Textile and clothing production→Recessionary impact still felt, but the future is looking brighter PAGES 8-11
SUPPORTED BY THE CROATIAN CHAMBER OF ECONOMY
www.privredni.hr
Pilotless aircraft are becoming a fast growing market→The Croatian drone market has yet to fly PAGES 14-17
PC gaming industry Huge potential but in need of some assistance from the system PAGES 18-21
PVinternational C R O A T I A N
B U S I N E S S
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F I N A N C E
M O N T H L Y
May 2016, Year IX, No 258
CCE SEMINAR – DOING BUSINESS WITH HONG KONG
HONG KONG – OPPORTUNITY FOR CROATIAN COMPANIES CCE is working on the internalisation of Croatian foreign trade and exports, and together with the Ministry of Foreign Affairs it is about to start an initiative for promoting economic diplomacy
C
o-operation with the Far East is of extreme importance for Croatia, hence why the Croatian Chamber of Economy gives special attention to promoting foreign trade co-operation with Middle Eastern and Far Eastern countries, as announced at the seminar
Croatia exports printing machines to Hong Kong Based on Croatian total business operations with other countries, Hong Kong ranks 70, and China 12. Last year, Croatia exported to Hong Kong US$12.5 million worth of goods and imported from Hong Kong US$8.7 million. Croatian exports have been more or less the same for years with printing machines being the most exported products.
DOING BUSINESS WITH HONG KONG CCE Vice-President Želimir Kramarić evaluates that Croatian business co-operation with Hong Kong is still not on the level it should be, but expresses hope that the countries’ friendly relations will improve this in the future. CCE is working on the internalisation of Croatian foreign trade and exports, and together with the Ministry of Foreign Affairs it is about to start an initiative promoting economic diplomacy. Promotion of economic diplomacy through opening permanent CCE representative office in Shanghai is of extreme importance, Kramarić pointed out. He also added this would strengthen ties with China and create even stronger business relations with Hong Kong. The advantage of orienting towards Hong Kong is that it could become for Croatian companies the centre for accessing the entire region, Regional Director Europe for the Hong Kong Trade Development Council (HKTDC) Stephen
Wong said. Hong Kong is a strong producer and exporter as well as importer of goods and materials, and it is interested in bilateral trade with Croatia as well as the import of Croatian products, Wong highlighted. The goal of the seminar was to gather all interested partners from companies and various institutions, especially the transport and logistic sectors, but also other economic areas for the purpose of exchanging experiences and teaming up in their joint approach to Far Eastern countries, said Mirjana Turudić, Assistant Managing Director to the CCE Sector for International Affairs. Chief expert associate in
the CCE Sector for International Affairs, Jelena Dumičić, highlighted that Hong Kong imports many products. This is an opportunity for Croatian companies to place their products on this market, she added. The CCE is a valuable partner to the Ministry in terms of promoting economic and Croatian diplomacy, by connecting with the Far East region and other world markets, highlighted Emilija Vučinić Margeta, head of the service for bilateral economic co-operation with the Ministry of Foreign Affairs. She also highlighted that Hong Kong could be an opportunity for the Croatian economy to enter the Chinese market and the entire region. (S.P.)
ECONOMIC DISCUSSION BETWEEN CCE AND PRIVREDNI VJESNIK CONS
UNANIMITY IS FUNDAMENTAL FOR THE ECONOMY The creation of an economic policy aimed at encouraging recovery from the crisis is vital for construction, pointed out the President of CCE, Luka Burilović, who highlighted that the figure of 280,000 unemployed in certain economic sectors was absurd, whilst simultaneously hiring foreign workers both in construction and in some other economic areas by Krešimir Sočković sockovic@privredni.hr
T If we decide we do not need it, we will face the same fate as other countries – the arrival of foreign companies who will operate here.
Joško Mikulić, President of the Management Board of Viadukt
he construction industry in Croatia has been faced with a severe crisis since 2007. Moreover, it has been the most severely affected by the crisis and, due to its previous importance, it exerts a significant negative impact on the pace of economic recovery, as pointed out during the Economic Debates Conference, the first conference organised by the Croatian Chamber of Economy and Privredni vjesnik intended to contribute to improvements in the economic climate. The volume of construction work has dropped by around 43%, whilst the number of those employed during the period from January 2009 to the end of 2014, decreased by around 35,000 amongst those employed by companies, and by around 19,000 amongst those employed by small businesses. The creation of an economic policy aimed at encouraging recovery from the crisis is vital for construction, pointed out the President of the Croatian Chamber of Economy, Luka Burilović. “Irrespective of the figure of 280,000 unemployed in some economic sectors, we are simultaneously ridiculously hiring foreign workers both in construction and other economic sectors. Those in construction, as well as a large number of other entrepreneurs, are constantly faced with the issue of overly long judicial proceedings which normally last over 780 days, whereas if a case is transferred to the High Court, it will normally last 100 days longer. Small construction businesses can meanwhile face bankruptcy, and only a few big players are able to survive such situations”, emphasised Burilović, highlighting the fact that Croatian construction businesses lack 3,000 workers, and are currently applying for permits to employ foreign workers.
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INCOMPATIBILITY OF THE EDUCATION SYSTEM “The current situation is also due to the incompatibility of the educational system and we are therefore launching a dual education project intended to provide an opportunity for companies to educate secondary school students in order to meet their requirements. Disagreements are allowed in politics, yet unanimity is fundamental in the economy. The Croatian Chamber of Economy is primarily and exclusively focused on economic policy”, concluded Burilović. Marko Jurčić, Economic Affairs Adviser to the President of Croatia, pointed out that currently there are no significant differences amongst economic sectors concerning the problems they face. “We eventually end up addressing similar issues – the justice sector, taxation, public procurement or quotas. The construction sector depends on other sectors. The fact that domestic construction businesses are primarily focused on the domestic market may be a major issue”, stressed Jurčić. He added that a further matter for concern is that 70% of data entered into land registers originates from the period of the Austro-Hungarian Empire. Against a backdrop of only 5% of land measurements over the last years, Croatia will need a substantial period of time to make significant changes in this field. One also needs to consider the estimates made by the European Commission, stating that by 2019 Croatia will see around 200,000 people migrating. “We are primarily talking about the young and highly educated who are fundamental for the development of the country. It is all due to the lack of information and excessive populism occurring during the last two decades or so.
TRUCTION NOW AND TOMORROW
We should have encouraged and supported sustainable jobs and projects yielding high returns, as well as financed exports”, concluded Jurčić. High level education need not necessarily imply high costs, noted Mirjana Čagalj, Vice President of the Croatian Chamber of Economy. “Lack of a labour force is the consequence of outdated educational concepts. Dual education - with 80% of practical work and 20% theory is the ideal solution to this problem”, believes Mirjana Čagalj. She pointed out the problem of public procurement, in which the principal criterion is the lowest price. “Consequently, there are a large number of win-lose deals or high quantities of unperformed work. This can be solved through amendments to the law, whilst the catalogue of Croatian products could make a difference for a wide number of Croatian products, since it is available to those inviting tenders”, added Mirjana Čagalj.
WORKERS REFUSING TO WORK Dragutin Kamenski, owner of Zagrebbased Kamgrad, stated that they attempted to recruit workers from employment bureaux in and around Zagreb. “We found that a large number of people registered with employment bureaux work in the shadow economy and employment bureaux still have not found a method for overcoming this issue. Workers refuse work as they are involved in other work, and they are registered with employment bureaux only to meet legal requirements. Measures need to be implemented systematically, whilst clearly appointing the performing organisations and defining deadlines aiming to actually solve the-
se problems. The import of foreign labour needs to be allowed, as is the case of Slovenia, where unless you can find a worker in five days, you are allowed to import”, emphasised Kamenski. Mirko Habijanec, President of the Management Board of Radnik, pointed out an example from Germany where 10% to 15% of workers may be foreign. “Salaries and contribution amounts are given more importance, both for local and foreign labour. Consequently, there is acceptable competition and also a work culture has been ensured”, noted Habijanec.
JUSTICE, TAXATION, PUBLIC PROCUREMENT OR QUOTAS ARE ISSUES CURRENTLY FACED BY THE ECONOMY, NOTED MARKO JURČIĆ Darko Pappo, member of the Management Board of DIV, emphasised the example of implementation of his own educational project. “Projects are vital for the shipbuilding sector; they are comprehensively prepared and are normally long-term and thus there are a large number of similarities with the construction sector. We provide in-house training and development for our workers as well as retraining. Our
DIV College is about to open and it will be a certified institution intended to provide us with qualified workers, as opposed to holders of certificates which they obtained in any institutions without having been provided with the opportunity to acquire practical knowledge”, stressed Pappo
WHERE ARE PUBLIC WORKS Joško Mikulić, President of the Management Board of Viadukt, believes that a policy whose exclusive and specific objective is public debt reduction will not be beneficial for the economy. “Large public works projects are normally initiated against a backdrop of severe crises. All EU member states that have found the most appropriate methods for kick-starting the economy through starting public works have been the first recover from the crisis. We need to address the issue of whether we need construction. If we decide we do not, we will face the same fate as other countries – the arrival of foreign companies who will be operating here”, highlighted Mikulić Ivan Paladina, President of the Management Board of the Institute of Civil Engineering of Croatia, believes that quotas are actually unimportant. “If there are 50,000 to 70,000 employed in this field, we need to take this opportunity. Our company focuses on foreign markets and work outside Croatia. Nevertheless, the insignificant quantity of work performed by our companies abroad is utterly ludicrous compared with previous years. We do not have a development or export bank to support us in distant markets, and we consequently opt to work somewhere nearer”, concluded Paladina. May 2016 | No 258 | PVinternational | 3
INTERVIEW ANTON KLIMAN, Tourism Minister
LARGER INVESTMENT PROJECTS AND THE PRIVATISATION OF TOURISM COMPANIES LIES AHEAD We have prepared a series of good investment projects for which we will seek investors. There will be nine projects marked as potential for finding investors. To secure a foundation for sustainable growth, especially during the main season, we will have to work on overall competitiveness and increase accommodation capacity by Jozo Vrdoljak vrdoljak@privredni.hr
to be invested in the tourist sector this year
€
7 billion
investment in tourism anticipated by 2020
25 5 new or renovated hotels opened in 2015
What can we expect, and what does the start of the tourist season look like? The present announcements and results of initial sales are highly encouraging for Croatia and point to significant growth, even in double-digits for some markets. Good preseasonal booking results also bring optimism, especially considering the time-scale of this year’s state holidays. However, by the end of June we are anticipating that booking and demand for Croatia as a destination would stabilise around a 5% growth, which is certainly a good result. To secure a foundation for sustainable growth, especially during the high season, we will have to work on competitiveness and increase accommodation capacity, and I am convinced we can achieve good and positive results even this year.
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What are anticipated investments in the tourist sector for this year and forthcoming years? According to our survey, €676 million will be invested this year in the tourist sector, which is 35% more than in 2015. We anticipate this trend will continue during the next several years. A total of 25 new and renovated hotels opened last year, and based on our develop-
THE PROPOSED AMENDMENTS TO THE REGULATION WOULD REMOVE EXISTING OBSTACLES TO BUSINESS ment strategy, this is the right direction. We anticipate that €7 billion will be invested in the tourist sector by 2020.
Could you name some of this year’s larger investment projects?
Boris Scitar/PIXSELL
676 6 million
€
P
rivredni vjesnik talked with Tourism Minister Anton Kliman about the forthcoming tourist season, investing in tourism, privatisation and sale of the state’s share in tourism companies, and turning derelict facilities owned by the Defence Ministry into tourism facilities. Minister Kliman also talked about the changes in the legislative framework and the adoption of new regulations.
We will not force anything and we will secure only those amendments for which a consensus may reached with tourist associations and the tourism profession.
May 2016 | No 258 | PVinternational | 5
INTERVIEW
We want to secure competitiveness of our tourism economy Which new projects is the Tourism Ministry preparing? What will be subsidised in future? - We will continue to subsidise the work of the tourist sector. No budget cuts have been made in this area. We will also continue to subsidise construction since this is a quality project whose goal is to increase accommodation quality. Our wish is to secure competitiveness for tourism. We anticipate drawing more funds from the EU, especially those related to educati-
Companies like Istra turist, Maistra, Valamar Riviera, Arenaturist, ACI, Liburnia Riviera Hotels, Imperial Rab, Hotels Podgora, Jadranka and DG Sport - Hotel Panorama from Prelog will be the top investors year.
Investment projects are definitely a priority for this government. Together with other competent authorities, especially DUUDI, we will do all we can to turn the former military assets into tourism facilities as soon as possible.
You mentioned the possibility of turning MORH’s buildings into tourist facilities. Has something concrete been done regarding this issue? In addition to Kupar, a contract has been recently signed; Muzil is about to invite a tender for binding offers; the procedure for announcing potential strategic projects for Hidrobaza, Saccorgiana, and others. has started. Investment projects are definitely a priority for this government. Together with other competent authorities, especially DUUDI, we will do all we can to turn former military assets into tourism facilities as soon as possible.
on and life-time education in the tourist sector. We also want to increase the possibility of drawing more EU funds for SME’s, which we are already discussing with the competent ministry. Our goal is to create an even stronger network with other sectors (Health Ministry, Ministry of Culture or Ministry of Agriculture). In this way we could help each other tremendously, especially regarding special types of tourism, which is where the future lies, and linking the green and blue Croatia.
investment projects for which we will seek investors. They are nine projects marked as potential for finding investors and which can be divided into three groups. The first group consists of Jadran Crikvenica company and Hotels Makarska whose state shares will be privatised as soon as the conditions for this are met, and whose nominal value is €63 million.
HUGE INVESTMENT POTENTIAL LIES IN SOLVING THE ISSUE OF LAND FOR TOURISM
At what stage is the Brijuni Riviera project? The Ministry of Tourism will ensure that the Brijuni Riviera company justifies its existence and that the company’s mission and vision are realised. We have not been fully satisfied with project preparations, which means that the measures required for achieving a result will have to be refreshed so that the company’s existence could satisfy its purpose.
The second group includes Hotels Hrvatska and Hotel Krvavica which comprise part of the property managed by Club Adriatic which is undergoing pre-bankruptcy settlement procedure. The total value of the property is €7.2 million based on estimates from 2003, and a new evaluation will certainly be done before selling them. The third group involves sites on land predominantly owned by the state - Muzil, Saccorgiana, Larun Golf Resort in Tar and Prukljan Skradin. The estimated value of the investment exceeds €1 billion.
How will the privatisation of tourist facilities continue? The privatisation of Imperijal Rab and Maestral Dubrovnik is ahead of us and there are 25 interested investors. I expect we will find them good strategic investors, just as in the case of companies which were in pre-bankruptcy settlement procedure. We are also preparing to sell the state’s share in Sunčani Hvar. For our needs, we prepared a series of good
When do you expect privatisation and investment in these facilities will be complete? These are only some of the projects we intend to prepare during the forthcoming period as tourist projects for which we will form crossfunctional teams. The goal is to announce public invitations for selecting investors. For now, it is difficult to assess which of the projects will be possible to implement first considering all of
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them have the obstacles of a property-legal or spatial-physical nature. It is precisely a project type of approach which will make it possible to finish this procedure as soon as possible. All the projects will be offered to private investors, that is, the state will not invest in their completion, but it will certainly invest in their implementation. All information regarding these projects has already been made available to the general public as well as investors.
The public discussion on new regulations has finished. Could you tell us some of the results and what will these regulations achieve? For the purpose of removing administrative obstacles, we published the proposals for amending four regulations in our domain. Based on the proposed amendments, business obstacles and obstacles to the development of quality would be removed. The goal of the proposed amendments is to improve business activities on the market, simplify the work of tourist workers and adapt to market needs. The regulations have gone through a public discussion and we have formed a workgroup within the Ministry to ensure amendments of the highest quality. We will not force anything, and we will secure only those amendments a consensus can be reached with tourist associations and the tourist profession.
What else are you preparing within the legislative framework? What do you think requires change? There have been rumours about the restructuring of HTZ, accommodation fees, and other issues. We will prepare amendments to the Act on Tourist Boards, the Act on Tourist Membership Fees and the Act on Accommodation Fees, which will certainly make for bringing down one part of the accommodation fee to a local level. We think this is a condition for setting up appropriate destination management. We will certainly work towards developing a new act on tourism land for which we are about to form a workgroup. I expect all these acts in a public discussion and legal procedure during this year. How can mutual rights be organised in this area? This act is complex, and we have several proposals for solving it. We will form a workgroup which will deal with this particular act. I believe it will be offered for public discussion by the end of the year. First let us agree internally, with the operators included in the process, and then with the tourist sector, about the best solution to this issue. There is certainly great investment potential in solving the issue of tourism land, which would actually secure further investment and safety for the investor.
By the end of June, we anticipate that booking and demand for Croatia as a destination would stabilise around 5% of growth, which is certainly a good result.
May 2016 | No 258 | PVinternational | 7
TEXTILE AND CLOTHING PRODUCTION
RECESSIONARY IMPACT STILL FELT, BUT THE FUTURE IS LOOKING BRIGHTER Promising companies are those who constantly invest in production technology, aiming to comply with globally harmonised standards of textile manufacturing and thereby ensuring competitiveness both locally and on the international market. In addition, they co-operate with the scientific sector to develop innovative textile fabric products, pointed out Tajana Kesić Šapić from CCE by Ilijana Grgić
A entrepreneurs were involved in textile production in 2014
around people employed in this economic sector
€
million
nett profit generated by companies in 2014
lthough the textile industry is one of the oldest branches of the processing industry, textile and clothing item manufacturing has faced an extremely turbulent period over the last several decades. Some thirty plus years ago, the number of people employed in this area exceeded 100,00; today the number employed stands at around 20,000. The trends that marked this market are best shown in analyses of three crucial years for textile production - prior to, during, and following the recession. The number of entrepreneurs in textile production was highest in 2005 - at 262, whilst in 2010 the figure had dropped to 239 although 2014 saw an increase in numbers to 257. According to analyses, there is a higher concentration of entrepreneurs in Zagreb and Northern Croatia, with Krapina-Zagorje County the leader concerning revenue generated, standing at €79.25 million in 2014.
ON-GOING FIGHT WITH COMPETITORS “Over the last several years, this industry has been facing severe competition. As a consequence of the economic crisis, by the end of 2008 both the Croatian textile industry and the clothing industry were severely affected and their financial stability and liquidity were seriously disrupted. Nevertheless, the level of the utilisation of production capacity is currently a major issue, as following the global crisis it was primarily involved in the performance of
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primary work (lohn jobs) for European textile customers”, noted Tajana Kesić Šapić, Director of the Industrial Sector at the Croatian Chamber of Economy, adding that not only has the value of the orders placed by foreign partners in service jobs dropped, but the full value of work for the comprehensive services required by customers has decreased significantly. It is important to highlight that in the textile sector, almost one quarter of global production is now in China, whilst the leading textile and clothing exporters at a global level are Italy, Germany and the US. “The Croatian textile industry is uncompetitive and can hardly keep up with eastern competition, where production costs are substantially lower. A general conclusion can be reached that the crisis in the European textile industry and the drop in sales of various types of goods on the EU market have significantly impacted on the decrease in the overall economic activity of the Croatian textile industry. Companies with potential are those constantly investing in production technology, aiming to comply with globally harmonised standards of textile manufacturing and to ensure competitiveness both locally and on the international market. In addition, they co-operate with the scientific sector striving to develop innovations in textile fabric products”, pointed out Tajana Kesić Šapić stating that there are successful textile producers in Croatia, albeit their number is currently insignificant.
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TEXTILE AND CLOTHING PRODUCTION NEGATIVE TRENDS
The level of utilisation of production capacity is currently the major issue as following the start of the global crisis it was primarily involved in the performance of
The comparison of the number of people employed by entrepreneurs in the textile sector during the period from 2005 to 2014, showed that the number employed in 2014 plunged by 56.9% in relation to 2005. During the previous decade, several textile giants disappeared from the market - Cotton Industry Duga Resa (Pamučna industrija Duga Resa), which employed 4,500 workers by the end of the 1980’s. By the end of 2015, bankruptcy proceedings that were started in 2002 were finalised, and the Commercial Court of Zagreb, Permanent attendance in Karlovac, removed this company from the Registry of Companies in December 2015. The average monthly nett salary in the textile industry in 2014 was €472 and was 37.2% up compared with the salary of 2005 (€344). Average revenue per entrepreneur in 2005 was €0.9 million, in 2010 €0.76 million, only to show a slight growth rate in 2014 to €0.77 million. Entrepreneurs involved in textile manufacturing generated the highest profits in 2005 (€12.9 million), an increase of 32.2% compared with 2014. Nevertheless, they also saw the highest losses in 2005, (€12.5 million), which ballooned by 225.4% compared with the loss recorded in 2014. In addition, in 2014 of 257 entrepreneurs 67.3% showed an operating profit, whilst 32.7% saw operating losses.
2014 NOT SO NEGATIVE
primary work for European textile customers. Tajana Kesić Šapić, Director of the Industry Sector at the Croatian Chamber of Economy
Entrepreneurs primarily involved in textile production who saw the end of 2014 recording positive financial results, generated nett profits of €0.57 million, which compared with 2013, indicated an increase of 87.4%. The numbers employed was 3% up, total revenue rose by 18.8%, and total expenditure rose by 17.4%. Of 257 entrepreneurs, 173 operated profitably, whilst 84 showed losses for that period. In 2014 entrepreneurs generated profits of €5.9 million; that year saw no companies operating with significant losses. The biggest lossmaker was the Čateks company with a loss of €0.88 million.
RECOVERY FOR ČATEKS One of the largest textile companies in the region and one of the oldest companies in Southeastern Europe, founded in 1874, is the Čateks company comprising three production centres: weaving and textile finishing plant, upholstery and lamination, and ready-to-wear clothing. Davor Sabolić, Director of Čateks, stated that during the last decade the company has faced serious problems and losses against the backdrop of the global crisis, as well as due to a difficult and slow adjustment to new mar10 | PVinternational | May 2016 | No 258
ket conditions. According to him, at the beginning of the crisis in 2008, the textile sector was not immediately affected. Consequently, the full effect showed only several years later, culminating during the period between 2011 and 2012. Sabolić believes that the phased shift in drop in demand and the subsequent problems in the operation of the company created the illusion that the company was not being seriously affected by the crisis.
KEY MEASURES HAVE BEEN IMPLEMENTED CREATING A SOLID BASE FOR A TURNING POINT IN OUR OPERATIONS AND HALTING NEGATIVE TRENDS, MENTIONED DAVOR SABOLIĆ “The period between 2008 and 2011 was crucial concerning the turning point in both production and market appearance. I believe a large number of entrepreneurs in our branch made an incorrect estimate of the circumstances, and failed to implement corrective measures, restructuring and anything else required to manage operations in an optimal way during the crisis, to manage to recover and emerge even stronger and more effective. Generally speaking, we were also slightly late concerning restructuring, since, in addition to operating problems, we also faced the issue of an unsettled ownership structure that was stabilised only at the end of 2014”, noted Sabolić, pointing out that they managed to implement the crucial measures that accounted for a solid basis for a turning point in operations and halting the negative trends. “It all resulted in an excellent year for 2015, that was finished showing positive financial results. Revenue rose by over 30% in relation to 2014, whilst nett profits reached €3.2 million, which compared favourably with 2014, when we made a loss of €0.88 million. Following years of stabilisation and restructuring, we are about to face years of expansion which began with significance in 2015, with many more positive indications of continuation of this trend during the forthcoming years”,
explained Sabolić, highlighting the fact that their key strategic objective is a new investment cycle starting this year and is expected to last until 2018. They are currently primarily focused on the financing of business growth, as well as long-term investment financing. Irrespective of the problems, the director of Čateks pointed out a large number of advantages in relation to foreign competitors. “Firstly, in Europe there are not many companies involved in this type of production, since most of our competitors are outside Europe. Our strength is the exceptional quality of our products, high quality standards concerning materials, which we implemented a decade ago aiming to move away from unfair competition and mass producers of cheap textiles. Moreover, we are primarily focused on customer preferences, whereas our competitive advantage is our optimised sales system with strategic customers where we deliver individual items within one or two weeks following the placement of the order and we are talking about relatively large quantities”, stressed Sabolić, adding that in this way they reduce their operating costs for their customers. “We can conclude that we have managed to adapt to market requirements, irrespective of our size, whilst the diversity of our production range can certainly be considered as one of our largest advantages, since whenever a production area stagnates, there are two other segments which help us survive – which from a long-term perspective is an extremely valuable strategy. We are currently showing growth and seeing progress in our three production areas, which makes us a highly attractive and a desirable partner in Europe”, concluded the director of Čateks.
A SUCCESS STORY A company that can boast of generating large revenue and profits during the analysed period is AquafilCRO; the company operated under the name of Bulgari Filati until May 2013. In 2014, it generated a profit of €1.9 million and total revenue of €48.2 million. AquafilCRO produces synthetic fibres for the furniture and clothing industries and ranks amongst the top companies globally in the production of Econyl regenerated fibres. The Aquafil Group, which founded the company in 2001 also has factories in Italy, Croatia, Slovenia, Germany, the US, Thailand and China. “With hindsight, textile fibre and textile producers in Europe have faced a challenging decade. A pivotal point occurred 14 years ago when we opted for a new factory and Croatia proved an excellent choice. We operate in the environment, welcoming foreign investors and
where local, County and central government provides substantial support”, highlighted the President of the Management Board of AquafilCRO, Edi Kraus, who pointed out that the last significant investment cycle, worth €6.4 million, was implemented three years ago and the company currently primarily focuses on business consolidation. “We cannot be considered as investors who constantly face problems. We believe that objectives can be met through open and proper operation and that entrepreneurs have the task of creating a better business climate, rather than to continue bad practices. This does not imply that we never face problems. It simply means that we tackle and solve them y as we operate”, noted Kraus, adding that the company retains its customers with innovation, quality and meeting shipping deadlines. “Our great advantage is the fact that we operate in Europe and therefore delivery deadlines for our customers are far more competitive compared with imports from the Far East”, explained Kraus, pointing out one of the major reasons for the success of AquafilCRO. A straightforward conclusion can be reached – those who focused on new strategic objectives or investment into marketing, technological development and innovation have succeeded in surviving the turbulent years. Their strategic objectives are currently still to increase the competitiveness of goods and services, in addition to decreasing all costs.
Following years of stabilisation and restructuring, we are about to face years of expansion which began significantly in 2015, with
many extremely positive indications of continuation of this trend over the forthcoming years. Davor Sabolić, Director of Čateks
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GENERAL ASSEMBLY OF THE CROATIAN CHAMBER OF ECONOMY
PROFESSIONAL ASSOCIATIO IN THE GENERAL ASSEMBLY In addition to regional representatives, 15 representatives of professional associations have been elected in the new General Assembly. The continuation of work on new projects such as CIRAZ, dual education, the introduction of a ‘digital chamber’, internationalisation of the economy and the opening of representative offices in Shanghai, Vienna, Belgrade and Sarajevo have been announced. by Krešimir Sočković sockovic@privredni.hr
T We are primarily interested in economic policy and are striving to provide amendments for any government and participate in the creation of economic policies as a partner with any government. Joint and coordinated action of all society is vital to progress. Luka Burilović, President of CCE
he new General Assembly of the Croatian Chamber of Economy elected 78 members from county chambers and the Zagreb Chamber, together with 15 representatives of professional associations elected for the first time, as quoted by Luka Burilović, President of the Croatian Chamber of Economy, during a special session convened to agree the Constitution of its General Assembly. “We were aiming to include more sectors in the Croatian economy, representatives of Croatian economy and the greatest possible number of top Croatian companies. I am consequently inviting all members to become involved in active dialogue and work in this umbrella institution of the Croatian economy. We are primarily interested in economic policy and are aiming to provide amendments with any government and participate in the creation of economic policies as a partner to any government, co-operating on the enhancement and improvement of current circumstances. Joint and co-ordinated action of all actors is vital to progress”, pointed out Burilović. He highlighted the fact that policy creators need to be more effective and braver in deci-
sion-making, whilst simultaneously reforms need to be implemented far more effectively. “Issues such as public debt growth, insufficient investment, a low employment rate and high
THE CHAMBER HAS INITIATED A NUMBER OF IMPROVEMENTS IN ITS CURRENT SERVICES PROVIDED TO ECONOMY unemployment need to be our primary focus. GDP growth is projected to reach 2% in 2016, yet this is neither satisfactory nor sufficient. We need 3% to 4% growth in order to settle our debts, whereas if we are striving to achieve significant economic growth we need considerably higher figures”, concluded the President of the Croatian Chamber of Economy.
New Management and Supervisory Boards The General Assembly has also elected members of a new Management Board of the Chamber, comprising of the President of the CCE Luka Burilović, as well as members Marin Pucar, President of the Management Board of Zvečevo, Franco Palma, Consultant from the Opatija-based Liburnia Riviera Hotel, Vladimir Džaja, President of the Management Board of PIK Vinkovci, Nikolina Babić, owner of the company Pana, Ante Raspudić, owner of
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the company Labud and the Secretary General of the CCE Marina Rožić. The Supervisory Board of the CCE unanimously elected Goran Blagojević as its President, Director of the company Slavonija Nova, and members Denis Matijević, majority owner of AgroFructus, Stjepan Šafran, President of the Management Board of Metal Product, Miljenko Baković from Auto Hrvatska Split and Antun Marodi, owner and director of the company Toni.
ONS PARTICIPATED Y
Moreover, new Rules of Procedure on the work of the General Assembly have been adopted, as well as new Articles of Association where all amendments have been entered using a unique method, striving to harmonise all Chamber documentation to meet the eligibility criteria for projects to be financed through EU funding.
ON-GOING WORK ON REFORM In addition, the General Assembly has adopted the Report on the operation of the Croatian Chamber of Economy for 2015. It showed the results of the on-going work
on the reform of the institution according to the guidelines provided by the State Audit from 2014, whilst work on the balance sheet was also continued and the liabilities to assets ratio has improved. Moreover, new investment in tangible and intangible assets has been made, aiming to maintain their value. The Chamber has launched a broad range of improvements to its current services to the economy in the form of implementation of new projects such as CIRAZ, dual education, introduction of digital chamber, internationalisation of economy and the opening of representative offices in Shanghai, Vienna, Bel-
grade and Sarajevo has been announced. In addition, the annual financial statement of the Croatian Chamber of Economy for 2015 has been adopted, according to the report submitted by Supervisory Board, and the conclusion was reached that 2015 saw generated revenues of €21.1 million, expenditure of €20.2 million, thus generating a surplus of €0.9 million. The report from the auditors, BDO Croatia, confirmed that the presentation of reports by the Supervisory Board on the annual financial statement of the Croatian Chamber of Economy was impartial and realistic.
ECONOMIC TRENDS
Insufficient growth The General Assembly also addressed the issue of economic trends in Croatia. Trends in the movements of key macroeconomic indicators (industry, retail and export) during the first quarter of 2016 imply further GDP growth, stressed Zvonimir Savić, Director of the Sector for Financial Institutions, Business Information and Economic Analysis. “GDP is expected to see a maximum of 2% growth in 2016. Such trends slightly increase optimism levels, yet GDP growth dynamics are insufficient if we are aiming to address the current macroeconomic imbalances in the national economy in order to improve our credit rating. Public debt resulting from budget deficits currently accounts for 86% of GDP, whilst gross external debt is also a matter of concern. It is not enough for a substantial economic recovery, since against the backdrop of such GDP growth, Croatia would need seven to eight years to reach the GDP levels from 2008. During the last seven years, GDP has dropped 11% and now Croatia ranks 182 out of 189 countries globally, according to the degree of economic collapse”, noted Savić. “The best indicator of current circumstances for the Croa-
tian economy is the situation on the labour market where we rank amongst the worst performing of EU member states, irrespective of current positive trends. The labour market still shows one of the lowest rates of active population and employment in the EU, as well as the extremely high youth unemployment rate exceeding 40%. Implementation of reforms throughout the economy and at all levels are imperative in order to solve the current problems more effectively and efficiently, as well as to boost growth s, whilst simultaneously contributing to increasing competitiveness”, concluded Savić.
May 2016 | No 258 | PVinternational | 13
PILOTLESS AIRCRAFT ARE BECOMING A FAST GROWING MARKET
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THE CROATIAN DRONE MARKET HAS YET TO FLY Although drones could be most effective in economic sectors, such as precise agriculture or geodetics, for now they are mainly used for video productions and recording. Nevertheless, their potential is huge: assistance in search and rescue, traffic and border surveillance, supply of goods and monitoring of fire prone areas by Svetozar Sarkanjac
P
ilotless aircraft and the use of drones has been known to the public since a few years back when various incidents happened, such as close encounters of drones with passenger planes near some American and European airports. There were also incidents at football stadia and the dangerous fall of a pilotless aircraft on a ski resort. Luckily, all these incidents ended without casualties, and the
FIRST MILITARY USE OF DRONES IN CROATIA WAS IN AUGUST 1991 general public learned about the existence of pilotless aircraft through crime and accident articles. As far as Croatia is concerned, drones have recently started to be used in some economic sectors, mainly agriculture. Actually, their main use was once reserved exclusively for military purposes. According to certain data, the American Army used them for reconnaissance purposes during the war in Vietnam. Furthermore, Croatia once actually dominated in the use of pilotless aircraft. The first military use of drones was recorded in August 1991 when a group of
individuals from Slavonski Brod designed and used pilotless aircraft for gathering information about enemy positions. Drones were used throughout the Croatian War of Independence and in some way their use culminated at this time. Unfortunately, over the past ten years Croatia neglected this type of use in the military segment, and experts with long experience and great knowledge looked outside the military sector to find possibilities. It is also interesting to note that the first concept of a pilotless flight was published by Nikola Tesla in 1915.
ATTRACTIVE AND PROFITABLE ACTIVITY Todays market for pilotless aircraft is considered one of the fastest growing in the world. Based on European estimations, the pilotless aircraft industry in the EU should increase to €15 billion a year by 2025. By 2050 it should employ over 150,000 people. Of course, the aviation industry sees additional opportunities in this, as well as many small and medium sized entrepreneurs who could manufacture pilotless aircraft as well as equipment. Since this is an attractive and a profitable activity, the interest in pilotless aircraft is growing in Croatia. As a result, the first conference on pilotless aircrafts– Dronefest – was held in March.
15 5 billion a
€
year the value of the drone industry in the EU will increase to by 2025 (with 150,000 employees)
130
over operators registered in Croatia
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TEMA TJEDNA the interest of the civilian sector has considerably increased, Milivoj Hucaljuk explained to Privredni vjesnik. He is considered to be the leader of pilotless aircraft since he participated in their construction in 1991 when drones were
PILOTLESS SYSTEMS ARE THE FUTURE NOT ONLY IN AIR, BUT ALSO UNDER WATER AND ON LAND produced for battlefields. Hucaljuk specialises in the construction and manufacturing of drone systems. Some components are bought on the market, but since their use is specific, they are processed and integrated into a unique system based on requirements. He is the only person in Croatia to own a hybrid aircraft, first publicly exhibited a month ago in Belje. It was originally made for the Ministry of Interior and was designed for border surveillance.
AS MANY AS 2000 DRONES IN CROATIA? Given the conditions in Croatia, many people have participated in exhibitions and workshops. Concerning drones, it may be said that an almost logarithmic growth globally and in Croatia is being seen. Notwithstanding, drones have been used in for over 20 years, but
No one can say what the precise number of pilotless aircrafts is today. Allegedly there are around 50,000 in the USA and Europe also has a high number of operators, with 2000. The number of operators is increasing rapidly in Croatia, with 94 in January of this year, and
CROATIAN REGULATIONS
Minimally 500 metres away from the operator As was presented during Dronefest, Croatia is one of 56 countries from 204 global countries, that have some level of regulation regarding these systems. The main regulator is the Croatian Civil Aviation Agency which issues licences for these types of flights if the conditions prescribed by last year’s Regulation on Unmanned Aircraft Systems under the Act on Air Traffic are met. Drones are also regulated by the Regulation on Airplane Flying and there are also two implementable provisions from 2012 and 2014 at EU level. Considering the growth of this area, a new regulation is being prepared and should be adopted by the end of this year. This regulation will define rules for using drones for private and commercial purposes at EU level. These systems can weigh up to 150 kilos. Those weighing below 5 kilos are marked with labels, and those weighing above 5 kilos
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are marked with non-combustible plates containing operator information and address as well as a warning about abiding by the rules of flying which will not endanger safety, public order and peace or jeopardise humans or animals. The rules prescribe that the drones can fly 30 metres away from the roofs of houses and 150 metres above larger groups of people. Furthermore, drones cannot fly more than 500 metres from the operators. Also, the distance from airports cannot be less than three kilometres.
PRICE AND AVAILABILITY
At least €1000 for a useful drone Since the term ‘pilotless aircraft’ or drone can come in many shapes and sizes so do their prices vary. Even though you can find drones at low prices on some shopping
portals, a more valuable unit with a usable value cannot be found under €1,000. Top quality drones, used for serious work, can reach into the tens of thousands of euro.
currently over 130. According to some estimates, as exact data does not exist, there are over 2,000 various types of drones in Croatia, from toys to those which can be used to perform more serious operations, Hucaljuk says. Although drones could be most effective in certain economic sectors, such as precise agriculture or geodetics, for now they are mainly used for video productions and recording. However, their potential is huge: assistance in search and rescue, traffic and border surveillance, supplying of goods and monitoring of fire prone areas, delivering packages, goods, first aid and similar.
SAFE RAPID GATHERING OF DATA “Today I like to say I deal with gathering data from air, field, fire prone areas and traffic as opposed to the war period. Agriculture is a sequel to collecting information from air and in a way which unites geodetics with maths and agriculture”, Milivoj Hucaljuk explains. It is
HUCALJUK SAYS THAT ESTIMATES ABOUT THE FAST GROWING DRONE MARKET ARE TRUE, SINCE SUCH SYSTEMS ARE THE FUTURE IN AIR, UNDER WATER AND ON LAND common knowledge that technology is developing and prices are falling. New models appear at regular intervals. The market has exploded, as the first Dronefest in Croatia showed. Hucaljuk says that estimates about the fast growing drone market are true, since such systems are the future in air, under water and
Milivoj Hucaljuk and drone Fenix
on land. The technology is advancing so rapidly that there is no need for humans to be exposed to certain tasks both for economic reasons and safety. He also says that certain assumptions have been made about the future development of drones in Croatia, but it depends on organisation skills. The law supports us since we received a regulation based on which we can work and which complies with the law – especially concerning flying, which has been the largest problem until now. The obstacles are being gradually removed and the fact this is the future is slowly being accepted. Whether we will be intelligent and alert enough to apply this, is something else. It is sad that we were once regional leader in applying and developing these systems, and now we are not, Milivoj Hucaljuk concludes. He is also one of the founding committee of the Croatian Association of Users and Operators of Unmanned Systems.
It is sad we were the regional leader in applying and developing drones, and now we are not. Milivoj Hucaljuki
May 2016 | No 258 | PVinternational | 17
PV ANALYSIS PC GAMING INDUSTRY
HUGE POTENTIAL BU NEED OF SOME ASSIS FROM THE SYSTEM Few areas of the economy can boast of exports at almost 100%, a 31.2% increase in employment year-on-year, total revenues jumping by 55.5% and a 69.1% increase in profits before tax by Miro Soldić soldic@privredni.hr
A The major issue in the Croatian IT sector is the fact that it has not managed to reach the desired level of development due to the fact that most people leave the country after reaching a certain level of expertise. We simply cannot afford to pay them €2,700 nett.
closer look at the PC gaming industry in Croatia quickly reveals an anomaly in an otherwise colourless portrait painted by the local economy. It is an industry that has recorded continuous growth in turnover, employment, self-employment and youth employment irrespective of the crisis. Few areas of the economy can boast of exports at almost 100%, a 31.2% increase in employment year-on-year, total revenues jumping by 55.5% and a 69.1% increase in profits before tax. Of 30 titles published in Croatia during the last 20 years, 12 have seen significant success globally. The value of the global PC gaming market is estimated at $100 billion and it is obvious that there is immense potential for further growth. Nevertheless, some degree of support provided by institutions will be required as well as entrepreneurial ingenuity. Local ‘gamers’ have been described by Mario Mihoković of LGM Games studio as that they may be considered wonder-workers against the backdrop of the conditions under which they are currently operating. Irrespective of their being propulsive and independent from local demand, they still face the chronic malaises inherent in our system which cannot be avoided. A lack of labour force, difficulties in providing finance, the excessive burden of taxation on salaries and double taxation are only some of the issues adversely impacting on the competitiveness of the industry that need to be addressed.
A GENERATOR OF GROWTH
Alan Sumina, Nanobit
A conference entitled PC Gaming – The Generator of Economic Growth has recently been held aiming to address these burning issues. It was organised by the Croatian Chamber of Economy, the Croatian PC Gaming Produc-
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ers’ Cluster and e-Skills for Jobs, an initiative of the European Commission. The idea behind the Conference was to bring together entrepreneurs from this economic branch with representatives of institutions and discuss the changes that have the potential to contribute to further development. Support in the form of tax reduction, facilitated financing and new regulations concerning working from home have been promised by government representatives, the Office of the President, and the Ministry of Entrepreneurship. Nevertheless, verbal support has been provided several times to date that have never been translated into concrete measures. The excessive burden of taxation, especially on highest income earners (which is essential in the IT sector) in order to attract or retain quality staff, may be the major issue faced by the industry. Željko Pađen from the Economic Analysis Department at the Croatian Chamber of Economy further elaborated on this issue. “Our tax system used to be ideal in the latter part of the last century, since it was based on consumption. Nevertheless, subsequent and primarily after the onset of the financial crisis, this system became overburdening and uncompetitive. Taxation needs to be stimulating and aimed at encouraging economic development. The highest income tax rates need to be reduced and exemptions need to be implemented in the IT industry”, pointed out Pađen. Nevertheless, he warned that the consequences of these changes could result in the opening of Pandora’s box and other sectors may also subsequently claim such privileges. Ante Vrdelja, Secretary of the Croatian PC Gaming Producers’ Cluster, explained that Croatia needs to learn from the example provided by other countries on how to treat PC
UT IN STANCE The Talos Principle, Croteam
game designers, addressing them in a similar way as culture, providing them with incentives and privileges. “An elegant solution would be to provide a tax refund similar to the film industry”, he stated. Alan Sumina from Nanobit believes the main reason why the full potential of the IT sector has so far remained unexploited is the question of salary. “The major issue in the Croatian IT sector is the fact that it has not managed to reach the desired level of development because most people leave the country after reaching a certain level of expertise. We simply cannot afford to pay them €2,700 nett. An additional problem is the fact that people do not leave solely because of high taxation and contributions – they also opt to leave because of dissatisfaction with what they can get here. We currently lack experienced staff, yet we cannot get them in Croatia and hence we hire foreign staff. However, they expect adequate salaries, on a par with those earned abroad, which is an insurmountable problem due to high contributions. The fact that domestic expert costs substantially exceed those in the UK is utterly absurd, pointed out Sumina, who emphasised that he does not fear the arrival of foreign competitors should the state decide to systematically provide privileges for IT companies, following the example of Bulgaria and Romania. “Competitiveness attracts people with experience which our market lacks. There is also insufficient knowledge sharing and movement”, he noted.
DOUBLE TAXATION Mario Mihoković from LGM Games studio addressed another problem faced by local PC game producers – the issue of double taxation. It comes into force when doing business with the US, since, irrespective of the fact that clients purchasing software are not exclusively Americans, due to the fact that Steam platform, through which a wide number of PC games are distributed, is headquartered in the US and subject to their tax laws; thus our Ma Ma May ay y 2016 2016 20 6 | No No 2 258 58 8 | PVinternational PVi PV Vin in nt te errrn ern nati at tiio t ona na al | 19 19
PV ANALIZA pared with standard industry. In this industry the risk is considerably smaller and it is hence excellent for young people. They can set up a business on their own and if they fail, they still have the opportunity to restart from scratch”, concluded Mihoković.
THE UNFORGETTABLE SERIOUS SAM
PG game development can cost from several tens of thousands of euros to several tens of millions of dollars. It is important to highlight the fact that this work can
yield 100, 200 or 500 times returns, which is substantial compared with the standard industry. In this industry the risk is considerably smaller and it is hence excellent for young people. Mario Mihoković, LGM Games studio
Starpoint Gemini Warlords, LGM
producers are subject to double taxation. “This issue needs to be addressed, yet the Croatian system merely creates additional problems through new Ordinances, rather than providing support to entrepreneurs. Small business directors need to focus on work; they cannot afford to do the paperwork. PC games can be developed from home and employees can be provided more flexible forms of work, yet in Croatia this is considered as a disadvantage since the laws in Croatia currently do not address these forms of work and one may risk violating some law by becoming involved in such work. This wastes a substantial amount of precious time”, stated Mihoković, expressing his satisfaction with the fact that the Croatian PC gaming industry can be considered a ‘wonder-child’, against the backdrop of insufficient investment. “We are fortunate to have exceptional individuals, enthusiasm and even spite, yet this cannot last long. Once one becomes involved in serious projects, one cannot compete primarily on the basis of enthusiasm and we will also reach the point in which we will require a reliable legal framework. We are also running out of time”, he pointed out, adding that a significant competitive advantage of this branch is its ability to adapt instantly, without the requirement for large and long-term infrastructure investment. The production of new PC games does not require excessive investment, yet it certainly depends on the project. “PC game development can cost from several tens of thousands of euros to several tens of millions of dollars. It is important to highlight the fact that this work can yield 100, 200 or 500 times returns, which is substantial com-
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Davor Hunski from Croteam remembered the initial stage of his entrepreneurial venture, operating in modest premises. However, the company is now well-known due to the success achieved by titles such as Serious Sam and The Talos Principle. “We launched our business casually and were semi-professional until we generated our first tangible revenue. Subsequently we started moving towards a more serious and professional level. We persevered primarily due to our enthusiasm and love of our work as it implied activities we are truly delighted with. When coming home from work in the evening we would simply continue working, as we considered it a pleasure, rather than our obligation”, explained Hunski, adding that this branch is highly cost-effective from an economic perspective. He believes that interest in the creation of PC games would be considerably higher amongst young people were they aware of how lucrative the profession is. “Those about to enter the labour market need support, yet also pupils and students require training on available opportunities, as well as information on high incomes generated in this profession”, noted Hunski. He also addressed the on-gong problem of lack of staff with specific qualifications and expertise, pointing out that he primarily values self-initiative. “I am not interested in diplomas and certificates. I am primarily interested in
OF 30 TITLES, 12 HAVE SEEN SIGNIFICANT SUCCESS GLOBALLY previous work experience and the skills acquired building ones portfolio, which is considered as CV in the IT sector. We are primarily interested in creative individuals who are able to deal with information”, emphasised Hunski and most others in this sector share this opinion. This stance is becoming increasingly appreciated also by institutions, yet the issue of a sluggish educational system needs to be tackled in order to solve other problems. A large number of industries that have not undergone revolutionary changes and require
considerably less finesse and training from their staff often lack staff and need to resort to hiring foreign workers. IT market changes are continuous and extremely rapid and hence it is difficult to anticipate any trends, as well as manage to react appropriately and meaning-
THE FACT THAT LOCAL EXPERT COSTS GREATLY EXCEED THOSE IN THE UK IS UTTERLY ABSURD, SUGGESTS SUMINA fully to trends against such background. Hrvoje Balen from Algebra primarily pointed out the problem of inflexibility of the education system. “Gamers lack support in lifelong learning. Croatia is faced with the problem of our students wishing to attend five-year study programmes, whilst this is not required in 80% of the jobs in IT. Consequently, we have a problem of inflexibility in the education system and we need to be more dynamic. The focus needs to be on educational outcomes, as opposed to the current focus primarily on meeting the formal requirements of educational programmes”.
IT IN SCHOOLS Broadly advocated curricular reform could eventually manage to solve these prob-
lems, aiming to arouse interest amongst students using innovative methods starting from the first grade of elementary school. The announced reforms appear to be meaningful, primarily if one considers that currently even pre-school children are skilfully using tablets and smartphones and it is therefore pointless to subsequently teach them the basics with which which they are familiar through several years of schooling. IT programme in Croatian schools is appallingly outdated and rather than arousing interest in technology it results in hostility. Nevertheless, over 60 schools applied for the experimental implementation of a new curriculum, at which Vedrana Miholić from CROZ-a (Programerko Association) expressed her great delight. She pointed out that education is of extreme importance and, irrespective of the fact that we may not know what professions will be needed in the future, we are aware of the type of knowledge that will be required. She consequently expressed her satisfaction with the curricular reform which she believes will be fundamental for the development of the IT sector once its implementation has started. Whereas in Croatia we are still discussing the adequate path to follow, our competitors are not wasting their time. In Poland and Romania tens of thousands of IT experts are educated annually, and they have reduced or entirely abolished the tax burden on the IT sector and are moving forward taking huge steps. Nevertheless, it is never too late for positive developments. The PC gaming industry has shown the extent of its resilience and quality and we are consequently convinced that with some support it would reach its full potential which is immense.
The interest in the creation of PC games would be considerably greater amongst young people if they were aware of how lucrative this profession
is. Those about to enter the labour market need support, as also pupils and students require training on available opportunities, as well as information on high incomes generated in this profession” Davor Hunski, Croteam
Chef Town, Nanobit
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CROATIAN PROGRAMMERS ARE CREATING A NEW SOFTWARE SOLUTION
mySea - INTERACTIVE FOR SAFE SAILING
Due to the support of a few charter operators, Croatia has become the first Med book berths easily, and its integrated free guide is the most elaborate and best in
O
nline berth booking for marinas is a new software solution for European marinas created by Croatian programmers. In addition to booking berths, the application also offers solutions for special client demands. mySea interactive application is owned by Germany company Euminia
MARINAS ALSO HAVE A NEW SALES CHANNEL SINCE THE SIMPLIFIED BOOKING SYSTEM BRINGS VISITORS WHO WOULD OTHERWISE STAY ELSEWHERE owned by Aksel Dullberg. Euminia’s partner is Dalmatia Charter with a base at the ACI marina Trogir, the first to have installed this application in their sailing boats and the promotor of the mySea system. Owner and executive manager of Dalmatia Charter, Ivica Buble, says that due to the support of the Croatian Chamber of Economy – County Chamber Split, the German company built confidence in Croatia and gave the entire software part of the work to the Croatian company Stratus IT from Zagreb. This is one of the most advanced software solutions, and it is 100% product of the Croatian company Stratus IT. CCE employees Iva Kuliš and Goranka Košta recognised the importance of this 22 | PVinternational | May 2016 | No 258
application for Croatian sailing and were a great help in teaming us up with Croatian companies. They also organised a presentation of this application to Italian marinas, Ivica Buble says. With CCE – County Chamber Split and the Enterprise Europe Network, Dalmatia Charter successfully presented the Italian marinas an interactive sailing guide which offers online berth booking. Several managers of Italian marinas participated at the presentation as well as presidents of associations whose members include over 70 marinas of the Veneto region, Trieste and Gorizia.
IMPORTANT FOR SAILORS This application was first tested four years ago by Dalmatia Charter from Trogir,
one of the oldest charter companies in Croatia. Company owner, Ivica Buble, says the application is extremely important for sailors. “Before teaming up with Aksel Dullberg, my former client and owner of Euminia which owns the mySea application, we used to book our sailing boats mainly through recommendation and classic selling methods, which is a reliable yet slow way of doing business. This season, the majority of the charter industry will work closely with mySea in the way the data of the bigger part of the fleet (around 4,000 boats) will be registered in the programme and their clients will be able to book berths rapidly and easily, Buble explains. The application consists of two parts: a free sailing interactive guide for online
FOR EUROPEAN MARINAS
APPLICATION
diterranean country with the mySea system, an application allowing sailors to n the Adriatic by Jozo Vrdoljak DALMATIA CHARTER
Buble: We have reached the top Dalmatia Charter is one of the first Croatian charter companies. Its central office is in Trogir, with a second base in the Kremik marina near Primošten, and its fleet includes 18 sailing boats. We are one of the leading charter companies in Croatia. In terms of the quality of charter boats, technical support, booking and servicing staff, we are one of the best. With 27 years of experience and gathering technical know-how with Elan, Yanmar and Volvo Penta, we have reached the top, securing a place amongst top charter companies in the Adriatic, Ivica Buble highlights.
berth booking. As such, it is unique and the most advanced system globally. It offers a series of benefits, both for sailors and owners of marinas, buoy concessionaires and also for restaurants without a concession. This is an excellent tool for restaurant owners wanting to promote their business and reserve tables for visitors who will have a reserved berth on a buoy near their restaurant, executive manager of Dalmatia Charter explains. Buble highlights that it has been made impossible to cheat when ranking services of charter companies since the
application recognises even the voice of a client leaving a review. The application was useful for me since I could identify the weak spots in my offer based on the reviews, Buble says. He further explains that this application leaves more time for the client to enjoy the sea, relieving them of the stress when they have to find a berth in the evening. This application provides them with all service information of their interests so they can relax and enjoy their holiday. To put it simply, the sailor books a berth for the evening and he can come whenever he wants. Without this application, they would have to come early in the morning, for example in the port of Vis, to be sure they would have a place to moor. We do not need to mention the importance of this application for the safety of sailors. For example, last year I did not have a single intervention on our boats, since clients had all information beforehand. Safety is very important for clients, charter companies and safety workers at sea as well as insurance
companies, and safety is achieved by securing a berth in time, Buble says.
UNITES ALL SPECIAL FEATURES He highlights that every marina in the Mediterranean is specific, and this application unites all their features. As a result of the support of a few charter operators, Croatia became the first Mediterranean country with the mySea system. The interactive guide, which is the integral part of the application and free, is the best, that is, it is the most elaborate guide for the Adriatic. The application allows booking a berth in less than a minute using a unique code. I can say this application has increased the profit of marinas since it brings in clients who would normally not come. This application allows them to book a berth and they know it will wait for them. The marinas also have a new sales channel, Buble explains. According to Buble, mySea covers Croatia, Greece and Turkey, and is spreading to Cyprus, France, Portugal and Italy. The booking aspect has been especially welcomed. May 2016 | No 258 | PVinternational | 23
TOURISM EUROPEAN BEST DESTINATIONS
MAKSIMIR - ONE OF THE MOST BEAUTIFUL EUROPEAN PARKS In the past Maksimir was the first public park in southeastern Europe, but also one of the first urban parks in the world. Today, it is protected as a monument of park architecture and Croatian cultural value by Sanja Plješa pljesa@privredni.hr
T Maksimir ranks
4th on the EBD list
316 6 hectares
he Zagreb park, Maksimir, is a unique facility of Zagreb’s constructional heritage, but also of Croatia as a whole. It lies on the southern slopes of Medvednica where it was built in late 18th century and the first half of the 19th century. In the past, Maksimir was the first public park in southeastern Europe, but also one of the first urban parks in the world. It was once the favourite destination of Zagreb residents and its visitors, and it is also known for the legendary Croatian film Tko pjeva, zlo ne misli (One song a day takes mischief away) whose scenes were shot in this park. Maksimir has remained a favourite spot for rendezvous and lovers of nature and life. This unique wonder of landscape architecture was named one of the most beautiful European parks. In fact, the official website of the
IT CARRIES THE NAME OF ITS FOUNDER – ZAGREB BISHOP, MAKSIMILIJAN VRHOVAC 24 | PVinternational | May 2016 | No 258
organisation European Best Destinations (EBD) with its central office in Brussels, published a list of the most beautiful parks of Europe, and Maksimir is in fourth place amongst old Parisian, London and Madrid parks. The first place, as the most beautiful urban park, went to the Parisian Parc des Buttes Chaumont and the second place to the El Retiro in Madrid. The third most beautiful park is the London Hyde Park. Maksimir is followed by the Roman Villa Borghese and the Tiergarten Park in Berlin. Phoenix Park in Dublin, Englischer Garten Park in Munich, Crystal Palace Gardens in London and the Port and Park Güell in Barcelona are amongst top ten most beautiful parks.
SANCTUARY FOR MANY PLANT AND ANIMAL SPECIES The EBD decided to select the most beautiful urban park since Europe is called a green destination with thousands of parks and millions of planted trees and flowers as well as lawns. To get away from stress, have a picnic or simply go for a family walk, then the beautiful European urban parks are a great choice. Most of the capitals of many European countries have
1. Parc des Buttes Chaumont, Paris, France
2. El Retiro park, Madrid, Spain
LESSER SPOTTED WOODPECKER AS WELL AS NUMEROUS SPECIES OF BATS AND SQUIRRELS FOUND THEIR HABITAT IN MAKSIMIR
amazing green parks which lure people to walk or simply relax in silence. Maksimir covers an area of 316 hectares including a large forest, meadows, lakes, streams and a zoo. It carries the name of its founder – the Zagreb bishop, Maksimilijan Vrhovac, who initiated the clearing of an almost impassable centuries-old oak forest in which wolves and even boars once lived. He decided to construct a large hill, the central point of the park, with a lookout. Today it is protected as a monument of park architecture and Croatian cultural value, and it was named one of the most beautiful Croatian parks. It is important to highlight that today Maksimir represents a sanctuary for many plant and animal species where over 100 species of birds ďŹ nd their home. It is also interesting that this park is the habitat of the Lesser Spotted woodpecker as well as numerous species of bats and squirrels. The EBD has recognised all its positive features and it is estimated that this beautiful park will be visited in the future by even more visitors who will enjoy its peaceful forest and take a break from daily worries and problems.
3. Hyde Park, London, England
4. Park Maksimir, Zagreb, Croatia
5. Villa Borghese, Rome, Italy
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