Multiple opportunities await Foreign investors welcome in all economic sectors
Marin Tadić, Oracle Croatia Director Croatian economy is not sufficiently internetoriented
Additional measures to simplify funding Decreased interest rates and extended deadlines of grace period and credit repayment
INVESTMENT PAGES 2-3
INTERVIEW PAGE 5
FINANCE PAGE 7 2010
Croatian Business & Finance Weekly Established in 1953 Monday / 17th October / 2011 Year IV / No 0170 www.privredni.hr
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pvinternational pv international C R O A T I A N
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INVEST IN CROATIA FORUM
Time for big projects in Croatia Tourism, energy, infrastructure, food industry and IT sector are the most often mentioned fields that might attract high investment in the forthcoming years Igor Vukić Drago Živković roatian has everything – excellent geopolitical position, preserved and diverse nature as well as a trained work force. This was pointed out by many participants at last week’s Invest in Croatia forum. However, there is still something missing for it to achieve both its investment potential and satisfactory development rate. Over 500 participants, foreign and Croatian, searched for answers to that question. The subject was discussed at meetings covering industry, tourism and energy, and experiences were shared through informal gatherings. Obstacles and investment opportunities were described, and discussions reached more or less the same conclusion: the end of EU
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Almost half the projects presented to the government relate to tourism discussions confirmed Croatia as a country worthy of investment. Croatia is entering a market of 500 million consumers, and common EU standards guarantee safety of
investment. Furthermore, key political factors in the country support the removal of obstacles for foreign investors. This was visible in the organisation: the two-day assembly was organised by the Croatian government, Croatian Chamber of Economy, Croatian Employer’s Association and the Ministry of Economy. The Financial Times and the Bloomberg
Agency were media sponsors, and the forum was also sponsored by the large Australian investment bank Macquarie. Investment in LNG terminal Tourism, energy, infrastructure, food industry and IT sector are the most often mentioned fields that could attract the highest levels of investment in the forthcoming
years. The president of Qattar Connect, Sheikh Muhamed Althani also agreed. He apparently renewed his interest in the construction of an LNG terminal in Omišalj. According to him, the state plays an important rôle in certain sectors. However, investors will be primarily attracted by safe investment, good work force and the potential for profit.
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Privredni vjesnik Year IV No 0170
INVEST IN CROATIA FORUM Muhamed Althani Qattar Connect
Great enthusiasm and support to foreign investors is felt here. At this sort of occasion I do not like the mention of corruption, even in the sense of the successful fight against it. Let us rather talk about what we can do together to strengthen our investment cooperation. Petar Ćorluka chairman of Violeta
I have so far invested €12 million in Croatia and I am satisfied. We are anticipating €27 million in profit this year, of which 50% will relate to EU exports. I am studying the possibility of investing into solar collectors to be mounted on the roof of the factory.
You must not wait for your investors or buyers. You must go to them and convince them Croatia is worth investing in, added Ferit Şahenk, Chairman of the Turkish Doğuş Holding. Şahenk opined that he felt as a local player at the forum, gaining experience by investing in the shipyard and the NCP marina in Šibenik as well as a marina in Zadar. His intention is also to build a hotel in Primošten with 100 rooms. Frank Stronach, owner of Magna, the largest producer of car parts globally, has a threeword message for Croatia: quality, quality, quality. He considers that by specialising in certain areas and co-operating with foreign investors, producers in small markets have a secure place on the global scene. Croatia has a big chance in the production of health food. It only requires better marketing, according to Salamon Berkowitz, owner of Hungarian Traubi. Ajit Singh, an Indian investor in the Lukaps factory from Ludbreg, which produces capsules for medicine, believes that Croatia, with good organisation, has great possibilities to achieve mass production at competitive prices.
One of the advantages is the closeness of the Western market and the possibility to compete with some Far Eastern producers. Satisfied investor in Luka Rijeka One of the newer larger investments into the Croatian traffic infrastructure concerns the strategic partnership between Luka Rijeka and the American company International Container Terminal Services (ICTSI), with its main office in the Philippines. ICTSI chairman Enrique Razon is extremely pleased with the
present investment process, worth €70 million, as well as with Croatian workers who are open to acquiring new know-how. Thus, why ICTSI is looking for new investment, with a special interest in the railway connection between Rijeka and Hungary. Croatia should use its investment potential in the energy sector, combining different energy sources (coal, gas, wind and solar), proposed CEO of RWE East Karl Kraus. The transfer and production of energy should be invested in, advises Andreas Chollet, CEO of WPD Europe, who resents
Danko Končar chairman of Kermas Mining Fund
Enrique Razon chairman of ICTSI
I am not giving up on investing in shipyards, but I would be much happier if there would be a force majeure to tell it is not possible. I would immediately light a candle at the Stone Gate. It is a misconception that I am only interested in shipyards for their land since this belongs to the state.
Investment is attracted by countries with the best economic policy, not the countries that sell at the cheapest price. Croatia should not relate to other European countries. It should follow its own path. We have here one of the best experiences in privatisation.
FOREIGN DIRECT INVESTMENT
Market takeover complete, now is the time for greenfield investment Last year nett investment reached only €226 million and this quarter it reached €128 million. In terms of regional FDI, Croatia is placed after Serbia, Albania and Montenegro Igor Vukić DI into Croatia totalled €24.3 billion between 1993 and 2011 according to data provided by the Croatian National Bank. The height was reached in 2008, when investment totalled €4.2 billion. In 2009, the value of FDI was €2.1
F
billion. However, in 2010, nett investment amounted to only €226 million. During the first quarter of this year investment reached €128 million. According to Nadan Vidošević, President of the Croatian Chamber of Economy, the largest proportion was intended for taking over the Croatian market. Foreign companies bought Croatian banks,
cement factories, telecommunication companies, breweries, oil companies and parts of the pharmaceutical industry. Now it is time for them to turn to greenfield investment, pointed out Vidošević at the recent forum Invest in Croatia. CNB data confirm the assessment of Vidošević. Between 1993 and 2011, €8.5 billion was invested in the Croatian
financial industry, predominantly banks. Over 90% of the Croatian banking industry is now owned by foreign banking groups from Italy, Austria, Germany and Hungary. Despite criticism, banks that were additionally capitalised with foreign capital were one of the pillars of macroeconomic stability in Croatia during the peak of the recession.
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administrative obstacles due to which it took five years for them to transfer the wind power plant project from one company to another. The Russian Lukoil now holds 6% of the market of oil derivatives in Croatia. Their plan is to raise this to 10% to 12%, according to a statement from the vice-president of the company, Vadim Vorobjov. One the other hand, Aleksandar Kozurin, deputy CEO of Zarubježnjeft, owner of the refinery in Bosanski Brod, pointed out good relations with the governments of the countries’ in which they invest, and spoke
3 about the close co-operation between Russian companies and companies in ex-Yugoslavia. Grand finale The finale of the forum was dedicated to tourism, to which almost half of the projects, presented in the cabinet of the vice-president of the government, Domagoj Milošević, refer. Current and potential investors think the destination should be better managed and the tourist season should be extended. With a little more courage, the construction of facilities and the accompanying
services (golf courses and casinos) should be allowed. There is room in almost every segment, from the construction of five-star hotels to marinas for mega-yachts. With its sea and coast, Croatia could have better tourism than anywhere else, pointed out Fettah Tamince, board president of the hotel chain Rixos. This group is showing great interest in the project Brijuni Rivijera, which could, according to William Crewdson, of the IO Adria investment fund, represent a crucial positive impulse of the development of Istria and entire Croatian tourism in its entirety.
In five years we will turn the company producing medical capsules in Ludbreg into the second biggest European producer. We do not require much help from the government since we learned in India to rely on our own strength. Fettah Tamince Rixos
Salamon Berkowitz Traubi Company
Do not be afraid of building new hotels. In the case of Turkey, more hotels attracted more visitors. Stronger competition improves the range of services as well as attracting tourists. Tell us where we can build. I would like to build a hotel in Croatia which would make it known throughout the world.
We would like to invest in Badel and Dalmacijavino since we see great potential there. The criteria of the tenders should be transparent, and we are open to suggestions from workers and board members, especially in Badel. We are ready to include staff in the privatisation process and the ESOP project. investment, relating to property (fourth place on the list of activities with the highest share), reached €1.5 billion. Investment into the oil industry took third position. The trend started in 2003 with the international tender for the sale of 25% plus one INA share. The rest is history.
Foreign investment in property reached €1.5 billion primarily due to foreign supermarket chains buying land
Oil sector sold Another big investment sector was trade. During a period of 18 years around €2.7 billion was invested in Croatia. Here it would possible to discuss part greenfield investment. Foreign supermarket chains usually bought property or land on which to build their trade centres. This is probably the reason why the sector of foreign
Ajit Singh ACG Worldwide
MOL offered the highest price, $505 million or €440 million, which began its sometimes tense partnership with the state. Meanwhile, foreign owners took over Tifon (MOL also), Crobenz and Europa Mil (Lukoil), and the Slovenian company Petrol became the owner of Europetrol from Rijeka. The sum of €1.2 billion was invested into the
telecommunications sector, and around €1.2 billion into chemicals. Large investment into the pharmaceutical industry (Pliva) falls into this category. Resistance to investment The global economic crisis and lack of new investment opportunities led to a reduction in FDI. The economist, Branko Vukmir, special advisor at UNCTAD, evaluates that there is an air of inertness and resistance to new investment in Croatia. Last year’s drop places Croatia after Serbia (€1.3 billion), Albania and Montenegro. A total of €4 billion invested in the region is somewhat disappointing, pointed out Vukmir. Global FDI totalled $1.24 billion last year, which is 34% less in relation to the record year of 2007. Vukmir adds that total amount of investment this year might range between $1.4 billion and $1.6 billion followed by a mild recovery of the global economy. The old levels might be reached in 2013 or later. Even though the
USA is still at the top of countries which attract investment ($223 billion) and they also invest themselves ($329 billion), China will attract the largest share of foreign investment. After USA other developing economies (India, Brazil, Russia and Poland) will also attract large shares of foreign capital, evaluates Vukmir.
F.D.I. by sectors (in € millions) Financial mediation
8484,3
Trade
2724,6
Oil industry
1529,4
Real estate
1456,3
Telecoms
1246,9
Chemicals
1216,4
Retail
1175,2
Gas production
775,1
Minerals and non-metals
742,9
TOTAL
24.357,20
Source: CNB
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Privredni vjesnik Year IV No 0170
(€10 million (1,000 tonnes California trout total value of the project
annual capacity of fish farms
JADRAN RIBA, KARLOBAG
Californian trout from the Velebit channel Fish farmers have no problem in overcoming aggravating circumstances arising during the process of adapting freshwater fish to salt water Jozo Vrdoljak fter around 10 years of project development, which started as cooperation with the Norwegians, Jadran riba started the construction of a fish farm for the production of Californian trout in the Velebit channel. The investment should be complete in 2013 and its total value is around €10 million. The Jadran riba company is specific, since it started to breed Californian trout in the sea. Its fish farm is located at the foot of Velebit mountain, in the direct vicinity of Lukovo Šugarje and its capacity totals 1,000 tonnes of Californian trout per year. In addition to this fish farm, the company has a further contract on a concession with the county of Lika and Senj regarding a location near Jablanac. On each position Jadran riba has a licence
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and breeding capacity for 1,000 tonnes per year. “We think there will be no problems in placing the product bearing in mind the weak global competition. This year marks the first serious presentation of this company on the local market. Until now we distributed our product to restaurants, but we will soon start to distribute frozen Californian trout, bred in the sea, to supermarkets. The trout is distributed frozen and cleaned. Our goal was not to distribute the product solely on the Croatian market since consumption in Croatia is only a tenth of our planned capacities which total 2,000 tonnes. The company should reach its full capacity in 2013. In addition to the European market, the Russian and Japanese markets are the most interesting ones, where distribution is almost limitless”, points out Duško Pilja, Director of Jadran riba.
Development is better in the sea Jadran riba opted for sea farming since trout grow and develop much faster in the sea. Freshwater farming is conducted until the fish reach a weight of 300-400 grams, or two to six kilograms in the sea. Our goal is to obtain a large Californian trout weighing over three kilograms from fish in the smolt phase. Sea farming is conducted in the Velebit channel, part of the Adriatic without any industry or significant tourist activity during the summer, points out Duško Pilja. The company is unique in terms of trout production, and not only in the Mediterranean. Actually, trout are bred in the sea only in Chile and Norway and to a lesser extent in other Scandinavian countries. “Regarding sea farming, I can only say that everything is working out extremely well, and we have no problems in overcoming aggravating circumstances arising from their adjustment to salt water. Croatia has the possibility to significantly increase production, especially in
the three biggest trout farms, in the springs of the rivers of Una, Ruda and Gacka. The capacity of these three fish farms should secure us with a sufficient quantity of offspring. It will still be necessary to import eggs, since parents bred in the sea are required for easier adjustment. Everything else is possible to produce in Croatia”, explains Pilja. Bred trout are sold on the fish exchange. Jadran riba currently employs 10 workers, six of whom have a university degree.
A SINGLE ADMINISTRATIVE DOCUMENT FOR EU BY SUMMER 2012
Freight forwarding agents the most severely affected by EU accession Croatian forwarding agents will lose jobs on western and northern Croatian borders commencing summer 2012 Croatian freight forwarding agents are aware that they might be the most severely affected by Croatian EU accession, as joining the Customs Union will mean losing jobs on western and northern Croatian borders. Nevertheless, many of them are not aware of the fact that the turning point will not be 1st July 2013, but at least one year earlier, on 1st July 2012, as it is at that date when Croatia will sign the European Convention on a
common transit procedure which introduces a single administrative document for the transit of goods throughout EU member countries and EFTA members (Liechtenstein, Norway, Iceland
and Switzerland). At an international conference on intermodal transport, held in the Croatian Chamber of Economy, Bosiljko Zlopaša, Customs Board Vice President pointed out that forwarding agents will face serious hurdles, as border crossings will become customs branch offices. The Croatian Customs Board, if well organised and more competitive, has the opportunity to provide services for foreign entrepreneurs, since EU goods may
be cleared through customs in any EU member country. Consequently, for example, Hungarian goods could be cleared through customs in Rijeka Port, whilst 25% of EU customs duty would be retained by Croatia as a member country. In addition, Croatian banks must prepare for the changes in the transit of goods, as their guarantees will be acknowledged throughout the EU and possibly also in EFTA countries. (D.Ž.)
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(370,000 companies (15% in 145 countries using Oracle products
increase in turnover in Croatia
Interview: Marin Tadić, Oracle Croatia Director
Croatian economy is not sufficiently internet-oriented We primarily focus on successful large private companies particularly those aiming to optimise expenditure and increase profitability through new modern solutions Boris Odorčić he Californian company, Oracle, has been operating and developing business software and hardware for over 30 years. It is considered as one of the foundation stones in the development and creation of Silicon Valley. Currently, its products are being used by over 370,000 companies in 145 countries globally. It opened its Croatian Office in 1994. Marin Tadić has been managing Oracle Croatia for 10 years. According to him, the company which is famous for its database products, has succeeded in becoming a company with the most comprehensive business solutions for all industries, having a strong team of experts committed to their job.
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How successful is Oracle Croatia in your opinion? I would say satisfactory, irrespective of the difficult period we are currently witnessing. We saw a decrease in turnover two years ago. Nevertheless, our restructuring in January 2009 provided the basis for the current satisfactory business activity. Consequently, we saw a 15% turnover increase
in 2010. We primarily focus on successful large private companies, particularly those aiming to optimise expenditure and, using new modern solutions, in order to increase profitability and effectiveness, retain current and attract new users. Some of the business moves we made two years ago implied a slight risk. We reduced our inputs to the public administration, focusing on large private companies which we believed would invest in top software solutions during difficult economic times. The improvement in our business activity is certainly due to restructuring as well as to our repositioning on the market. What is Croatian market like? Does it follow global trends? Generally speaking, the Croatian software market is weak, particularly in the public sector, with the exception of market leading companies in the private sector, aware of advanced software solutions as an imperative for competitiveness internationally. Is ICT expert training satisfactory in Croatia? According to various analyses over the last two years, IT train-
ing in Croatia is extremely uneven. Unfortunately, the recommendations following the analyses have not been observed and the necessary co-ordination not implemented. On the other hand, the training provided by IT companies is on par with ICT training in EU countries. What are your views on Oracle Croatia employees? I am extremely pleased with the Oracle Croatia team. There have been some 50 carefully selected experts during the last ten years. Their quality has been identified in the region and it is our main competitive advantage in the Croatian market. What can Croatian companies offer to the ICT industry? I am afraid I have to disappoint you by saying that Croatian competitiveness is very weak and relies on industrial niches such as retail and distribution solutions and in insurance companies, investment funds and similar. The level of
We would like to create an incubator of Oracle competencies How much has Oracle invested in Croatia thus far and is it considering investment in other branches of the economy other than ICT? It is not easy to assess the investment thus far, yet it appears considerable. We are paying particular attention to investment in selected IT companies we wish to assist in strengthening their competitiveness regionally. My personal desire and wish is to be able to see five large local IT companies successfully operating in the region and becoming incubators of Oracle competencies in the future. At a corporate level, Oracle and its Croatian office will proceed in implementing the current strategy of aiming to be the leader in the enterprise segment, in both software and hardware domains.
Croatian competitiveness is unfortunately adversely affected by the current situation. To what extent is the Croatian economy internet-oriented? The internet presence of a company in the market has been identified as vital, yet I believe the Croatian economy is not sufficiently internet-oriented. The quality of internet presence will undoubtedly see continuous growth. However this growth should be strongly encouraged through additional training and computerisation of the general public, companies and a range of public services. Consequently, we are returning to the issue of the public sector, the government and its role in strategy planning and implementation. The market currently appears neglected.
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Privredni vjesnik Year IV No 0170
AMALGAM, ZAGREB
NAŠE SELO, JAGODNJAK
Entertainment in the real world Providing a comprehensive service to the gaming market, from design and development to professional translation of social games
Co-operative harmony The agricultural co-operative Naše selo has some hundred members involved in wheat, maize, sunflower, soybeans and barley production and pig breeding malgam is a company specialising in social game design. It currently has 3 employees and began its operations over a year ago. Filip Fučić, Director of Amalgam, pointed out that in addition to providing printing and manufacture of games, the company provides comprehensive services to the gaming market, ranging from design and development to professional translation of social games for importers. “Games are currently designed for many pur-
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Card game “Uskoci” a new regional edition poses, ranging from educa- t i o n to marketing. We are able to cover any given task or topic. Our services are used by trend-setting companies aware of the fact that games such as Monopoly and Risk are currently not at the top in the global gaming industry. Our products, as well as those produced by our clients, are played by today’s families, focusing on entertainment in the real world in addition to virtual games and gaming enthusiasts, irrespective of age or gender”, he noted. The company’s first game “Uskoci”, financed through its own funding, was released at Christmas 2010. “Uskoci is a card game of Croatian pirates.
It achieved considerable success and a new version is being released due to the high demand”. Essen fair According to Fučić, the gaming sector is at the inception phase, with customers being reluctant to abandon outdated concepts and embrace innovative products. Fortunately, when they eventually do, they become enthusiasts of social games as hobbies for the whole family. Their competitive advantage is market economy expertise in addition to technology and design know-how, thus avoiding unnecessary misunderstandings, time wasting thus preventing additional expenses. Fučić stated that that 2011 and the near future will be of crucial importance for Amalgam brand development. “Uskoci will see its new regional release in co-operation with our partners and there will be an additional release of at least one more game before Christmas. Sporadic exports to the US and Germany have tested our products in much more demanding and developed markets. Subsequently, Amalgam will present its products to the world at the Spiel fair in Essen in mid-October. In addition to our products, there will be between five and ten projects we have been working on with or for business partners in Croatia and abroad”, concluded Fučić. (B.O.)
he first farmers’ co-operative, as it was named at the time, was founded in 1904. The agricultural co-operative Naše selo was founded in 1984 from that long tradition and currently has some 100 members and 40 full time staff. It covers an area of 110 hectares of its own land and 200 hectares of leased land and is involved in wheat, maize, sunflower, soybeans and barley production. The co-operative has five retail stores and five agricultural pharmacies in Baranja. In addition they sell livestock feed, of which their annual production stands at between 4,000 and 5,000 tonnes. They use a large proportion for pig fattening. According to Anđelko Balaban, Director of the Co-operative, it
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The construction of a production facility for smoke-dried meat production with particular focus on traditional Baranja Jagodnjak kulen is of crucial importance. Kulen production assistance The value of this project is €2.2 million. Production and processing amounts to 170 tonnes of smoke-dried meat annually. “We have done all the preparatory work for the implementation of the project and have obtained building permits. Nevertheless, in spite of our annual revenue being between €6.8 million and €9.5 million over recent years, we are not able to finalise the investment independently”, explained Balaban.
Production capacity based on processing with an annual production of 170 tonnes of smokedried meat currently farms a record 6,000 fattened pigs. It sells the pigs to many Croatian meat processing industries and its end product is the local smoke-dried meat – kulen (a type of flavoured sausage made from minced pork that is traditionally produced in Croatian Slavonia and Serbia), sausages, bacon, čvarci (pork rinds) and similar final products carrying a high profit.
As a result, the co-operative has expressed interest in co-operating with companies who could assist with current production, particularly those interested in forming a partnership in kulen production. Such co-operation would provide significant assistance to the co-operative in facing the fierce external competition following EU accession. (S.S.)
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CROATIAN FOREIGN CURRENCY MARKET Currency
Kuna exchange mid-rate
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
7.50
5,551319 5,327383 7,035154 6,040284 8,545617 5,418522 7,474851 WEEK OCTOBER 15, 2011
USD
5.53
CHF
6.07
7.49
5.50
6.06
7.48
5.47
6.05
7.47
5.44
6.04
7.46
5.41
6.03
7.45 10.10. 11.10. 12.10. 13.10. 14.10.
4.38 10.10. 11.10. 12.10. 13.10. 14.10.
6.02 10.10. 11.10. 12.10. 13.10. 14.10.
ADDITIONAL MEASURES TO SIMPLIFY FUNDING
::: news
Decreased interest rates and extended deadlines of grace period and credit repayment
Imex bank profit According to financial reports as at 30th September, Imex bank recorded a profit of €3.18 million, which is a remarkable 78% up over the same period last year. Total assets saw a 28% increase and stood at €0.26 billion. Personal savings were 74% of total deposits, a 32% increase and stood at €0.15 billion. Total loan volume stood at slightly below €0.19 billion, with personal loans and loans to small businesses at €0.16 billion, jumping 42.7%. Total revenue recorded a 19.3% upswing at €16 million.
Lending conditions are more favourable for SME’s, tourism, environmental protection, agriculture, new entrepreneurs and innovators Jasminka Filipas ven though during the first nine months of this year almost €0.14 billion more funding for investment was approved in relation to 2010, meaning investors have become braver, especially in the metal processing, food and wood processing industries as well as tourism (57% of investment funds approved to these activities), the Croatian Bank for Reconstruction and Development
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During the first nine months of this year almost €0.15 billion more funding for investment was approved over 2010 presented last week additional measures which will simplify lending. According to Board President of CBRD, Anton Kovačev, the goal is to help entrepreneurs to once again maintain competitiveness and overcome difficulties in the economic crisis by simplifying conditions of individual lending programmes, extending the deadline of grace period and repayment and decreasing interest rates.
Medika shares acquisition Medika reported the acquisition of 825 of their own shares, 2.73% of the share capital. Now, the company trading in medicines and medical equipment owns 1,584 of their own shares, 5.25% of share capital. According to data published on the Zagrebačka bank website, the shares were acquired at €988 each. Decrease in issuer share capital For most of the programmes (Environmental Protection, Economy, Tourism) the grace period has been extended from two to four years, and a two year longer repayment deadline was also offered. In terms of annual interest rates, they will be decreased slightly within the entire CBRD programme range. However, the interest rate will be 2% for those programmes which the bank especially wishes to boost, for example, part of the Innovation Programme. Organisation of 19 development banks CBRD now offers the possibility to contract finance in kuna according to individual programmes (Restructuring, Islands, Agriculture and Balanced
Development, Start-ups and Innovation). Representing the International Development Finance Club (IDFC), established by 19 world development banks, including CBRD, Kovačev pointed out that the goal of the IDFC is to significantly contribute to motivation and the exploitation of potential in the areas of energy efficiency and alleviation of climate change in the countries in which its members are active. IDFC can contribute to the use of GCF (UN’s Green Climate fund worth several billions of euro) under the condition it has a joint strategy and quality projects. Moreover, during the first nine months CBRD approved over 1,200 individual loans, totalling around €0.7 billion.
According to the Croatian Financial Services Supervisory Agency (HANFA) Annual Report on corporate governance, the share capital of 216 issuers of securities listed on Zagreb Stock Exchange at the end of 2010 stood at €8.92 billion, a decrease of 4.9% over 2009. 233 shares were listed with182 active on the Zagreb stock Exchange at the end of 2010.
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Privredni vjesnik Year IV No 0170
Croatian hotel room
Identity through design The project Six views of a room by design studies students and companies belonging to the Croatian interior design cluster Sanja Plješa ourism and catering services in Croatian resorts primarily rely on natural beauty, yet “a room with a view” is imperative for the full comfort of tourists. Many are currently in search of new quality and identifiable services, whilst tourism has become experience-oriented. Consequently, hotel rooms must be furnished with natural materials and their interior design in harmony with their environment. Design studies students from the Zagreb Faculty of Architecture have recently begun co-operation with the Croatian interior design cluster, which currently has 10 leading Croatian companies from different areas of furniture production and interior furnishing. The co-operation project Identity through design – Croatian hotel room or ‘Six views of a room’ will attempt to provide several answers to the question of what attracts tourists visiting Croatia and to define a Croatian identity.
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The cultural and natural environment of Gorski kotar and Lika as inspiration for eco furniture Subsequently, the objective will also be furniture production for Croatian hotels. “The answers must certainly be in accordance with contemporary needs, whilst
Goods and services price increase The prices of goods and services in September, measured by the Consumer Price Index, were 0.4% up in relation to August and 2.2% up over the same period last year, according to Croatian Bureau of Statistics data. Prices of clothing and footwear showed a 9.3% increase, the highest in the review of main consumption segments by purpose of consumption, followed by education prices, recording an average increase of 1%.
Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
hotel room design, placing particular emphasis on richness and regional features of Croatian construction heritage and visual arts. “The main objective of the project Six views of a room is to create quality Croatian eco furniture and promote the development of a Croatian product range, as well as to explore new avenues, since Croatia has been identified also as a country of eco tourism”, stated Tatjana Kos.
ARCA 2011
::: news
IMPRESSUM:
solutions need to be sought through originality, locality and tradition”, pointed out Tatjana Kos, Head of the Project for the Croatian interior design cluster. She added that the economic and cultural aspects of the project need to be implemented in the near future. Partners in the project have developed six categories of hotel rooms, fully furnished with local producer furniture products in order to create a new Croatian
Landmark tanker in Omišalj Janaf Omišalj terminal received its 2,000th crude oil tanker ‘Sea Queen’. The first oil tanker was received in Omišalj on 25th October 1979. 161.5 million tonnes of crude oil have been loaded and unloaded during 32 years of terminal operation. Omišalj terminal and port, located in the northern part of the island of Krk, is ideal for crude oil receipt and discharge. Two tanker berths with 30 metres of sea depth can accommodate the largest tankers, without limitation, loading and unloading oil 24 hours a day.
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
Innovators as permanent generators of change 128 local and foreign exhibitors presented over 250 innovations Intellectual property portfolio is one of the crucial growth and development levers of companies in the current economy, stated Stjepan Car, the President of the Croatian Association of Innovators at the 9th International Innovation Exhibition Arca 2011 recently held in Zagreb. 128 local and foreign exhibitors participated in this important event in innovative creation with over 250 innovations. According to Car, innovators are generators of permanent change. In addition, according to several estimates, the share of intellectual property in the largest global companies exceeds 75% of company market value. Croatian innovators have received strong government support, as the Ministry of Economy, Labour and Entrepreneurship (MINGORP) has awarded 800 innovation incentives worth over €3.75 million through their Competitiveness through innovation programme between 2008 and 2011, pointed out Tihana Kraljić, the State Secretary at the Ministry of Economy, Labour and Entrepreneurship. In addition, the 9thArca featured the second Competitiveness through innovation conference, presenting 25 papers. (S.P.)