, which cannot be lower than 40%. Nevertheless, some divergences in accounting methods are possible and have appeared as a problem in the evaluation of the restructuring of Brodosplit. Uljanik is the exception and the only shipyard without business problems. This shipyard from Pula does not receive any further state support and has even returned the support it received from 2007 to 2009, which was proved by AZTN to have been illegal, by compensation for coastal land which the state has taken away from Uljanik.
Nel Pavletic/PIXSELL
Drago Živković
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Privredni vjesnik Year IV No 0146
ANTE MIHIĆ, PRESIDENT, CATERING GUILD, HOK
No branded dishes or national restaurants
Economic relations between America and Croatia
It is necessary to provide caterers with credit lines and aid to prepare for the tourist season since the catering business is the only tourist segment without support
atering is one of the activities which experienced a greater impact of the global crisis than others. Business was primarily influenced by decreased purchasing power of the general public and expenditure cuts of company presentations. However, the catering sector has other problems which have a negative impact on its business, and the largest is an insufficiently available and experienced work force. Catering expenses increased due to higher prices for energy, which are greater compared with households. As a consequence, many restaurant owners opt for shutting down after the tourist season precisely due to the price of energy and the work force. The fact that Croatia has not imposed itself as a competitive food producer is another issue for concern. Therefore, caterers had no chance to promote Croatian cuisine. The Caterer
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IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
Guild initiated the process of branding Croatian dishes in order to promote Croatian features, gastronomic tradition of preparing fish, meat and vegetable dishes using traditional ingredients such as olive and pumpkin oil. Opposite to most countries, Croatia neglected to open national restaurants. There was a similar attempt with konoba (taverns), but nothing concrete has been done and results are miserable. The branding of Croatian restaurants and quality service based on Croatian comparative advantages was not successfully achieved since we fell under the influence of various ‘cuisines’, neglecting ours as a
Many restaurant owners opt for shutting down after the tourist season consequence. I regard it is not true that various fast-food restaurants or big shopping centres are to blame, but rather an insufficiently trained work force in the catering segment, plus economic aspects. It would be desirable to join forces and ensure credit lines and aid to caterers in order to better prepare for the tourist season, since catering is the only tourist segment without this type of support. Similarly, the Catering Guild will insist on VAT reduction and the application of rates similar to our competitors from other tourist countries.
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 Lučana Banek lucanab@gmail.com Mirjana Cibulka mirjana.cibulka@gmail.com
EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr
INTERNATIONAL OPERATIONS Ray Fletcher fletcher@privredni.hr
Business race with numerous hurdles American investors expected to show interest in energy, logistics, real estate, food production and other fields at the Forum conomic relations between Croatia and America should be given momentum at the Ron Brown Forum Trade and investment between USA and South East Europe, to be held from 4 to 6 April in Dubrovnik, with some 230 business people and political representatives from the USA, Croatia and other countries in the region. It will mark the 15th anniversary of death of the American Minister of Trade, Ron Brown and his colleagues, in an aircraft accident near Dubrovnik. The forum will be organised by the US Embassy and the Presidential office and will encourage discussion on the results of previous co-operation as well as considering the hurdles which have occasionally hindered the development of stronger economic relations. According to unofficial announcements, the tourism sector could be one of the main topics at the Forum. American investment will give an additional boost to American tourist arrivals and a representative of the hotel chain Marriott will be one of the participants. The Blackard Group will present its project of a Dalmatian village, which as a replica of Supetar on Brač, has been constructed in Texas. Blackard is mentioned as a potential investor into golf courses near Zadar.
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Vast potential American investors are expected to show interest in energy, logistics, real estate, food pro-
duction and other fields at the Forum. The participation of company representatives such as General Electric and Cunico Resources has been announced and therefore, investment into the metal industry sector and mining and high technology can be anticipated. The Parsons Corporation representatives from the civil engineering sector will report on their business activities with local companies, as well as CMC (Commercial Metals Company), whose investment into Croatia is considered as a desirable economic model by both countries. Croatian exports to the US will be increased by the consignment of six new machines for de-mining, constructed and produced by the Zagreb company Dok-ing. The consignment was a part of the 2004 contract which planned for the consignment of 53 machines. The contract was prolonged for two additional years and includes the consignment of 16 further machines. Similarly, the example of HS Produkt from Karlovac clearly illustrates how Croatian companies can find a place on the American market. Their primary need is a good product and then financing methods and support from state entities. HS Produkt has for example, made it alone. Their semi-automatic pistol HS2000 has become an absolute ‘must-buy’ on the American market and is part of the official FBI arsenal. (I.V.)
www.privredni.hr Business & Finance Weekly
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( 6 million ( 30,000 hectares olive trees in Croatia
of olive groves
OLIVE CULTIVATION
THE MONEY LIES IN ECOLOGICAL PRODUCTION Croatian producers of olive oil have no business in the production of low-quality olive oil but should turn to the production of high-quality extra virgin oil Jozo Vrdoljak ith six million of olive trees planted across 30,000 hectares and the production of seven million litres of olive oil, Croatia ranks 19th in the world. Since olive oil consumption is relatively low in Croatia (2 litres per person per year), it is evident this is a perspective culture and product whose entire sales can be ensured on the local market, as well as through the best type of export – tourism, as the government vice-president and minister, Petar Čobanković likes to say. According to Čobanković, Croatian EU accession will not prevent Croatian olive growers from concentrating their plantations and creating new ones, regardless of other countries that are supporting the clearing of olive groves. “According to our strategy, in the next decade, we intend to have around 10 million of olive trees covering 50,000
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There are six countries on the global map of organic olive growing, taking 93% of global organic plantations hectares, climbing up to 15th position in world rankings”. He ventured that Croatian olive oil producers have no business in the production of low-quality olive oil, but should rather turn to ecological production and the production of high-quality extra virgin olive oil, which
has customers regardless of the high market price. Ecological production Tomislav Petrović, Head of the Department for Ecological and Integrated Agriculture at the Ministry of Agriculture, Fisheries and Rural Development, reveals that 408 hectares of organic olive groves and 92 organic olive growers were registered at the end of last year. There are six countries on the global map of organic olive growing, taking 93% of global organic plantations, which are regarded as significant producers. They are
Italy, Spain, Tunisia, Greece and Portugal. Croatia remains a marginalised producer of olives and olive oil on the world market. Its verified and recognised product quality is what it must use to obtain its place on the world market, and ecological production is the key tool for reaching this goal, opines Ranko Tadić, an expert on ecological agriculture on the COAST project. For example, Italy has 139,675 hectares of organic olive groves, of which around 45,000 hectares are in Puglia, Italy’s leading region for the production of organic olive oil. Italy is one of 10 countries in the world according to the number of organic agricultural land, which covers 1.1 million hectares. It ranks two on a European level, after
Spain, stated Adolfo Ninni Piangevino, member of the National Committee at the Italian Ethical and Environmental Certification Institute (ICEA). Piangevino is an ecological producer himself. He is director and owner of an organic farm of 300 hectares, of which 40 hectares are under organic olive groves. Plantations of organic olive groves are continuously spreading across the world and Croatia. The role of organic production is irreplaceable in the preservation of the global biodiversity and natural resources. The COAST project actively contributes to this goal by motivating green entrepreneurship in Dalmatia, where organic olive growing has an important rôle, concluded Snježana Mihinica, an associate on organic agriculture with the COAST project.
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INTERVIEW
( €1.14 billion
National Retail Chain annual revenue
Privredni vjesnik Year IV No 0146
( 1,550 retail storess covered by the National Retail Chain
JOSIP MILAVIĆ, SUPERVISORY BOARD PRESIDENT, NATIONAL RETAIL CHAIN
All retail chains prefer own brands Local products are present in our retail stores and on our shelves as much as possible as co-operation with local producers is our long term strategy from the Neretva valley, mostly watermelons, lettuce, tomatoes, peppers, cucumbers and tangerines.
Jozo Vrdoljak osip Milavić, National Retail Chain (NTL) Supervisory Board President and, as we understand it, the main initiator of the Croatian retail chain association, talked with Privredni Vjesnik about recent results and the plans of the National Retail Chain. Milavić is the owner of the retail chain Studenac from Omiš and we discussed Studenac business activities and plans related to hotel industry and tourism.
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Why have local retailers grouped? What was the main purpose? The National retail chain is the result of joining two retail groups NTL and CBA International. Our association was an imperative. We solved the weaknesses of some members and managed to achieve a synergetic impact. We have become a strong group in the local market and now we can stand shoulder to shoulder with foreign retail chains. Local products are present in our retail stores and on our shelves as much as possible. Co-operation with local producers is our long term strategy and I am happy to say that consumers are identifying with us more and more. What is the relationship between members and what is your position in the market? National retail chain is an independent legal entity. Its individual members are also independent. We have common supply, marketing and brand, with a 10%
What have the NTL results been like in the last two years? Over 80% of supply is via NTL. We have covered all groups of goods with our own brands as well as the most important retail sales items. Our joint marketing projects have contributed to further cohesion within the group. We have strengthened our joint importing activities. We have achieved a higher quality development of joint retail by opening new sales outlets. We have started joint procurement of fruit and vegetables and commenced the process of the purchase and dis-
We are planning to buy about 4,000 tonnes of fruits and vegetables from the Neretva valley share of our total sales. National retail chain has achieved a synergetic impact of such dimension as to become the second retail chain with respect to market share and we are anticipating further growth. What is your share and revenue? We are the second largest chain, after Konzum. Our annual revenue is €1.14 billion. We employ some 11,000 staff and own about 1,550 retail stores. Currently all
members are independent and with the additional capitalisation of NTL we will strengthen our market position. The example of the recently taken over refrigerated warehouse in Metković worth €7 million is one step forward towards our final goal. The recently acquired premises will be our logistics centre for the Adriatic. We will import bananas from Kuwait and it is going to be our banana-ripening facility. We are planning to buy about 4,000 tonnes of fruits and vegetables
tribution of fruit and vegetables. NTL has four joint supermarkets as well as a joint board office. At what stage is the process of further affiliation? Preparations for capital affiliation of the Group are under way. Our ultimate goal is to become one capital-affiliated company as soon as possible. A snapshot of the situation has been taken and we are anticipating the approval of Croatian Competition Agency.
www.privredni.hr Business & Finance Weekly
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( €2.5 million investment this year for further expansion
Eko Međimurje
Problematic payments only locally In order to increase productivity Eko Međimurje will invest €2.5 million into premises and new equipment by the end of the year Jasminka Filipas ko Međimurje is categorised as large company, specialising in the production and distribution of parts for construction machinery, bricks, gas systems, food industry equipment amongst others. It is based on a 100-year-old tradition of brick production in Međimurje and the first plant was founded by the Morandini family in 1906.
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Growth in the countries of buyers In 1963 it joined GK Međimurje, and 25 years later it expanded its activities into engineering and gas systems with more intensive expansion into foreign markets. Four years later, the company became a joint stock company divided into three different segments: Working Unit (WU) Brick, WU Equipment and Ekocentre, which specialises in the retail sale of construction materials. Referring to the recovery of the European economy which reflected on company business, the Board President, Josip Kikelj, said the market showed a marked
an increase last year. “Since we are almost 100% export oriented, mostly to France, Germany and Austria, the significant increase in client countries had positive effects on our company also. On the one hand we were faced with more orders, although on the other hand problems in production capacity emerged. Our deliveries were late, which our clients found unacceptable, and by the end of the year we faced the possibility of cancelled orders. We did everything to prevent that. We hired a further 70 workers and increased production capacity in sheet cutting, machine bending, machine processing, welding, assembly, varnishing and other aspects,” pointed out Kikelj. These measures helped them secure trust from their clients for which they received much recognition. The situation is significantly different in the Croatian market. Working unit Equipment, markets most of its products in Croatia and Slovenia. Production is far higher than that needed by far, and the price seems to be the main criterion of customers, whereas quality is
not recognised or not appreciated enough. All this plus the crisis which hit the construction sector, resulted in a price slump for bricks and difficult sales conditions. This reflected on the business results, although they did not fire workers, opined Kikelj. “We have always paid special attention to investment without which progress is impossible, especially on a demanding European and global market. We are planning to invest €2.5 million this year. We will build a large varnishing unit, expand production and storage facilities and modernise our machinery range. Project documentation is complete and we have already started preparatory work and everything should be finished by the end of the year, said Kikelj. However, concerning payment deadlines both in Croatia and abroad, Kikelj stresses that certain globally know companies such as Liebherr, Komatsu, Wirtgen, Bucyrus and W&P pay within 30 days. “Liquidity is only a problem with local buyers and can sometimes stretch up to 120 days” he notes.
::: news BICRO: €82,000 for special wagon construction A new contract IRCRO has been signed within the programme for research and development promotion with the Business Innovation Centre of Croatia, which will provide financial assistance to small and medium sized companies willing to invest into research and development through co-operation with scientific institutions. €82,000 has been approved for the financing of research and development activities of Railway carriages factory Čakovec d.o.o. which accounts for 50% of the total cost of the project, as has been announced by BICRO. The aim of the project is the construction of a special wagon for the transport of bulk goods. €732 nett salary in January
The average monthly nett salary in Croatia for January stood at €732, as announced by the Croatian Bureau of Statistics. On a monthly level, compared with the average nett salary for December last year, (€746), January this year saw a nominal decrease of some 2%, although comparison between the average nett salary for January this year and the same month last year indicates an increase of 1.6% this year. Registered unemployment rate at 19.6% The registered unemployment rate for February this year was 19.6%, matching the rate for January, as announced by the Croatian Bureau of Statistics. Nevertheless, the registered unemployment rate for February was 1.3% higher than in February 2010 when it stood at 18.3%.
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Privredni vjesnik Year IV No 0146
CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
7.40
5,333247 5,344832 6,415563 5,709891 8,392163 5,213466 7,381747
5.23
22.3.
23.3.
24.3.
25.3.
CHF
5.78
7.39
5.21
5.76
7.38
5.19
5.74
7.37
5.17
5.72
7.36
5.15
5.70
7.35 21.3.
WEEK MARCH 26, 2011
::: news
USD
4.13 21.3.
22.3.
23.3.
24.3.
25.3.
5.68 21.3.
22.3.
23.3.
24.3.
25.3.
DEBT ACCUMULATES
Luka Ploče: Workers acquire 51,771 shares On March 1, The Croatian Privatisation Fund (CPF) as the seller and employees of the Luka Ploče Group as the buyer, signed 751 agreements on share sales and transfer of Luka Ploče, according to a statement published at the Zagreb Stock Exchange. According to the statement, the workers of Luka Ploče acquired 51,771 shares with a total nominal value of €2.84 million and based on the Land Register of the seller (CPF), they are listed in the register with SKDD as the stockholder. Karlovačka pivovara: Investment over €9 million Karlovačka pivovara has presented three large investments exceeding €9 million. They cover three projects relating to modernisation of the brewery, construction of a waste water filter which includes reconstruction of the sewage system, and the construction of new fermenters, which will increase production capacity by 14%, according to the statement issued by the company. TDR increase sales by 4.4% in 2010 The tobacco factory Tvornica duhana Rovinj (TDR) achieved 4.4% growth in the sales of cigarettes (13 billion cigarettes). The growth was not followed by income growth since despite the rise of duties on all markets, economic affairs and the growing crisis, TDR opted for a minimum price increase of all of its products, at the expense of income and profit, according to a statement issued by the company. TDR holds 78% of market share in Croatia and around 38% in Bosnia and Herzegovina.
Another two issues of state bonds this year Around €3.84 billion of state debt needs to be refinanced this year which will require another appearance on the bond market fter the successful issue of $1.5 billion of state bonds on the American market, Croatia will issue bonds twice more this year, according to the Ministry of Finance. The sum required for refinancing state debt totals €3.84 billion this year, which will require another appearance on the bond market. According to the plan, one issue of bonds will be sold to the European market, probably before summer, whilst the second would be issued on the local market. The American bonds were issued with protection against currency risk. This means their dollar value will be converted into euro and they will be repaid in euros in 2020, at an interest rate of 6.664%. The Ministry of Finance regards the American issue as a
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well-performed operation. The timing of the issue unexpectedly became unfavourable due to the collapse of the financial markets caused by the natural disaster in Japan. Great interest However, over 300 investors showed interest in the offer. The bond was eventually subscribed to by 58% American investors, 20% from Great Britain, 19% from the continental part of the EU and 3% from Asia. Investors thus showed solid trust in the basic economic indicators of Croatia. Almost all questions regarded so-called economic fundamentals, whereas Croatian EU accession was not in the focus of attention. Funds collected from this issue will be used to repay
previous debts, but also to settle current expenses of the state budget. According to the Ministry of Finance, the state has $350 million of savings from last year. In the meantime, the state
The Ministry of Finance regards the American issue as a well-performed operation incurred a short-term debt with certain Croatian banks as shortterm bridging for the repayment of a €750 million bond, due March 14. The two new issues of bonds will also be needed to repay this short-term incurred deb. (I.V.)
www.privredni.hr Business & Finance Weekly
WE PRESENT
AERONAUTICAL TECHNICAL CENTRE, VELIKA GORICA
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AURORA ENERGETIKA, SISAK
Preserving nature and energy
Military expertise for the civil market Military sector activity for Aeronautical Technical centre (ZTC) was 100% last year whilst this year civil aircraft overhaul is anticipated he Aeronautical Technical Centre (ZTC) is the successor of Aeronautical Technical Institute. Since last year, ZTC has been a state-owned company, proceeding to work for the Ministry of Defence (MORH)
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The whole fire fighting fleet of six Canadair aircraft and six Air Tractors must be overhauled annually and prepared for the new season and is also striving towards civil market penetration. According to Zdravko Delić, Board President, their intention is to become a regional centre for aircraft maintenance. How far have they managed in pursuing this goal?
A contract was signed with MORH covering taking over staff and on co-operation in May 2010, which were the basics for company independence, explained Delić. At the beginning of July 2010 the company took over 21 MORH em-
ployees, followed by further 147 employees a month later. MORH was still in charge of company financial and legal business activities at the time and consequently by the end of 2010 they employed 22 further staff with qualifications in these fields. The total number of employees is now 190, some 18% less than before the separation. More work, fewer staff ZTC employs fewer staff, yet, according to Delić, it is still fully finalising its plans and, by the end of 2010, two Canadair aircraft and two Air Tractors were prepared for fire fighting this tourist season. The whole fire fighting fleet of six Canadair aircraft and six Air Tractors must be overhauled annually and prepared for the new season, to be available from May to September. At the beginning of March a third Canadair aircraft and a third Air Tractor were made ready for the current season. Delić anticipates that all aircraft will be ready by 15 May if all goes according to plan. In addition, 15 helicopter scoops for aerial fire fighting have been prepared. ZTC also deals with the regular maintenance of military helicopters and ‘Pilatus’ aircraft overhaul, as well as with basic maintenance of Mig military aircraft. Military sector activity for Aeronautical Technical centre (ZTC) was 100% last year whilst this year civil aircraft overhaul is anticipated. (D.Ž.)
Sisak experts have constructed a solar lamp standard for public lighting in use in Tkon and Sisak and a solar powered billboard have been an entrepreneur since 1994, the founder and owner of the small company Tehno 2000. I founded the company Aurora Energetika in January 2009, aiming to develop a new product range based on renewable energy sources (OIE). Both currently employ 17 staff, stated Željko Štignedec, the director, explaining the development of the company and the innovative solutions to public lighting and LED technology. After founding the company and a professional team, he connected with the polytechnic from Sisak and the Head of the Office for Renewable Energy Sources, Stevčet Arsoski, as well as with the Croatian Professional Association for Solar Energy and its president, Ljubomir Majandžić. They soon created the Centre for Solar and LED technology training and demonstrated the possibilities of applying renewable energy sources and LED technology in lighting. The centre is also a venue for consulting and sales of all equipment in this market.
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National park innovations A new product was finalised in the same year: a solar lamp standard for public lighting which uses solar and wind energy to supply LED lamps. This technology was intended for a pilot project in Tkon on the island of Pašman where they lit 400 metres of street as well as
the main square in Sisak and two nearby streets. “We needed considerable investment for the development of LED lamp production. We made a prototype of a lamp with a screw socket (E27) for household use as well as the concept of a series of lamps for road lighting. Nevertheless, we still have not found a company which would like to become involved in such production development in Croatia,” Štignedec pointed out, adding that the company also constructed a solar information board at the entrance to Sisak town, which brought them a bronze medal
The centre is also a venue for consulting and sales of all equipment in this market at the innovation fair ‘Arca’ last year. It is the ideal solution for advertising in national parks and tourist venues; this also applies to the solar lamp standard which will be made of stone from Brač. The company is in the final stage of development of one more ecological product for the transport industry. All products are, and will be, produced by local companies with experience in production and processing of metals, alloys and natural materials as well as in construction. (J.F.)
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Privredni vjesnik Year IV No 0146
Crotour
New quality for an old destination
Tourism development needs to be adjusted towards sustainable destination management to better protect Croatian natural resources Sanja Plješa he present state of forward bookings for the prime tourism season is better than at the same period last year. Croatia relies on its quality, especially co-operation between the private and public sector. In order to attract more foreign tourists, an advertising campaign will soon start in most primary markets, ending in June, said the Tourism Minister, Damir Bajs, at the Croatian Tourist Forum, held at the international tourist fair Crotour at Zagreb Fair. Moreover, the latest report on the tourism market, published by the European Travel Commission, shows that the forthcoming tourist season will take place in a more favourable economic atmosphere than 2010. However, the situation is not equally bright in all primary markets. Changes in Croatian tourism are slow and insufficient, which points to a stagnant tourism system. This is further explained by data, according to which new, first-time visitors accounted
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for only 14% last year, noted Veljko Ostojić, president of the Croatian Camping Association. The board president of the Association of Employers in Croatian Hospitality (UPUHH), Kristijan Šustar, concurs. He pointed out there would be few changes in Croatian tourism despite positive anticipations, since the beginning of the season still depends on the calendar, school vacations and other aspects. Natural advantage Nevertheless, the protection of natural resources is one of Croatia’s main strengths, which is why the development of tourism should be adjusted towards sustainable destination management, supported by the World Tourist Organisation (UNWTO), since Croatia as a tourist destination has a unique potential and advantages over competition from other countries. “If Croatia wants to be a sustainable country, it has to move away from the attitude of the public sector, given that it is extremely slow”, said Xavier Font, Director of Studies at the Inter-
national Centre for Responsible Tourism at Leeds Metropolitan University. Notwithstanding, Luigi Cabrini, one of UNTWO’s directors, praised Croatia for its progress in tourism. He stated
that tourism turnover had increased by 5.3% over the past ten years. According to Cabrini, this exceeds an average growth rate of 2.6% in Mediterranean countries in the same period.
have signed an agreement on the inception of a new investment cycle of Terme Jezerčica. Hypo provided a total credit of €0.68 million. Total investment is worth €2.8 million, and a €0.68 million credit subsidy was arranged with the county. The credit is intended to upgrade the winter, enclosed water park and wellness centre, infrastructure and accommodation equipment. The construction of a large swimming pool, a pool for nonswimmers and a children’s pool as well as three new saunas with a panoramic terrace is also included in the project.
AD Plastik wants the French Sealynx AD Plastik from Solin has advised that it has submitted an offer at the Commercial court in the French town of Nanterre, which regards the purchase of assets of the company Sealynx Automotive Transieres, which produces sealing systems for the automobile industry. The take-over of the (complementary) programme of Sealynx would turn AD Plastik into a global supplier of the sealing systems, which would significantly expand its production lines and even more the volume of products.
::: news Golf course on Srđ
Construction companies in Dubrovnik will build a golf course and accompanying facilities on Srđ. This was confirmed by an agreement signed between the company Razvoj golf and the
Croatian Chamber of the Economy, Dubrovnik County Chamber. Under the agreement, Razvoj golf is obligated to hire local construction companies for all construction work, and if certain Dubrovnik companies are not able to perform the work, they will hire other Croatian companies. Moreover, the value of the project is estimated at around €1.2 billion and construction should start at the beginning of May 2012. Hypo: €0.68 million of credit to Terme Jezerčica The county of Krapina and Zagorje and Hypo Alpe-Adria-Bank