Josip Boban, AD Plastik Personal gain at the expense of the company is unacceptable. We have business model our employees align with
Eco-energy Agrokor has obtained a loan through the EIB and opened the first biogas power plant worth HRK55 million
Insurance in the first seven months Non-life insurance premium slightly exceeds HRK4.26 billion and life insurance stands at HRK1.36 billion
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Croatian Business & Finance Weekly Established in 1953 Monday / 27th August / 2012 Year V / No 0210 www.privredni.hr
S U P P O R T E D
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pvinternational pv international C R O A T I A N
C H A M B E R
O F
E C O N O M Y
CROATIA COULD GET A HIGHWAY AFTER ALL
Čačić: Realisation of the South Stream does not depend only on Croatia When the construction is finished, Croatia could obtain tens of millions Euros a year as compensation for gas transit. However, the EU is somewhat reserved about the Russian energy influence Igor Vukić he construction of the South Stream gas pipeline is potentially the most lucrative project of this type for Croatia, stated Radimir Čačić, the first Government Vice-President. He did also add the previous Government had refused to participate in this project. Notwithstanding, Čačić admitted the interest of the EU, Russia and other countries overlap in terms of this issue. Therefore, the future section of the pipeline used to supply the Russian gas with to the Central Europe, bypassing the Ukraine, does not depend only on what Croatia wants. Čačić confirmed he had a discussion with the representatives of the Russian government and the managers of the gas company Gazprom about Croatia’s more intensive participation in this project. The Government of Jadranka Kosor had renewed its interest, but in that period Croatia was offered only one section of the gas pipeline, while the highway was supposed to go through Hungary to Austria. The present Government is showing signs Croatia could obtain this highway section. In that case, it would benefit twice. Local contractors would be hired
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for the construction of the gas pipeline that would supply to Europe 30 billion m³ a year. During the past ten years local companies have gained extensive experience, building around 1000 kilometres long pipeline in Croatia. Čačić estimates the investment in the South Stream through Croatia at €600 million. After the construction, Croatia could earn tens of millions Euros as compensation for the gas transit. Entry point near Vukovar According to the last unofficial information, the South Stream highway pipeline would enter Croatia near Vukovar, then continue from Osijek to Virovitica along the Hungarian border towards Mursko Središće and
Slovenia. If the plan is realised, then the recently finished gas junction between Croatia and Hungary near Donji Miholjac would pay off. The junction has the capacity of 6.5 billion cubic metres of gas. It is obviously too big for the gas supply from Hungary since Croatia imports around 1.2 billion cubic metres a year. However, this junction would prove to be excellent solution for supplying the Hungarian consumers from the South Stream from Croatia. Some gas experts believed Gazprom did not want to pass through Croatia via the highway gas pipeline since there is not as much consumers as in Hungary. The section along the Hungarian border would solve this problem, and the pipeline would reach
Austria and Italy via a shorter route, which the investors find extremely important. We will have to wait for the final decision. Even though EU countries participate in the project, mainly Italy, the EU is reserved when it comes to the Russian energy influence and asks for all European trade regulations to be followed when signing the contract. Some countries on the potential section, such as Bulgaria or Hungary, are tactical. They accept and then refuse to have the gas pipeline go through their territory. Čačić believes this time Croatia showed the Russian partners it will do what it takes to be a part of this project. This could also influence the decision regarding the directions of the construction.
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Privredni vjesnik Year V No 210
Željko Bročilović-Carlos, Manager, Dubravkin Put Restaurant, Zagreb
Ample advantages of local varieties Croatian wine producers have excessively focused on top-quality wine production, neglecting most widely consumed wine varieties
The sommelier scene in Croatia is insignificant and it mainly implies best Croatian restaurants. Croatia lacks quality trained sommeliers. Nevertheless, the current situation is not surprising against a backdrop of the current economic circumstances in Croatia. The job of a sommelier noticeably exceeds providing restaurant reviews. Hence, sommeliers need to focus on their education and training, as well as acquiring knowledge and relevant information in order to achieve excellence at work. The quality of Croatian wines has been significantly improving during the last ten years, yet improvement is imperative in all segments. In my opinion, Croatian wine producers have excessively focused on top-quality wine production, neglecting most widely consumed wine varieties. I believe Croatian wine producIMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
ers will be successful with local wine varieties. However, Croatian wine positioning in the global market has taken a slightly wrong direction. We need to decide whether we will opt for positioning by lobbying to enter wine maps or by producing top-quality wines which will be recognised and recommended by reputable professionals from the world of wine. Wine positioning by friendly recommendation or by lobbying is only short-term. Croatian wine prices will be reconsidered following the Croatian EU accession. Consequently, wine prices will certainly be highly affected by the penetration of global wine varieties on the Croatian market and by a revival on oenological and gastro scene, irrespective of the fact that Croatia is a country with high contributions and taxes. In addition, impartial and educated oenology and gastro critics providing an objective assessment of wines and the cuisine will noticeably gain in importance. Local wine varieties are an extremely important advantage which needs to be explored. In my opinion, Croatian wine producers have achieved high results in wine production. They have mastered quality wine production, have been trained by well-known oenologists and have a high quality product to offer globally. On the other hand, Croatian wine growing is lagging behind and there is ample room for improvement. We need to focus on regional wines and invest in recognisability of Croatian wine regions.
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
( 65 million litres
registered wine turnover in Croatia
WINE INDUSTRY
The best o internationa
Wine is slowly turning into an international product It is estimated the demand for premium wines with Jozo Vrdoljak roatian vineyards take up only 0.35% surface of global vineyards. According to the records of ARKOD, the land parcel identification system, 20,800 hectares of vineyards was planted. On the other hand, the Central Bureau for Statistics recorded around 32,000 hectares. There are 1151 wine producers in Croatia and another 83 producers of grape and wine products. We have 99 wine exporters and 96 importers of wine and fruit wines. There are 1005 producers with 3499 protected wines in the protection designation of origin system. The annual turnover is 65 million litres, where the share of the supreme wines is slightly below 5%, quality wine around 60%, while the share of table wines equals 35% in total turnover. Croatia imports around 15 million litres of wine and exports around 3 million litres a year, where 40% of wine is exported to Bosnia and Herzegovina. The problem is that a large number of producers own under one hectare of land and official statistics are not harmonised. There is a big difference in the quantities of the produced wine and the quantity of the wine placed on the market. In 2010, 552,362 hectolitres of wine was produced, and on October 30 the wine supplies exceeded one million hectolitres. Furthermore, Croatia lacks regulations for reducing the wine
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supplies, whereas the EU stimulates vineyard clearing. Positioning strategy The president of the association Pelješki vinski puti Mato ViolićMatuško believes the potential of the Croatian wines is underused on the foreign market, and if we want to do something serious about it, we have to approach the foreign market, with the Government’s help, with the best wines we have. We will not succeed if we favour certain wines that will not draw the attention of world wine experts in terms of price or quality. We have to offer what they are missing, and I dare say we have at least 30 brands that would impress top wine experts, pointed out Matijaško. Our wine producers joined forces for the main purpose of rais-
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( 1005 producers with 3499 protected wines in the protection designation of origin system
of Croatia for the al market
t with strong exchange on the global market. specific regional identity will grow
ing the level of individuality of Croatia as a wine country. They are also supported by the Croatian Chamber of Economy and several ministries that invest substantial means for this purpose, and so the Ministry of Agriculture has recently invested slightly less than HRK4 million for wine branding. The Viniculture Association of the CCE wants to focus on three types of markets. In the short-run we are focused on our neighbours and countries whose tourists visit Croatia. The other group consists of slightly remote markets – markets that build the image of wine, like Great Britain, the Scandinavian countries and Benelux. The third market refers to remote markets and they pay out the most in the long run, like the USA, Russia, Canada, Japan and China.
Vice-President of the Viniculture Association believes that if we want to enter these markets it will be necessary to follow the example of Australia, New Zealand, California and Chile. Their wine producers succeeded because they worked together. Their public and private sector, as well as small-sized and big-sized producers joined forces. However, there are still no visible results, and some wine producers believe it is necessary to question the initial strategy of the sub-brands of Malvasia, Grasevina and Plavac Mali, since he fears certain individuals could use the Association for self-promotion. They might also be right in terms of wine varieties since this year’s regional champion is Pošip, Zlatan otok, which is one of our greatest successes achieved at the Decanter Trophy.
World brands and Slovenian model Wine is slowly turning into an international product with a strong exchange on the global market. It is estimated the demand for premium wines with specific regional identity will grow. The decision to buy and the price of wine will mainly depend on the ability of recognising its characteristics. These trends have been confirmed by Slovenia that managed to establish itself on the international market. Its best known wine producers were included in wine lists a long time ago. Additionally, some Slovenian big-sized wine producers as well as small-sized ones founded their place on the market of sparkling wines. The success of the Slovenian wine producers is not
accidental. We invested in new technologies and expert planting before the Croatian wine producers decided to do the same. We followed the global trends, applied them and tried not to become a copy of the present global hits. We preserved our individuality. Small countries like Slovenia and Croatia cannot afford the luxury of offering average wines. We, in Vinag, decided to offer our best, which is a sparkling wine produced from the grapes by a classic method. I believe Croatia must base its export strategy on Dingač Plavac Mali and Babić. Besides these wines, there are also several producers of Grasevina – wines of great quality, but without good marketing. The problem of Croatia as a wine country is that the official offer includes wines I would compare with shooting stars – they appear intensely, but they fall down quickly, pointed out Mateja Štabuc, Sales and Marketing Director of Vinag from Maribor. Mateja Štabuc is completely right since we witnessed how Croatian journalists discovered the London Wine Fair when Russian entrepreneur Dimitrij Železnak took them to a promotion of the first Croatian premium vodka Akvinta, after which they urged the Croatian wine producers to participate at this fair.
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Privredni vjesnik Year V No 210
( €30 million
to be invested by AD Plastik by mid-2013
( €18 million
to be invested in Croatia
Josip Boban, Supervisory Board President, AD Plastik, Solin
Croatian elites living in an imaginary world Personal gain at the expense of the company is unacceptable. We have adopted a business model our employees align with Are you worried about the future of your company? AD Plastik has contracts for all new models over the next five years. We will continue investing in production and employee training and I am not concerned about losing markets. There is no unique formula for success – commitment to work and clear business goals are imperative. Personal gain at the expense of the company is unacceptable. We have adopted a business model our employees align with. Our employees own around 20% of the company. Private Russian companies own 30%, 10% is owned by Croatian funds and the remainder is owned by small shareholders. This ownership structure enables mutual supervision which ensures fair business practices.
Jozo Vrdoljak D Plastik, this year’s Zlatna kuna award winner, has already won this award four times. Josip Boban, its long-term Management Board President, resigned from this position as planned to become Supervisory Board President. Privredni vjesnik talked with Josip Boban about company plans and business activity in the near term, as well as about the current situation on the global automotive industry market. Boban commented on the current business conditions in Croatia and in the countries where AD Plastik facilities for production of car parts and automotive equipment solutions are located.
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Where are AD Plastik facilities located? In addition to Croatia, our facilities are located in Serbia, Romania, Slovenia and Russia. We are planning further expansion in Croatia, in Solin facility, as well as the construction of a new production line in Zagreb. What is your opinion of last fiscal year and of the first half of the current fiscal year? 2011 was successful and we achieved excellent results. This year automotive industry has been severely affected by the crisis in Western Europe. Our production of car parts and equipment for Renault and Peugeot has also seen adverse impact of the crisis, with the exception of orders placed by Dacia and Re-
nault models produced in Russia where we have stable orders. Our production in Croatia has dropped by around 10%. Nevertheless, it will not significantly impact on our company results, as we have substantially slashed all our expenses. In addition, we agreed with our customers we would not cut prices, since the quantity of delivered products has remained stable. We have also had to lay off staff. How much do you invest in research and expansion? AD Plastic Group production has been increasing at an annual rate
of around 15%, indicating significant expansion and hence copious investment. Ample investment in development, expansion and new technology is fundamental in automotive industry, since new models continuously appear on the market. We are planning to invest €30 million by mid-2013, with investment in Croatia worth €18 million. We are investing in a new paint shop and in the expansion of capacity in both Solin and Zagreb. We are planning to invest €12 million in Russia where we are expanding capacity in two production lines and we are also planning some minor investment in Serbia.
How attractive is Croatia for investors? Croatia is not attractive for investors. Croatian market is small and in addition our workforce is not motivated and it is overly expensive. Nevertheless, I believe our main problem in attracting investors is our lack of development strategy which results in irregular investment. In addition, other countries, where investment could originate from, have been affected by the crisis as well. It has to be highlighted that both Croatian general public and Croatian elites live in an imaginary world, constantly expecting positive developments without any initiative to take action.
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Eco-energy
THE FIRST BIO-ENERGY POWER PLANT Agrokor has obtained a loan through the European Investment Bank and opened the first biogas power plant worth HRK55 million Krešimir Sočković he first Agrokor biogas power plant has been opened in Gradec near Vrbovec, due to the co-operation between Agrokor and the Slovenia-based company GH Holding and a €5 million loan obtained through the European Bank for Reconstruction and Development. In addition, this investment indicates the commencement of renewable method of production of electrical and thermal energy by Agrokor, the largest Croatian company. The investment value of the Gradec project, comprising of two farms and a biogas power plant, is HRK170 million. The biogas power plant located in Gradec indicates the most acceptable disposal of different raw organic material generating three products: organic fertiliser, thermal and electrical energy. The Gradec-based power plant uses pig manure as the main raw material for biogas production, comprising around
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65% of the total raw materials, whereas the remaining raw materials are purchased from subcontractors involved in different aspects of food processing. It is a 1 megawatt power plant and it will operate 8,000 hours per year generating 8,000 megawatt-hours of electrical and 9,000 megawatt-hours of thermal energy. Thermal energy will be used for the heating of fermentors, the heating of dwellings on farms Gradec I and Gradec II, as well as for the drying of digestate used as a firstclass organic fertiliser replacing mineral fertilisers.
Investment – a way out of the crisis Herman Seidl, Director of Agrokor-energy, pointed out the fact that this biogas power plant indicates that targeted investment in modern technology is in accordance with the directives of the European Commission which are aiming to set standards concerning sustainability and care for the future. “Agrokor Energy has become a player on global energy scene due to this project, as it is not only planning to construct bio-energy power plants to meet our own needs, but it is also aiming to provide comprehensive
solutions and maximum comfort within the shortest time frame at considerably low rates”, emphasised Seidl. Mislav Galić, Executive VicePresident of Agrokor conglomerate highlighted that the company has been investing noticeably and this is just a fraction of the ongoing investment. “Croatia has been affected by the recession for four years and she will have to face severe competition on the European market in the near future. We in Agrokor believe investment to be the only way out of the crisis”, stressed Galić.
The Croatian National Bank
€11.6 billion of international reserves In relation to July 2011, the international reserves went up by HRK3.6 billion. In relation to the end of the last year, they increased by almost HRK3 billion ccording to the preliminary data provided by the Croatian National Bank, its total assets registered a mild fall in July in relation to June. At the end of July the bank’s assets totalled HRK87.28 billion, where foreign assets totalled HRK87.27 billion or €11.6 billion, which is HRK115 million or 0.1% less in relation to the end of June. Although the international reserves have been reducing since May, they remain on a higher level in relation to the same period of 2011. In relation to July 2011, the international reserves went up by HRK3.6 billion or 4.3%, where the kuna value was affected by its
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weaker value against euro (0.9%) and dollar (17.4%). In relation to the end of the last year, they registered an increase of almost
HRK3 billion (3.5%), where the biggest increase was registered in April, which is probably the result of buying and selling ac-
tivities between the central bank and the state after the issuing of Eurobond ($1.5 billion). In addition to buying foreign currency from the state after the issuing of €764 million of treasury bills in February, this had compensated by several times the reduction of international reserves on account of four foreign currency interventions worth €724 million during the first half of this year. In April, the international reserves reached the highest level of this year (93.9 billion), after which they started to reduce primarily as a consequence of the decreasing term deposits in foreign banks.
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Privredni vjesnik Year V No 210
CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
7.50
6,213665 6,018926 7,608647 6,237468 9,470163 5,974754 7,489952
6.04
21.8.
22.8.
23.8.
24.8.
CHF
6.25
7.49
6.02
6.24
7.48
6.00
6.23
7.47
5.98
6.22
7.46
5.96
6.21
7.45 20.8.
WEEK AUGUST 25, 2012
::: news
USD
5.94 20.8.
21.8.
22.8.
23.8.
24.8.
6.20 20.8.
21.8.
22.8.
23.8.
24.8.
INSURANCE IN THE FIRST SEVEN MONTHS
Unemployment increases in July Unemployment has increased again, following four months of decreasing unemployment rate month-on-month. According to the data provided by the Croatian Bureau of Statistics, unemployment rate has risen to 17.5%, whereas in June it stood at 17.3%. Increasing unemployment rate is due to a growing number of the unemployed which is partly due to scarce seasonal employment. Building society profits rise Five building societies operating on the Croatian market have shown HRK38.35 million pretax profit during the first six months this year, which is almost two-and-a-half times up over the same period last year. According to the data provided by the Croatian National Bank, Prva Stambena Štedionica (Building Society), a member of Zagrebačka Banka Group, generated HRK16.3 million. It was followed by Wustenröt Building Society with HRK11.09 million, PBZ Building Society with HRK11.08 million and HPB Building Society with a profit of HRK3.94 million. Average nett salary decreases In June 2012 average nett salary per employee in Croatia stood at HRK5,492, according to the data released by the Croatian Bureau of Statistics. It was HRK37 down or around 0.7% down in nominal terms compared with average nett salary in May 2012. Nett salaries have dropped slightly year-on-year and in relation to June 2011, since average nett salary in June 2012 was HRK6 down or around 0.1% in nominal terms.
Gross written premium of HRK5.6 billion Non-life insurance premium slightly exceeds HRK4.26 billion, whereas in life insurance segment it currently stands at HRK1.36 billion ccording to cumulative data of the Croatian Insurance Bureau, gross written premium in 27 companies stood at HRK5.6 billion in the first seven months of 2012, which is a 1% decrease year-onyear.
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Non-life insurance Gross written premium in nonlife insurance segment, which accounts for 75.81% of the total premium, slightly exceeds HRK4.26 billion, indicating a 2% decrease in relation to the same period last year. The most common type of insurance is currently third party liability insurance for motor vehicles with gross written premium standing at HRK1.8 billion.
Gross written premium in this insurance segment has seen an increase of 1.1% and it comprises 42.39% of non-life insurance and 32.13% in gross written premium. The premium in mandatory third party liability insurance for motor vehicles has risen 1.1%, currently standing at HRK1.79 billion. Life insurance Gross written premium in life insurance totalled HRK1.36 billion or 2.2% up over last year. Life insurance accounts for 24.19% in the total premium. According to the structure, the most common is classical life insurance with a premium of HRK1.17 billion, which has increased 2.2% yearon-year, accounting for 86.44%
in life insurance segment and 20.91% in the total premium. It is followed by supplemental life insurance with gross written premium of HRK94.45 million, comprising 1.68% of the total premium and indicating an increase of 4.8% over the same period last year; life or annuity insurance where the insured undertakes investment risk with written premium of HRK80.24 million, accounting for 1.43% in the total premium and decreasing by 0.8%; annuity insurance with gross written premium of HRK5.2 million, falling 2.7%; and wedding and birth insurance with gross written premium of HRK4.61 million, down by 6.4% compared with the same period last year. (V.A.)
www.privredni.hr Business & Finance Weekly
WE PRESENT
RES IMMOBILES, VUKOVAR
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ARHIDOM, SPLIT
Local authors to the taste of foreign investors Turn towards a bigger market
The project of the breakwater, new waterfront and office building in Maslinica on the Island of Šolta was executed in its entirety by a company located in the County of Split and Dalmatia that used local materials
The company from Vukovar uses stronger marketing to maintain its position as one of the leading producers of PVC works in Croatia and the region uring these crisis time Res Immobiles wants to increase marketing activities and participate more at specialised local and foreign showrooms to maintain its position as one of the leading producers of PVC works in Croatia and the region. Founded in 1996 and specialising exclusively in projects for small households and renovations, Res Immobiles transformed from a small plant with five employees into a respectable company with 70 workers owing to constant investment in new technology and workers. Their effort to use their personal brand, diversity and individuality on the market has recently yielded results.
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The company turned to the construction sector of the European Union during the crisis In 2004, the company expended its business, opened another department, dealing exclusively with construction, and doubled the number of employees. They worked on a series of residential, public, production and other type of facilities, and in 2008 they signed a contract with one of the biggest supermarket chains in Croatia and equipped their stores in the country and abroad. This business move required investing in new machinery, trained staff and expansion of the work place. This was the reason the company moved in early 2010 from the
entrepreneurial zone Priljevo to the Economic Zone where they invested HRK15 million. In the previous facility we were unable to expand, but now we are operating on the production floor of 6000 m², working with state-ofthe-art machinery that enables us to produce up to 70 pieces of decorative PVC panels, says the company’s owner and director Zoran Hrgović. High standards Notwithstanding, in 2011 they terminated their cooperation with the supermarket chain in Croatia and they were forced to downsize. However, Res Immobiles started to produce decorative PVC panels, completing the production process regarding the export to Serbia, Bosnia and Herzegovina, Austria and other countries. During the crisis times, the company turned towards the construction sector of the European Union. We own big production capacities and know-how and we are able to satisfy even the most demanding clients. It is completely normal the Croatia’s accession will have positive and negative consequences. I believe it will bring more benefit and security. It will require more investing into the modernisation of production, product and services quality, environmental protection, all of which are also EU standards. However, entrepreneurs and the society as a whole will benefit from this, Hrgović thinks. (G.G.)
n an extremely difficult situation for the construction and architecture sector, that the crisis has evidently hit the most, it is a great achievement to win the CEMEX award, especially for an infrastructural building. This year the award went to Arhidom from Split and its owner and director, architect Davor Hauptmann. He won the award for the Construction project of the breakwater, new waterfront with an amphitheatre as well as office building in Maslinica on the Island of Šolta, which was selected as the best execution and architectural solution in the category of infrastructural building. During the planning of the breakwater, new waterfront and office building they had to preserve the appearance of the Martinis Marchi Castle. Hauptmann based its solution on the behaviour of the wave that fits perfectly in the planned project atmosphere. Special attention was paid to the selection of eco-materials that were fitted into the building.
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Demanding project We had to reconstruct the promenade and the waterfront in front of the Martinis Marchi Castle as well as expand the promenade area in the western part. This created additional 120 metres of the new waterfront with vegetation
and a 8.5 metre wide promenade. We constructed an amphitheatre for various cultural events. It was especially difficult to fit the reception in, that is, the office building which would function as a nautical port that would include sanitary facilities, café and office space. The breakwater was planned for vessels, sport boats and mega-yachts in the outer part as well as tourist boats that pass during the entire year. The entire
Davor Hauptmann won the CEMEX award for the project of infrastructural building project was executed by a company located in the County of Split and Dalmatia that used local materials. There is a general belief that only foreign creators can pull of demanding projects and that young people can create something only if they live outside Split, Dalmatia or Croatia. This case is special since the foreign investor selected local people to executed the project since they regard it as part of a professional culture, which means this project can be used as an example, points out Hauptmann. (J.V.)
8 ::: news Pašman Resort in construction The construction of Pašman Resort is finally scheduled for execution after eight years of preparations. The project is worth between €600 and €700 million, making it one of the biggest tourist investments on the Adriatic Coast. This project has been recently presented at the international showroom Expo Italian Real Estate in Milan. The plan for 2013 is to find another investor that would build an entire tourist town on Pašman consisting of 5000 beds, extra hotels, villas and berths. The project is to be divided into several phases and the construction will take place on attractive locations in the two lagoons in the southern part of the Island of Pašman. The entire tourist complex should be finished in five to seven years. Uniline introduce new services The tourism company Uniline has recently introduced leasing services for all types of vessels. The fleet consists of over 1700 boats, and the interested tourists are able to charter sailing boats, catamarans and motor boats. The lease of these vessels will be offered according to the real-time leasing system. This is a simple model of booking boats according to the location and the desired period. It takes only several minutes to book a vessel via internet. Renaissance Festival in Koprivnica The traditional tourist, historical and educational event the Renaissance Festival will take place between August 30 and September 3 in Koprivnica. This is a spectacle of “live images” from the past of this part of Europe, and it is based on historical facts. Most of the content will relate to the 15th and 16th century, when the renaissance fortifications were built.
Privredni vjesnik Year V No 210
MEDICAL TOURISM DEVELOPMENT IN BIOGRAD
A tiny step away from brand creation A centre for rehabilitation and regenerative medicine will open at the Hotel Adria by the end of 2012 providing a unique health and medical programme based on MBST method Sanja Plješa he Biograd-based Hotel Adria will invest €3 million for the construction of 60 new rooms and of a medical centre, unique in Croatia, to expand its accommodation capacity and services. It is the sixth largest investment in tourism this year. The Hotel is planning to open a centre for rehabilitation and regenerative medicine in accordance with a unique health and medical programme based on MBST method (nuclear magnetic resonance therapy). This method enhances cartilage regeneration and bone formation, as well as skin regeneration using nuclear magnetic resonance.
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Medical tourism as a brand “Similar programmes are mainly intended for sportsmen and enable their rapid recovery during preparations for sports competitions, as well as following long training sessions and exhausting sports performances. Nevertheless, they will be provided also to people interested in prevention or cure of illnesses such as osteoporosis, osteoarthritis, rheumatoid arthritis, renal osteodystrophy (chronic kidney disease), chronic back pain and other bone and joint disorders”, stated Marko Mijić, Director of Hotel Adria. He added that he is planning to apply for hotel reclassification as a four-star hotel, following this expansion of accommodation capacity and services. Medical tourism programmes are one of the fastest growing segments of global tourism industry and hence Hotel Adria has opted for it in order to expand its services. Biograd is a city with copi-
ous potential for medical tourism development, as pointed out by Mijić who added that the development of this segment of tourism industry needs to be fostered to brand the city as a recognisable medical tourist destination. “This optimism is due to several reasons and primarily due to quality work and professionalism of health and medical staff, as well as due to acceptable fees for health and medical services which are noticeably lower than in more developed countries, whereas the services provided are on par with them”, stressed Mijić. Tourism comprising of all services Hotel Adria can be positioned as one of the leading hotels and health and medical centres in broad Dalmatian area, which will foster tourism and expand the tourist season, according to Mijić. Nevertheless, tourists visiting the country during the peak season, mainly from Slovenia, Germany, Austria, France, The Czech Republic and Slovakia, need to be given appropriate attention. “Foreign tourists opt for
Hotel Adria, since we focus on family tourism with all inclusive packages. In addition, Bio-
All our efforts are directed towards finding an international business partner, Ivan Šulog points out grad abounds in a large number of cultural, entertainment and gastronomic events. Biograd has become synonymous with quality tourism, due to a high degree of co-operation between Biograd Tourist Board and the local government with tourism and catering companies, which will certainly positively impact on its further development and potential”, opined Mijić. He added that tourism needs to comprise of all services which implies that investment in economic activities requires thorough monitoring of work quality in trade, small catering facilities, the utilities sector, as well as in other activities.