Marinko Došen, CEO Mirna, Rovinj fish factory Last year was the turning point of Mirna, according to the Board President
Mario Sever, Owner, Eko Sever The family began growing organic food products as a hobby which grew into a business ten years ago
Inflation to remain low through 2012 PBZ projection of average inflation is 2.3% over 2011
INTERVIEW PAGES 2-3
AGRICULTURE PAGE 5
INFLATION PAGE 7 2008 2009 2010 2011
Croatian Business & Finance Weekly Established in 1953 Monday / 30th January / 2012 Year V / No 0184 www.privredni.hr
S U P P O R T E D
CROATIA: READY, WILLING AND ABLE Within the context of a market of 500 million people, the accession of Croatia (4.5 million) might be construed as of minor importance. Perhaps, but to us in Croatia, it is the culmination of six long hard years of work and the recently held referendum is confirmation that the country is ready, willing and able to take its rightful place inside the European “tent”. But the job has not yet been completed; in fact it could be said that the real hard economic work has just begun. We in Privredni vjesnik consider that, as the leading business and economic weekly and the voice of the Croatian economy, we are extremely well placed to continue and a indeed deepen our d mission objectives. ob I would reitw erate era one of my previous remarks in rem that our aim is to bring to you as wide a range range of news, views, analyses and information as we possibly can so that your dealings with our country will be mutually fruitful. Challenges are an important part of everyday life; we will rise to the challenges that are before us and deliver the quality that you need. We are Europe. Darko Buković Editor-in-Chief
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pvinternational pv international C R O A T I A N
C H A M B E R
O F
E C O N O M Y
MINISTRY OF ENTREPRENEURSHIP AND CRAFTS
WE ARE PLANNING TO OPEN 7,000 NEW COMPANIES AND 13,000 MICROCOMPANIES
Ministry will focus on the implementation of zero tax on reinvested profit Krešimir Sočković he Ministry of Entrepreneurship and Crafts is planning to create 5,000 new jobs and open 7,000 companies and 13,000 micro-companies by the end of 2013, as announced by the Minister Gordan Maras during his presentation of the organisation and plans for his new Ministry. The Ministry will focus on the implementation of zero tax on reinvested profit for entrepreneurs, the abolition of mandatory contributions during the first two years for every new job or every new employee, as well as raise the VAT threshold to €30,700. “Our goal is to create a more positive entrepreneurial climate. Investors submitting investment proposals to the value of €2.7 million will be allocated a personal manager who will manage the investment until completion,
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consequently facilitating the investment process and shortening it from two years to a mere six months”, stated Maras. The Ministry is planning to allocate around €40 million in subsidies for small and medium sized entrepreneurs representing about 1,000 companies and micro-companies during 2012. In addition, it is planning to finance entrepreneurial infrastructure or entrepreneurial zones with the potential to attract some 50 investment projects worth €66.7 million. The Ministry has
also announced it will provide training for around 3,000 entrepreneurs, as well as construct a regional centre for entrepreneurial development by 2015 at the latest. The investment will be entirely financed through EU funds, whilst the facility worth €30 million will most probably be constructed within the University Campus at Borongaj. There are ambitions to upgrade the centre into a European centre for the development of entrepreneurial competencies and competitiveness.
New credit line for entrepreneurs The Ministry is to launch a new credit line for entrepreneurs through HBOR commencing next month. One of the measures will be presented at the beginning of February when HBOR will be signing a contract with the European Investment Bank for a credit line of €250 million, mainly to be directed towards small and medium sized entrepreneurs. It is also planning to accelerate the issuing of guarantees through the Croatian Agency for Small Entrepreneurship.
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Privredni vjesnik Year V No 0184
Krešimir Jung, owner and director, Jung Sky
The Sky’s the limit Private and business aviation is more accessible to frequent flyers any business people face problems when they need to travel to meetings, especially when they are held in Milan, Strasbourg or any other European city for the reason that most mass-transport airlines do not offer direct flights to the desired destination. Several years ago Lufthansa, one of the largest airline companies, conducted a survey which revealed that 50% of their customers return to this type of service. The trend towards travel through private aircraft has been increasing over time. Americans and Europeans, Japanese and Chinese even more, use private and business flights. This is confirmed by the fact that the highest number of private airlines, with similar or larger aircraft, is situated in these countries. Furthermore, there are companies (such as ours) with one or more aircraft that are expanding their fleet through dryleasing or concession. A great advantage of smaller jet planes is the ability for short take-off and landing at smaller airports closer to the destination of passengers. What makes the offer of Jung Sky special is that customers can select for themselves when and
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The trend of travelling in private aircraft is increasing where they want to fly, without crowds and waiting, in the comfort of an aircraft suited to the demands of the professional world. Jung Sky’s customers arrive at the airport only ten minutes beIMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
( 50% sales growth achieved in 2011 over 2010
INTERVIEW: MARINKO DOŠEN, CEO MIRNA
Exporters are
Last year was the turning point of Mirna, according ensured and finally, over 50% in sales growth achie Jozo Vrdoljak irna, the factory for fishing, canning, deepfreezing and preparing ready-made food from sea fish, increased sales by 50% in 2011 over 2010. Privredni vjesnik discussed with CEO Marinko Došen their plans, what they need to change in the fishing industry and how they could increase exports to demanding markets.
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fore flight time. They take their luggage with them which makes travelling easier and prevents baggage loss. Our company was founded on the basis of many years experience in aviation, know-how and the expertise of our employees and partners who made it possible for us to rapidly become a reputable company as well as setting the highest possible quality standards.
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
Regardless of the crisis and recession, it appears that 2011 was a successful year for you. How was business? Last year was the turning point of Mirna in relation to 2010. Relations with key suppliers were stabilised, production continuity was ensured and over 50% in sales growth was accomplished. We employed over 40 new workers in production and achieved over 80% of sales as exports. The present production capacity of Mirna is 45 million cans, 500 tonnes of frozen fish, 350 tonnes of fish flower and 80 tonnes of fish oil, which also represents an important share in Croatian as well as European production. Over the business year we increased sales and production by 50% so this cannot be regarded as a crisis year, even though the crisis seriously hit both local and European economies. What are your business plans? Our business plans are related to the further development of market share and business income on existing markets as well as new ones. We believe the quality of our products and the value of the trade mark Mirna has its place in the EU market. Furthermore,
we plan to expand our production line and increase the share in total sales of delicatessen products (fish salads and pâtés) We base our future plans on those we can realistically achieve, where exports present a vital role. Our capacity exceeds possibilities in the local market, which is why we rely on export markets for our future development. This year we plan to increase business income by 12% to 15%, enter the EU market and expand the line of our canned fish products. How can entrepreneurs be helped to export more? The problems of all producers, especially exporters, are well known. We expect concrete
We are seeing continuous demand increase on all traditional markets measures regarding the furtherance of employment in production, support to exporters through quality credit lines for capital in-
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( 80% of sales through exports last year
( 45 million cans
current production capacity of Mirna
A, ROVINJ FISH FACTORY
e still waiting for a boost
to the Board President: relations with key suppliers were stabilised, production continuity was eved with exports accounting for over 80% of sales
Sardine is not branded effectively Is there a possibility of a joint approach by Croatian companies on other markets? Regarding the fish processing industry, there is definite potential for a joint approach, especially in markets where Croatian producers are vestment and a balancing of the Kuna/Euro on a more realistic and higher level, which will be the biggest development generator for production and export oriented companies. Furthermore, one of the most important factors of the existing situation is the neglected personal production and the strong Kuna which “helps” importers and traders. The correction of currency and direct support to local producers in terms of import barriers and protection are the only aspects that can motivate production, employment and export. With what do you plan to open new markets? On what do you base your claims of high quality of your products? Today, Mirna has five basic product groups. These products are based on the Adriatic sardine, mackerel and tuna and we also offer a line of fish salads and pâtés. Our goal for now is to ex-
not present in depth. The quality of the Adriatic sardine is not branded effectively. For example, campaigns at fish fairs and fairs through economic diplomacy could definitely increase the share of Croatian products in markets of large conpand into new markets with our present product range. It is no accident that Mirna was built at Rovinj on the coast. It is known that the predominant quantity of small oily fish in the Adriatic is found along the west coast of Istria. This fact is the base of Mirna’s excellence and certified quality. The pace of technological processing, from the moment of catching to the beginning of production, is one of the key factors for preserving all nutritious elements. This is confirmed by the certificates for the quality of the production processes in compliance with the highest criteria in the food industry. This is also confirmed by the many awards our products received at competitions and fairs. The most important prerequisite for our survival in such a demanding market is the preservation of high, existing standards as well as the introduction of new ones. Continuous
sumers, such as Spain and France. Changing eating habits in the direction of increasing the share of healthy food, which the Adriatic fish certainly is, would give a good perspective for the fish processing industry in Croatia as well as for Mirna. marketing and promotional activities through our network of distributors in both local and foreign markets are the basic direction of our sales activities. Our campaigns and promotions are planned in accordance with special eating habits of individual markets. How can Mirna clear its current debts? Financial restructuring is the precondition of achieving our five-year business plan. We will need to sell assets excluded from the main activity and partially repay our old debts as well as re-programme the remainder. We will need to establish mutually acceptable debt re-structuring in addition to partial debt repayment with the tax administration and other creditors, on which Mirna is currently working. This problem would be solved even faster in co-operation with owners and strategic partners.
How can fish consumption per capita be increased? Unfortunately, very low fish consumption compared with other European countries is primarily a consequence of poor eating habits in Croatia. Education and promotional campaigns, such as our recent excellent campaign Eat what’s worth eating with the Croatian Chamber of Economy, are the only long-term solution for increasing fish consumption. Fish needs to be constantly promoted as tasty, healthy and affordable food. This mainly concerns oily fish which is not overly expensive. What is the situation on the market regarding the demand for fish preparations? What is the situation in Croatia and other markets? We are showing constant growth in demand on the traditional markets of Mirna. In addition to the local markets, they also include the countries of ex-Yugoslavia. Furthermore, we are preparing to enter new markets, primarily
The present production capacity of Mirna of 45 million cans, 500 tonnes of frozen fish, 350 tonnes of fish flower and 80 tonnes of fish oil is an important share of total European production the EU. In 2011, we generated 35% higher growth in the local market in relation to 2010. Our plans for 2012 include increasing our share in both local and export markets.
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Privredni vjesnik Year V No 0184
LARICS PROJECT
Drones in Croatian Several project plans for drones are currently being developed in Croatia with participation from The Faculty Electrical Engineering and Computing-based Robotics and Intelligent Systems Laboratory Drago Živković he development of drones is one of the most challenging aspects of robotics since the use of such aircraft has been increasing in a number of different situations. Drones are mainly used in military purposes, yet are also used in crisis management situations, in natural disaster monitoring, in rescue missions under extreme weather conditions and generally in missions involving an element of danger. Several project plans for drones are currently being developed in Croatia, with Hipersfera, an aircraft for territorial monitoring purposes, being the most well-known. Irrespective of their shape - be it egg shaped or elongated, with or without wings – all types need the most precise navigation technology. The Faculty of Electrical Engineering and Computing-based Robotics and Intelligent Navigation Systems Laboratory (LAR-
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ICS) at the Institute for Automation and Computing is currently participating in an international project for the development of drone navigation methods and technology called EC-SAFEMOBIL, worth €9.2 million, where €4.5 million was received from the 7th framework programme for research and development, a special European Union programme.
Project implementation envisages drones landing on mobile platforms, such as ships The project officially began at the end of July in 2011 and its implementation is estimated to last four years. The goal of the project is the development of accurate estimation of movement, as well as of navigation methods and technologies in order to achieve a satisfactory level of reliability and safety
which would enable the use of autonomous mobile systems for a wide range of purposes. A space agency According to Zdenko Kovačić, Project Manager of LARICS, scientists working on the ECSAFEMOBIL project will develop the first demonstration systems of this kind in the world, for several different purposes, including the landing of drones on mobile platforms (such as ships) in extreme and challenging conditions, launching of drones from piloted aircraft, aerial monitoring of large areas and the automation of warehouse facility areas with a large number of autonomous vehicles. In addition to LARICS and EC-SAFEMOBIL, the consortium contains the most important organisations and companies within the European sector of research institutes and the main players in this area of industry. The project co-ordinator is the
Spanish space agency FADACATEC and the consortium team comprises the companies DLR, Astrium, Indra, SELEX GALILEO and Euroimpianti, as well as universities from Seville, Duisburg-Essen and Zagreb. LARICS is in charge of the entirely decentralised movement estimate and simultaneous localisation and mapping with sensors, dynamic routing and autonomous management of warehouse facility areas. LARICS has participated in many research projects thus far, in long-term co-operation with the Italian company EUROIM in developing advanced robots for pallet movement, autonomous trucks using dynamic routing and tested and installed numerous industrial facility plants throughout Europe. LARICS has also developed a visual localisation system using markers for mobile robot platforms intended for office cleaning and video surveillance.
622,343 PASSENGERS AND 86,420 VEHICLES IN ONE YEAR
New traffic record across the Adriatic Ships sailing between Croatian and Italian ports achieved a record number of passengers, vehicles and transport in 2011, exceeding the results from 2010 by 9.5% for the number of passengers and 5.3% for the number vehicles. Last year, a total of 622,343 passengers and 86,420 vehicles were transported across the Adriatic. The highest turnover was achieved by the national company Jadrolinija, on the Split-Ancona route, ZadarAncona and Dubrovnik-Bari as well as by a Panamanian company Blue Line International on
the route Split-Ancona. Jadrolinija transported a total of 275,238
turnover growth (50% of passengers and 34.4% vehicles) on the
One of the leading shipping companies with seasonal lines between the Italian and Croatian ports is still the Italian SNAV passengers and 49,494 vehicles, or 22.8% more passengers and 12.7% more vehicles than in 2010. Jadrolinija recorded the highest
route Dubrovnik-Bari. Blue Line also registered turnover growth, 9.6% for passengers (184,957) and 6.4% for vehicles (27,450).
The Italian company SNAV remains the leading shipping company for seasonal transport between the Italian and Croatian ports, with 58,196 transported passengers and 9,476 vehicles. However, the number of passengers is 15% lower in relation to 2010, whilst the number of vehicles is 16.2% down. Venezia Lines transported 44,413 passengers (14.1% growth) through Istria and Kvarner, whilst Emilia Romagna Lines transported 40,197 passengers or 16.1% more compared with 2010. (J.V.)
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MARIO SEVER, OWNER, EKO SEVER
::: news
We need to define our position in Europe
Mini dairy - best idea The idea of a mini dairy that would purchase milk from small family owned farms, in which bigger buyers are not interested, was the best social-entrepreneurial idea in 2011 according to the Social Entrepreneurship Forum, the Ministry of Labour and Pension System, the Government Office for Associations and the British Council. Dragutin Vincek, director of Domaće mlijeko, who submitted the idea, points out that the social community would benefit from this through the possibility of purchasing local products.
The family began growing organic food products as a hobby which grew into a business ten years ago and now is considered important in the local market with the future aim of moving into markets in Austria and Switzerland Krešimir Sočković hat started as a hobby has developed into a full business covering 100 hectares, for the production of organic food products and sold through specialised outlets. The aim is to move into certain European markets in the foreseeable future even though working hours are long.
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Multiple recognition for Agrokor According to Qudal Quality Survey, QUDAL - QUality meDAL, conducted by GfK - Centre for Market Research, Agrokor took the top 18 places in various categories, which no other company or brand in Croatia has ever achieved. For example, Konzum won the QUDAL Certificate for top quality supermarket chain as well as market chain with discount prices. Jamnica and Jana won in the category of top water quality and Ledo won in the category of ice-cream and frozen pastry, food and pizza.
What is the level of interest in organic food products in Croatia? Interest is rapidly growing for our products and word of mouth advertising is an imperative in generating new buyers. Has demand been adversely affected by the crisis, since prices are slightly higher than other food products? The crisis has impacted on our sales. Nevertheless, we have expanded production and product range and consequently increased sales turnover which in part has
Competition for organic food products is minimal mitigated the adverse impact of the crisis. Our vegetable production currently covers an area of 10 to 12 hectares. We grow products under plastic greenhouses throughout the year, producing cereals and grain products, flour, fruit and in addition raise goats, pigs and poultry. What is the level of competition locally? Unfortunately, there is minimal competition. We are co-operating and promoting joint market appearance. Our export negotiations are drawing to a close, due to our competitive product qual-
ity and prices. We are thoroughly prepared for the European Union single market. There has been minimal state institutional support and some legal solutions had a negative impact on producers. Has the situation changed? There have been contentious issues, yet they are not as serious as they were 12 years ago. The upcoming EU accession resulted in considerable legal adjustments. Unfortunately, these have not been completed. Nevertheless, there are positive moves particularly at a local level. Organic production is particularly promoted and subsidised in cities and municipalities. What prompted you to move into organic food production? My wife and I began in 1994. Subsequently we decided to transform our hobby into a busi-
ness. Our products are now present in two markets, we provide an internet delivery service for organic food products and we have recently opened our first store with long working hours. You are currently planning to export. Which markets are you looking at? We are planning to penetrate Austria and in Switzerland in the near future. We have submitted samples and met the criteria of the distributors and buyers and are defining the quantities for the current season. I believe we are about to complete our negotiations which have been continuing for the last four years and that we are going to be a name in foreign markets. Croatian producers need to be aware that no one will wait for them. Unless we penetrate markets on our own initiative, we are going to lag behind Europe.
Hoteliers on VAT rate The Association of Employers in Croatian Hospitality is satisfied with the government decision regarding a reduced VAT rate for tourism and hospitality. The Association believes an additional warranty is necessary to ensure
the lowered rate would start to be applied from the beginning of next year, that is, that the government guidelines becomes part of the legal amendments now, so that the industry could proceed with its long-term planning. A reduced VAT rate for tourism is the main prerequisite for achieving considerably higher tourism income in the forthcoming period and starting an investment cycle which is of vital importance for the development of the entire economy.
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WE PRESENT
OMNES ARTES, ZAGREB
Privredni vjesnik Year V No 0184
AS2CON-ALVEUS, RIJEKA
Safer navigation and Ultra Slow Ships
A rich window display for gifts A chance to enhance the awareness of the value of unique works of art he company Omnes Artes was founded in April in 2010 by Ljiljana Žunić and Suzana Antonić, in order to join their creative forces. Prompted by the usual problems encountered by producers, particularly those with an artistic inclination who are expected to be both skilled traders and deeply aware of legal and tax
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The portal OmnisArt presents art works from some 500 artists frameworks, they decided to manage their business by themselves and create conditions for artists to be able to express themselves. “This is why we called our company Omnes Artes, Latin for copious arts. We wanted to group different types of artists and assist them in the further development of their products”, stated Suzana Antonić. Subsequently, they launched the internet portal OmnisArt to host a creative community. “Prompted by the problems encountered by most artists, designers and creative people, we decided to group them and create a home for their work. We would like to enhance the awareness of the value of unique works of art by promoting all the products, as well as the artists themselves and the techniques they use”, she emphasised. She added that their
slogan is “Be who you really are, do what you really love”. Co-operation with associations Buyers on the portal are mainly people in search of a gift, or unique artwork enthusiasts. They also organise fairs and creative workshops in co-operation with various associations, particularly those whose field of activity is related to life quality improvement, personal and creative development, as well as associations for disabled people. Nearly 500 artists, designers, craftsmen or enthusiasts, working in a wide range of raw materials, sell their products through the portal OmnisArt. The portal also provides information on production materials and tools and consequently several portal users also sell such items for artistic production. In addition to these materials, the portal offers unique jewellery, fashion accessories, clothing, toys, traditional products, furniture, home décor accessories and other similar unique items. “We would like to emphasise the importance of choice and quality purchase as opposed to the mass-consumption imposed on us daily. The current way of working allows us to support local artists and creative enthusiasts and, in a popular manner, to positively impact on peoples lives”, concluded Suzana Antonić. (S.P.)
as2con-alveus employs mainly engineers and economists with Masters and PhD he Rijeka-based as2conalveus company is a family business of Nataša Golik Klanac and Alan Klanac and their business partner Soren Ehlers. Subsequently, they did some consulting work in shipbuilding and their business activity was from Ehlers’s office registered in Germany. Three years later the family Klanac founded the Croatian company Alveus and Nataša Klanac began in business management. The Dutch shipyard IHC and the Finnish shipyard Akeryards were amongst their first clients. Simultaneously, they initiated a totally different type of investment by planting an olive grove. Nataša and Alan returned to Croatia in 2008 and opened an office in Rijeka. In 2009 company revenue exceeded €0.13 million and they decided to participate in two projects under the 7th Framework Programme for Research (FP7) of the European Union, achieving success with the project CO-PATCH (project of repair of damaged areas of ship construction through the application of bonded composites).
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Development projects A year later they decided to participate in the Ulysses project, also within FP7 and in co-operation with the company BVB they developed the innovative CAFÉ software for ship design; they are also planning to partici-
pate in the construction project of the first Croatian trimaran VITAR23, in co-operation with their partners. They are also investing into the web portal www.nautica-portal.com, whilst simultaneously selling the first of their olive oil Oleum Alveus. Revenue currently stands at €0.4 million, currently employing some 30 staff, whilst the number of clients is increasing. as2conalveus is currently participating in or leading several development projects. Green and Arctic
Investment into a web portal as well as selling their first olive oil shipping is the name of the development project of ships with reduced harmful emissions and technology for navigating Arctic waters co-financed through two EU FP7 projects. Safewin (Safety of winter navigation in dynamic ice) is a research project in the safe navigation in frozen seas, whilst Ulysses is oriented towards development of ultra slow speed and complementary technologies through the design of the first ultra slow ships. The company is planning to create more than the current 30 jobs, currently employing mainly engineers and economists with Masters and PhD degrees. (D.Ž.)
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CROATIAN FOREIGN CURRENCY MARKET Currency
Kuna exchange mid-rate
7.59
6,14421 5,76262 7,485658 6,279594 9,053775 5,761306 7,580726
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
WEEK JANUARY 28, 2012
USD
5.84
24.1.
25.1.
26.1.
27.1
6.29
7.58
5.82
6.28
7.57
5.80
6.27
7.56
5.78
6.26
7.55
5.76
6.25
7.54 23.1.
CHF
6.24
4.74 23.1.
24.1.
25.1.
26.1.
27.1
23.1.
24.1.
25.1.
26.1.
27.1
PBZ ANALYSIS
PROPERTY PRICES
INFLATION TO REMAIN LOW THROUGH 2012
Property is burdened with five tax types
PBZ projection of average inflation is 2.3% over 2011 with risks for a higher level from administratively regulated prices ccording to data provided by the Central Bureau for Statistics, annual inflation stood at 2.1% in December, indicating that average annual inflation rate reached 2.3% during 2011. Inflation is primarily due to increased food prices. With an annual growth of 3.6%, food contributed to a rise of 1%, primarily a consequence of higher prices for bread, grain, milk, cheese and eggs. Food price increases were followed by an increase in the price of petrol (+13.3% on average year-on-year), a contribution of 0.7%. Trends in consumer prices are in line with last year’s dynamics of local production prices of industry and global prices for food and energy, according to PBZ analysts. Average growth in total industrial production prices stood at 6.3%
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(4.3% in 2010) locally. For food production it reached 7.7%, and 25.7% in coke and oil refining. More expensive grain On the other hand, even though the prices of produce and raw materials have been dropping on global markets since April, according to the HWWI price index (Hamburgisches WeltWirtschaftsInstitut), in 2011 food
Average food prices widely exceed those of the pre-crisis period prices were on average 29% higher compared with 2010; grain prices increased by 42%, oilseed by 23% and beverages and sugar by 26%. At the same
time, the price of crude oil was 32% higher and industrial raw materials up 14%. Food prices stabilised in the last quarter of 2011, when the HWWI food index was 20% lower compared with its peak in February 2011. However, average food prices widely exceeded the level of the pre-crisis period. In 2011, the FAO Food Price Index (FFPI) showed the highest level in nominal and real value since the measurements began in 1990. This explains the misbalance of supply in relation to strong demand from fast-growing economies. Although the forecast for food production looks better for this year, projections of GDP growth and demand are lower, food price volatility will increase due to precariousness in financial and capital markets. (D.Ž.)
Croatian property is burdened with five different taxes, pointed out Marina Kesner-Škreb from the Public Finance Institute. They are mainly local taxes which collect a relatively small amount of money. For example, counties, cities and municipalities collected only €120 million in 2010 or 6.9% of total local taxes, or 0.8% of all Croatian taxes. Notwithstanding, this level of tax is at the very bottom of all collected tax income in the EU27. It actually collects six times less income than, for example, value added tax or income tax. During the 1980’s the property ownership tax in Croatia was broadly used for residential buildings, office space
and holiday homes. This tax did not yield the desired results since the tax base was unrealistic, property records were incomplete and the work of administrations for social income of the present tax administration was flawed. Perhaps the experience of the last century will be useful today, concludes Marina Kesner-Škreb. (B.O.)
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Privredni vjesnik Year V No 0184
Opinions of potential tourists to Croatia
An entertaining and exciting but conservative country The development strategy for Croatian tourism is aimed at assisting the generation of higher tourism revenue currently standing at €7.28 billion Sanja Plješa he development strategy of Croatian tourism will provide answers regarding the definition of the types of tourism that Croatia is planning to develop, as well as which areas need to be targeted and how
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A survey has been conducted to find out public opinion on Croatia of those who have not visited the country thus far effectively we need to manage the available tourist areas and address other similar issues. The goal of the development strategy is the on-going improvement of the well being of the general public and the sustainable use of resources and tourism attractions, according to Siniša Horak, Project Leader at the Zagrebbased Institute for Tourism. The strategy will cover seven areas,
such as holiday tourism, business tourism, health, adventure or sports tourism, cultural, nautical and special interest tourism. A further goal of the development strategy is to attract the largest possible number of tourists to Croatia, as well as to boost overall tourist consumption. Currently this stands at €7.28 billion, and the plan is to generate €10 billion to €12 billion. Country image In order to create a detailed strategy, we have embarked upon various research projects, such as that on the image and perception of Croatia and on public sector and local public stance. “The research results indicate a direct correlation between the satisfactory image of a country and higher prices of tourism packages. Less than 2% of Germans spending their holidays abroad visit Croatia. We have conducted a survey in order to find out on the perception of Croatia amongst general public who have not visited Croatia thus far”, pointed out Horak. He emphasised that 20% of those questioned, mostly
young people and people with lower general educational levels, had no views on Croatia. Just 1% of the general public thought of Croatia as a Central European country. Most of the more elderly British and Danish questioned recalled the war when Croatia was mentioned. Competitive prices “Germans believe that Croatia is a country for a family summer holiday at the seaside, the Spaniards perceive Croatia as a country for cruising, whilst the British believe Croatia is a country for active holidays. Of those questioned amongst Germans, British, Polish, Swedes and Danes, Croatia is the most satisfactorily perceived by Polish people, as they believe Croatia is entertain-
ing, exciting, optimistic, yet conservative and slightly different from other countries”, stated Horak. He added the survey results revealed that Croatia is perceived by foreign visitors as an “affordable” country. This implies Croatia has competitive prices, irrespective of the fact that her prices are slightly higher than those in Turkey. Croatian continental tourism is also competitive, with Hungary being slightly more affordable. The image of Croatia as a tourist country is overall satisfactory. Nevertheless, we need to modify the perception of our country. “Croatia is part of the general image of Europe where the situation is rapidly changing. Consequently, trends need to be followed and adjustments made”, concluded Horak.
Meetings Star award for Croatian project The Centre for Business Tourism won the regional Meetings Star Award for 2011 for its project PoslovniTurizam.com - CroatiaMeetings.com. This award is given by the international specialised Kongres Magazine for outstanding achievements in conference tourism in SE Europe in the field of marketing destinations, conferences, events and meetings industry service providers.