Mirko Grbešić, owner, Mepas Group First step: strong and stable regional position
Wheat harvest season commences The best price in the last 20 years
Traffic investment €3.42 billion needed for railways, air transport in deficit
INTERVIEW
FARMING
TRANSPORT
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Croatian Business & Finance Weekly Established in 1953 Monday / 20th June / 2011 Year IV / No 0158 www.privredni.hr
S U P P O R T E D
Accession talks
Commission is convinced Croatia is ready he European Commission did not suggest to EU member countries to introduce a clause for a possible postponement of Croatia’s entry into the EU in case of non-fulfilled criteria, and the reason is simple - the candidate country is ready. For this reason the proposal does not include additional monitoring, except for the usual mechanisms and analyses every half year. “We possess solid evidence this will be the case for Croatia. Otherwise we would not postpone what we proposed,” stated the President of the European Commission Jose Manuel Barroso after his meeting with President Ivo Josipović in Brussels last Friday. The EC sees the procedure as a series of efforts which must not slow, let alone stop. The sense of the monitoring is apparently the ability to maintain the full reform drive. President Josipović points out this is an irreversible process. No-one can turn back the wheel of time or stop the anti-corruption fight since our views, mentality and the attitude towards crime have changed, said the President. By the EU Summit on 23 and 24 June it will become clear whether the opinion of the EC is acceptable to members. (L.S.N.)
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ĐURO ĐAKOVIĆ MONTAŽA IS PARTICIPATING IN THE CONSTRUCTION OF A FOURTH NUCLEAR POWER STATION IN FINLAND
Croatians constructing nuclear power stations in Finland Esko Hamilo advised Croatian entrepreneurs and the public that the Finnish experience clearly illustrates how benefits of EU membership significantly outweigh drawbacks Igor Vukić uro Đaković Montaža is participating in the construction of a fourth nuclear power station in Finland. Technological co-operation between Croatian and Finnish companies and experts has huge potential, as has recently been concluded at the Croatian-Finnish business seminar. The Finnish delegation, comprising 15 members, was headed by Esko Hamilo, Under-Secretary of State for External Economic Affairs of Finland. Finland is a highly competitive country, with its knowledge-based economy. It is deeply aware of the necessity for environmental protection and is consequently not afraid of nuclear energy. According to UnderSecretary Hamilo, there are opportunities for co-operationmany fields. Hamilo expressed his belief that the Finnish experience clearly illustrates how benefits of EU membership significantly outweigh drawbacks.
Zagreb nanotechnology Finland and Croatia are also cooperating in nanotechnology. The Ruđer Bošković Institute and the Finnish research centre at Yjvasky-
Finland and Croatia co-operating in nanotechnology la University organised the first summer school of nanotechnology and nanoscience in Dubrovnik last year. The Finnish Funding Agency for Technology and Innovation (TEKES), showed interest in cooperation with Croatian research institutes and production companies and can connect Croatians with their potential partners in Finnish companies. The Finnish delegation also included Patria representatives, the company which sold Croatia the technology for the production
of military armoured vehicles. There are high expectations with regard to additional, offset jobs, created by such contracts in the military sphere. Co-operation is also improving in tourism: last year there were 27,000 Finnish tourists, 10% up over 2009. Trade between Finland and Croatia stood at $120 million before the crisis. Croatian exports totalled $20 million, whilst from Finnish point of view it was about $10 million, mainly Nokia mobile phones and other telecommunication equipment. Trade is increasing again due to the recovery of the Finnish economy and exports, supported by Finpro, an agency employing 3,500 staff, with subsidiaries in 40 countries throughout the world.
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INTERVIEW
Privredni vjesnik Year IV No 0158
Hrvoje Horvat, co-ordinator, World Bank project Agricultural Pollution Control
Nitrates Directive for salvaging waters We will need to increase the controls over the use of nitrates, not for the EU, but for the country and future generations a negative effect upon our health. They are responsible for cyanosis in small children (Blue Baby Syndrome), reproductive problems, hyperthyreosis and the occurrence of diabetes. Undergoing metabolic processes, they turn into nitrates that are extremely toxic. In the stomach they then turn into nitrosamines that are extremely carcinogenic. The latest discoveries confirm the suspicions according to which long-term exposure to small doses leads to mutations armonisation with the new conditions of agricultural management is an important process Croatian producers have been facing for quite some time. The set of new protective measures and norms for the environment and health of people as well animals is also known as cross-compliance. The Nitrates Directive has an important place in this set of measures. Why is it so important for Croatia? Is it only a bureaucratic whim or something else? During the agricultural boom in the 60’s artificial fertilisers became popular and massively used. Now it is known that artificial fertilisers are quite a perfunctory way for substituting the lack of nutrients in the soil, and very different compared with natural fertilising. Their long-term use results in the decrease of humus (the basic organic soil substance), acidification of the soil, erosion, sedimentation of heavy metals and leaching of nitrates into underground water. It is also known that nitrates have
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IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
Present reports indicate a significant number of wells having an increased level of nitrate concentrations in chromosomes and various types of cancer. Previous research confirmed that every third well in Croatia, in areas under intensive farming, has an increased concentration of nitrates. The fundamental act of the European Union, prescribing the method of fertilising and preventive measures, is called the Nitrates Directive. To increase awareness and accept the necessary changes, we started a campaign in conjunction with the project of the World Bank Agricultural Pollution Control, which deals with analysing water in village wells. Present reports indicate a significant number of wells with increased nitrate concentrations. The analysis is in its preliminary phase, and we will publish the first results in the
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( over 2,600 people employed in the Mepas Group
Mirko Grbešić, owner, Mepas Group
First step: stron
We must all reach higher quantities in production and sale Svetozar Sarkanjac irko Grbešić, an entrepreneur from Bosnia and Herzegovina has quite a substantial influence on the Croatian economy with the Mepas Group. Mepas is majority owner of Koestlin from Bjelovar, Brodomerkur from Split, Maraska from Zadar, Saponija from Osijek, and has recently bought Kandit, the chocolate factory in Osijek, from the entrepreneur Marko Pipunić.
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You have previous experience with Kandit. What is the concrete reason for your purchase? Our co-operation with Kandit spans more than 15 years. Mepas is the exclusive distributer of Kandit in Bosnia and Herzegovina and our co-operation is excellent in this segment. Koestlin and Kandit are two absolutely compatible programmes which complement one another in terms of their product line, and this merger has multiple mutual benefits. Kandit has always had the potential, quality and recognisable products. However, it has not always had the strength to position them appropriately and use this potential. Entering our group, it will acquire the strength that will enable it to transform into a modern factory with strong brands and market position. What is the present state of Kandit and what are your business plans regarding the development of the brand? The situation in Kandit has met our expectations. There is much room for progress and improvement of the business in every sense. All aspects of the company are currently being
analysed. Afterwards, concrete marketing strategies will be defined, or rather the strategy of overall business. Kandit and its products have not been adequately supported for the past several years. That is why
We are planning to build a modern factory near Osijek which will suit our ambitions regarding Kandit our priority will be to restore its recognisability, invest in the brand and assume the appropriate market position. According to available information you bought everything within Kandit, except for the premises. What are your future plans? We made an arrangement with the current owner according to which we have a three-year deadline to move to a location near Osijek. We are planning to build a modern factory which will fully comply with all market demands and our ambitions with Kandit. The situation for Croatian confectionery producers is not great. The state of the “sweet” industry is very bitter, according to experts. What might be the solution of this absurd situation where local producers make high-quality and recognisable p r o d u c t s which they
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( 8 successful companies united through the Mepas Group
( â‚Ź360 million Group income last year
g and stable regional position
es if we want to survive; the synergy effects we are trying to achieve within the Mepas Group are a good start-point successfully export, yet at the same time the Croatian market is overwhelmed with
foreign and often lower quality products? The confectionery industry is faced with enormous competition from foreign producers, low purchasing power and total consumption as well as record high prices of imported raw materials. It is difficult to expect enviable results in such a state. I believe the solution to this present situation lies in the company itself, since we need to be efficient and remove all internal flaws regardless of the difficult surroundings. If the company does not have a solid foundation for competitiveness, then any kind of help from outside cannot be a long-term solution. The state needs to use all those mechanisms other states are using to protect their local production,
and we as a company need to constantly work on increasing competitiveness. Furthermore, the significance of using local products needs to be constantly brought into focus, since it is evident this kind of awareness is not at as high a level as in other countries that recognise and value their local products. In addition to Kandit, you are also the owner of Koestlin from Bjelovar and Maraska from Zadar. Where do you see potential synergy effects in this food sector? There are many synergy effects, starting from cuts in supply,
The state needs to use all mechanism that other countries use to protect local production logistics, knowledge exchange, stronger market position and the opening of new markets. Kandit is a new member and it is clear all our companies, especially Koestlin and Maraska, will do all that it takes to bring Kandit to the desired level in terms of organisation, production and market position. Where do Saponia from Osijek and Brodomerkur from Split fit in this business story? Saponia does not have the same product line, but it has the same buyers and business processes. It must greatly contribute to marketing, organisation, logistics and any other kind of aspect. In every sense Saponia can be the waypoint for all our companies that produce and sell goods for wider consumption. Brodomerkur deals with other
What is the Mepas Group? The Mepas Group consists of the following companies: Saponia Osijek, Koestlin Bjelovar, Maraska Zadar, Brodomerkur Split, Kandit Osijek and Mepas HR. The distributing company Mepas B&H is situated in Bosnia and Herzegovina, as well as the metal construction factory Metalac from Ĺ iroki Brijeg. The Group employs over 2,600 people. Last year it achieved â‚Ź360 million in income. types of goods that have little to do with Kandit, which is why the possibility of synergy is much smaller in relation to other members of the Group. Certain economic experts advocate theory according to which the most important and the most realistic thing for Croatian producers is to take over the markets of exYugoslavia. Is that sufficient? I agree that the most logical step is to take over the local and regional markets. The consumers from ex-Yugoslavia recognise our products; they have a habit of consuming them and they are familiar with their quality. There are no language barriers on these markets; transport costs are less; it is easier to support the products in terms of marketing and it is more cost-effective to direct our forces to these markets while there is still room for development. On the other hand, we must all reach much higher quantities in terms of production and sales if we want to survive and this is impossible without venturing into third countries. The first step is to assume a strong and stable regional position, and second is to take over other markets.
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Privredni vjesnik P Year IV No 0158 Y
( 120,000 hectarees sown last year throughout Croatia
WHEAT HARVEST SEASON COMMENCES
THE BEST PRICE IN THE LAST 20 YEARS Producers are not rejoicing yet, as the yield will depend upon nature and prices will be determined by two agricultural markets in Hungary and Paris Svetozar Sarkanjac armers, purchasers, seed producers and experts are all in agreement with the estimate that this year will not witness record yields of winter crops. Last year 15% less barley was sown, missing the deadlines, without the use of appropriate agro-technical measures and using seed reserves. The same applies also for wheat and, according to estimates, between 100,000 and 120,000 hectares were sown in Croatia last year, some 50,000 hectares down over the regular sowing. In addition, below average seed yields are anticipated.
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Warehousing expenditure is high and farmers cannot afford it Nevertheless, all these negative indicators are not alarming. Croatia will satisfy its wheat needs as local annual consumption stands between 540,000 and 550,000 tonnes, which can also be achieved with the areas currently under crop. Spring wheat sowing In addition, towards the end of 2010 and at the beginning of 2011, several instances of atypical sowing were noticed. Relatively acceptable weather conditions in December and even into January contributed to an increase in interest for wheat amongst producers and spring wheat sowing was observed in
several areas. The increase in interest for wheat among producers was also a consequence of circumstances on world markets which resulted in record high wheat prices of €0.30 per kilo at the beginning of the year. Prices have since fallen back, but they are still rather high. Drago Šurina, from the company Granolio, which will purchase about a quarter of this year’s wheat yields in Croatia, pointed out that this year’s prices will be determined by two agricultural markets – in Hungary and Paris. “In addition, we always have to be in accordance with our neighbours, who are large wheat producers, mainly Hungary and Serbia or Vojvodina”, stated Šurina. “The current prices, according to all market criteria, stand between €0.20 and €0.23 per kilo. Nevertheless, there are constant chang-
es. Rain, for example, which was recorded in the area at the beginning of June, will certainly contribute to a price increase in the area. Experts believe we will record average yields this year”, concluded Šurina. Disconcerting purchase model Everyone is interested in the purchase process, particularly small producers and in Granolio they stated that they were granted loans by banks and that producers would receive their money upon presenting the required documents and invoices. “It has to be pointed out that this price is definitely the highest since 1991. Nevertheless, producers fear that such a high price could be reduced on global agricultural markets”, warned Drago Šurina. Antun Laslo, a farmer from
Đakovo area and President of Farmers’of Slavonia and Baranja Association, believes it is too early to anticipate harvest yields. In the end, it all depends on nature which was once again witnessed in the Đakovo area at the beginning of June when the area was struck by hail storms. “The model and standards of purchase are more disconcerting. There is no unique European standard but individual countries create their own criteria and our purchasers are currently not willing to make any alterations. There is very little choice for farmers. Warehousing expenditure is high and farmers cannot afford it. Farmers need to organise themselves and form co-operatives owning storage silos. Unfortunately, our farmers do not find this idea acceptable at the moment”, he concluded.
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PITOMAČA CRAFTSMEN EXHIBITION
Reaching customers through knowledge and persistence Pitomača craftsmen often help mutual development. Indicative examples of this are the companies Jan Spider and Herba S: the former produces medicinal herbs and teas, the latter produces machinery for their processing work, but quality, good reputation and preparedness to travel on work related purposes, helps to create revenue even in a time of the crisis.
Igor Vukić n the vicinity of the Westgate shopping centre, there are plastic greenhouses where salad crops are cultivated over 2.5 hectares. They are grown hydroponically, using state-of-theart technology with a daily yield of 5 tonnes. The greenhouse was produced by a company from Pitomača, Meta-plast, owned and headed by Damir Blažinčić. Their production range has recently been presented with some
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Increased tobacco and herb production must be accompanied by appropriate machinery 40 exhibitors at the third exhibition of products and services Pitomača 2011, organised by the Pitomača Municipality Association of Craftsmen. The craftsmen in this region are very skilful in greenhouse construction. Dražen Hrvojić from DH plastenici stated that his company exports greenhouses, made to customer order, to Bosnia and Herzegovina, Serbia and Austria. They produce the metal constructions themselves, whilst green-
house plastic sheeting is imported from Italy, Germany or France. There are only five or six producers from these countries covering the global market for this type of plastic, explained Hrvojić. Reaching customers via Facebook Pitomača craftsmen nominated several colleagues for awards this year. They set high and clear standards: the settlement of all liabilities and obligations towards the state, revenue and exports increase and a continuous presence on local and international fairs. Tapetarija Veličan, DH plastenici and Merkur production textiles were on the short list. Tapetarija Veličan, owned by Ivan Veličan, specialises in chair and armchair production. This craft has existed for 19 years, employs 26 staff and almost 80% of produc-
tion is exported. Matija Škrinjar from Merkur attracts customers with quality production and materials. His company’s range of baby clothing for up to one year olds (everyday clothing for infants and babies, covers, special occasion wear for baptisms and similar occasions) is sold throughout Croatia and also abroad. The company had developed its own brand Mali anđeo and their objective is to become a top brand and be recognised in this demanding market. It also reaches its customers via Facebook and has recorded online sales growth. It is currently preparing for trhe large international fair in Cologne where they will present their range. The company Gigant, dealing with plastic production and the floorer Željko Jakopec share the construction industry destiny. There is less
Together we are stronger Pitomača craftsmen often help mutual development. Good examples of this are the companies Jan Spider and Herba S: the former produces medicinal herbs and teas, the latter produces machinery for processing. Vladimir Hrvojić, Herba owner, stated that increased tobacco and herb production must be accompanied by appropriate machinery. The company therefore produced combine harvesters for pumpkins, equipment for the producing pumpkin oil, camomile flower cutters, packaging machinery and other equipment. Machinery in the Kloštar Podravski plant is produced by 26 workers. About 30% of production is exported to Bosnia and Herzegovina and Serbia and the company has been receiving new orders from Hungary and Serbia. A new development area is the production of wood biomass boilers. The energy obtained will be used for tobacco drying and will be four times more economical than gas which is currently used for this purpose.
ADVANTAGES OF ECO OLIVE GROWING
Ecological olive growing on the increase The largest proportion of approximately 400 hectares of Croatian eco olive groves is located in Dalmatia, and for the past three years there has been an increasing interest from olive growers in ecological production, noted Snježana Mihinica, an associate for ecological agriculture of the COAST Project at a seminar on the Advantages of Ecological Olive Growing, held in June in Marina.
The seminar, which gathered several olive growers and other
farmers, is part of the implementation of priority measures of the Action Plan for the development of ecological agriculture and food production in Dalmatia within the scope of the UN COAST Project. Ranko Tadić, expert in ecological agriculture with the COAST Project, pointed out that plantations of global ecological olive groves increased by 20% between 2007 and 2009, reaching half a million hectares.
A similar trend was also observed in Croatia. It still lags behind all Mediterranean countries according to the production of olives, and also some countries where olive growing is in its early stages, for example the USA, Argentine, Peru and Australia, pointed out Tadić. He explained to olive growers how to acquire an ecolabel and referred to subsidies which ecological olive growers could obtain. (J.V.)
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WE PRESENT
MAJON, PULA
Privredni vjesnik Year IV No 0158
HORTIART, ZAGREB
Villa Valdibora for antique enthusiasts
Thinking Green The hotel operates all year and provides full facilities for business people he headquarters of the company Majon are in Pula and its business activity is in Rovinj. In 2002 it adapted a beautiful old house in the old centre of the town in order to make it a branch of a law office. Nevertheless, the company founders decided to adapt the house for tourist purposes. This was the inception of Villa Valdi-
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Villa is suitable for visitors with pets bora, one of the most beautiful small hotels in Croatia. The Villa employs four full-time staff, although during the tourist season they are assisted by four additional seasonal workers. The hotel operates throughout the year and provides all facilities for business people. In addition, its particular advantage is the tastefully decorated conference hall for miniconferences and business gatherings. A further advantage of the Villa is its pet friendliness, for visitors bringing pets with them. “The hotel visitors are mainly business people but there are also antiquity enthusiasts and visitors who enjoy the antique atmosphere. Nevertheless, visitors are also provided with all the advantages of today such as internet access, wireless internet, satellite television, projector, coffee machine, microwave, toaster, dishwasher, a digital safe, automatic air conditioning, hydro massage
shower cabin with sauna and other similar facilities”, pointed out Zvonko Nogolica, Majon owner. Four star luxury The hotel is anticipating a new investment cycle since it has been granted an expansion loan by HBOR both for the expansion of its programme and for the adapting of its kitchen and restaurant, spa and wellness centre. The investment value is €500,000. “The facility is under constant repair and constantly monitored by ardent preservationists. We wish to present to our visitors the rich cultural and historical heritage of Rovinj and thus the 17th century baroque interior of this intimately designed hotel. The rooms in this luxuriously restored Rovinj villa are furnished with carefully selected antique furniture and decorated with works of art. Visitors can enjoy the service and kindness of staff bringing them breakfast to their suite, cleaning and tidying the rooms daily, providing information on the cultural and gastronomic secrets of Rovinj and Istria, as well as offering bicycles for sightseeing, recreation or going to the beach”, promoted Nogolica. This four star hotel has 11 suites and its accommodation capacity could be expanded to 20 units. Villa Valdibora has been co-operating with Istrian wine producers, members of Vinistra, hosting them in its premises and enabling them to present their wines and provide training for Istrian wine producers. (J.V.)
To the artists from Hortiart each garden is equally big and equally important, turning it into a creative, functional, innovative, and most importantly, a pleasant living space Japanese garden in Tuškanac in Zagreb, a roof terrace in Perjavica, a fountain of the Westin Hotel, the atrium of the Museum of Arts and Crafts and Hemingway bar are some of the designed projects of Hortiart, a relatively young craft founded two years ago by Darko and Tonko Katović, garden designers and horticultural engineers. Hortiart designs, executes and maintains private, public and business gardens as well as parks. Some 10 years ago, as students, they began gaining the knowledge and experience in working with plants and modern garden materials. Each garden is equally big and equally important, turning it into a creative, functional, innovative, and most importantly, a pleasant living space since their philosophy is Think green. They design all types of conceptual and executive projects, diagrams, sketches and concepts. They present their projects in 3D format with a detailed costestimate of individual work phases.
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Recognisable brand After the client expresses his wishes, the Hortiart team approaches the project solution. The first phase is performed in the field where they analyse the present state, after which they develop the idea from the first sketches to the executive project. Darko Katović says the competition in this work is enormous.
There are many registered companies offering the same service. However, a bigger problem is the abundance of non-professionals offering services below every price, undermining the credibility of professionals. Another problem is that the culture of garden design is not on the same level as in other countries. In Croatia people rarely invest in the appearance of their gardens, while this is completely normal abroad, he explains. Some of their solutions can be browsed on their website www. hortiart.hr, created by the international design studio Bunch.
In Croatia people rarely invest in the appearance of their gardens Bunch designed a recognisable brand for us, known even beyond Croatia. Hortiart was thus recognised by Russian investors who contracted to design the garden of a representative villa in Opatija, Katović points out. Hortiart continually invests in new know-how and technologies, offering services that might distinguish them from their competition. In autumn we plan to introduce ecologicalinnovative solutions in landscape design which will raise the life-quality of the future users, concludes Katović. (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
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TRAFFIC INVESTMENT
Croatia Airlines now has 85 competitors. In ten years it has accumulated a deficit of €47.9 million
roatia should completely redirect its traffic strategy towards railways, which require investment of at least €3.42 billion during the next 20 years. This was pointed out at the Round Table on traffic infrastructure in conjunction with the third conference New Model of the Croatian Economic Growth. Around €0.27 billion should be invested in the track Rijeka-Zagreb in the first phase. The same amount should also be invested in the line Dugo Selo-Novska, and around €119 million in the traffic junction of Zagreb, which would operate as Rijeka’s dry port. According to calculations of Tomislav Josip Mlinarić from the Faculty of Traffic, this would increase the transport of goods on the Rijeka route to 13 mil-
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€3.42 billion needed for railways, air transport in deficit
Drago Živković
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lion tonnes, whereas today it totals around 6 million, and only one quarter is transported via rail. Smaller ports benefit The board president of Končar, Darinko Bago, is ready to participate in the development of the railway by designing prototypes. He regards the city-suburban route as the most cost-effective investment, for which he had already designed a prototype of the low-floor electro-motor train. Bago complained about poor coordination of Croatian Railways (HŽ), since some are announcing the purchase of 20 diesel locomotives for the route ZagrebSplit, rather than investing in the electrification of the track. The Croatian air transport market is today worth €450 million, and by 2030 it will be worth at least €1 billion, stated the board president of Croatia Airlines, Srećko Šimunović. We need to decide whether we will keep this market or turn it over to others, he
warned. Croatia Airlines has 85 competitors today. In ten years it has accumulated a deficit of €47.9 million. At the same time Croatian airports achieved total profit of €82.19 million and the
Lower premiums for insurance companies According to cumulative data from the Croatian Insurance Office for the first five months, 26 insurance companies had calculated gross premiums of €0.57 billion, 1.5% less year-on-year. For non-life insurance, the calculated gross premiums amounted to €0.44 billion 1.6% less year-on-year, and accounted for 77.06% of total premiums. Lifeinsurance registered a 1.3% drop with calculated gross premiums of €130 million, 22.94% of total premiums. Insurance against termination of employment
At the same time Croatian airports achieved profit of €82.2 million national transporter is responsible for 40% of the turnover. Even though Croatia Airlines receives state subsidies for local lines, this amount is significantly smaller compared with the membership fee it is paying the Croatian Tourist Association. Šimunović therefore wonders when the air transport system will finally be regulated better and he proposes a model of joint holding similar to that of the Czech Republic. If this problem is not solved, Šimunović is worried Croatia Airlines will end up as did the national sea transporter Croatia Line - bankrupt.
Allianz Zagreb is offering to all current and future insured a unique service on the Croatian insurance market. This insurance is against termination of employment and it is contracted in addition to mandatory insurance against motor liability. If the client, or the insured, previously employed for an indefinite period of time, is dismissed during the period of the policy for motor liability, Allianz will compensate the amount of the contracted premium with 15% tax. This offer is special since coverage may be also expanded to include a spouse.
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Privredni vjesnik Year IV No 0158
The Association of Croatian Travel Agencies promotes Turkish tourism
UHPA recommends Turkey for holidays By the end of March 2012, Turkey will be shown as the UHPA destination of the year in all promotional material he Association of Croatian Travel Agencies (UHPA) recommends Turkey for holidays and business trips this year and in 2012. Last week, the director of UHPA, Željko Trezner signed a contract on marketing
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Contract will not bring additional discounts on packages for Turkish resorts co-operation with Derya Polat, attaché of the Office for Culture and Tourism of the Turkish Embassy. Discussing the reasons behind this contract, Trezner said that Turkey is a destination which deserves a boost in turnover and travel by the Croatian public to this country, as well as an increase in the number of arrivals of Turks to Croatia. The conclu-
sion of the contract was contributed by the extremely good co-operation between UHPA and the Association of Turkish Travel Agencies (Tursab). By the end of March 2012, Turkey will be shown as the UHPA destination of the year in all published infor-
mation and promotional material. This marketing co-operation is also supported by Croatia Airlines, and soon the two countries will be connected by 12 flights a week on the route Zagreb-Istanbul and vice versa. Seasonal flights on the route Dubrovnik-
Istanbul-Dubrovnik will still operate. Regarding the value of the marketing contract, Trezner said this was a professional secret, adding that the intention of the Turkish Embassy and UHPA is to develop the partnership between the two countries and their travel agencies. However, the contract will not bring additional discounts on packages for Turkish resorts. Even though this is a unilateral process for now, since only Croatia is promoting Turkey, this contract will result in more Turkish tourists arriving in Croatia. Last year, a total of 37,590 tourist arrivals and 115,659 overnight stays were registered in Croatia, of which 15,080 Turkish tourists came via UHPA, registering 60,904 overnight stays. At the same time, 5,925 of Croatian tourist arrivals and 28,795 overnight stays were registered in Turkey. (S.P.)
RUSSIAN TOURISTS WILL NOT NEED VISAS TO ENTER CROATIA THIS YEAR
Welcome Russian visitors Representatives from Russian tourism praise Croatia’s high level of security ast year Croatia was visited by 165,000 Russian tourists, 35% more than in 2009. They registered 31% more overnight stays compared with the year before - around 1.4 million. It is expected this significant rise in traffic from the Russian market will continue this and the next year, said the Minister of Tourism Damir Bajs in Moscow at a meeting with representatives of some 15 leading Russian tour operators, including the biggest Russian tour-operations, for example Interunion Travel Company, Atlantis Holiday and Ascent Travel. The Russians are specific since they visit our country in organ-
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ised groups, via tourist agencies. Therefore, the Croatian government again approved to temporarily suspend visas for tourists from more distant markets, including Russia. In order to attract more Russians to visit Croatia, this year the Ministry of Tourism
and the Croatian Tourist Association implemented a series of market activities worth over €1 million. Last week, at the meeting in Moscow, stronger tourism co-operation between Croatia and Russia was discussed as well as more active participation of the two countries at international tourist fairs. The representatives of Russian tourism companies expressed their wish to increase the number of tourists in
both countries, praising Croatia’s high level of security. For the Russians, security is the number one criteria in their selection of holiday destinations. Bajs recommended the previously signed tourism agreement between Croatia and Russia to be expanded with new activities, and he invited Russian colleagues to participate at the first UNWTO international conference on tourism and media in Zagreb on 12 and 13 September. The event is organised by the World Tourist Organisation (UNWTO), and it will include representatives of media companies, PR and marketing agencies. (S.P.)