PV International 0197 by NEstar

Hrvoje Hribar, Head of the Croatian Audiovisual Centre €16.6 million anticipated foreign filmmaker investment in Croatia

Medical tourism Overnight stays in medical tourism resorts have dropped drastically but there are signs of recovery

Bank loan to whom? Banks must be stable and secure, which is why they try to maintain the criteria for achieving this

INTERVIEW PAGES 2-3

TOURISM PAGE 4

ECONOMY PAGE 6 2008 2009 2010 2011

Croatian Business & Finance Weekly Established in 1953 Monday / 30th April / 2012 Year V / No 0197 www.privredni.hr

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CONSIDERABLE INTEREST ON ECONOMIC CO-OPERATION FROM VIENNA

AUSTRIANS CONTINUE TO INVEST IN CROATIA Croatian government will focus on assisting rapid investment through the agency for investment and competitiveness Igor Vukić ver 400 Austrian entrepreneurs attended Croatian Economy Day at the Austrian Chamber of Commerce in Vienna to gather the latest information on investment and business development plans, products and ideas for future co-operation, presented by the Croatian delegation comprising of 70 businessmen. The meeting was organised by the Croatian Chamber of Economy. Vesna Trnokop Tanta, Vice President of the Croatian Chamber of Economy, pointed out that the surprisingly satisfactory turnout at the meeting revealed the success of long-term co-operation and the deep level of confidence and trust between the two countries. Economic co-operation between Austria and Croatia is of significant value for the entire region. She invited Austrian companies to opt for Croatian quality products and stressed the fact that the Croatian market is open to foreign products. In addition, she expressed her hopes for an increasing shelf presence of Croatian products in foreign retail chains. She also encouraged Croatian small and medium-sized companies to seriously

consider clustering, as it would significantly enhance their competitiveness in the demanding foreign market. Christoph Leitl, President of the Austrian Chamber of Commerce, stressed the significance of economic issues, yet pointed out the importance of interpersonal relationships, stating that in the case of Austria and Croatia they are at a satisfactorily high level. Tackling administrative hurdles imperative “Austria has always supported Croatian EU accession and I believe future economic relationships between the two countries will continue to develop in the

positive direction”, stated Leitl. Radimir Čačić, the government first Vice President and Minister of Economy, presented state investment projects by providing information on several successful projects: the largest greenfield investment in Croatia has been made by the company Boxmark Leather, an Austrian partner in the well-prepared Varaždin Free Zone. The company, one of the largest leather seat set producers for leading global auto, aircraft and furniture manufacturers, built its production plant there. Čačić invited Austrian entrepreneurs to invest in the energy sector, in services and production. The Croatian government will

assist rapid investment by re-establishing the agency for investment and competitiveness. Austrian investors expect improvements in the area of legal safety and in particular the issue of tackling administration hurdles which have been causing a considerable slow down on several investment projects. Nevertheless, irrespective of the difficulties, Austrian companies are determined to continue with investment into Croatia. From 1993 to 2011 the country invested €6.31 billion, which comprises 25% of the overall total. In 2011 investors invested €217.8 million and there are some 950 Austrian companies on the Croatian market. The largest investment has been in the financial and banking sector, telecommunications, sanitary ceramics production, concrete and plaster products, the insurance sector as well as in trade. In addition, industry has recently witnessed an increasing number of investors. In 2011 Croatia was visited by 892,467 Austrian tourists, 10.1% up compared with 2010, which has also significantly enhanced co-operation and contributed to good relationships between the two countries, as was concluded at the Croatian Economy Day.

Privredni vjesnik Year V No 0197

Lordan Ljubenkov, Director, Co-operative Alliance of Dalmatia

We cannot miss the opportunity Co-operative as a business model is accepted by farmers, crafts people, engineers and programmers ew working conditions are currently being created. The new Co-operatives Act entered into force, marking a new beginning. The Act provisions insist on transparent relations within the co-operative and transparent membership criteria, or full cooperation between the members and the co-operative as well as a mandatory 30% contribution of achieved profit to co-operation development; more specifically, regulated decision-making on asset disposal and amendments to co-operative regulations. These changes should be understood as a boost to agriculture which intertwines with tourism. These two foundations of our economy, that keep it stable, have an opportunity through the co-operative business model that other EU members did not miss. The important question is whether society will recognise it at the new EU beginning, as we did some 150 years ago. Driven by misfortune and knowing they were not self-sufficient, people decided to co-operate, acquire know-how and invest their mutual efforts to obtain the best possible products. Together they watered and ploughed the land, stocked, transported and sold their products, sharing their profit according to their share in quantity and quality. This is not a fairy tale, but a reality that spread across the planet, joining a billion people in cooperatives. In Europe, co-operatives employ some 5 million

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( €4.5

average cinema ticket price

HRVOJE HRIBAR, HEAD OF THE CROATIAN AUDIOV

€16.6 MILLION A FILMMAKER INV

I believe the Croatian Audiovisual Centre (HAVC a medium for the exchange of information and f Goran Šikić n addition to remarkable films he directed (Croatian Cathedrals, What is a Man Without a Moustache) Hrvoje Hribar has been actively engaged for decades in sustainable cultural politics particularly in the area of film. He was one of the strongest supporters of the central fund for Croatian film, which took over the role from the Ministry of Culture in film production financing and has been the Head of this institution since 2010.

people in 300,000 co-operatives. Understanding the potential of this model, the United Nations declared this year as the year of co-operatives. There are presently around 1,600 in Croatia. However, due to current harmonisation with the new Co-operatives Act, the exact number for this year remains to be seen. A co-operative as a business model was accepted by farmers, crafts people, engineers and programmers. However, since over 90% of co-operatives regard agriculture, from where this idea originated, this area requires special attention.

FOR PUBLISHER Nikola Baučić +385 1 4846661 uprava@privredni.hr

IMC MANAGER Dea Olup +385 1 5600028 olup@privredni.hr

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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

Is the film industry in Croatia lucrative? Can it become more so in the near future? The Croatian audiovisual industry, both publicly supported and that related to HAVC, is a profitable arena. The export of film services has generated a financial impact (some €13.3 million planned annual revenue) which comfortably exceeds the budget for local film production of cultural value (€4.5 million). We have succeeded in balancing public expenditure and revenue from audiovisual activity, which has not been achieved in any other cultural activity although it used to be possible in the music industry. The audiovisual activities coordinated by HAVC range from commercial with American partners to experimental film production to be presented at the Museum of Contemporary Art (MSU) and the New York-based MoMA. It is not easy to understand the economics of this sector in absolute terms: culture vs. economy, expenditure vs. rev-

enue, public vs. private. We are a hybrid sector where top quality management generates mutual benefits. On the other hand, one has to consider the current situation with television: when a commercial and a public component clash rather than being in harmony, in the situation of misguided management, one is faced with mutual loss. I mentioned experimental film to give an example of something non-commercial. Nevertheless, a film that is shown at MoMA or Tate Modern finally achieves its ‘gallery price’: it becomes elite art where one can again speak of serious economy. In the audiovisual area, profit is usually unexpected. Similarly, one can be ruined by something that appeared to be certain suc-

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( 3.3 million

cinema-goers in Croatia

( target of 5 million cinema-goers in the next few years

VISUAL CENTRE

ANTICIPATED FOREIGN VESTMENT IN CROATIA

C) has become a social networking platform as well as funds. Irrespective of the crisis, we have managed to overcome negative trends

cess, such as for example, a soap opera. We cannot afford to produce poor quality, irrespective of low expenditure it implies. There are too many bankrupt soap opera producers. What is the general public attitude regarding local film production? Confused and prejudiced, yet benevolent. The average audience member usually states something similar to: “This is good, not usual Croatian acting. And it is not the usual war film. The audio quality is not as bad as usual”. It is saturated with 20 year old myths. Poor quality audio ceased some 10 years ago, Croatian actors and actresses are regarded as a top quality brand in

Europe. There are perhaps three war films of some 30 films that have recently been produced. Local films both on television and in cinema theatres is unsatisfactory, particularly regarding documentaries, animated- and shortmotion pictures. Hence, there are absolutely contrasting attitudes amongst the public regarding local film production. To what extent is the general public acquainted with local films? Unfortunately, I can merely state it all depends. If the film is not a big success, with huge commercial potential, any cinema audience is a scarce commodity. Yet the audience will increase using other platforms: TV, DVD, in-

ternet and similar. This year the local film production audience will see an audience of around 270,000 due to ‘The Parade’ (a Croatian co-production), which will account for 7% out of 8% of total attendance, with a below 2% share in overall films. The total audience is below the European average: 3.3 million of a population of over 4 million. We are aiming to increase the viewing audience to 5 million in future years and would like at least half a million people to watch Croatian films. Hence, regarding the former issue, we began the digitalisation of cinema theatres supported by the former government. Regarding the latter issue, the National Council selected an extremely interesting crosssection of all-evening films at the inception: seven film titles for an audience of some 500,000. Since an average cinema ticket is currently €4.5, it implies nearly €2.1 million at cinema box offices. Have the results achieved by HAVC, the central government backed strategic agency for Croatian film and TV production, been satisfactory thus far? I believe I am not in the position to assess that. Nevertheless, I can express my personal satisfaction. I believe the Croatian Audiovisual Centre (HAVC) has become a social networking platform, as well as a medium for the exchange of information and funds. We are assisting Croatia to present its top quality products. Irrespective of the crisis, we have managed to overcome negative trends. I invite those who believe that the public sector is slug-

gish, expensive and ineffective to spend a day with HAVC. One of the priorities of the Croatian Audiovisual Centre (HAVC) and the National Audiovisual Industry Development Programme is to restore large international projects to the local film industry. What progress has been made to date? Tatjana Aćimović, Head of the project, has just completed a one year projection of the potential €16.6 million invested/spent in Croatia during the current year, part of which has been confirmed, whilst part is currently still being negotiated. Are TV companies in compliance with their obligations regarding audiovisual creativity in accordance with the Law on Audiovisual Activities? Following a huge amount of persuasion during 2010 and 2011, it was concluded that they were. RTL has seen a slow-down during the last several months, due to its poor financial situation and HRT has accumulated new debt. Nevertheless, I am certain they will recover in the near future and it will not be necessary to initiate court proceedings. In addition to being obliged to pay a small fraction of their annual income, television companies are entitled to participate in the National Council where the co-operative environment has been considerably enhanced: productions approved by HAVC certainly are of fundamental importance for all those dependant on the production of audiovisual content.

Privredni vjesnik Year V No 0197

( some €6.5 million

generated by medical tourism cluster members

MEDICAL TOURISM

Taking off through structural funds According to data, overnight stays in medical tourism resorts have dropped drastically almost reaching the it 2007 but there are signs of recovery it level of 2002 to 2006 after a highly positive

Goran Šikić edical tourism, both continental and spa, as well as the medical use of the beneficial properties of sea or thalassotherapy, contributes greatly to the extension of the tourism season in Croatia. The Medical Tourism Association at the Croatian Chamber of Economy comprises 14 members, with 12 being specialist hospitals for medical rehabilitation and two medical tourism resorts. It includes the Krapina and Varaždin spas, which have the largest number of beds, employees and visitors. Croatian schemes have the most competitive prices compared with other countries in the region (Austria, Slovakia), particularly regarding medical services. Nevertheless, the most important issue is the absence of

a legislative framework, which would comprehensively and structurally encompass medical tourism activities – health tourism and tourism and catering. Inadequate regulations According to Marcel Medak, Head of Daruvar Spa, a Specialist Hospital for Medical Rehabilitation, the fundamental and most contentious issue is the fact that, in compliance with the current legislative framework, specialist hospitals are not entitled to joint marketing on the market. Nevertheless, they are preparing for the challenges of Croatian EU accession and anticipating future amendments to the legal framework. Medak believes there is huge potential in medical tourism and he pointed out the importance of EU structural funds, which will provide significant support

to institutions in medical tourism. Hence, Daruvar spa is planning a capacity expansion and facility reconstruction over the next decade with an investment value of €20 million and is planning to apply for EU structural funds programmes on 1st July 2013. The planned investment will comprise the construction of new facilities, such as a new hospital infirmary with 140 beds, refurbishment of existing healthcare facilities into elite wellness centres and similar. They are also expecting to provide rehabilitation to top sportsmen, as well as provide infertility cure programmes and wellness services located in historical sites. Medical Tourism Cluster Medical tourism includes partial surgical intervention, dental, cosmetic, psychiatric and alternative treatment, together with all ac-

companying services of care and recovery used by tourists, mainly motivated by lower expenses, the inability for similar treatment in their own country and rapid intervention. Goran Nedoklan, a stomatologist and Head of the Medical Tourism Section at the Croatian Chamber of Economy, pointed out the successful outcome of co-operation between the Medical Tourism Cluster and the Croatian Tourist Board, which has managed to enhance assist in the amendment of several laws. In addition, the Medical Tourism Cluster is currently co-operating with the Tourism Institute, Tourism Ministry and the Croatian Chamber of Economy and working on alternate proposals to the legislative framework and implementation of existing laws regarding tax relief for medical tourism. “Our objective is to contribute to medical tourism in becoming an export industry”, stressed Nedoklan. Hungarian dental tourism revenue stood at €276 million in 2011, whilst in Croatia it was around €13 billion. Around 50 cluster members are currently generating some €6.5 million from medical services, where dental tourism covers 60%, cosmetic surgery, 25%, followed by other services such as orthopaedic and nutritional science. In addition, the cluster is planning to attract an increasing number of third-age tourists (65+), whose need for quality medical services, in synergy with other tourism activities, is most likely to contribute significantly to filling tourism accommodation capacity throughout the year.

www.privredni.hr Business & Finance Weekly

( 972 loans approved ¤1.34 billion in value

Tourism incentives

Strengthening competitiveness Guarantee potential for entrepreneurs increased to €0.27 billion with letter of intent for guarantee issuance valid for six months Sanja Plješa ithin the Loan Programme for the Tourism Sector, 271 loans were approved by the end of the last year for €0.62 billion, with 78 loans totalling €25.5 million were approved within the Loan Programme in preparation of last year’s tourist season. Furthermore, 60 loans, worth €0.17 billion, were approved within the Loan Programme for Financial Restructuring, said Zoran Babić, manager of long-term exports and tourism financing at the Croatian Bank for Reconstruction and Development (HBOR) at the workshop Incentives Programmes for Tourist Sector held at the Croatian Chamber of Economy. Babić pointed out that most loans had been approved within the Loan Programme of Tourism from the past seasons, more specifically 563 loans, totalling

€0.52 billion. Subsequently, since the realisation of the loans from these programmes by the end of the last year, HBOR approved a total of 972 loans worth €1.34 billion. Additionally, HBOR and the Ministry of Tourism are also offering eight programmes for promoting competitiveness in tourism with a total value of €4.3 million. The programmes are intended for the allocation of subsidies and incen-

tives for increasing overall tourism competitiveness through partnership with the public, private and civil sector, said Želimir Kramarić, Deputy Tourism Minister. New guarantee model of HAMAG In order for an entrepreneur to obtain a loan, guarantees are needed as an insurance instrument for use by banks when approving loans. However, certain small

and medium sized entrepreneurs ask for loans for which they do not possess adequate insurance. In such cases, the creditor seeks additional insurance through a guarantee from the Croatian Agency for SME’s (HAMAG). If the HAMAG evaluation of project risk is acceptable, they issue a guarantee to the creditor for that specific loan, pointed out Josip Grgić, HAMAG expert. He also added a new guarantee model would soon be applied according to which the guarantee potential will be increased to €0.27 billion, with the letter of intent valid for six months, will also be introduced. The highest amount of a guarantee issued by HAMAG is 80% of the loan capital or a maximum of €0.2 million. The lowest guarantee percentage is 10% of the loan capital. In addition to tourism, state subsidies will be allocated this year for small and medium sized businesses.

CROATIAN ASSOCIATION OF TOLL MOTORWAY CONCESSIONARIES (HUKA)

More funding, more security Companies managing the Croatian motorway network – Rijeka-Zagreb Motorway (ARZ), Zagreb-Macelj Motorway (AZM), Bina-Istra and Croatian Motorways (HAC) generated €0.28 billion in toll revenue (excluding VAT) in 2011, 4.2% up over 2010. ARZ, Bina-Istra and HAC, companies managing the motorway network of around 1,250 km, saw an increase in toll revenue, whilst AZM showed a decrease. According to data provided by the Croatian Association of Toll Motorways Concessionaries (HUKA), which includes these four companies, in 2011 Croatian

motorways saw 2,366 traffic accidents, 12.1 % down compared with the previous year. There were 31 fatal traffic accidents, 32.6% down over the previous year. Investment in new motorway construction in 2011 stood at €0.24 billion. In addition, the government announced three, four year construction and public road maintenance programmes. It has also announced a new programme for the period from 2013 to 2016 to be completed by the end of this year, as well as a new long-term traffic development plan. Following the first two four year plans of

accelerated and intensified motorway construction in accordance with the programme for the period 2009 and 2012, the completion of motorway sections began in the past on the ZagrebSplit-Dubrovnik motorway, Beli Manastir-Osijek-Bosnia and Herzegovina border, ZagrebSisak and the construction of the full profile of the Istrian ‘Y’ motorway have become priorities. Nevertheless, maintenance and preservation of the already constructed motorway network, as well as quality enhancement and providing new and accompanying services are also of specific importance. Hence, a 5.34

kilometre motorway access road from the Novigrad junction to Netretić, as well as a 1.5 kilometre section between Metković and the Bosnia and Herzegovina border and a 10 kilometre access road Zagvozd-Baška Voda and St. Ilija Tunnel are planned to be open to traffic by the end of this year. (B. O.)

Privredni vjesnik Year V No 0197

CROATIAN FOREIGN CURRENCY MARKET Currency

AUD CAD JPY CHF GBP USD EUR Source: HNB

EUR

Kuna exchange mid-rate

7.535

5,929801 5,792079 7,059181 6,268886 9,23763 5,695712 7,53144

HAAB: €920,000 new deposits daily The significant development of Hypo Alpe-Adria-Bank retail sector has continued with an above average increase in private deposits which stood at €58.8 million at the first quarter. Hypo Bank has attracted a daily average of €920,000 through the 64 working days and the end of March saw €1.596 billion in deposits. The bank has recorded a remarkable growth in retail savings of €163 million or 11.4% year-on-year. Croatia Health Insurance (CZO): 51.5% market share Croatia Health Insurance strengthened its lead position during the first quarter, increasing its market share by 8.2% with the share of its voluntary health insurance on the Croatian market currently standing at 51.5%. Zlatna kuna awards to exporters Zlatna kuna award winners for 2011 are exporters from OsijekBaranja County, investing in new technologies and development and creating new jobs. Harburg-Freudenberger Belišće, a machinery manufacturer, was awarded for results achieved in 2011 in the category of large companies. Strizivojna hrast, in wood production and trade, was the most successful mediumsized company, whilst the company Mono, in IT design area, was the most successful small company.

5.715

24.4.

25.4.

26.4.

CHF

6.275

7.530

5.710

6.270

7.525

5.705

6.265

7.520

5.700

6.260

7.515

5.695

6.255

7.510 23.4.

WEEK APRIL 28, 2012

::: news

USD

27.4.

4.690 23.4.

24.4.

25.4.

26.4.

27.4.

6.250 23.4.

24.4.

25.4.

26.4.

27.4.

BANK LOAN TO WHOM?

Banks would share risk, entrepreneurs want flexibility Banks must be stable and secure, which is why they try to maintain the criteria for achieving this whilst entrepreneurs are interested in justifying the criteria Drago Živković ccording to the latest data provided by the Croatian National Bank, this year loans for the non-financial sector should total around €1.28 billion, 4% more in relation to 2011. While public lending is expected to stagnate, corporate lending should increase by 7.5%. But to which companies? This is a question bankers, entrepreneurs and the state ask themselves. Through the Ministry of Entrepreneurship and Crafts as well as the Croatian Bank for Reconstruction and Development (HBOR), the state offered a set of programmes with the goal of obtaining cheaper financing. The Ministry has recently announced a second round of tenders for allocating non-repayable funds, open until May 21. It is worth mentioning that HBOR, in co-operation with banks, has already transferred almost €0.67 billion into the economy this year. Not discretional Entrepreneurs from the real sector often complain about bank rigidity and orientation towards guarantees in real-estate. The Director of Entrepreneurial Banking on the Zagreb Stock Exchange, Nenad Mećava states that Croatian banks are universal. They are not investment banks, which would mean

they are responsible to their depositors as well as entrepreneurs applying for loans. Banks must be stable and secure, which is why they maintain the criteria to help them achieve these goals. Entrepreneurs are interested in how to moderate these criteria, and the solution offered by Mećava is a combination of a much larger share of capital and a much greater risk distribution. This is the reason the bankers would like the state to participate more in risk distribution, and not only to subsidise interest rates. The risk would also be shared with private investors, so called ‘business angels’, since the bank’s goal is not the decline of an entrepreneur, but to place as much good credit as possible, points our Mećava. Furthermore, the interest rate is not a discretional decision of the bank,

but mainly defined by the market. There are three categories of entrepreneurs to whom loans are only a dream, according to the experience of Tajana Kesić Šapić, Director of the Centre for Entrepreneurship, Innovations and Technological Development at CCE. The first category includes start-ups that banks find uninteresting even when they arrive with an 80% guarantee from HAMAG. The second category refers to entrepreneurs in the process of developing and growing. During the crisis, their profit was decimated by amortisation, which bankers do not take into consideration when they approve loans. The third category are exporters the bankers could help the most, and they should be joined by entrepreneurs which use their production to replace imported products.

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WE PRESENT

VIDEO’D, ZAGREB

MILENA COD PROCESSING AND PRODUCTION, VIŠNJAN

Pure pleasure for the palate Promotion close to hand The idea for the project was created in a gap between reducing costs of video production and more possibilities for posting online videos he work of Video’d which started in April, is that of a typical online video. After the video is made and at the client request, staff distribute it on all global services, for example YouTube or Vimeo, or any social network as well as the most popular Croatian portals. The idea for the project was created in a gap between reducing costs of video production and increasing the possibilities for posting online videos. The founders of the company combine the acquired know-how in PR and marketing with trends in online video production. It is worth pointing out that one of the global trends is the growth of online production, which the figures confirm. In the US, over 40 billion online videos were streamed and watched in January. The director of Video’d, Grgomir Garić, points out their products and services are intended for everyone. The idea is that everyone wishing to invest in personal promotion receives an attractive and complete service they can use to promote their product in a simple way and at a reasonable price. Clients can post their video on their website, Facebook group or send the link to their users and partners who can easily embed it in their own website and continue sharing. The client has the freedom to set the dura-

tion of the campaign within a limitless period of time since online video is constantly present, and depending on the package of choice, a client can also receive information on viewing ratings, he explains. In addition to the two co-founders, ten other associates work on the project. Garić highlights this is a service, not a production, which is why they did not apply for nor did they expect any kind of financial support from state or banks. However, we do expect state institutions to be open towards all private op-

The founders of the company combine the acquired know-how in PR and marketing with trends in online video production erators in the field of marketing communications and help many similar projects to come to life and create new jobs, Says Garić. Since the studio’s business model is regional in character, they plan to create a network of regional partners based on the turnkey principle. Finally, Garić stresses the studio has no intention of dealing with TV production, but exclusively online video production. (B.O.)

The first rst mi micro-business icr cro o-b bu business bu in Istria to obtain nonrepayable funds from the IPARD programme invested in new plant for cod processing and production tarting in 1986, Milena was opened - a family tavern near Višnjan. The specialty of the tavern was cod à la white. The increasing demand for this dish motivated the owning family to produce cod and distribute it on a large-scale. They built their first processing plant in 1996 and took their product to the market. As demand increased, they gradually expanded their cod product line. “In October 2006, we introduced a HACCP system, increasing customer satisfaction and five years later we built a state-of-the-art processing plant in accordance with the strictest European standards. As a result, we are able to export our products to new markets”, said Aleksandar Stefanov, owner of Milena. At the start, they produced cod à la white in bulk. Their ongoing research and desire to offer something new gradually led them to increase their product line. They enriched the dish with new flavours, creating new products: Cod Pikantino (with chilli and red paprika), Cod Oliveto (with olives and olive oil) and Cod Tartufino (with black truffles). Two years ago they added a new product to their existing specialties – Cod Sugo (cod sauce).

Customer satisfaction vital Today, Milena divide their prod-

ucts into HoReCa and Gourmet lines, packed in a controlled atmosphere. The family business is a combination of love for the exquisite Norwegian fish as well

Their on-going research and desire to offer something new gradually led them to increase their product line as the local cuisine of Istria. They are proud of the hard work they do and everything that has been achieved. “Customer satisfaction is extremely important to us in addition to continuous research into different ways of preparing cod in traditional cuisine”, pointed out Stefanov. They have recently opened a new processing and production plant, investing €0.23 million, of which 50% were obtained from pre-accession IPARD funds. This is the first Istrian micro-business to receive non-repayable funds from this programme. The new plant covers an area of 300m2, meeting all European standards. Furthermore, Milena has also received an EU export number that will enable them to sell their products on international markets and create new jobs in the near future. (S.P.)

8 ::: news Ministry of Tourism introduces e-consultations The Ministry of Tourism has initiated a project called e-Consultations for the purpose of motivating the public to send suggestions, ideas and opinions on ministry projects as well as their active participation in the process of preparing proposals for amendments to legislative acts. All interested parties are invited to send their proposals for amendments to the Provision of Tourism Services Act by May 15 at savjetovanje@mint. hr, and their proposals for Tourism Boards and Croatian Tourism Promotion Act by September 15.

Privredni vjesnik Year V No 0197

INDIGENOUS VINE VARIETIES

Škrlet becomes a brand

Croatia – champion of Austrian tour-operators

At the recently held 52nd conference in Vienna, Austrian touroperator associations and travel agencies (ÖRV) presented their results for 2011 showing Croatia is the leading tourist destination based on its 18% tourism turnover increase compared with 2010. On the other hand, the economic crisis caused a steep fall in the turnover of competitors - Egypt, Tunisia and Spain. According to the announcement at the conference, the ÖRV’s autumn conference will be held on Berlin, a cruiser that will sail from Venice to Dubrovnik. Hotel Lone tops list of top hotels

In the May edition of the American magazine Conde Nast Traveler, Hotel Lone, a member of Maistra (a tourism company from Rovinj), ranks 25 on the Hot List 2012, which includes 121 top new hotels of this year.

There are 29 registered wine producers in Sisak and Moslavina and the entire area is known for škrlet Sanja Plješa partnership agreement has been recently signed between the County of Sisak and Moslavina and the Wine Road of Moslavina Association (Moslavačka vinska cesta) with the aim of promoting škrlet as an indigenous wine variety cultivated only in the County. Sisak, Kutina, Petrinja, Glina, Popovača Borrough as well as the Croatian Chamber of Economy (Sisak County Chamber) and the Chamber of Crafts of this region and finally all local wine producers’ associations participated on the project. There are 29 registered wine producers in the area, which is known for škrlet, cultivated only in pure vineyards. For the purpose of branding, they protected the variety with the ‘Originally Croatian’ label as well as traditional craft products label. They are also working on visual identity, promoting škrlet’s originality and quality, its better positioning on the local and international market.

Škrlet vine certification During the past six years, the county invested €0.64 million

for raising permanent vineyards; 113 hectares of new vineyards have been planted, including 57 hectares of škrlet. Actually, the entire area has a total of 500 hectares of vineyards. According to the present agreement on longterm science-expert co-operation on the cultivation of white škrlet,

of presenting the first certified škrlet vines on the market, the county has continued co-operating with the Faculty of Agronomy in clone selection. Twelve clone candidates will be gradually reproduced in virus-free backgrounds on which larger test land areas will be cultivated. Of-

between the County and the Faculty of Agronomy in Zagreb, 80 clone candidates of white škrlet will be tested between 2010 and 2014. The purpose of the testing is to learn about their positive and negative characteristics. The agreement was worth €107,000 at the beginning, and the County of Sisak and Moslavina participated with 50%. With the aim

ficial testing and registration of several superior clones should be performed by the end of this period. Another €0.16 million should be invested for the project to be able to continue until 2014, and the county will set aside €98,000. The County has invested almost €0.13 million to date in the promotion of vineyards and wine production.