Interview: Ante Mandić, Board President, IN2 Croatia has potential to be competitive in software development and maintenance
Significant results for small and family hotels Visitors prefer relaxed, optimistic and cheerful tourism workers
Clearer image of GDP for 2011 If the required structural reforms are implemented, 2013 could bring GDP growth, suggest RBA analysts
INTERVIEW PAGES 2-3
TOURISM PAGES 4-5
ECONOMY PAGE 7 2008 2009 2010 2011
Croatian Business & Finance Weekly Established in 1953 Monday / 9th April / 2012 Year V / No 0194 www.privredni.hr
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pvinternational pv international C R O A T I A N
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DEFICIT LAST YEAR WAS 5.5% LOWER THAN THAT PREVIOUSLY
Foreign Direct Investment in Croatia exceeded €1 billion in 2011 Although deficit decreased, its share of GDP deteriorated mildly due to economic stagnation; however, considerable growth positively influenced FDI ccording to data provided by the Croatian National Bank, a deficit of €446 million was seen on balance of payments for the whole of 2011. This is €26 million or 5.5% less than in 2010 although the deficit as a percentage of GDP deteriorated mildly due to economic stagnation, and totalled 1%. Preliminary data on imports and exports pointed to a deficit decrease with a positive influence on the current account. Nevertheless, the latest trade data revision for the past year
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As opposed to 2010, when it was falling, imports increased by 7.2% in 2011 significantly changed, recording a mild surplus on the current account. In actuality, this is one
of the most important items and has been the main factor in external imbalances for many years. Unrevised trade data showed the deficit in international trade at €872 million higher than in preliminary data. In 2011, this showed a deficit of €6.4 billion, 6.1% more compared with
Overall import growth
The growth in exports slowed considerably (from 18.1% to 8%), and its relatively low value failed to catch up with absolute import growth. Last year, exports reached pre-crisis levels, and with the existing structure and level of competition, there is little significant potential for future growth. On the other hand, imports remain solidly below pre-crisis levels. However the potential hazard of nominal value growth in imports threatens to increase energy and energy products prices.
2010. As opposed to 2010, when it was falling, imports increased by 7.2% in 2011, mainly due to the high level of Croatian energy dependency. Surplus on services As anticipated, the service industry achieved a surplus (7.1% higher than in 2010), contributed to mainly by income, totalling €6 billion, almost 6% up over 2010. Very good physical indicators for tourism pointed to income growth. Income showed a deficit of €1.6 billion or a 3.7% higher deficit than in 2010, which is the result of stronger growth in income outflow than inflow (higher foreign financing
expenditure). The already usual surplus on the current transfers totalled €1.1 billion, which is a mild 2.7% increase year-onyear, given that the decrease in expenditure exceeded the reduction in income (-5.7% in relation to -0.3%). FDI growth Capital and financial transactions covering FDI were significantly higher than in 2010. Last year they totalled slightly over €1 billion compared with €295 million in 2010. However, its content remains unknown and we need to wait a while longer for the entire picture of investment and type. (CNB, V.A.)
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Privredni vjesnik Year V No 0194
Marina Šunić, Director, Kamen Benkovac
Stone exploitation concession:
VIRTUALLY IMPOSSIBLE The vicious circle of obtaining documentation
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and our company focuses merely on stone. Unfortunately, the exploitation of mineral raw materials is often regarded as negative, as well as an abuse of natural resources, which is certainly a misconception. Potential users need to prepare a mining project covering all information and guidelines on exploitation, as well as reparation following the completion of work, prior to any research of the area or acquisition of the concession. Inspectors monitor the entire activity and compliance with the laws and regulations is imperative. Nevertheless, there has recently been a slight improvement, indicating a positive shift in the stance of state institutions towards potential users. Kamen Benkovac has been facing serious difficulties, as well as many other Croatian compaIMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
25 million and €30 m anticipated revenue in 2012
INTERVIEW: ANTE MANDIĆ, BOARD PRESIDENT, I
Soft in, ha
n accordance with the current Law on Mining, the process of acquiring a concession and the permit to use stone quarries appears to be virtually impossible. The process of collecting documents is protracted and some documents cannot be obtained due to incomplete record in certain offices. In addition, the acquisition of one document is often a prerequisite for getting another and it becomes a vicious circle. Croatia is rich in various mineral raw materials
We have been preparing for EU accession for years and have already obtained all necessary export certification
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Croatia has considerable potential to be competitive in softw its hardware production definitely cannot compete with Asia Boris Odorčić is one of the largest regional software companies currently employing 430 staff and operating in former Yugoslav countries, as well as Albania, Bulgaria and Romania. Ante Mandić, Board President, pointed out that IN2 has had satisfactory results through the recession: the company achieved revenue growth as well as a 15% growth in work force in 2011. In 2012, it is planning market expansion towards the Far East; company representatives have recently visited Azerbaijan where there is an opportunity for them to provide their expertise in software services to the Ministry of Maritime Affairs. They are visiting Kazakhstan in May, since according to Mandić, there are multiple opportunities in the countries where Croatia is regarded as a western country, not merely geographically. In addition, their objective is to become a centre for IT in-
IN2
nies. Nevertheless, we have managed to retain our rating both on Croatian and global markets, due to our committed staff, continuous forfeits and adaptation to the market. We are satisfactorily prepared to export, as our company has been preparing for EU accession for years and consequently we currently hold comprehensive attestation and certification for unrestrained product export. We believe the difficult economic situation will inevitably need to be overcome and committed work and sacrifices are the prerequisites for long-term market survival. Hence, we are opening a unique and exclusive stone centre in Dalmatia where will exhibit our complete product range. We would like to assist our current and potential clients and provide a wider choice of stone, stone elements, substances for stone protection and conservation and similar products. We expect the centre will also attract tourists who will have the possibility to speak with our staff in their own language, as our employees are fluent in many languages.
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
Croatia is overly expensive due to salary taxation of over 100% dustry growth in Croatia and will probably attempt to purchase several local and regional companies. This could lead to their employing 500 staff, and having generated revenue of between €25 million and €30 million in 2012. Could you provide detailed information on the Croatian software industry? The Croatian software industry is a part of the Croatian ICT indus-
try. There are several companies focusing exclusively on software, whilst companies selling or integrating hardware, or system integrators, are currently still dominant, although slightly less than in the recent past. Some 10% and 15% of companies focus exclusively on software and services related to software production and implementation. Hence, the situation is not satisfactory, as in addition to an insufficient number of companies dealing exclusively with software, they usually record pitiful employment figures. Nevertheless, the number of companies dealing
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illion
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( 15% growth
::: news Eurocable purchasing copper The Swiss company Glencore will deliver 13,000 tonnes of copper cathodes to the Eurocable Group, in accordance with a contract concluded between the two companies. The contract is worth $100 million. Eurocable is purchasing copper cathodes and processing them into copper wire, which it subsequently uses as a basic raw material in cable production.
achieved in 2011
N2
ard out
ware development and maintenance although an countries that have outpaced both Europe and US rently can be divided into two large areas. The first area is the software that is time-saving and optimises business processes and this is on what IN2 focuses. The new software ‘wave’ is time-consuming. It encompasses Facebook and various applications for mobile telephony. Croatia needs to focus on this area of software, due to its huge potential and if she is successful and creative, she will be able to expand into global markets.
exclusively with software has recently been growing, which is satisfactory, since software has considerably higher added value compared with hardware. What stance has the state adopted towards the ICT sector? Is it paternal or not? I believe there is no specific stance of the state towards the ICT sector. I believe the ICT industry has been left to the mercy of the market from inception. Our rôle models in the IT area are Israel, Denmark, Finland and Ireland, which are of similar size to Croatia and yet Croatia purchases consider-
able technology from them. Nevertheless, these countries have achieved a significant rôle in this area not merely because of their expertise, but also due to significant state support that was provided for the ICT sector. How can Croatia contribute to Europe and globally? Croatia can be competitive primarily in software development and maintenance. Our hardware production certainly cannot compete with countries such as Korea, Taiwan or China which have outstripped both Europe and the US. Nevertheless, software cur-
Some global players are moving their business operations away from Croatia. Why? There are several reasons. Primarily, they are global players, companies that do not view business operations in a national, historical or similar context and exclusively focus on profitability. They are attracted to neighbouring countries, such as Serbia, since their markets are larger and will grow in the foreseeable future. In addition, their markets are not saturated. Lower labour costs are also important. We operate in Macedonia, Serbia, Kosovo and Bosnia and Herzegovina and I can provide first hand experience. Croatia is prohibitively expensive due to excessively high salary taxes exceeding 100%, whilst in Serbia they stand at around 70%. In addition, there are lower nett salaries and hence labour costs are significantly lower. On the other hand, employee quality is on a par, due to a similar educational system throughout the region. Consequently, a satisfactory programmer is 40% more employable in Macedonia and Serbia than in Croatia. Taxes on salaries are also lower in Slovenia.
Chromos producing for Genera Chromos Agro and Genera have concluded a contract on longterm co-operation stating that Chromos Agro will provide Genera with products from its agricultural portfolio. Genera employees will be able to continue working in other production facilities at the same production site and, as a consequence of increased production new jobs are anticipated. Health sector debt over €0.9 billion Health Minister Rajko Ostojić has confirmed wholesale pharmacies will be paid €37.8 million in the second half of April on behalf of hospital debts from over a year ago. Wholesale pharmacies had threatened to cease delivery of pharmaceutical products to several hospitals that have piled up debts. The Minister revealed that some hospitals have been piling up debts for over three years, adding that the overall debt of health institutions currently exceeds €0.9 billion. Zadro to purchase Viro shares The Zagreb-based company EOS-Z has announced its bid to purchase Viro sugar factory shares, offering €57 per share. The bidder has joined with the Velika Gorica-based company Robić and they currently own 66% of Viro sugar factory equity capital.
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Privredni vjesnik Year V No 0194
( around 10,000 beds in small hotels
SIGNIFICANT RESULTS FOR SMALL AND FAMILY HOTELS
Klarić: Visitors prefer rel cheerful tourism worker Small hotels in Croatia have around 10,000 beds within a total number of 130,000 hotel beds equ total overnight stays Jozo Vrdoljak amily and small hotels in the world and Croatia are distinguished by their uniqueness, quality and authenticity. They distinguish from big hotels by their individual approach to each visitor. Small hotels in Croatia have around 10,000 beds, and in total number of 130,000 hotels beds, they participate with only 7%. In developed tourist countries this share is significantly bigger. However, considering small family hotels started to open in Croatia only 20 years ago, we can say they managed to achieve envious results in this segment of tourism. Actually, with its 7% share in total hotel offer, small hotels register 13% of total overnight stays of hotel visitors. Hotels in Croatia work 122 days each year, and small hotels are categorised according to the number of days booked - in their case 188. Of around 400 small hotels, 145 are organised into a national association, together with 60 villas. As a comparison, Austria and Greece have 10,000 each, and Italy even 23,000. However, there is room for improvement since not only do Croatian family hotels have lower booking rates compared with those in Europe, but they also have 40% lower service prices. It should be remembered that small hotels in Austria, Italy and Greece account for 70% of hotel accommodation in these countries. Surely, the poorer results of Croatian small and family hotels are mainly influenced by the fact that for-
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eign colleagues, for example in Italy, have a significantly smaller number of parafiscal charges and a VAT rate almost 75% lower for hospitality and tourism services. Completed plans The plans of small hoteliers in Croatia are not small: whilst small and family hotels now account for a 13% share in the total number of overnight stays, future construction should increase this share to around 25% or 50,000 beds by 2018. In Croatia, joining associations, to enter and take over the market more easily, became somewhat of a mantra to entrepreneurs in many activities. The formation of clusters has been subsidised by the state, but solid results have been achieved only in rare
We will establish deeper co-operation with suppliers to ensure better supply conditions cases. On the contrary, regarding small hotels, associations have yielded results. As a result of the work of the National Association of Small and Family Hotels, it has been shown that state institutions and agencies have partners that know what they want. Some results are already visible, and a series of concrete projects is in progress. Despite the demanding year and difficult economic situation, entrepreneurs found interest in being members of our organisation, and we accepted 13 new
ones in 2011. This level of interest encourages future quality work and representation of our sectoral interest to state institutions and the public, points out Šime Klarić, President of the National Association of Small and Family Hotels. As a part of marketing activities, this Association will focus this year on internet promotion and the improvement of the online booking system as a main communication tool of small hotels. They have published brochures, participated at international tour-
ism shows, continued co-operating with the Croatian Culinary Federation on training chefs, and the Croatian Sommelier Club on training waiters. This year, prior to EU accession, we will be faced with new challenges and possibilities, says Klarić, highlighting the importance of developing and implementing EU funded projects. We will not have successful tourism if we are constantly dissatisfied and work under pressure. Visitors prefer relaxed, optimistic and cheerful tourism workers, regards Šime Klarić.
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( 13% of total overnight stays in small hotels
axed, optimistic and rs
ating to 7%. However, they have managed to attract a large number of visitors making up 13% of legislation does not distinguish them from large hotels.
Italians and Croatians together Based on successful co-operation, achieved on the project Piccoli grandi alberghi from 2009, the National Association of Small and Family Hotels and its Italian partner Informest Agency started a new project – ACOST (Azioni coordinate di sviluppo turistico). The project is funded by the Italian government, and its goal is to continue and strengthen co-operation between Croatia and Italy regarding the development of tourism. Recently, a new credit line has been created by the Croatian Bank for Reconstruction and Development (HBOR), intended to raise the quality of service in family and small hotels. Zoran Katić, board member of the Na-
tional Association of Small and Family Hotels and owner of Hotel Vicko, points out that small family hotels managed to develop mainly due to favourable credit lines of HBOR in the past few years, despite the fact the
Together to achieve a better presentation The Hotel Vicko was one of the first to obtain an environmental label, the first step towards ecohotel certification. It created its gastronomic menu a long time ago, and thus the restaurant became known for the Food of our grandmothers. They also create a Croatian breakfast, and the entire hotel range will be based on originality and authenticity, points out Katić, who expects this season will exceed the previous. He bases his optimism on extremely positive prognosis for tourist arrivals, whilst business could only be made more difficult by shortened stays of visitors. Considering the crisis, hoteliers are worried about reduced spending. Ivan Srakovčić, owner of Korana Srakovčić Hotel, also anticipates a successful season. In addition to the hotel, he has also renovated a farm for tourism groups. Things have changed in tourism and there is no room for improvisation. Everything must be precisely planned and organised. We have 54 beds on our farm, and we are aware our success depends only on the perfect relationship with the destination and carefully planned programmes. For example, we created a package that includes a four-day stay on the coast, and four days in continental Croatia, the first two days upon arrival and the last two days before their return. We will also work with colleagues from Opatija so that their visi-
tors could also stay with us for a day or two, explains Srakovčić. Their overall intention is to achieve this “special effect” for visitors: to become identifiable for higher quality and to be regarded as special - and we are on the way to achieve that. Currently we plan to bring a group of Danish tourists for whom
Things have changed in tourism and there is no room for improvisation points out Ivan Srakovčić we organised trips throughout Croatia. Each day will be different and more exciting, says Ivan Srakovčić. He also says it is true that it is much more difficult to manage a hotel in the continental part of Croatia since here the tourist programme is still not sufficiently recognisable. However, things are changing for the better. The key to success is to connect entrepreneurs who created the programme, concludes Srakovčić. Moreover, it seems that relations with tourism workers are becoming closer. Through the National Association of Small and Family Hotels, we will continue to develop our co-operation with related associations, especially in the tourism sector. We will establish a deeper level of co-operation with suppliers with the goal of ensuring better supply conditions and reducing business expenditure, announces Šime Klarić.
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WE PRESENT
TEAMSPORT.HR ZAGREB
Privredni vjesnik Year V No 0194
STUDIO MODERNA, ZAGREB
Ceramic tableware improves the taste of food In addition to Zagreb, the company has call centres in Osijek, and 10 stores in larger towns
Specialists for sports equipment The company specialises in the sale of team football, basketball and handball equipment small family company Teamsport.hr sells sports equipment, sports wear and athletic footwear. It specialises in team sports, primarily football, basketball and handball. In addition, it provides printing on purchased sports equipment. It also co-operates with large companies for which it organises sales and marketing discounts. According to Jasminka Lamza, company Director, in addition to classical sales, the company provides promotional activities using social networking sites. “We have realised sales can be significantly improved by synergy with new media”, she pointed out. The company began in 2002 as a micro company in trade, selling branded sports equipment and in organising football tournaments for young players. “It was an additional job for us which gradually expanded. We set up the company after six years, started with personal commitment and developed online sales. We were amongst the first companies in Croatia to have launched online sales of sports equipment”, she explained.
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Big players Following EU accession, we plan to penetrate the market of several hundred million people. “Consequently, we are planning additional investment in our web shop. We currently sell a large quantity of goods abroad, irrespective of problems with
delivery and customs. The market will open and we expect the appearance of big players. We are convinced the number of local stores, not merely those selling sports equipment, will halve. Slovenia witnessed a similar situation”, she pointed out.
No state assistance to companies in sports business In her opinion, the state does not encourage companies to invest in sport. “Tax-exemption for sport is insignificant. If the situation changed in this respect, sport would bloom. In addition, the state invests considerably into sport, without investing in the development of young sportspeople. It invests in the servicing of the debts of sports teams, which have failed due to miserable management. Sport has become a luxury which not all children can afford, as parents cannot afford to pay membership fees, equipment, preparation and competitions”, she pointed out. If Teamsport.hr achieves its plans, the company is planning to employ new sales, marketing, IT, logistics and accounting personnel at the end of 2012. “We expect employment subsidies which are being prepared by the government will be available also for small companies such as ours” she stated. (B.O.)
tudio Moderna is a leading European company using multi-channel direct sales distribution. The company broadcasts over 300 hours daily on TV channels across Europe. It was founded in 1992 in Slovenia when it launched its own innovative brand Kozmodisk and has been operating in 21 countries throughout Central and SouthEast Europe. One year following its launch in Slovenia, the company opened an office in Croatia and, in addition to Zagreb it has call centres in Osijek and 10 stores in larger towns. It will open a further store in Zagreb City Centre in the forthcoming future. The company has four well-known brands: in addition to Kozmodisk there is Top Shop, Dormeo and Delimano. The number of employees varies by country, with currently around 450 employees in Croatia, whilst the entire group employs around 6,000 staff. The group has nearly 170 stores and 25 call centres. “Competition is not strong and is not threatening our operations. Ceramic tableware is an innovation for us and, in addition to all its other advantages, has affordable prices. Our brand Dormeo has a proven product range of pillows and mattresses in its healthy sleeping programme. Kozmodisk is our oldest brand and a patented invention. We are marking its 20th anniversary this year. In addition to a promotional campaign,
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the anniversary celebration will cover many humanitarian activities. Walkmaxx footwear is also innovative”, pointed out Vida Janeković, Head of Marketing and Brand Management for several brands at the Zagreb-based Studio Moderna. Two additional brands Studio Moderna is about to launch two more brands on the Croatian market and is planning to open more stores and call centres. “The Delimano brand which enhances ones awareness of the importance of food, is top quality cookware, baking-ware and table-ware which already wellknown. Tableware, well-known for its ceramic coating, allows for the preparation of meals without the use of oil and food does not stick to its surface, consequently
450 people employed by Studio Moderna lowering the intake of fat, whilst food retains its natural flavour”, stressed Vida Janeković. Delimano quality has been recognised by many top Croatian chefs. Food preparation was demonstrated by Veljko Barbieri and Zorica Kondža together with prepared specialties and Delimano tableware were presented during the recent GAST fair in Split. (J.V.)
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CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
7.53
5,873714 5,732396 6,97822 6,225639 9,061713 5,724063 7,481350
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5.73
3.4.
4.4.
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6.25
7.52
5.70
6.24
7.51
5.67
6.23
7.50
5.64
6.22
7.49
5.61
6.21
7.48 2.4.
WEEK APRIL 6, 2012
CHF
5.58 2.4.
3.4.
4.4.
5.4.
6.20 2.4.
3.4.
4.4.
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CLEARER IMAGE OF GDP FOR 2011
::: news
NO ECONOMIC GROWTH
Croatian credit rating confirmed Credit rating agency Standard& Poor’s has recently confirmed Croatian BBB/A-3 long and short-term rating, albeit with a negative outlook. The lowest credit rating has mainly been retained due to the start of implementing fiscal consolidation and the government intention to initiate comprehensive structural reforms in the forthcoming months. In addition to the confirmation of credit rating, Croatian bonds have been supported through abundant liquidity in foreign markets against expansionary monetary policies of both the FED and ECB.
If the required structural reforms are implemented, 2013 could bring GDP growth, suggest RBA analysts he Central Bureau for Statistics published the final data on GDP for 2011 with data revisions per quarter. The preliminary data showing very mild real economic growth (0.2%) during last year was corrected to 0%, confirming the absence of Croatian economic recovery for the third consecutive year. On the expenditure side, a very mild increase in personal spending (+0.2%) had a positive effect as well as faster growth of goods and services exports in relation to imports (+2.2% to +1%). Mild growth rate in personal spending is not a consequence of available real income, but an extremely low base and probably overlapping positive effects of good tourism results. On the other hand, the positive contribution of nett imports considerably decreased in relation to 2010, mainly due to the aggravated trends in foreign trade. As expected, the greatest fall was registered by investments in fixed capital, and with a relatively strong 7.2% fall, it showed a deep recession for the
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third consecutive year. Finally, in terms of real values, state spending also saw a mild real decrease of 0.2%. Gross added value also registered real stagnation in 2011. As anticipated, the greatest negative contribution came from construction, with a real annual fall rate of -9.3%. Although at slightly lesser rates, a decrease was registered by transport, storage and connections (-1.7%), mining, extraction, processing industry, supply of electric energy, gas and water (-0.9%), whilst a more rapid real decrease was registered by agriculture, hunting, forestry and fisheries (-2.8%). Only investment can lead to growth This year, RBA analysts anticipate real GDP fall of 1%, where after decreasing during the first two quarters, a more positive trend is anticipated for the second part of the year. On a mid-term basis, growth can be influenced only by investment. We also hope for investment in local sectors (due to low-
er external vulnerability) through decreased state and public spending, that is, growth of aggregated savings and increased corporate profitability. In the mid-term period, personal spending cannot generate growth. It can only follow it, considering the relatively high debt level within the public
As expected, the largest fall was seen in investment in fixed capital sector and limited growth of personal income. Fiscal consolidation simultaneously disables state spending growth, and the lagging eurozone economy as well as low goods exports value limit the positive contribution of nett exports. Therefore, 2012 should be regarded as an opportunity to ensure a new starting position. If the required structural reforms are implemented, 2013 could bring GDP growth, conclude RBA analysts (V.A.)
€1.06 billion for economic recovery
Measures to ensure €1.06 billion for financing a Croatian economic recovery, as well as projects to improve the balance of payments have been agreed at a recent meeting of the Croatian National Bank. The Central Bank will release €0.53 billion by reducing mandatory reserves that, through the Croatian Bank for Reconstruction and Development (HBOR), will be used as a source for loans under this programme. Simultaneously, bankers from the eight largest banks will provide a further €0.53 billion. Compulsory reserves are expected to stand at 13.5% rather than 15%, whilst bankers are claiming there is sufficient capital and liquidity for increased lending, irrespective of the lack of currently provided satisfactory programmes.
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Privredni vjesnik Year V No 0194
PARTNERSHIP FOR COMPETITIVE TOURISM
Vital boost for tourism improvement Eight programmes under the name Partnership for competitiveness launched to enhance competitiveness worth €4.27 million Sanja Plješa ourism competitiveness will be at the centre of interest of the Ministry of Tourism during the current mandate. Eight programmes under the title Partnership for competitiveness, worth €4.27 million, were launched, said Tourism
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The programme for promoting development in non-developed areas is €0.75 million Minister, Veljko Ostojić, during project presentations. The programmes are intended to enhance competitiveness through a partnership between the public, private and civil sectors. During April and May, public tenders will be invited for funding from these programmes. To date public tenders have been invited for the EU Excellence Programme for allocating non-repayable funding for tourism projects that had been granted funds from EU and
other international funds, as well as for the programme Together for Competitiveness - promoting work of expert associations and other non-profit organisations in the tourism arena. Both tenders are open until April 30. New and original Innovative Tourism Programme, worth €0.8 million, is intended for arrangements based on the new and original headline, eco and energy certification and prod-
uct branding. The programme for the promotion of the tourism Step further, worth €1 million, is intended for expanding tourism services and products as well as preparing projects of public and business tourism infrastructure for possible use of EU funds. With knowledge to quality is an educational and training programme for tourism staff. It is worth €0.25 million and will also include scholarships for students of tourism high schools and col-
leges. The programme for promoting work of expert associations and other non-profit organisations in tourism for this year is Together for competitiveness, and is worth €0.4 million. Local administrations, lacking financial resources, will also benefit since the programme EU Excellence, worth €66,500 is intended for them. This is a programme for allocating non-repayable funds to tourism projects that were granted resources from EU and other international funds. The programme Tourism through events is intended for promoting important tourism events and is worth €0.6 million. The Programme for promoting development in nondeveloped tourist areas is intended for developing continental tourism is worth €0.75 million, and for the first time it will be implemented in co-operation with the Croatian Tourist Board. The programme Safe visitor is worth €0.39 million, and the users are Hrvatski autoklub (HAK), the Ministry of Interior, medical aid teams and the Croatian Mountain Rescue Service.
NEW GASTRONOMIC PROPOSALS FOR CROATIA AIRLINES FLIGHTS
Tastes, aromas and colours of Croatia Passengers will be provided with gastronomic proposals from eight Croatian regions over the next two years Passengers will be introduced to Croatian gastronomy through the programme Tastes of Croatia during Croatia Airlines flights from 11th April. Croatian regional meals will be served during the flight, beginning with Istrian gastronomy, as announced at a presentation at Stancija Meneghetti. Passengers will be provided with gastronomic proposals from eight Croatian regions over the next two years, with specialties from each region
being presented for three months. The new proposal is primarily targeting business class passengers on local and international flights. The meals will consist of typical regional ingredients, as well as a typical regional appetiser, wine and beverage proposals. Lunch and dinner meals served during over 70-minute flights will comprise of two or three courses. Chefs from the restaurant San Rocco have provided consider-
able assistance in presenting Istria and its gastronomy with their choice of characteristic meals and the presentation of their preparation and serving. Olive oil produced and appetizers and beverages produced by the Istrian producer Rossi will also be served with the meals. In addition, a special film on the region that is being represented will be shown during the flight to provide a deeper experience. (S.P.)