Interview: Meng Yan China approved a $10 billion loan for projects in 16 countries of Southeast and Central Europe, including Croatia
Croatian exporters Exporters are demanding government assistance in acquiring references in the local market
The Čepin Oil Factory The sole Croatian factory for the primary processing of edible oil has re-launched production
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Croatian Business & Finance Weekly Established in 1953 Monday / 15th October / 2012 Year V / No 0217 www.privredni.hr
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EXPO REAL MÜNCHEN 2012
Values will rise
A highly educated, professional workforce, a developed business infrastructure and a high quality of life make Croatia attractive as an entry point to European and global markets for foreign investors Drago Živković he deep financial crisis affecting many European countries, has had an extremely adverse impact on the real estate market, according to statistics. Nevertheless, Expo Real Műnchen 2012, the 15th International Trade Fair for Commercial Property and Investment, has provided a completely different picture. This year’s fair, with 1,700 exhibitors from 31 countries, is considerably larger compared with last year, indicating that both investors and real estate buyers are still ‘alive’. Many products were presented with the project ‘New Moscow’ particularly prominent. The project relates to the building of a new administrative centre for the Russian state covering an area of 1,500 km2 on the outskirts of Moscow. Croatian exhibitors managed to attract considerable attention during the fair, even in the face of fierce competition and Eugen Egetenmeier, Managing Director of Expo Real München, specifically highlighted this at the press conference. The Croatian Chamber of Economy (HGK) adopted the concept behind the Milan-based Expo Italia Real Estate again. In addition to the ‘Be CROative’ exhibition, organised for the first time dur-
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ing the Munich Tourism Fair 2007, there was a presentation of investment projects (Invest in Croatia), as well as an exhibition stand of the Real Estate Business Association in the Croatian Chamber of Economy. Vesna Trnokop Tanta, Vice- President of HGK, pointed out that Germany ranks third amongst investors in Croatia and expressed her sincere hope that the level of investment will increase following Croatian EU accession. Miro Kovač, Croatian Ambassador to Germany, expressed his sincere hope that German investors will recognise the high potential of
the projects presented, as inward investment is of fundamental importance for the development of Croatian economy. Competitive pricing Silva Stipić Kobali, Director of Investment Promotion Centre in HGK, presented some 20 investment projects at different stages of development, with a total value exceeding €3 billion to Croatian German partners, a crosssection of some 100 projects included in the HGK Investment Project Catalogue with a total value exceeding €6 billion. A highly educated, professional
workforce, a developed business infrastructure and a high quality of life make Croatia attractive as an entry point to European and global markets for foreign investors, as well as favourable terms and conditions in addition to incentives for all those interested in doing business in Croatia. Dubravko Ranilović, President of Real Estate Association, presented the current state of the real estate market, focusing on the downward trends and the polarisation of prices. He stated Croatia is one of the few countries whose cultural heritage, tradition and preservation of nature deliver substantial added value to real estate investors. Ranilović believes that prices are competitive, explaining to Privredni vjesnik that prices in Dubrovnik, Opatija and Zagreb were significantly higher than real estate prices in rural areas, primarily those for agricultural land, which are extremely wellpriced for foreign investors. According to Ranilović, Croatian EU accession will not dramatically affect the real estate market, since the current crisis has inevitably resulted in price polarisation. Nevertheless, he believes that high value property will see a substantial increase in value, whereas low-value property will fall considerably in value following accession.
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Privredni vjesnik Year V No 217
Sonja Vuković, President, Slap Association
Man first, profit second What is missing is the financial product of the banking sector and/or a special fund for financing social-entrepreneurship projects that would monitor the development of a social company he economic crisis in combination with the most rigorous kind of neoliberal capitalism has shown that the current economy rests on dubious foundations. However, many examples of social entrepreneurship, that have started to develop in Croatia, show this does not have to be the case. The Neos - Services and Products Co-operative from Osijek, which employs former addicts, is an example. There is also the Baranja Association from Bilje that trained a group of unemployed women in the production of vegetables under glass and gathered them in one Social-Entrepreneurship Association; Ruka that sells branded crushed paprika Baranjka. There are many other examples of social entrepreneurship, and they are all the result of the work and initiative of people who decided to venture into business with the right approach: man comes first, and profit comes second. Many of these social entrepreneurs went through some capacity building projects that were implemented, and are still being implemented, by the Slap – Association for Creative Development. When we began talking about social entrepreneurship in 2000, we needed a lot of time to explain what it actually meant, and it was often in vain. However, with a growing awareness of the need to think differently about entrepreneurial activities, new models started to appear and it became obvious that social entrepreneurs
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IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
( 30 overseas projects
for China Shandong International Economic&T
MENG YAN, CEO, CHINA SHANDONG INTER
We built the lo world, and no
China approved a $10 billion loan for projects in 16 cou infrastructural and energy of mutual interest Ljiljana Lukić
required training, networking, social marketing and access to capital. In the past few years we have achieved significant progress in all four areas through the Social Entrepreneurship Forum which we started in co-operation with social entrepreneurs inside Croatia. The state recognised our efforts; the national strategy for social entrepreneurship development is in its final stage; ministries support us; much has been done in terms of training and marketing, and a financial boost for social entrepreneurs comes from the EU through pre-accession funds. What is missing is the financial product of the banking sector and/or special funding for financing social-entrepreneurial projects that would monitor the development of a social company. In co-operation with partners from Zagreb, Čakovec, Split, Rijeka and Dubrovnik, Slap is working on creating a network of national centres for supporting social entrepreneurship as the next step in the development of a new, better and more humane economy.
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
he overlapping interests of China and Europe might soon arise in Croatia, that is, in the region of Southeast Europe which China regards best for promoting larger projects rather than overwhelming cheap goods, the CEO of China Shandong International Economic&Technical Co-operation Group Ltd Meng Yan, confirmed in an interview with Privredni vjesnik. Meng Yan was interviewed during his recent visit to Belgrade, where he presented projects for constructing roads in Serbia to the Ministers for Construction and Infrastructure.
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Where does Europe stand on your business map? Europe is a very attractive investment and business destination for all of us. Despite the crisis, Europe is politically and economically stable; the Chinese government supports us and we wish to gain experience with European projects. We see the crisis as a pathway to penetrate the European market more easily, since this market ranks very high in terms of safe investment. In addition to being a safe investment, what other factors are important to you and other Chinese companies when they decide to invest? Friendly relations with other countries are very important. Good political relations are extremely important and everything else that happens in our bilateral relations. We especially value
China’s good relations with Croatia as well as other countries in the region. We are aware of the state of the Croatian economy, and we find it very important that Croatia will join the EU in less than a year. What other international experience have you had? We have over 30 projects abroad, in Southeast Asia, South America and the Middle East. We secured deals for constructing infrastructural facilities in Iraq by tenders that opened after the end of the war. We are included in agricultural projects
Europe is a very attractive investment and business destination for all of us on international markets; we invested over $60 million in Sudan in leasing and organisation the production of cotton. We invested $300 million in Ghana in the construction of motorways via public-private partnership and concessions. We signed agreements for our first projects in Spain. Naturally, your largest projects are in China? We build motorways in China, and we have recently built the longest bridge in the world. We are the biggest state company in Shandong province, comprising 13 companies, and we are now
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( 13 companies
Technical Co-operation Group Ltd.
in the Group
RNATIONAL ECONOMIC&TECHNICAL CO-OPERATION GROUP
ongest sea bridge in the ow want to work in Croatia
untries of Southeast and Central Europe, including Croatia which is expected to suggest projects covering an international group with an international offer for the market. Shandong is a province in east China; it is one of top three Chinese provinces in terms of population and economic strength.
The longest bridge in the world is certainly a good reference. The story behind it is also interesting? The longest sea bridge in the world, 42 kilometres long Jiaozhou Bay was opened last year. The work,
Luban prize for architecture Our company has won the Luban prize three times. This is the greatest national recognition for architecture and construction. It also won national awards for quality in engineering construction and its contribution to social and scientific development. This recognition is very important to us since the founding company, from which developed into a group, was founded 20 years ago, and we now employ 26,000 workers. We are also included in the top 500 in China, Meng Yan opined. executed by China Shandong International, lasted four years, while planning and design lasted 20. The bridge is supported by 5,000 pillars and connects the east port of Qingdang with the island of Huangdao. It cost over $1.5 billion. China has 11 of the longest bridges in the world, and not only does it intend to keep this record, it also intends to improve it. Jiaozhou Bay will not keep the record for long, since the construction of a new bridge is already in progress. Its opening is scheduled for 2016. This bridge will be 48 kilometres long, and it will connect Hong Kong with Macau and Guangdan province. We were especially excited by the end of the works on Jiaozhou Bay, when 10,000 workers met in the middle and celebrated with a firework display. The estimated time for crossing is 20-40 minutes for about 30,000 vehicles each day. The bridge is designed to withstand an earthquake measuring 8 on the Richter scale. China has granted aid for all its companies worldwide. What kind of a subsidy is the question? China approved a $10 billion loan for projects in 16 countries
of Southeast and Central Europe, including Croatia, which is expected to suggest infrastructural and energy projects of mutual interest. Of the estimated $10 billion, China will give a third under preferential conditions. These favourable loans are mainly issued with a maximum 3% interest rate, with the same grace period as the duration of works, and a repayment deadline of 15 years. The Chinese bank Exsim is included in all larger operations. How do you see the future of China’s economy in the light of the economic crisis? Are you optimistic? I am always optimistic. I have no doubts about the Chinese economy. We are the second largest world economy. Small and medium sized companies suffered the hardest blow during the crisis, but there are no worries for ultralarge groups and companies since they have the highest chance for survival. This can be applied to states also: the bigger the state, the smaller are the effects of the crisis (regardless of the strength and depth) since big states have stronger defence mechanisms, more options to choose from and backup plans.
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Privredni vjesnik Year V No 217
( 15% down to 7% ( €0.22 billion reduction in health insurance contributions
saving in expenditure in 2013
CROATIAN EXPORTERS
Lowering labour costs to stimulate exports Exporters are demanding government assistance in acquiring references in the local market, since they are of fundamental importance in international tenders. They expect to be provided with protection on CEFTA markets Igor Vukić he government is planning to reduce health insurance contributions from 15% to 7% by the end of their term in office. The government is planning to provide financial support for the health sector from tax on real estate and property, as highlighted by Slavko Linić, Minister of Finance during a business meeting at the Croatian Exporters Association. Lowering labour costs will enhance competitiveness of the local economy, consequently also assisting exporters. In addition, Linić mentioned a reduction to parafiscal taxes, such as mandatory contributions for water and forests, as incentives to the economy and exports. Darinko Bago, President of the Croatian Exporters Association, expressed his pleasure at the fact the government has considered and accepted their proposal on HBOR capitalisation, which will result in the possibility for companies to obtain loans at lower interest rates. HBOR was allocated around €81 million from the state budget. Following an analysis of exports results, Bago pointed out the fact that in addition to an increase in usual exports, there was a decrease in exports postproduction (exports of intermediate products), implying an ongoing downward trend in exports of more complex products. Moreover, this indicates a slump in industrial production, thus having an adverse impact on GDP. Croatia will see a considerable increase in competition following its EU accession, due to the
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appearance of a large number of new companies on the Croatian market. Market reforms and economic policy Exporters are demanding government assistance in acquiring references, since they are of fundamental importance in international tenders. In addition, they expect to be provided with protection on CEFTA markets, which will see substantial regime changes on exports following Croatian EU accession. In addition, extending credit period to buyers abroad between 15 and 25 years would significantly foster exports, as has been emphasised by the Croatian Exporters Association. Minister Linić stated that they could not expect administrative changes in the exchange rate and devaluation, since these would result in hyperinflation, which Croatia witnessed in the past. On the other hand, market reforms will certainly be implemented, as well as an economic pricing policy, primarily in the energy sector. Moreover, the Croatian
Postal Bank and Croatia Insurance will be privatised and a motorway concessions procedure has been initiated. State motorway management has proved unsuccessful and funding will be used to reduce the budget deficit. Debts are a heavy burden on the state and a major obstacle to tax-cutting. Linić reiterated that, in addition to the €2 billion budget deficit, the government had to face hidden liabilities of €1.4 billion in shipbuilding and €0.68 billion in the health sector. Consequently, an austerity drive was launched to reduce budget expenditure, which will result in savings of around €0.13 billion in material expenditure and €81 million in salaries in 2013. Settlement of liabilities imperative Companies have been granted the right to re-programme their liabilities towards the state during the first half of the year, with the remaining regulation being more strictly applied. The settlement of liabilities and meeting payment deadlines will be im-
perative in compliance with the Law on Financial Transactions and Pre-bankruptcy Agreement. Linić expects at least 650 companies to be given new market opportunities through Pre-Bankruptcy Agreements by the end of the first quarter of 2013. Nevertheless, additional economic potential also needs to be exploited. Ina, with its two refineries once provided supplies for Croatia, Slovenia, a large part of Bosnia and Herzegovina as well as Serbia, whereas currently 40% of oil derivatives are being imported, due to the lack of investment. In addition, gas deposits in the Adriatic Sea have not been exploited. There need to be at least some 10 gas drilling rigs, which could be constructed by shipbuilding companies. There is huge potential also in the reconstruction of railways and innovation in their stock. Consequently, 2013 will see considerable efforts for growth, according to the Minister of Finance. Sandra Švaljek, Director of the Institute for Economics, concluded that investment, growth in exports and strict discipline in the settlement of liabilities are fundamental prerequisites for the revival of the Croatian economy. Some 5 to 6 years ago, Croatia saw growth rates exceeding the European average, yet currently, against the backdrop of the economic crisis, the situation has changed substantially. The past experiences are an excellent indicator of mistakes and of the severe consequences of the lack of discipline in several areas.
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POSITIVE INDICATORS FROM LARGEST OIL COMPANY
Production re-launched, privatisation process started The Čepin Oil Factory, the sole Croatian factory for the primary processing of edible oil has re-launched production following a long period of inactivity Svetozar Sarkanjac he start of production in a factory currently appears to be significant breaking news. Following some 20 years of neglect, such news causes many raised eyebrows; what should be self-evident is now the new ‘exceptional’, and this may be a sign of the times. The Čepin Oil Factory, the sole Croatian factory for the primary processing of edible oil, has re-launched production following a long period of inactivity. The factory was unable to purchase raw materials due to liquidity problems and consequently in 2011 only 40% of processing capacity was in use, whilst business activity comprised primarily of providing services. In addition, banks froze its accounts due to its failure to settle outstanding debts. Nevertheless, the account was unfrozen on 31st August 2012 and the factory re-started. Fortunately, this occurred by the end of a long period during which the issue of privatisation had been thoroughly considered although the state is still a majority shareholder (81.48% of subscribed capital).
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Merits of the new Management Board Ivica Vrkić, Board President and
Zvonko Erak, Supervisory Board President of the Čepin Oil Factory, were allocated their positions at the beginning of the year, aiming to avoid bankruptcy and complete the privatisation process with government assistance. The re-launch of production has been due to their efforts and commitment. “We are currently still doing only lohn jobs, yet it still arouses interest in the market. We have managed to show that the factory is prepared to resume operations in terms of technology and staff. I believe we have entered the final stage of privatisation. Nevertheless, we are not solely focusing on these major changes and are
currently negotiating the purchase of raw materials to complete the production cycle and start selling our oil prior to the completion of privatisation”, explained Ivica Vrkić, adding that he was delighted with the government decision to accelerate the privatisation process. Government decision At the beginning of October, the government decided to dispose of business stakes in Čepin in an exclusive manner, with the Ministry of Economy and Radimir Čačić in charge of informing the government in seven days on the assessment of submitted bids and on the conclusion of
negotiations. In addition, they need to opt for one of the three potential investors who have recently shown interest in a public non-binding takeover bid – the Osijek-based Mambo (a company belonging to Žito Group), the Bratislava-based Envien a.s. and PS International Ltd. from North Carolina. It has also been stated that the final decision on the choice of the investor, the initial price and the terms of the acquisition will be reached by the government. Moreover, a shortened procedure has been adopted due to the multitude of long-term difficulties the company has been facing. Vrkić stated for Privredni vjesnik that he “believes that government members will be able to select the best bidder, that which will invest the most and primarily focus on worker interest”. “It is high time to complete the privatisation process, to find a new owner and to assist the Čepin Oil Factory in regaining strength and providing the market with new and quality products”, concluded Vrkić.
6 WE PRESENT AMBRELA KOMUNIKACIJE, ZAGREB
Privredni vjesnik Year V No 217
MIPS, ZAGREB
Efficient postal service MIPS is one of the few global companies with a software system developed for postal services
Umbrella-structured PR The agency provides a broad range of services: from media relations to co-operation with various business partners, as well as with current and potential users arina Karamatić-Sopić and Ivana Očevčić decided to focus on their own ideas and have created a PR agency named Ambrela Komunikacije, following their work experience in the media industry and public relations, irrespective of difficult market conditions. According to Ivana Očevčić, the agency provides a broad range of services, ranging from media relations to co-operation with various business partners, as well as with current and potential users. “We believe that ‘fortune favours the bold’. In addition to the two of us, who are full time employees, we co-operate with a wide cross-section of professionals such as graphic designers and community managers. We are also planning further growth and to create new jobs in the near term”, she explained. The agency has encountered no serious obstacles thus far, adding that “we have noticed a slight market revival, encountering a large number of operators providing rapid and quality services. Nevertheless, public administration needs to undergo significant transformation and synchronise its work”, she pointed out.
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Competition motivates She added that there is ample room for quality, speedy and innovative services in the Croatian public relations market. “There are a large number of challenges in almost every area of business, such as information technology, pharmaceuticals, consumer goods,
luxury brands, tourism and gastronomy, to name a few. It is our sincere pleasure to be able to say we hold an international certificate for communication over social networks”, stressed Ivana Očevčić.
We hold international certification for communication via social networks Nevertheless, we had a large number of previously created contacts with colleagues in public relations, who have warmly congratulated us following our start up. “Competition is motivating, it encourages continuous advance and to invest in knowledge and skills”, she emphasised. She has high expectations from Croatian EU accession. “I primarily expect market regulation concerning agencies providing communication management services. We all need to contribute to the enhancement of the rôle of public relations as a basic activity in planning business processes. In addition, regulation on certification of experts is an imperative. I strongly believe these issues will be undertaken through the Croatian Association for Public Relations”, she highlighted. They are also planning to provide communication management services throughout the region and have already held several preliminary discussions with colleagues. (B.O.)
ost offices have the most complex organisational structure. They provide customer and telecommunication services and are used for receipt and collection of post. They also perform money transfer services, as well as retail services. All sectors need to be provided with an effective IT infrastructure to facilitate their operations, as well as the monitoring of business processes by management. The Zagreb-based company MIPS has been tackling similar issues since its inception. It has been developing a software system for postal services for some twenty years, in co-operation with the Croatian Post and Croatian Post Mostar. MIPS Postal
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MIPS is planning to share its considerable experience in the development of postal services programme solutions globally Business Automation System has been implemented in 3,000 positions in over 1,200 post offices throughout Croatia, as well as in some 200 offices in Croatian Post Mostar. In addition, MIPS is one of a few companies in the world with a developed software system for postal services and its software solutions are in compliance with regulations of the Universal Postal Union (UPU).
“Our system enables cost- cutting and autonomous work of each post office unit, irrespective of the situation in communications. It is modular and hence open for all updates or upgrades according to user requirements”, explained Ivan Orlović, Chief Visionary Officer for MIPS. Alfatec Group member MIPS is planning to share its considerable experience in the development of postal services programme solutions globally. It participated at PostExpo 2012 in Brussels. The fair brought together around 160 companies throughout the world involved in postal, delivery and courier services. Orlović had the opportunity to give a lecture on innovation in the development of postal automation systems provided by MIPS. Important contacts were established during the fair with companies providing postal services throughout the region as potential users of their services. Two years ago MIPS joined the Zagreb-based Alfatec Group. 18 employees deal with postal automation system and, in synergy with Alfatec, are able to meet all potential customer requirements. MIPS is also involved with ERP systems for corporate business automation systems, systems for the allocation of security guards and providing data entry of job responsibilities in companies providing security services, as well as with the implementation of IT systems in foreign exchange services. (I.V.)
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CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
Kuna exchange mid-rate
EUR
7.51
5,937322 5,914384 7,378726 6,200887 9,277938 5,783956 7,501213 WEEK OCTOBER 13, 2012
USD
5.82
7.50
CHF
6.21 6.20
5.81
7.49
6.19 5.80
7.48
6.18 5.79
7.47
5.78
7.46 8.10. 9.10. 10.10. 11.10. 12.10.
6.17
8.10. 9.10. 10.10. 11.10. 12.10.
6.16 8.10. 9.10. 10.10. 11.10. 12.10.
::: news
CROATIAN NATIONAL BANK
Deposits reach €30.69 billion
Economic recovery not in sight
Personal deposits totalled €20.43 billion, up 0.4% from the end of July; corporate deposits totalled €3.74 billion, up 9.2% Overall economic developments show no start to economic recovery, according to information on economic trends in the Quarterly Report, the latest Bulletin, from the Croatian National Bank (HNB). It highlighted a stabilisation of seasonally adjusted GDP in relation to the previous quarter, due to a stronger increase in stocks during the second quarter. Nevertheless, all the components of final demand, such as exports of goods and final domestic demand indicated continuously negative trends over the second quarter. Stagnation in corporate and retail lending
ccording to the latest data provided by the Croatian National Bank, total deposits at banks grew on a monthly level during August, probably contributed by the inflow of foreign currency during the middle of the tourism season. Total deposits (deposits, kuna and foreign savings as well as term deposits) reached €30.69 billion at the end of August, which is 1.4% more compared with the end of July. The increase in total deposits was generated by savings and term kuna as well as foreign currency deposits, while deposits (on transaction accounts) decreased by €116.35 million or 2.5% on a
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monthly level. At the end of August, savings and term deposits in banks (kuna and foreign currency) stood at €26.16 billion, 2.1% up over July. Personal deposits stood at €20.43 billion, 0.4% up compared with the end of July; corporate deposits were up 9.2% at €3.74 billion. Higher level of foreign currency deposits Growth was contributed to more by foreign currency deposits holding 78% of savings and term deposits, than kuna deposits where growth in foreign deposits expressed in kuna were mildly subdued by a 0.5% stronger kuna
over the euro on a monthly level. In relation to the end of the past year, total deposits grew by €0.66 billion (2.2%), which was contributed exclusively by savings and term deposits that grew 4%, while deposits decreased by 7.1%. Concerning sectors, public and corporate deposits increased in August, although corporate deposits increased more. Public deposits totalled €20.43 billion, 0.4% up over the end of July, while corporate deposits totalled €3.74 billion or 9.2% more than at the end of July. However, corporate deposits continued to register negative rates year-on-year.
Bank credit activity has primarily seen stagnation in 2012 thus far. By the end of August corporate loans fell by 0.3% compared with the end of last year, and retail loans saw a decrease of 1.1%. Credit unions have also had to tackle problems and hence in mid-2012 there were 24 similar financial institutions in Croatia showing a balance sheet total of €78.2 million, accounting for 0.13% of total assets of credit institutions.
8 ::: news
Visa’s opinion poll of young people on the EU Visa Inc., the global payment company and leader in the field of electronic payments, organised an opinion poll of the view of young people on the EU in Croatia, potential opportunities and possibilities for starting a business in a new environment. The opinion poll, conducted across 500 people aged between 18 and 25 in Zagreb, Split, Rijeka, Osijek and Varaždin, revealed that 57% consider going to the EU to study or work. At the same time, most believe tourism has the biggest economic potential after accession. Unemployment rate increases According to records of the Croatian Employment Agency (HZZ), there were 311,100 unemployed at the end of September, up 3.2% over August. At the same time, this is 9.7% more or 27,433 more compared with September 2012. A total of 32,691 newly unemployed have been registered, 4% more compared with September 2011. The majority of newly registered came from accommodation services, food preparing and catering sectors.
€401 million spent on online shopping The average Croatian customer shopped online seven times during a period of six months, spending €227. The average European spends €544 and a total of 13 purchases. From September 2011 to February 2012, €401 million was spent on online shopping in Croatia. In Europe, online shopping totalled almost €188 billion.
Privredni vjesnik Year V No 217
INVESTMENT INTO CONTINENTAL TOURISM
New edition of Stubaki A foundation stone will soon be laid to mark a new health-tourism centre Stubičke Toplice, which will be one of the biggest investments in continental tourism of Croatia Sanja Plješa lthough four years have passed since the Krapina and Zagorje County and Sunce Consortium signed an agreement on a joint investment in the healthtourism project of Stubičke Toplice, project execution is still on hold due to various administrative obstacles. However, a foundation stone should soon be laid, marking the construction of the new centre, as Sonja Borovčak, County Prefect, announced to Privredni vjesnik. The project is worth €110 million, of which €35 million will be spent on renovating the Specialist Hospital. This investment is one of the largest in Croatian continental tourism. It is expected to increase County economic growth by 1.5% after completion. The new health-tourism centre will employ another 500 workers, said Sonja Borovčak. She also hopes the project will turn the County into Croatia’s top destination for continental tourism. She sees this project as a chance for developing new economic potential, since everything which is produced in Stubaki will be placed through the centre. Furthermore, this project envisages the construction of three hotels (4-5 stars), wellness and spa zone, multi-purpose sports hall, congress, trade-business centre, polyclinic-medical centre and a series of eco-ethnic facilities. The new hotels will have around 450 rooms. Verbal promotion is the key Concerning the promotion of tourism in the County, Sonja Borovčak pointed out it is tourism oriented, which is why the brand strategy Zagorje – fairytale in the palm of your hand was created. With the goal of improving the presentation of Hrvatsko zagorje, a series of image brochures has been created, and tourists are offered various souvenirs, licitars (traditional Croatian souvenirs) and wooden toys under UNESCO protection. It is also interesting that the number of visitors coming to Jezerčica and Tuhelj (thermal spas) is increasing, while the Museum of Krapina Neanderthals is becoming ever more popular. The people who come to visit us prove that we are heading in the right direction. We are trying to keep visitors satisfied and let them spread the word about the story of Hrvatsko zagorje, Sonja Borovčak concluded.
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Krapina and Zagorje County promotes tourism