Co-operative business activities Forming co-operatives could open up many new markets to small businesses
Zlatan Plenković, owner, Zlatan Otok Export support should be related to value as by bottle encourages lower quality
Scents and tastes of Mali Lošinj Jadranka hoteli supports the aims of the Tourist Board of Lošinj to extend the season all year
CO-OPERATIVE DEVELOPMENT
INTERVIEW
TOURISM
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Croatian Business & Finance Weekly Established in 1953 Monday / 9th May / 2011 Year IV / No 0152 www.privredni.hr
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CROATIAN MONEY MARKET CONFERENCE
Projects exist, but banks need more courage Governor Rohatinski told that from his conversation with employers he was convinced there are solid private investment projects which need financing at appropriately low interest rates fiscal consolidation and structural reforms are necessary.
Igor Vukić he Governor of the Croatian National Bank, Željko Rohatinski and Finance Minister, Martina Dalić agreed on one thing: there are good investment projects suitable for financing, but banks need to be more courageous when taking decisions. At the Croatian Money Market conference the Governor advised he had personally spoken with banks and employers representatives and had made himself aware of the serious investment projects which lack appropriate financial support. Therefore the Croatian National Bank released additional liquidity, lowering the rate of minimally required bank reserves from 17% to 14% in order to enable banks to finance good projects at low interest rates.
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Acceleration of financing activities Martina Dalić noted, however, about warranty schemes subsidised by the government, where government guarantees 30% of the loan principal and commits to a disbursement within two years if the loan becomes irrecoverable. “Use these options for quality projects in the private sector”, Dalić invited the banks. She added that with such government
guarantees in place banks should make more courageous business decisions. Rohatinski said that after the measures implemented by the CNB, an acceleration of bank financing activities should follow with growth in total lending of around 9.5%, about €3.56 billion. This should halt the present negative trend of local demand and investment. With real 4% growth in goods and services exports, GDP growth in 2011 might reach 1% with average inflation of 3%. In 2011, positive movements might be expected, but as was anticipated two years earlier, the recovery of the Croatian economy might be slow and long lasting. “Perhaps it
was not supposed to be this way and we have ourselves to blame for many things”, said Rohatinski. He ventured that in the forthcoming period inflation might be one of the most important problems which will burden the Croatian economy. Foreign vulnerability of the country remains strong, even though Rohatinski predicts foreign indebtedness will cease to rise and debt will stabilise at €46 billion. The requirements for foreign financing totals €2.45 billion this year (38.4% of GDP). Therefore, it is important to preserve the country credit rating, since its deterioration may significantly influence the possibility of financing and price. Notwithstanding,
Government without manoeuvring space Rohatinski also noted that the European Commission concluded that the measures of the CNB during the previous two years, for example preservation of the currency and release of liquidity, helped maintain system stability and a certain level of economic activity. The Finance Minister pointed out that the main lesson of the pre-crisis period is that Croatia should save during good times and prepare for changes in the economic cycle. Even though she did not openly criticise her forbearers for not doing so, the Minister opined that the government does not have much manoeuvring space since it inherited previously determined budget charges which it had to meet. However, this is the precise reason why the Fiscal Responsibility Act includes budget expense cuts which should balance the deficit and bring it to a sustainable amount. The government intends to additionally motivate GDP growth through subsidising investment via public companies and relief for private investment, concluded Minister Dalić.
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Privredni vjesnik Year IV No 0152
JASMINA SOČKOVIĆ, DIRECTOR, ILBA ACADEMY
2,600 co-opera co-operatives ( Competence raising in register of companies
– priority of the Croatian economy
hilst the Croatian economy is trying to overcome the increasingly demanding problems of the current recession, it has become clear that in addition to challenges of all companies with a tendency to achieve sustainable development, the economic crisis is also an excellent opportunity for strategic investment which can raise company quality, productivity and profit. However, the problem is that the labour market has a shortage of high-quality trained experts and managers. In other words, the rise in insufficiently trained employees has lowered the quality of the Croatian economy. It is precisely why the integration of know-how and higher levels of competency is the priority of the Croatian economy for 2011. With the help of the scientific community and business academies, the integration of theory and practice, the competence and experience of all participants included in the business processes as well as scientific work, sustainable economic and national development as well as raising competitiveness are easier to achieve. It should also be pointed
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IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
out that economic development is crucial for quality life in local communities and necessary for the forthcoming EU accession whose business sphere we must enter as sufficiently competitive in relation to other members. In order to successfully compete on the market and achieve business excellence, companies have been sending their employees to business academies and seminars whose subject-matter may be instantly applied in business, and which rapidly gain measurable profit for the company. The programmes of business academies are applicable to modern technologies in management, and they encompass content for leaders, managers and workers for expanding the know-how of each employee. Seminars provide them with a platform of knowledge, but also concrete solutions, workshops and practice. This way new knowledge is promoted, as well as new methods for applying the know-how related to the strategic management of innovation and modern business, raising overall competitive advantage and expansion of knowledge of each employee with the goal of achieving complete business excellence. It must also be pointed out that a rapid change in business conditions, technologies and constant market demands require life-long learning, acquisition and modernisation of all types of competencies, interest, knowledge and qualifications. It is logical to conclude that business academies are an important link for raising the competency of the stumbling Croatian economy.
FOR PUBLISHER Nikola Baučić +385 1 4846661 uprava@privredni.hr
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CO-OPERATIVE BUSINESS ACTIVITIES
Working t
Forming co-operatives could open up many new ma product quality and create new jobs Sanja Plješa o-operatives and social economics are gaining in importance in the European economy and their long history in Croatia has to be noted. The criteria for formation of co-operatives and co-operative business activities attempted to adjust to the former socialist model of centralised planning which currently has rather negative connotations and presents a
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Co-operatives also have a significant role in creating jobs and raising the standard of living of groups of low-income people considerable hurdle for a more significant upswing. Nevertheless there are currently some 2,600 co-operatives in the register of companies, with 1,700 in the Croatian Association of Co-operatives. There are some 26,000 registered co-operative members and 4,329 employed in various co-operatives whilst the share of agricultural co-operatives is about 50%. A significant segment of the Croatian Association of Co-operatives consists of co-operatives of construction workers, craftsmen, fishermen and social co-operatives. “Our members have identified co-operative business activities as a form of co-operation, generally, but not exclusively, in agriculture as well as in other
activities. Nevertheless, the ratio between co-operatives and cooperative members is currently still unfavourable: the existence of three co-operatives in a small village is unacceptable. Our intention is to encourage the formation of larger co-operatives with as many members as possible since the logistics can be organised in one venue. Existing co-operatives need to open up to new members who in turn have to identify them as a place for the protection of their interests”, stated Vedrana Stecca, Board president of the Croatian Association of Co-operatives. Cooperatives also have a significant role in creating jobs and raising the standard of living of groups of low-income people. Neverthe-
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( 26,000
registered co-operative members
together is easier
arkets to small business owners, help them expand production, improve both profitability and of co-operatives, from financing and the banking sector, (savings and loan co-operatives which have been abolished in Croatia), to small producers, from processing co-operatives to consumers.
less, a small co-operative cannot produce a competitive product as it is overloaded with high costs. Therefore, co-operatives need to grow and the process of growth will lead to a lowering of production costs. Advantages of cooperatives Co-operatives should be considered as a in the public interest and of broader social importance. With respect to their open nature, co-operatives can gather various target groups for example small producers, unemployed and disabled and include them in an organised way in the organisational system of work and social adjustment. Co-operatives are specific and should be respected
for their distinctiveness from which they can offer to their members certain advantages within the European Union, such as tax relief and other forms of support. The Croatian Association of Co-operatives is still being introduced into this system of advantages and will therefore insist on encouraging the formation of co-operatives in Croatia, promoted Vedrana Stecca. According to European Commission data, there are some 250,000 co-operatives in the EU currently with 163 million members, a figure that indicates that every third EU individual is employed in a co-operative and they employ in total some 5,4 million staff. In the EU there are also entire co-operative systems, or a chain
Development of cooperatives needs to be encouraged This completes the chain from production to consumption where the consumer is also a cooperative member and vice versa. Consumers receive a share of the added value and a more affordable product price, whilst producers participate in distribution as the first link in the chain. This is a system of partner co-operation which functions according to fair distribution: a co-operative member is allocated value in proportion to their contribution to the co-operative. A system of identifiable co-operative products has been developed, branded COOP. It indicates the detailed knowledge of where a product has been produced and processed. “In Croatia we support this system, yet we need to go further with respect to training and acceptance of the model. In addition, a broader social community should create equal conditions for everyone. In Europe there are co-operative shops which need to be established in Croatia so that co-operative members may purchase a variety of products”, pointed out the Director. When co-operatives in the EU are compared with those in Croatia, according to a research conducted by Co-operatives Europe Asbl., the largest number of cooperatives was recorded in Italy
(41,552 with a share of almost 15% in the total economy), Spain (24,276) and France (21,000). Nevertheless, the research did not include French school cooperatives and insurance sector co-operatives. According to data from the Croatian Association of Co-operatives, Croatia currently has 1,691 co-operatives with the largest number (130) in Koprivnica- Križevci County and the lowest (16) in Lika-Senj County. Co-operatives in Croatia are still mainly agricultural, followed by services and craftsmen co-operatives. The highest share of employed in co-operatives in 2009 was in Osijek-Baranja County with a total of 431 employees. Irrespective of the fact that Koprivnica-Križevci County has the highest number of registered co-operatives, they employ 403 staff, which on average means a meagre three employees per co-operative. OsijekBaranja County recorded the highest number of employees, albeit there are merely five employees per co-operative. On the other hand, the greatest number of employed was recorded in Krapina-Zagorje County with 10 employees per co-operative. “Forming co-operatives could open the doors to many small entrepreneurs to penetrate new markets, expand production, improve profitability and product quality as well as create new jobs. Therefore, encouraging the development of co-operatives and the social economy contributes to achieving the objectives of a socially sensitive model of global economic development”, concluded Vedrana Stecca.
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Privredni vjesnik Year IV No 0152
( 1 million litres wine sold annually
( 350 tonnes
grapes produced in 2010
ZLATAN PLENKOVIĆ, OWNER, ZLATAN OTOK
The right time to brand Croatia as a wine country Export support should be granted in proportion to value. Support by bottle encourages the export of lower quality which is unreasonable, having a negative impact on the image of Croatia as a wine country Jozo Vrdoljak rivredni vjesnik spoke with Zlatan Plenković, one of the pioneers of wine production and wine growing in Croatia, on prospects for Croatian wine exports and developing Croatia as a wine country
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You run two companies. Could you describe their business activity? I run and own the company Zlatan otok, whilst Vinoline is a family-owned business. Zlatan otok has planted a new 75 hectares vineyard in a forest area above Baško Polje. In addition the company owns 10 hectares of vineyards on the island of Hvar. There are 56 hectares of vineyards near Šibenik and there is an opportunity to expand on up to 50 hectares more. There is also a co-operative on the island of Hvar. We normally purchase about 350 tonnes of grapes from some 80 sub-contractors. The production of grapes has seen an annual increase of 30% as a result of planting new vineyards.
Wine production for 2009 was about a million litres. What are results on foreign markets? The results have not been outstanding so far but we nevertheless anticipate more positive results in the near future. We export to the US, Russia, Germany, Switzerland, Austria and other countries in the region, yet we have not promoted large quantities to date. We are planning further market penetration to Britain, Denmark and the Netherlands. Samples have been sent
to China, Canada and the US. We are anticipating the opening of new markets over the forthcoming months and are satisfied that our samples have met the criteria irrespective of where they were sent. In addition, as our export prices match those in Croatia, they are usually accepted. This indicates we have set a satisfactory price/quality ratio. Is export support satisfactory in your opinion? Encouraging exports, including wine exports, should be one of the objectives of the state. Ex-
A giant step forward You were the first company to be granted the right to use state-owned land. It was a giant leap forward, as after that many other wine producers and olive growers followed our example. Larger estates that we were granted the right of use have, in spite of the difficulties, made production considerably more economic. There is a significant difference between cultivating perhaps ten smaller estates and the cultivation of a single large one. In addition, the quality of raw materials has increased, particularly in Dalmatia, as we cultivate sloping areas constantly exposed to the sun which used to be vineyards in the distant past. I am therefore convinced that Dalmatia will be identified as a worldwide producer of wines of top quality.
ports generate an influx of capital. In my opinion exports should be supported, yet, when considering wine, not on a litre basis but according to value. Supporting exports by litre has a negative impact on the image of Croatia as a wine country. Supporting exports in compliance with the current criteria promotes exports of a certain quantity of wine, yet it ranks Croatia among producers of low quality wines. Promotion of Croatia as a country of great quality wines is an imperative, as the country has all the necessary prerequisites. What is your view of the latest endeavours to brand Croatia as a wine country? In my opinion, it is the most appropriate moment to brand Croatia as a wine country. We can create favourable circumstances and arouse the interest of consumers in our top quality wines. It would not be acceptable for Croatia to appear on the markets with low quality and dispose of quantities of low quality wines as the consequences would be catastrophic in the long term.
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PROPOSALS FOR GROWTH AND DEVELOPMENT
CREATIVE DISORDER IT in Croatia is on a par with world trends and stands a great chance at a global level Boris Odorčić ne of the biggest problems encountered by the IT industry in Croatia is the fragmentation of companies operating within it and the high cost of professionals. In addition, the importance of information technology has still not been identified in Croatia in a satisfactory way, which is also a painful truth. Ante Mandić, President of Association for Information Technology at the Croatian Chamber of Economy, pointed out that IT in Croatia on a par with world trends. Therefore, it stands a great chance at a global level, which, unfortunately, has not been utilised in Croatia so far. “One of the reasons is our appearance which reflects
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creative disorder”, remarked the Board President of IN2, one of the leading software companies in the region. In other words, Croatian IT companies have not found a unique niche but have been sailing in different directions. Some countries have been behind the steering wheel
with determination bound for a specific destination. Romania, for example, has opted for development of services. “Stating our clear objectives is an imperative for us and has so far been one of our biggest problems”, he stated. Broadband internet for everyone Ivo Špigel, a member of Executive Board of Croatian Employers’ Association, Association for information technology and communication activities, presented several critical proposals for the growth and development of the IT industry as a strategic and highly competitive sector of the economy, at the conference ICT Industry Challenges in Croatia held recently. Firstly, a reduction in the tax burden and contribu-
ISLAND COUNCIL
tions and salaries needs to be decreased in order for the IT sector to become more competitive on the international market and for Croatia to become more attractive to foreign investment. Secondly, higher education of the ICT workforce and its integration into the economy needs to be encouraged. The introduction of broadband internet as a basic civil right and technology available for everyone is an imperative. Strategic information technology projects of the state need to be organised systematically along with the choice of suppliers, exclusively according to transparent and acceptable market competition principles. Finally, last but not least, is the proposal for higher incentives for the export of IT products and services implemented in Croatian or other markets.
EU FINANCING 23 PROJECTS FOR YOUTH RECRUITMENT
€0.18 BILLION INVESTED Non-repayable €2.74 IN ISLANDS LAST YEAR million funding
During last year the state invested in the development of islands around €0.18 billion, of which €129 million related to non-repayable funds and €51 million concerned investment in terms of credit, as was pointed out at the session of the Island Council held on Vis. Regardless of significantly reduced funding for islands during last year, so far much has been invested in the development of islands despite the economic crisis and recession, evaluated Josip Borić, State Secretary for Island and Coastal Development and President of the Council. According to Borić, during the past eight years 976 contracts have been agreed for the construction and reconstruction of island infrastructure. The necessity of further construction of infrastructure, as a prerequisite of organised and quality life on the islands, Borić added that the Ministry of the Sea, Traffic and Infrastructure had drawn up a proposal for a new project con-
cerning a loan from the European Investment Bank which should be used for some 100 new island projects. State Secretary for the Sea, Mario Babić, announced that the act on maritime goods and sea ports, which will soon be referred to procedure, should decentralise the management of maritime goods. (J.V.)
The unemployment rate of Croatian youth stood at 30% last year. The most frequent problem for young people is the transition from schools to the labour market since they are faced with unsurpassable obstacles due to their lack of experience, skills and knowledge which the employer demands, said the Head of the EU Delegation for Croatia, Ambassador Paul Vandoren, when allocating funding for the promotion of employment of youth recently. The funding concerns the 4th component of the pre-accession IPA Programme – Human Resource Development, which secured €86 million for Croatia from 2007 to 2011. Last week a sum
of €2.74 million of non-repayable funding was allocated to 23 projects. Some of them include the Integrated System for the Employment of Youth in the County of Slavonski Brod and Posavina (€166,515), Young Hunters (€157,598) and Employment Promotion of Youth through the Development of Rural Tourism (€141,169). The main goal of the project ‘Youth on the Labour Market’ is to increase geographical and professional agility, enable re-qualification and professional direction, said the Director of the Croatian Employment Service Ankica Paun Jarallah, announcing new tenders for the second half of the year. (J.F.)
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Privredni vjesnik Year IV No 0152
CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
7.39
5,414029 5,256234 6,312969 5,810677 8,314816 5,070511 7,376073
Operational growth for Optima Telekom During the first quarter Optima Telekom achieved an operating profit of 18.5% in over the same period of 2010 and totalled €2.44 million. At the same time, total income increased by 5.5% over 2010, to €16.04 million. The trend of decreasing pre-tax earnings continued. During the first three months of 2011 it dropped 35.6% in relation to the same quarter of 2010, and now stands at €1.68 million.
5.12
3.5.
4.5.
5.5.
6.5.
CHF
5.85
7.38
5.08
5.82
7.37
5.04
5.79
7.36
5.00
5.76
7.35
4.96
5.73
7.34 2.5.
WEEK MAY 7, 2011
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USD
4.92 2.5.
3.5.
4.5.
5.5.
6.5.
5.70 2.5.
3.5.
4.5.
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INDUSTRIAL PRODUCTION
Ten quarters of downturn A disconcerting fact - downward trend in processing industry worsening
Erste Bank on schedule During the first quarter Erste&Steiermärkische Bank achieved financial results fully in accordance with its business plans and goals set for 2011. Total assets of the Bank amounted to €7 billion on March 31, some 1,2% up in relation to the end of 2010. The Bank increased income from its regular business by 13.3%, HRK535 million in the first quarter of 2011. Nett profit totalled €20.33 million, up 26.8% over 2010. Croatia Health Insurance assets increase Based on revised data, Croatia Health Insurance achieved gross profit of €0.78 million in 2010. Despite the aggravated economic situation, this is a 0.3% growth in relation to the previous year. The mentioned indicators are the result of a mild increase of gross written premiums up 0,2% in relation to 2009. Simultaneously, expenditure for insured cases decreased by 3.8% year-on-year. Croatia Health Insurance registered total assets of €8.90 million on December 31, 2010, a 3.1% increase in relation to the same day of 2009.
verall industrial production over the first quarter of 2010 recorded a decrease of 4.9% over the same period in 2009, making it the 10th consecutive quarter in which industry has recorded a decrease. With respect to the first quarter over the pre-crisis period in 2008 industrial production recorded a slump in the region of 14.5%, warned Ivana Jović, PBZ analyst. The fact that the downward trend in the processing industry has intensified again is rather disconcerting. After a plunge of 6.9% in January and a decrease of 3.2% in February, a further decrease of 4.7% was recorded in March, which accounted for a downturn of 4.7% in the first quarter.
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At the end of March, finished product inventory recorded an increase of 1.4% and 1.7% in the processing industry. The in-
Weak local demand and a further fall in investment, will account for a further fall in GDP of about 1% crease in inventory and the continuous decrease of industrial production volume confirm the thesis of unstable foreign demand and a too slow recovery in local demand. This has been additionally confirmed by data on import/export figures over the first quarter of
2010. Exports of goods recorded a decrease of 4.1%, whilst imports recorded an increase of 1.2%. A decrease in exports is a consequence of a 21.5% plunge recorded in March which was mainly caused by lower exports (down 43.4%) of other means of transport (vessels). According to movements in exports and imports of goods and the fact that the first quarter is of minor importance from the perspective of the tourist season, we anticipate a negative impact of nett exports on overall economic growth, which, with weak local demand and a further fall in investment, will account for a further fall in GDP of about 1% over the first quarter, concluded Ivana Jović. (V.A.)
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WE PRESENT
FEROKOTAO
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NADA, ZAGREB
Like homemade food but from the shelves
European customers appreciate their boilers Customers want their with top quality products for their excellent ironwork and finishing ustomers of the company Ferokotao from Donji Kraljevec can be found from Portugal to North and Central Europe and in the Middle East. The company produces boilers for distribution, energy and special transformers and have achieved stable growth in export results with continuous technological improvement. They started 15 years ago with some 30 workers. Now they have 247 employees. They also plan to employ more workers due to the expansion of production. The director, Josip Vugrinec evaluates this year might be even better than 2010, when they made a profit
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Great attention is paid to quality improvements of €0.67 million. Amongst other plans, they are announcing new works in Slovenia, Slovakia and the Czech Republic. Ferokotao continues the tradition of the company KončarFeromont. The company Končar-Distributivni i specijalni transformatori (distribution and special transformers) has a 16.5% share in Ferokotao, whilst other co-owners are private individuals. Their synergy with Končar – DST wins over customers, and they also co-operate with Siemens (in Austria
and Germany) as well as other partners in this sector. New investment Ferokotao is proud of its programme for training their apprentices. They currently employ 18 young workers, including four engineers who will participate in company future development. They will invest around €2 million in new high-tech plants during the next two years. The company is ISO 9001:2008 and ISO 14001:2009-11 certified. Great attention is paid to quality improvements since, for example, the construction of a corrugated boiler must endure all possible loads which might occur during use or transport. They point out they intend to join their experience in modern technology and on the demanding western markets they attract customers with their top quality products, based on their excellent iron and finishing work. In the development of the production and innovation they co-operate with faculties and the Ministry of Economy. Funding is provided through the Croatian Bank for Reconstruction and Development to finance investment and exports. They do not expect much from the state, says Vugrinec; they need a stable legal and macroeconomic framework in order to develop production, whilst they will take care of customers personally. (I.V.)
Company wants to relocate and employ around 100 workers but requires a loan from the CBRD rom to the beginning of our work in terms of production and range of food products, our goal and motto has remained the same – prepare food as you would for yourselves, says Ivan Hrenović, owner and director of the Zagreb company Nada – proizvodnja hrane (Nada – food production). The products of this company include various types of salads, cheese rolled in pepper and breaded and battered products (cheese and fish). The company was founded in 2003 on the foundations of a family owned craft business, founded in 1990, based on the production and marketing of ready-made food (including salads in special packaging), catering and classic hospitality offers. The family patented the brand and trade mark Nada salad – nature on a plate, and they intend to do the same for their cheese rolled in pepper, points out Hrenović, adding that they received many awards and recognition for their products.
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Planning to hire 100 workers Depending on the outcome of negotiations with the Croatian Bank for Reconstruction and Development which are in progress, Hrenović plans to relocate the food preparation plant to Donja Zelina. Furthermore, if he obtains the anticipated loan, production would be organised over 1,500 m2 where around 100 workers would
work in four shifts. There are currently 27 workers on hold and as soon as the loan is agreed they will return. They also plan to hire a further 27 workers. As soon as production starts to run smoothly,
Products are in demand throughout Croatia, probably because they do not contain preservatives the plan is to organise work in all four shifts. If necessary, production plants will be expanded since there are 5,500 m2 around the existing building where additional facilities could be built. Furthermore, before the beginning of the next tourist season they intend to market a new product – homemade pork scratchings prepared according to a 220 year old recipe. Hrenović is satisfied with the business conditions, since his all supermarket franchises pay on time, and his products are in demand throughout Croatia, probably because they do not contain preservatives, artificial colours or other additives, and are made according to a traditional and patented recipe. (J.F.)
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Privredni vjesnik Year IV No 0152
Scents and tastes of Mali Lošinj
Beauty on your plate, in your room and wellness
Jadranka hoteli supports the aims of the Tourist Board of Lošinj to extend the tourist season throughout the year by expanding its range of services Sanja Plješa ver €35 million has been the invested in the restoration of Wellness & Conference Hotel Aurora and the family hotel Vespera belonging to the brand Lošinj Hotels & Villas of the tourist company Jadranka hoteli from Mali Lošinj. In Lošinj Hotels & Villas portfolio there are six three- and fourstar hotels, as well as the family hotel Vespera which is a Kinderhotels Europa licence holder. Hotels Aurora and Vespera are located in Sunčana uvala which has been identified as one of the most beautiful bays on the island. “These two hotels are a part of
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the so called scented project of Mali Lošinj Tourist Board and they offer the scents and tastes of the island in its wellness, gastronomic and content-related programme. The calendar of scents is a template for devising programmes and related activities to present the beauties of the island in the most creative way to visitors”, pointed out Vesna Hocenski, spokeswoman for Lošinj Hotels & Villas brand. The family hotel Vespera provides an ideal rest for the whole family and it is fully adapted to children in terms of infrastructure and contents, making it possible for parents to plan their holiday without worries. “The hotel of-
fers different content throughout the season and organises trips and sporting activities. Jadranka hoteli supports the aims of the Tourist Board of Lošinj to extend the tourist season throughout the year and is therefore expanding its range of services”, she added.
ACI: higher income from permanent berths According to published business report, during the first quarter ACI achieved a gross profit of €4.42 million, which is €0.37 million more than that achieved in the same period of 2010, and €0.22 million more than planned for this year. The largest share in business income relates to that from permanent berths, which with a share of 79% in total business income shows a 7% increase
over the same period of 2010, exceeding planned income by 1%.
Investment cycle Regarding future investment, Vesna Hocenski pointed out that a three-star hotel ‘Punta’ will be restored in the autumn, turning it into a four-star hotel. An investment of €12 million is anticipated and the opening of the restored hotel is expected for May 2012. The investment cycle will be finalised when tourist facilities in the Čikat zone
::: news PharmaS store opens Last week a newly built PharmaS store of generic medicines opened in the business zone of Mišička. The €41.1 million investment is one of the biggest investments into production in the past couple of years. The factory includes a state-of-the-art laboratory covering 6,400 m2 specialising in the testing of medicine quality, production plant, storage and office space, and employing 65 highly trained experts.
CA: 20 years of flying Last week Croatia Airlines marked the 20th anniversary of the first passanger flight which took place on May 5, 1991 on the Zagreb-Split route. During the past 20 years Croatia Airlines has transported almost 23 million passengers with company aircraft making 380,000 flights.
have been fully restored and converted into four- and five-star category. In addition, a new centre for thalassotherapy is to be constructed. The investment programme for restoration and repositioning of the facilities from Lošinj Hotels & Villas portfolio totals €80 million. Total income for Jadranka hoteli in 2010 amounted to €19.86 million, some 6% up over 2009, whilst gross operating profit was 17% up over 2008. Nevertheless, due to increased costs related to investment and depreciation costs and interest, the gross loss totalled €0.60 million, stated Vesna Hocenski, pointing out that better results are anticipated for the current tourist season.