Interview: Srđan Oreb, Director General of Badel 1862 Badel is once again in majority state ownership and its restructuring has been successful
Foreign investment last year In terms of foreign investment Netherlands, Germany and Austria lead investment in 2011
IMF anticipates fall in GDP Croatia cannot expect 1% growth before 2013 so the crisis will intensify as GDP needs to increase by 3%
INTERVIEW PAGES 2-3
FOREIGN INVESTMENT PAGE 5
ECONOMY PAGE 7 2008 2009 2010 2011
Croatian Business & Finance Weekly Established in 1953 Monday / 23rd April / 2012 Year V / No 0196 www.privredni.hr
S U P P O R T E D
Working lunch at the Croatian Employers’ Association (HUP)
CROATIA TO CONTINUE LNG PROJECT The Croatian Employers’ Association – Association of Small and Medium-Sized Entrepreneurs recently organised a working lunch with Radimir Čačić, the government first Vice-President and Minister of Economy in order to discuss the government initiative regarding the new investment cycle in the country. Čačić stated that the state had recently purchased the project documentation for the LNG project on the island of Krk from private investors for €1.3 million. The consortium, which comprises German E.ON, French Total, Austrian OMV and Slovenian Geoplin, began the project in 2006. Nevertheless, project implementation was constantly postponed due to shrinking gas demand. The state is currently planning to construct a huge onshore LNG terminal on the island of Krk by 2016. Regarding energy projects, Čačić explained that Croatia would not pay for costly solar energy, 8 to 9 times more expensive than energy generated by oil and gas. Croatia cannot afford huge solar panel arrays, but will encourage the construction of small solar roof panels.
B Y
T H E
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
SENIOR EXECUTIVES FROM CONSTRUCTION INDUSTRY MEET
More work required rapidly Croatia is the only country regionally still having significant ongoing construction activity in large infrastructure projects particularly motorway construction Drago Živković he main issue in Croatian construction industry is that it is in need of more work rapidly. This was the fundamental message from construction company top executives to Ivan Vrdoljak, Minister of Construction and Physical Planning, during a round table discussion organised by Mineral magazine. The Minister responded that the current legislative framework is catastrophic and its comprehensive amendment requires a minimum of six to nine months of work. Consequently, the Ministry has been focusing on issues that can be solved in a shorter time frame, such as amendments to the Law on Physical Planning and Construction, which will enable the sale of incomplete buildings. Vrdoljak announced a public discussion on comprehensive amendments to this Law in the near term. Croatia is the only country regionally still having a significant ongoing construction activity, due to large infrastructure
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projects particularly motorway construction. Large companies have seen many problems with bank guarantees, which cannot be accepted as collateral by local banks in foreign ownership and
The problem of nonexistent bitumen production in Croatia the Croatian Bank for Reconstruction and Development (HBOR) is not able to support large projects, explained Joško Mikulić, Board President of Viadukt, expressing his dissatisfaction. A range of tenders Vrdoljak promised that the government would increase the capital of the Croatian Bank for Reconstruction and Development. He also announced the possibility of the creation of a special investment bank that would focus on planned investment in the energy sector. Stjepan Rak, Board President of Knin-based Knauf, proposed the
government should postpone utility services and contributions for at least three years, which Vrdoljak basically supported, adding that contributions need to be eventually paid, at least in instalments if necessary. Miro Mirković, Board President of Pula-based Cesta emphasised the fundamental need for single-criteria in public tenders, particularly regarding guarantees for serious offers, which range between 5% and 20% of the total price. In addition, he pointed out the unsustainability of fixed price public tenders, since expenditure on oil and bitumen stand at 60% in low-rise construction and their prices cannot be predicted over the long run. According to Trpimir Renić, Board President of Cemex Croatia, bitumen could be replaced by concrete in road construction, as concrete road technology has advanced considerably. Nevertheless, Croatia does not currently have technical regulations for construction of concrete roads, a problem Vrdoljak promised to address in the forthcoming future.
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Privredni vjesnik Year V No 0196
Darinka Jug, Co-ordinator, Euro-Velo routes for Croatia and President of “My Bicycle” Association
No boundaries for
( 40%
share of spirits on the grey market
CYCLING TOURISM
INTERVIEW: SRĐAN OREB, DIRECTOR GENERAL O
hen I was asked why I focused and insisted so much on the development of cycling tourism in Croatia some ten years ago, I gave one answer: one can achieve exceptional results with a relatively small investment. For these aficionados there are no boundaries and they can travel throughout the year with daily expenses ranging between €70 and €90, depending on the country from which they arrive, which is nearly twice that compared with tour-
Since last year Badel is once again in majority state ownersh claims into shares, which it uses to trade on the market. Thu
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In 2003, there were around 3,600 kilometres of cycle routes and trails; now there are nearly 12,000 kilometres ists staying in hotels and private accommodation. Unfortunately, over the last 10 years Croatian investment in this area has been meagre. The Ministry of Tourism mentioned it for the first time in 2007 as a selective form of tourism and consequently supported the Association “My Bicycle” for the second time regarding the creation of a national strategy for cyclists, which includes the tourism aspect. In addition, the Ministry of Tourism promotes the development of cycle tourism through various themed route development programmes. However, the genre has gradually moved into ‘mainstream’ Croatia and has been slowly developing, subsequently altering the perception of Croatia into a desirable destination for European and world cycle tourism. IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
WE WENT THROU ADMINISTRATION Drago Živković ast year, Badel 1862 increased its share of the alcoholic liquor market, confirming its status as the leading local producer. Its share of the local production of spirits is 58%, with 80% exported. As General Director, Srđan Oreb, says they base their future growth and development on exports, while the goal for the local market is to preserve their share and profitability.
L In 2003, there were around 3,600 kilometres of cycle routes and trails; now there are nearly 12,000 kilometres. Five years after the creation of the Danube route, it has officially become Euro-Velo Route No. 6, and Euro-Velo Route No. 13 is also finalised. Five years ago, Croatia was included in just four foreign tourism agencies promoting cycling; now there are some 20 propositions. Bike hire numbers have increased considerably along the cycling routes, as well as the number of cyclerelated services – repair shops and cycle shops. Tourism needs to develop through small and medium-sized companies and thus this aspect is certainly one solution that could significantly promote sustainable development within Croatia. This has currently been hardly recognised by companies and 2012 will see its recognition at a national level. Nevertheless, it will continue to develop, since such tourists have no boundaries; they travel to experience and gain a deeper insight of the country and for them it is virtually impossible to go backwards.
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
It is often said people drink more during a crisis. However, this cannot be said based on sales data of alcoholic liquor. People say many things, but only figures count. In the case of spirits, decreasing purchasing power equates to reduced spending, just as in any other group of goods. Total consumption of strong liquor has been in decline for the second consecutive year. We are counting on this year’s tourism season to increase spending, since we are an industry closely joined to tourism regarding both spirits and wine. Despite last year’s increase in the number of tourists, spending decreased per capita resulting in a milder seasonal effect than anticipated. This year, we will be working on increasing nonaccommodation spending through various events. We will open this year’s season with new brands to complete our product line. What are Badel’s main export markets? They would be the regional markets, CEFTA countries in particular, in terms of strong alcoholic drinks. Half our production is exported; in total sales, exports account for 20%, bearing in mind
our non-alcoholic products are virtually not exported. Will there be changes for Badel when Croatia enters the EU and exits CEFTA? There will be no changes, since spirits are subject to high duty globally as well as CEFTA. So far we have had no significant benefit from CEFTA in terms of strong alcoholic drinks. As far as wine production is concerned, where CEFTA brought many benefits, Badel achieved 91% of its export on the markets of West Europe and overseas. Therefore, the negative effects of exiting CEFTA will be irrelevant in relation to what we will gain by EU accession. What are your main goals in terms of exports? Badel’s strategic focus is on the overseas markets, mainly China. We are currently in the process-
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( €700
duty per hectolitre of absolute alcohol
( 10.3 million litres annual production of spirits
OF BADEL 1862
GH AN EPIC STRUGGLE WITH – A MULTI-HEADED DRAGON
hip. Notwithstanding, not a penny has been written off or cleared, says its General Director. The state turned its us, the restructuring of Badel has been successful Ministry of Finance, Economy and Agriculture, trying to prepare laws prior to EU entry, not only regarding duty, since this is not the only problem, but also the protection of our original local production from fruit to bottle. Currently, it is not sufficiently legally defined; its position is even undermined in relation to chemical production. Nothing is done contrary to EU regulations or the Agency for Promoting Market Competition. The alcohol industry is one of high added value since we do not sell work, but the brand.
As duty increased, spending decreased. Does this mean people drink less? I think not ing of registering the company in China, with our partner Tadee Holding Group of which we expect a lot, especially solving the surplus problem of supreme wines, a problem of all Croatian producers. This is the main goal. Our second goal is to expand our line of spirits on the Chinese market. We have been working on this project for a long time
now and I dare say we did our homework. Time will show what the results since any business requires 25% of luck. After EU accession, Croatia will no longer be able to reduce duty, and even now duties on spirits are above the EU minimum. Should they be reduced? We are in regular contact with the
Imports drop, exports drop even faster
In 2011, a total of 10.3 million litres of strong alcoholic drink was produced in Croatia, which is 4% less than in 2010, according to data provided by the Economic-Interest Association of Beverage Producers. Croatia imported 5.2 million litres valued at $26 million or 6% less. Strong alcoholic drinks are mainly imported from Germany, Great Britain and Italy. Exports, however, plummeted by 13% to 3.8 million litres or $12 million, which means the foreign trade balance dropped to $14 million. The most important export market is Bosnia and Herzegovina, with almost 40% of total exports, followed by Germany, Macedonia and Slovakia. The Croatian grey market is estimated at 40% or 4 million litres. The current duty now stands at €700 per hectolitre of absolute alcohol, whilst the minimum allowed by the EU is €550.
Is the duty directly related to the size of the grey market? Would it help your industry if it were reduced prior to EU accession? This is a complex issue and the numbers are subject to differing interpretations. The consumption of alcoholic liquor through legal sales channels stood at approximately 40% or more when the duty was lower. As it increased, spending decreased. Does this mean people drink less? I think not. The second question is whether all consumption of alcoholic drinks has been registered during the period of low duty. I believe not. Compared with the states with continuous control of the market of strong spirits, Croatian consumption per capita is relatively low. Being a tourismoriented country, we could have at least 10-15% higher consumption than those that are not so oriented. However, the situation
is reversed. My conclusion is that the share of the grey market is vast, but this cannot be solved by reducing duty. It will take a more serious approach on a larger scale. Considerable changes occurred in Badel last year. Once again the company is in majority state ownership Has this introduced changes in the business? Many things have changed in terms of balance. As far as management is concerned, there is no pressure. Actually, we have been given the freedom to work, but we are expected to yield results. I must clarify one thing since I often come across headlines saying Badel has been cleared of debt. Regretfully, not an iota has been cleared or written off. However, company debts have been turned into capital. In other words, the state has turned debt, whose collection is quite questionable, into shares it uses to trade with on the market. The “C” Model has been a torture to Badel, but it has been successfully implemented. We went through an epic struggle with administration – a multi-headed dragon which grows three new heads when you cut one. It is important to mention that it was easy to come to an agreement, but the implementation was very complicated. Unfortunately, the “C” Model had not been sufficiently elaborated. When you have a patient who requires treatment, it is important whether you give the medicine in the early or later phase of the illness. You can give him the medicine three days before he dies, but he will still die. However, if you give it to him in time, the patient may completely recover in two to three years.
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Privredni vjesnik Year V No 0196
( around €13 million ( 15,000 fireplaces turnover in 2011
planned production for 2012
FIREPLACES PRODUCED BY THE COMPANY COLOR EMAJL FROM POŽEGA CAUSE GREAT INTEREST IN VERONA
Better known in Scandinavia than in Slavonia The greatest interest was shown in a fireplace that can be connected to an existing central heating system reducing the cost of the main energy source the greatest level of interest was shown in a fireplace that can be connected to an existing central heating system reducing the costs of the main energy source - gas. This is a completely new model designed by our engineers. The fireplace has a fitted boiler that releases water into the existing central heating system. It also works with a combi-boiler system or independently, as Goran Šutalo proudly points out. After the Verona success, this fireplace was analysed by West European experts.
Svetozar Sarkanjac olor emajl was founded in 2010 near Požega. This is a modern factory that produced 12,000 fireplaces last year, with around 95% exported to the markets of West and North Europe. They produce around 60 different models, and this year’s plan is to produce around 15,000 units that will heat homes in South Korea and Chile. Today the factory employs 320 workers. Turnover last year totalled around €13 million. The company began in 1984 when Goran Šutalo established a workshop in Požega for repairing and servicing home appliances. It soon became evident it would be useful to venture into production and so the manufacturing of counterweights and tubs for washing machines started. These products required enamelling, hence the name of the company - Color emajl (eng. enamel). “Later, stainless steel
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Color emajl’s fireplaces have been recently included amongst top fireplaces in Scandinavian countries
fireplaces”. The story is simple, explains Goran Šutalo, owner of Color emajl, a company that uses a combination of top quality, modern design and personal patented products to achieve envious results on a European level.
appeared on the market as a cheaper material used in the production of various water boilers which led production in a new direction. We started producing smokestacks, and when we became familiarised with the market, we started producing
Cost-effective fireplaces Since these products fall outside those for wider consumption, the best places to promote them are specialised shows in Frankfurt and Verona, both the biggest European shows in terms of heating and accompanying products.
These shows are places where our customers gather and where we can present our products. Compared with other producers, our products are distinguished by their quality and design, points out Dalibor Cindrić, Sales Manager at Color emajl. At a recent show in Verona the company fireplaces caused great interest from visitors, and an even greater interest from experts and European distributers of these products. In addition to a fireplace whose doors close automatically after a log is inserted,
Kudos for energy efficiency During a recent visit to Denmark, where we presented this new fireplace, after extensive expert analyses, we were commended for its high level of energy efficiency. At the same time the fireplace meets the high energy and environmental criteria that will enter into force in Germany by 2015 and then throughout the EU. Since we already have products meeting these criteria, it is obvious we are welcome on these markets, Cindrić says, adding Color emajl has had a branch office in Germany since 2008. Their fireplaces have been included amongst top fireplaces in Scandinavian countries, and their success is even greater since these countries are known for producing high-quality fireplaces locally. Shows are not the only place to correctly present fireplaces and other products, which is why Color emajl will soon have a showroom within the factory complex.
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( €66.9 million
investment in production of oil derivatives
( €236.8 million from chemicals production
FOREIGN INVESTMENT LAST YEAR
ONLY 10% OF THE INVESTED BILLION WENT INTO PRODUCTION In terms of foreign investment into Croatia, the Netherlands is first, followed by Germany and Austria; investment into banks and financial intermediation top in 2011 Igor Vukić utch companies dominated the 2011 list of foreign investors into Croatia according to data provided by the Croatian National Bank. They invested €256.9 million from a total of €1.04 billion recorded in the CNB statistical data. The central bank warns these data also include ‘round-trip’ investment that increased foreign investment by the same amount in both directions (in Croatia and abroad). Notwithstanding, €0.13 billion represents a significant increase since foreign investment totalled €293.5 million in 2010. Germany takes second position
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Last year, real-estate operations brought in €246.4 million, equity investment €146.3 million on the list of investors at €220.2 million, followed by Austria at €217.8 million. Austrian leading investors are also included in the data that has been maintained since 1993. They invested a total of €6.3 billion in Croatia, considerably more compared with the Dutch, the second-runners on the “eternal list” with foreign investment totalling €3.9 billion. The German share stands at €3.2 billion invested during a period of 19 years. Luxembourg is fourth in terms of 2011 investment
with €142.2 million, with Italy at €103.6 million. 2011 total investment of €1.04 billion is only slightly higher compared with 2004 results when the total was €127 million. From then until 2010, investment had exceeded this amount every year, reaching its peak in 2008 with €4.2 billion. Banking investments Concerning sectors, investment in banks and financial intermediation reached €267.3 million pushing overall investment to €8.7 billion over a period of 19 years. Investment in this area exceeds others by far in terms of value: in comparison, wholesale trade and trade intermediation stood at €2.5 billion. Last year, real-estate operations brought in €246.4 million, chem-
icals production €236.8 million and equity investment in real estate, €146.3 million. CNB experts explain that the majority of income in the last quarter of 2011 related to foreign equity investment (€0.9 billion). However, a significant level of investment in Croatia related to the transformation of debt into equity shares in several local companies, while direct investment in new production capacity was extremely modest (only €100 million). In addition to €66.9 million invested into the production of oil derivatives, other dominant activities include textile production (€31.5 million), agriculture (€33.9 million), leather and footwear production (€11.7 million) and the metal industry (€9.5 million).
Crisis interrupted plans Analysts relate the decreasing value of foreign investment during the past several years with the economic crisis that changed the course of many investment plans on European and global financial markets. The reason is partly due to the fact that most foreign investment took place during a time when the Croatian market had just started to open in many sectors, creating more opportunities for takeovers and new investment. This refers to, for example, the banking sector, pharmaceutical industry (where more foreign investors competed for Pliva), energy (INA), telecommunications and IT industry (Hrvatske telekomunikacije, and Nikola Tesla). Capital then headed for other eastern countries in search of similar acquisitions.
6
WE PRESENT
AGRICULTURAL CO-OPERATIVE SVIRĆE – SVIRĆE, HVAR
Privredni vjesnik Year V No 0196
SPRINGS AND WIRE PRODUCTS (POD)
Springs for European agricultural machinery Keeping up-to-date with global trends through investment in advanced technology solutions
Focus on organic products Ivan Dolac 2007 and Ivan Dolac Barrique 2007, wines with eco-certification, awarded gold medals he Agricultural Co-operative Svirće certainly is one of the best organised agricultural co-operatives. Following a series of downturns and recoveries, in 1997 it saw a decisive turning point with the start of grape purchases for Badel 1862. In 1999, it started wine production and bottling. Two years later, it penetrated the foreign market. At the time of the contract with Badel 1862, the company had no employees, but now employs 30 staff. The cooperative currently comprises of 90 members who are mainly young people who have recognised its huge potential and multiple advantages. The output of red wine within the product range is around 80%. The annual wine output from Agri-
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The annual wine output from Agricultural Cooperative Svirće currently stands at between 550,000 and 700,000 litres, depending on weather and yield cultural Co-operative Svirće currently stands at between 550,000 and 700,000 litres, depending on weather and yield. “In 2002 we began the process of top quality organic wine production in Croatia using a system of organic production compliance as-
sessment. We were the first organic wine producers of Plavac Mali and amongst the first organic wine producers in Croatia”, pointed out Andrija Carić, Head of the Agricultural Cooperative Svirće. Carić emphasised the fact that organic production in Croatia has been defined by the Law on Organic Production of Agricultural and Food Products, dating from 2001 and added that organic production has a wide range of implications beyond a mere non-use of chemicals and synthetic substances such as pesticides and fertilisers. Simply the best Subsequently, Ivan Dolac 2007 and Ivan Dolac Barrique 2007, produced by the co-operative, were awarded two gold medals at the International Organic Wine Award Mundus Vini BioFach 2012 in Nuremberg. “We were among the best and our wine was exhibited on the main table with the 10 best products. In accordance with international standards of the OIV (Organisation internationale de la vigne et du vin), of all the applicable wines just 30% are entitled to be awarded medals, which makes our success even more significant”, stressed Andrija Carić. The Co-operative has a programme and welcomes organised groups of visitors. The production facility, winery and tasting room is located in the centre of the island of Hvar. (J.V.)
ast year was a remarkable year for the business making springs and various wire products Dežanovac (POD), as it marked four decades of business activity and it was the first time that the company finished
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Exporting to former Yugoslav countries, Austria, Germany and Switzerland with negative results, due to the financial crisis. In addition, 2011 the company began representing the Austrian agricultural technology producer Pöttinger and also established business contacts with partners in Morocco in order to export springs. POD was founded in 1971 as a small business for the production of agricultural machinery springs. At the beginning of the 1980’s, it signed its first longterm purchase contract with a client from the then Soviet Union for whom it processed 400 tonnes of wire in one year. Thereafter it signed many long-term contracts with the companies Agromehanika, Creina, Sip, Tajfun, Panonija, Gramip, Olt and Tomo Vinković, which enabled further investment in advanced technology, transforming the small business into a company employing 25 staff by the end of that decade. Production volume shrank considerably. “In 1993 we began developing another branch of our business activity – the sale
of agricultural machinery, spare parts and the provision of services. Initially we dealt in barter jobs, as our product purchasers were also our suppliers. However, sales gradually increased and we developed a sales and service network; in 2000 we constructed a new factory. We have been following global trends and have are competitive in the European Union as a result of our investment in advanced technology solutions”, stated Vesna Fofonjka, Director. Greater success The company currently employs 50 staff and exports its products to former Yugoslav countries, Austria, Germany and Switzerland and there are also ongoing negotiations with the Czech Republic. “Last year we participated at the Hannover fair and strengthened many contacts with partners from the European Union. Nevertheless, the EU market is slow, with considerable reluctance to change suppliers. However, there is a demand for more reliable partners and we are relying on this”, stated Fofonjka anticipating a more successful year than last. Croatian accession to the European Union is regarded as an opportunity for more practical and simplified operations, since production materials are imported from the EU. “We are used to keeping up-to-date with the competition. It is normal and one has to live with it”, explained Vesna Fofonjka optimistically. (G.G.)
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CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
7.50
5,886009 5,731670 6,969323 6,240717 9,164647 5,695099 7,497598
USD
5.76
17.4.
18.4.
19.4.
20.4.
6.25
7.49
5.74
6.24
7.48
5.72
6.23
7.47
5.70
6.22
7.46
5.68
6.21
7.45 16.4.
WEEK APRIL 21, 2012
CHF
5.66 16.4.
17.4.
18.4.
19.4.
20.4.
6.20 16.4.
17.4.
18.4.
19.4.
20.4.
1.8% GROWTH RATE UNLIKELY
::: news
IMF anticipates fall in GDP
Public debt increase by 13.2% last year
Croatia cannot expect 1% growth before 2013 meaning the crisis will intensify as GDP needs to increase by 3% to generate higher employment and spending s consequence of weak economic activity during the second part of 2011 and the first part of 2012, recently the International Monetary Fund lowered its estimate for Croatian GDP. Rather than 1.8% growth, the IMF predicts GDP to fall by 0.5%. Croatia cannot expect 1% growth before 2013, which means the crisis will intensify since GDP would need to increase by 3% to generate higher employment and spending. The bank also predicts 1% GDP fall for Slovenia. Other countries, except the eurozone crisis countries (Greece, Spain,
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Portugal), could see mild growth in GDP. The IMF reports in its World Economic Outlook that the Croatian economy stagnated
IMF predicts Croatian inflation will increase to 2.2% this year and to 2.4% next last year, and they anticipate inflation to increase to 2.2% this year and to 2.4% in 2013. They also anticipate higher unemployment for this year, which could
decrease only slightly in 2013. In terms of the global economy, the IMF lowered its expectations of possible growth, from 4% to a maximum of 3.5%. In his comment regarding the IMF outlook, the First Government Vice-President, Radimir Čačić, stated it is far better compared with the outlook from local and other foreign analysts, but also hopes the situation will be much better than that given by the IMF. He also added there would be “nothing left” for him in the government, if it were different. (J.F.)
According to data provided by the Croatian National Bank (CNB), state debt totalled almost €21 billion at the end of the last year, 13.2% up over 2010. Internal debt, which comprises 66% of the total, stood at €13.6 billion, 15.9% more compared with the end of 2010. Foreign debt increased by 8.3%. The largest increase was contributed by bonds issued on the local market, totalling €0.98 billion, while €0.71 billion were placed on the foreign market. Lower insurance premiums According to data of the Croatian Insurance Office, gross premiums for the 27 insurance companies totalled €0.34 billion at the end of March, down 0.8% in relation to the same period of 2011. Non-life insurance decreased by 1.6% to €0.26 billion, while the written gross premiums for life insurance increased by 2% to €76.9 million. Croatia osiguranje still leads the market, followed by Allianz Zagreb and Euroherc osiguranje. Assets increase for OIF According to data provided by HANFA, an increase of money market funds by 13.36% contributed to an increase of total assets of open investment funds, by 7.63% or to €1.55 billion. Assets of stock funds decreased by 1.65% to €0.29 billion. A similar situation was seen by mixed and bonds funds, dropping by 1.79% and 1.60% respectively.
8 ::: news Lanterna Camp awarded environmental recognition Lanterna Camp, a member of the Poreč tourist company Valamar Group, has received the Gold Eco Award, awarded for the third consecutive year by Eurocamp, the organiser of vacations from the UK. Eurocamp provides selfcatering holidays in over 180 camps throughout Europe. The EcoAward is in three categories – gold, silver and bronze and is usually awarded to camps which have made significant progress regarding reducing pollution and preserving natural resources, as well as to camps operating in compliance with the highest environmental protection standards. Lanterna Camp has joined a group of 22 European camps holding this award. Lošinj Cuisine Festival
Mali Lošinj Tourist Board and Mali Lošinj town are organising the 6th Lošinj Cuisine Festival in conjunction with local caterers with the theme of “Around the World with Lošinj sails”. The focus will be on restoring and presenting the historical and cultural heritage of Lošinj maritime status Lovran Asparagus Festival The 12th Asparagus Festival is held until the 29th April in Lovran. Wild asparagus growing on the Učka slopes is a wellknown gastronomic specialty. Its quality and specific flavour is a result of the combination of sea and mountain air. The best known recipe containing asparagus as its ingredient is fritaja (a traditional Istrian dish) made from eggs, wild asparagus and pršut.
Privredni vjesnik Year V No 0196
14TH CROATIA BOAT SHOW
Top world producers in Split We have managed to adapt to the crisis and continue holding the largest national nautical fair Jozo Vrdoljak mainly foreign sea vessels were exhibited at the 14th Croatia Boat Show (CBS). Small local shipyards exhibited their products individually. According to Vicenco Blagaić, Director of Profectus, fair organisers, postponing the fair was seriously considered a month ago, yet, luckily, it was
150
CBS has doubled since last year and this is a significant success not necessary. “The Croatia Boat Show has doubled since last year and this is a significant success. We have managed to adapt to the crisis and continued holding the largest national nautical fair and until recently one of the 10 largest globally. Many vessel and equipment producers who were our permanent exhibitors have ceased operating due to the crisis. This fair considerably differs from other regional fairs, as it is the sole nautical fair in the region exhibiting globally reputable brands, such as Princess, Ferretti, Pershing, Fairline, Sunseeker,
Sea Ray, Beneteau, Jeanneau and Hanse. In addition, Sunreef and Lagoon catamarans have been exhibited this year”, pointed out Vicenco Blagaić. He is hoping that in the near future those in authority will not continue making unreasonable decisions, such as the introduction of excise duties several years ago, which have adversely affected the nautical sector. Nautical tourism growing According to Perica Šolić, Assistant Minister at the Ministry of Maritime Affairs, Transport and Infrastructure, nautical tourism is rising, the recession notwithstanding. “Last year we saw 60,000 vessels, 3% up over the previous
year and were visited by 322,000 nautical tourists, 5% up. The ACI marina system made a profit of €3.31 million in 2011. Currently, 1,885 foreign yachts have been registered in Croatia. We are focusing on simplifying the administrative system and are currently preparing amendments to the law to allow concessions on land bordering the coast, as well as focusing on its protection”, emphasised Šolić. The Nauticus Show has been a fair innovation this year. It is a gastronomic show presenting wine producers and nautical restaurants, as well as a motor show. The Sunseeker Predator 84 - Alexander - was the most expensive yacht exhibited, with a value slightly over €4 million.
CROATIA AMONGST TOP 10 BIRD WATCHING DESTINATIONS
Americans delighted with bird watching Tourism trends and attitudes are constantly changing, as there is growing demand amongst tourists for various special cultural, adventure or educational tourism programmes. Thus, there is huge potential for Croatian tourism agencies, since their success depends greatly on proactive sales of similar programmes to foreign tour operators, as was stated during the first session of the Croatian Association of Travel Agencies (HUPA) of the Croatian Chamber of Economy. It was pointed out that foreign tour operators provide similar special packages for their clients, as opposed
to Croatia, where agencies have not provided a satisfactory level of similar packages thus far. Birdwatching, with which 40 million Americans are delighted, is an example of such special tourism programmes, according to Željko Trezner, President of Association of Croatian Travel Agencies. He added that Croatia ranks amongst the top ten bird-watching destinations and that this should be given particular emphasis. In addition, Trezner stated the research results from Horwath Consulting, which showed that 63.4% of tourists accommodated in Croatian hotels in 2010 booked their stay through
tourism agencies. An extension of the tourism season is mainly due to tourism agencies and the Croatian Association of Travel Agencies (HUPA) is preparing to submit its proposals for the co-financing of research projects on travel agency activities, to the Ministry of Tourism. (S.P.)