Issuu on Google+

A different outlook Island agriculture is considerably underestimated, with tourism leading, followed by fishing and wine production

Peter Fuchs, Board President, Valamar Hotels & Resorts Tourist destinations must be kept alive throughout the year

New water park at Terme Jezerčica The water park spreads over 2,800 m2 with some €4 million invested in construction

ISLAND ECONOMIES PAGES 2-3

INTERVIEW PAGE 4

TOURISM PAGE 8 2008 2009 2010 2011

Croatian Business & Finance Weekly Established in 1953 Monday / 19th March / 2012 Year V / No 0191 www.privredni.hr

S U P P O R T E D

B Y

T H E

pvinternational pv international C R O A T I A N

C H A M B E R

O F

E C O N O M Y

BORIS VUJČIĆ, VICE-GOVERNOR, CROATIAN NATIONAL BANK

Inflation as a moving target Croatian accession into the European monetary union depends on us and the pace of solving the eurozone crisis Boris Odorčić he Croatian financial sector is already highly integrated within the European Union, so that nothing significant will happen when we become a full member. However, it will soon become important how quickly Croatia will be able to enter the European Economic and Monetary Union (EMU), which will be possible to discuss next year, says Boris Vujčić, ViceGovernor of the Croatian National Bank (HNB). He primarily refers to a stable monetary union since Croatia does not wish to join an organisation which is unstable and would eventually cost too much. EMU integration depends on us and how quickly the eurozone crisis will be resolved. The current appetite for eurozone enlargement

T

is very low, and is unlikely to grow until problems are resolved, Vujčić pointed out at the IBM Conference Financial Solutions Day. He also mentioned Croatia must do everything it takes to join the monetary union as soon as possible. We would lose very little by joining the EMU. However, at the same time we would receive a reduced exchange rate risk, the single most important risk in the financial system and one of the heaviest burdens. Therefore, Croatia should create certain fiscal criteria on its way to European monetary union. It is a known fact that public debt is growing and the deficit is high, and thus these indicators should be kept at those levels that will not present stum-

bling blocks before or after EMU accession. On the other hand, if we remain excluded from monetary union, Croatia will get nothing, Vujčić said. GDP growth required However, EMU accession could pose illogical requirements for Croatia. For example, Croatia could have an inflation rate lower than that in the eurozone. The inflation rate is a moving target in the Monetary Union. Therefore, we do not know which inflation rate Croatia should have when joining the EMU since these are the regulations. Nevertheless if you want to be accepted, you must do what is asked of you, Vujčić stresses,

adding the Croatian inflation rate is “currently acceptable” and ranging around 2.5%, which is credible for price stability. He continues that the legislation regulating the financial system in Croatia have already been harmonised with European provisions. However, HNB continuously harmonises these regulations subject to sudden changes due to the crisis. The HNB Vice-Governor believes that GDP growth is the only way out of the crisis. The financial sector cannot be boosted or to recover without new investment, as well as rising employment and increasing exports, which are both Croatian and European syndromes.


2

Privredni vjesnik Year V No 0191

Romano Pičuljan, Board Member Pičuljan Marina

Aiming high Positive statistics for nautical tourism in 2011 have not significantly promoted production and vessel maintenance ičuljan Shipbuilding, a traditional family business, producing between 60% and 70%, for the Croatian market, with 30% to 40% being exported thus far. “We are a dominant Croatian brand and the local market leader, due to the fact that our vessels such as the Rab720, Rab830, 980 and Eleven can be found globally, from the Adriatic Sea to Japan. We believe that small shipbuilders need to be recognised locally and consequently need to be provided with appropriate conditions for development and advancement.” Small shipbuilders have seen three years of recession. Nevertheless, positive statistics for nautical tourism in 2011 have not

P

I am convinced that the small shipbuilding and nautical sector will see a bright and promising future greatly enhanced the production and vessel maintenance sectors in which our company operates. The recession is everywhere. Our sector is currently seeing takeovers, acquisitions, sales and changes in ownership, as companies are address the difficulties in various ways. Our company has witnessed several crises since 1936. We have consequently started an initiative to join all forces throughout the nautical sector with the assistance of the Nautical Sector Association at the Croatian EmIMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription

( around 75%

holiday accommodation in Kvarner and North D

ISLAND ECONOMIES

A different

Island agriculture is considerably underestimated, with production Jozo Vrdoljak large number of island companies create extremely low added value due to poor mainland connectivity and a permanent lack of trained and professionals. In addition, whole areas of activity are non-existent, with some, just exclusive representatives, employing around 10 people. Production on certain islands often comprises of just one product, popular on the mainland and consequently having a positive effect on the local population until the point when market saturation often leads to terminal decline. The inability to make changes to production has always been a prime distinction of island economy.

A ployers’ Association. It is of vital importance to point out and deepen the insight into the current problems, as well as attempt to create the basics for development in co-operation with authorised state bodies. We would like to achieve results on a par with those of 2007 when, due to a highly favourable real situation, we achieved much more satisfactory business results. I am convinced that the small shipbuilding and nautical sector will see a bright and promising future. It is a pity we have not achieved more. In addition, caulkers must not be forgotten. They are our tradition and we need to focus on it. We also need to focus on the global nautical industry and global production to keep abreast of our neighbours and aim to provide similar working conditions.

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

Tourism, trade, agriculture Island agriculture is considerably undervalued with tourism being the lead, followed by trade, shipbuilding and some industries, such fish and processing, wine production and wine distillation. Tourism potential varies depending on the island. Around 75% of holiday accommodation is based in Kvarner and the North Dalmatian islands yet the number is even less favourable in the Central and South Dalmatian islands. The area of vineyards has seen a downturn from 26.5% to 19.8% over the last 20 years, but still continues to be the principal agricultural activity. Island share of wine production stands at between 10% and 15% of total country output. Olive growing is another significant economic activity. Nevertheless, there are several high quality export-oriented companies (the Postir-based company Sardina, Gligora dairy,

Pičuljan Marina, Punat Marina and a range of similar companies) on the islands which have been investing highly in expansion and modernisation during recent years. These companies have been investing in their development and now have an extremely attractive range of products and often tourism and hotel facilities. Island entrepreneurs mainly complain about poor connectivity which adversely affects product competitiveness. On the other hand, the state has been implementing many measures in order to halt population decline. In addition, it has been investing into more effective and more convenient connectivity as well as in the construction of traffic, utility and social infrastructure. The state has developed assistance programmes for agriculture,


www.privredni.hr Business & Finance Weekly

Dalmatian islands

(

3

26.5% to 19.8% area of vineyards on islands

outlook

tourism leading, followed by trade, shipbuilding and some industries, fish and stone processing and wine

country. The unexploited potential of islands appears to be an unimportant issue for island entrepreneurs. Nevertheless, there are other views on the current situation on the mainland”, opined Dujmović.

fishing, tourism and culture, as well as providing more convenient lending programmes for island residents and focusing on enhancing the tax system and credit policy of local island government. Current investment Ivan Gligora, owner of the Gligora Dairy on the island of Pag, has opened a new state-of-theart dairy, investing over €2.7 million, enabling him to sell around 300 tonnes of cheese last year. He believes island entrepreneurs need to be exempt from certain taxation and compulsory fees which are implemented on the mainland. “New measures for survival and sustainable development are an imperative. Modern technologies have achieved significant progress during the 21st century, enabling various business activities on

the islands. Similarly, a lack of workforce on the islands is due to the worsening in living standards”, promoted Gligora. Davor Gabela, Board Member of the Postir-based company Sardina, has been constructing a new, state-of-the-art facility for the production of canned fish to Europe, is expecting the abolition of tax on reinvested profits, in accordance with pre-election announcements. “If the tax on reinvested profits is not abolished instantly, we, as well as other large investors, will see no benefit at all. We have invested €17 million, created 100 new jobs, in addition to the current 237. Our planned production is expected to double and hence we will be producing around 35 million tins of canned fish”, stressed Gabela. Ante Dujmović, owner of Antonio restaurant, is an entrepreneur

who has succeeded in transforming problems into opportunities, without the use of communal infrastructure, based on an island

Island entrepreneurs mainly complain about poor connectivity which adversely affects product competitiveness near Hvar where his restaurant has been successfully operating for over 30 years. “There are currently opportunities to generate more revenue from tourism, yet Croatians seem not to be interested. If, for example, we allowed Italians to manage our islands, I believe they would succeed in generating more revenue than the entire

Benefits and investment Population growth on the islands over the last 10 years is encouraging; according to data provided by the Croatian Bureau of Statistics, there were 132,703 island residents in 2011, which is a significant increase compared with the 7,883 residents in 2001. As opposed to other residents, islanders are entitled to subsidised sea transport and public transport on the island, preferential ticketrates on islands, subsidised water prices and transport fares, as well as LPG, which contribute to a more satisfactory living standard. The total investment of the country in island development of the islands – by ministries, public companies and special loan programmes provided by the Croatian Bank for Reconstruction and Development (HBOR) during the period between 2004 and 2010, stood at €1.4 billion, whilst between 2009 and 2010 it was around €0.37 billion. €0.17 billion from the central budget and corporate funds (with €123.7 million in non-repayable lending and €49.9 million in investment loans) were invested in 2010 by the Ministry of Maritime Affairs, Transport and Infrastructure, which at that time included the Island Board, which has currently been transferred to the Ministry of Regional Development, and EU Funds. Investment covered 51 of the inhabited islands as well as the Pelješac peninsula.


4

Privredni vjesnik Year V No 0191

( HRK 1.2 billion

( 50 guides

invested by Valamar Group over six years

employed

PETER FUCHS, BOARD PRESIDENT, VALAMAR HOTELS & RESORTS

Tourist destinations must be kept alive throughout the year In Valamar, we welcome all measures that will help the development of tourism and make Croatia more competitive and attract more tourists Sanja Plješa or many years, Valamar Hotel & Resorts have been proving they are a quality service oriented company, also providing quality management to employees. Privredni vjesnik talked with Peter Fuchs, Board President of Valamar Hotels & Resorts about the outlook for this year’s tourism season, investment and the development of the company management plans.

F

What is your evaluation of this year’s tourist season and what do you anticipate in terms of booking capacity? Although we achieved good results last year, it would be too careless of me to anticipate the same for this year. We had a good start and are delighted by the positive outlook for business meetings and camping, and especially of the great interest in Croatia from our most important market - Germany. The greatest challenge remains to increase sales in spring and autumn, where the earlier Easter holidays will not help very much. Furthermore, big sports events, for example the European Football Championship and the Olympics, could take away a share of our visitors in June and July. Our anticipa-

tions for this year remain high regardless.

plans. However, I am sorry this will not visible this year.

A reduction in VAT for tourism has been scheduled for January 1, 2013. How will this reflect on your operations? In Valamar, we welcome all measures that will secure the development of the tourism sector, make Croatia more competitive and attract more tourists. A VAT decrease for hospitality services will have a positive effect on our investment and development

The issue of land preventing future investment remains unsolved. How should it be resolved? Over the past six years, companies operating within the Valamar Group have invested €0.16 billion into promoting the quality of products and services. We have several interesting investment projects ready, some even have location permits, but they are put on hold for now. Why? The investor should feel safe when investing in Croatia and tourism. The unsolved issue of land and undefined as well as impractical legislation represent obstacles to investment. We are familiar with the government plans of reviewing the law and provide safer tourism investment, which the reduced VAT will make the situation even more attractive.

No staffing problems As always, at the beginning of the year we are busy preparing the season and employing many workers, mainly waiters and chefs. We also hire new trainees in hotel sales and marketing, and we have just concluded job interviews for around 50 guides for each of our destinations. Valamar is known to be one of the best employers in tourism throughout Croatia. For several years now, it has been awarded with the Employer – Partner Certificate for excellence in Human Resource Management. Therefore, we have no problems in finding quality staff, regardless of the position.

Therefore, Valamar is ready to invest as soon as the required conditions are met. In your opinion, what are the selling points for Croatian tourism? They are beautiful nature, a rich cultural and historical heritage, authenticity of our range of food and wines, and above all the mentality of the people and their friendly hospitality. In terms of services, all tourism employees should understand they are here for customers, and they should do their best so they will return, and possibly bring relatives, friends and colleagues. It is important to understand we are all creating an image of Croatia as a friendly country, from customs officials, police and airport taxi drivers to workers in restaurants, hotels, information centres and shops. Let us show the meaning of real hospitality.


www.privredni.hr Business & Finance Weekly

5

SMALL SHIPBUILDING

From dynamic growth to the brink of ruin Small shipbuilding plunging dramatically due to excise duties, with nearly all small ship builders facing severe crisis Drago Živković mall shipbuilding was once one of the most dynamic economic sectors with an annual production growth rate of around 20% prior to the recession. In addition to recessionary issues, in the summer 2009 the government introduced high excise duties on vessels of all sizes not merely on those exceeding 8 metres. Irrespective of the fact that the government soon abolished these, sales saw a drastic downturn. Some two and a half years later, only half of the 110 members of the Small Shipbuilding Association at the Croatian Chamber of Economy are currently operating at minimum capacity, according to Boris Vukušić, President of the Association. Small shipbuilders output plunged dramatically due to excessive excise duties and nearly all small yards are faced with serious problems, such as Prinz

S

Adriatic, which was the leading exporter has had to halt operations, or Donat Boats, owned by Tankerkomerc, which is also faced with bankruptcy. In addition, Gropo and Adex are facing huge obstacles, whilst other small builders have reduced the number of employees to the minimum and are barely operating. On a par with tourism The latest VAT increase to 25% has adversely affected small builders. Consequently, they are currently at huge disadvantage compared with vessel importers, since it is possible, for example, to purchase a vessel in Germany, where VAT is 17% and, following Croatian EU accession, it will be 8% less costly compared with local producers, explained Vukušić. Amendments to VAT regulations have additionally complicated and increased purchase costs for the general public. Vessels purchased need to

be used for economic purposes and generate annual revenue of at least 7% of their value. According to Vukušić, the abolition of excise duties and lowering the VAT rate to 10% might be a solution for small shipbuilders, which would imply nautical sector ranking on a par with tourism. A letter including these proposals was sent to the Prime Minister, Zoran Milanović, which was forwarded to the Fi-

nance Minister, Slavko Linić, who promised small builders to keep them in mind during the comprehensive tax reform. “The government needs to be aware that if there are companies interested in purchase, they will purchase now and orders will be considered during the next month or two. We would welcome any reductions in excise duties or VAT rates”, pointed out Vukušić.

SCORE ALARM, ONE OF THE BEST SELLING APPS

Sports results on hand Saving time, simplifying content and ease of use Andrea Šalinović martphone owners are aware that the highly popular game Angry Birds is one of the best selling applications, but might not be aware of the fact that Score Alarm, a Croatian application, has achieved even better sales in the 24 hours following its launch. Score Alarm is a mobile application providing sports results on smartphones within 30 seconds following user subscription. “I once read that the HRT tele-text application achieved a huge number of downloads in a short time due to users interested in betting. Consequently,

S

I bought a betting sheet myself and followed the results on teletext pages. I used this idea and started developing Score Alarm. I also realised that reading teletext pages is time consuming and unnecessary. On Score Alarm you just need to select sporting events of interest and the application will search and inform you by push notification”, explained Ivan Klarić, the developer of the application. Development for other systems The competitive advantage of Score Alarm is that it encompasses all sports, by bringing all

scores to one access point, for which several applications have been needed thus far. According to Ivan Klarić, it is time saving, as it is not necessary to search the internet or tele-text pages, reduces unnecessary content and is easy to use. Limun studio programmers assisted him in his work. “If the application generates satisfactory revenue or if there is an interested investor, we will make minor alterations in its functionality and design and equip it with globally popular sports. In addition, we will have to develop the application for other significant operating systems such as

Windows Phone 7”, announced Klarić. The application has been on the market for a short time and has already seen thousands of downloads in over 15 countries.


6

Privredni vjesnik Year V No 0191

CROATIAN FOREIGN CURRENCY MARKET Currency

AUD CAD JPY CHF GBP USD EUR Source: HNB

EUR

Kuna exchange mid-rate

7.56

6,056351 5,790738 6,869882 6,225475 9,04842 5,751725 7,512903

5.78

13.3.

14.3.

15.3.

CHF

6.27

7.55

5.77

6.26

7.54

5.76

6.25

7.53

5.75

6.24

7.52

5.74

6.23

7.51 12.3.

WEEK MARCH 17, 2012

::: news

USD

16.3.

5.73 12.3.

13.3.

14.3.

15.3.

16.3.

6.22 12.3.

13.3.

14.3.

15.3.

16.3.

CROATIAN BANKING ASSOCIATION

Čakovec Mills: €3.7 profit Čakovec Mills produced a nett profit of €3.7 million in 2011. The Management and Supervisory Boards have proposed the transfer of €2.7 million to retained earnings with the remainder paid in February as dividend. Shareholders will discharge both Boards for 2011 at a shareholders meeting to be held on 24th April 2012. Fixed interest rate loans Erste Bank has expanded its product range with loans at a fixed interest rate throughout the loan repayment period. This proposal will be in place until 30th June 2012. The interest rate will be directly affected by an assessment of client creditworthiness, ranging from 8.59% to 9.99% for those with client status and from 9.79% to 11.49% for those without client status. The bank provides fixed interest rate loans up to €25,000 with a 5 year repayment period, with handling fees of 2%. Insurance premiums stagnating

Croatian insurance companies saw €0.23 billion in total gross premiums during the first two months in 2012, which is on a par for the same period last year. Non-life premiums, (78.1% share of total premiums), stood at €0.17 billion or 1.1% down over the first two months in 2011. Life insurance premiums, on the other hand, were 4.1% up compared with the same period last year.

State lending - the fastest growing It is only natural that state companies’ turned from foreign financing to local Boris Odorčić ast year, banks continued increasing their exposure to the state, increasing by 15% or €1 billion, which is €0.2 billion or 24.8% more in relation to 2010. This level of change should be interpreted in the context of the state’s greater reliance on financing its deficit on the local market. A more rapid increase in corporate lending was registered in 2010, according to a published analysis by the Croatian Banking Association (HUB) Credit Banking Portfolio: revealing differences. That trend continued in 2011. Moreover, growth in corporate lending additionally accelerated to 10.6% compared with 8.8% in 2010. Public lending growth slowed to just 0.9% in

L

December 2011 compared with December 2010, when it reached 3.8%. Zoran Bohaček, HUB Director, points out that with an uncertain future and economic growth as well as unemployment, the general public is behaving rationally and clearing debts. “I believe the growth in public lending will speed up this year. Corporate lending should remain at the same level or slightly lower in relation to last year,” suggests Bohaček. The three key factors of lending (state, public and corporate) are showing very different dynamics. State demands keep growing in this crisis. More precisely, at the end of 2008 and beginning of 2009 state lending registered a spurt in growth. The situation then calmed down due to easier access to the international market

during 2010. However, during the eurozone crisis of 2011, the government leaned more towards local financing. Concerning corporate lending, the difference in the dynamics between private and state companies is interesting. After two years of stagnation, last year state companies showed a sudden surge (17.5%). On the other hand, private company lending slightly slowed, from 8.3% in 2010 to 7.1% in 2011. The movements published in the analysis, prepared for HUB by Arhivanalitika, are typical for a prolonged recession in conditions of instability on the European market. The problems with foreign bank financing dominated last year. Thus it is only natural that state companies turned from foreign banks to local.


www.privredni.hr Business & Finance Weekly

WE PRESENT

RENT THE RICHES, ZAGREB

7

PERUN RUŠENJE (MEDIA DIZAJN), SESVETE

Waste for construction The crushing machine used in recycling extracts iron from waste concrete for in-fill material

Exclusive fashion for renting Online shop for renting fashion brand clothes starts in April here is not a woman who at least once did not want to own a piece from the catwalks of fashion capitals. However, few can afford clothes from famous designers. The trend of renting designer clothes and accessories has been present for quite some time. This makes famous brands more accessible to a wider range of customers, even if it is for a few days. Lana Gadža Čermak discovered online shops specialising in renting fashion brands in London. After researching their business, she became enthusiastic about the idea and decided to apply a similar business model in Croatia. “My friends often complained about having nothing to wear. They would often borrow clothes from each other since they could not afford constantly buying new,” she explained. Thus, she came up with the idea and established Rent the Riches (RTR) - the first and only online shop in Croatia for renting exclusive fashion brands. This already established practice abroad should find many takers in Croatia. Targeted customers are all those ladies who want to shine looking for a gown they would otherwise buy and wear perhaps only once. There are also young business women who attend galas and have to wear gowns, or even celebrities, who according to an unwritten rule can appear in the same dress only once. This is

T

why it is much easier for them to rent a dress and then simply return it. Online selection For 8% to 10% of the purchase price, it will be possible to rent dresses, purses and jewellery from famous fashion brands: Chanel, Hermes, YSL, Balenciaga, Burberry, Miu Miu, Lanvin, Gucci, Alexander McQueen and Hervé Léger. This would mean that a popular dress from Hervé Léger, which costs around €1,000 in stores, could be rented for €110 for three days. It will be possible to select dresses and accessories online. After payment, the items are delivered to the home address. After three days, when the rental period expires,

My friends often complained about having nothing to wear. They would often borrow clothes from each other the employees take the item for dry cleaning and then return it to the shop. Croatian ladies are keen followers of fashion trends and like to dress nicely. I believe we will have many interested clients, says Lana Gadža Čermak. The RTR team is currently on the lookout for the final items for their online shop, which opens in mid April at www.rtr.hr. (A.Š.)

hen constructing a new facility on the location of an old one, the transport of waste material and its management is the investor’s most expensive area. However, an investor can reduce building costs by its recycling, which does not prolong the process of demolition. It only requires more time to prepare the project. Waste material recycling thus becomes an integral part of removing the facility. The quantity of waste is enormous, which requires planning prior to demolition. This is the area in which the company Perun rušenje specialises, together with their team of engineers, demolition experts and recycling waste material. Perun rušenje offers services for the complete management of demolition projects and advice on specific phases. The aim is to turn as much waste as possible into useful raw material suitable for further construction work. This type of approach is both environmentally friendly and cost-efficient. Finalisation depends on the facility scheduled for demolition, its location and type of material. Over 90% of the demolished material can be reused.

W

Two levels of recycling Recycling of waste material is a two-level process. The first consists of reusing material for the same purpose, but without processing, for example old brick, wooden beams, woodwork

and other materials. The second level refers to crushing material to obtain a new product. One of the special machines used is a crusher. It is used for processing waste concrete to extract iron reinforcement and to obtain in-fill material suitable for further construction. Waste wood can also be crushed and turned into biomass. The decision about where and how recycling is performed depends on the project, location

The aim is to turn as much waste as possible into useful raw material and investor needs. Let us presume the investor requires stone filling material that costs €5.30 per cubic metre, and a further €8 for transportation to a given location; in that case the recycled material already present on the location can reach an even higher price than the stone from a quarry since there are no transport costs. Even old oak beams often reach higher prices than new ones, not to mention the value of the recycled material in sustainable development, explains Robert Lučić, Director of Perun rušenje. The company developed its own demolition procedures required in the process of further use of materials. The material is put on sale at the planning process, even before the demolition starts. (A.Š.)


8

Privredni vjesnik Year V No 0191

New water park at Terme Jezerčica

Best place for fighting stress

The water park spreads over 2,800 m2 with some €4 million invested in construction Sanja Plješa round €4 million has been invested in the new water park of Terme Jezerčica, of which credit was €2.87 million through Hypo Alpe-Adria Bank. The remainder was provided by the owner, Dubravka Lekić. This addition, a combination of the older part of the hotel with a pool complex as well as a conference centre, covers 2,800 m2. The entire spa area now covers 3,400 m2. Since 1997, when Dubravka Lekić bought Terme Jezerčica, some €8 million has been invested. Three more saunas have been added to the wellness centre and a further

A

four pools with water attractions within the water park. Even though the present capacity of Terme Jezerčica includes 112 beds, Dubravka Lekić pointed out they are currently developing a concept design for constructing 54 additional rooms, giving 250 rooms in total. “We wish to preserve the reputation of a quiet family resort where visitors always gladly return,” she said. Last year’s business report proves that Terme Jezerčica is appealing to local and foreign tourists as well as business people. They achieved 66% more arrivals compared with 2010, despite the construction of the water park which started in April,

when workers lived within the complex. Family atmosphere In order to attract more tourists, we intend to build another outdoor swimming pool which would enrich the entire area in front of the stream which divides the area of the resort. The entire complex covers 118,000 m2. The Iris Garden (Vrt perunika), once situated in Majsecov mill, is situated on the other side of the stream and covers 30,000 m2 that we consigned to the Tourist Board. Even though the Iris Garden is not yet in bloom, since the flowers need a year to acclimatise, in the near future this will

be a beautiful garden with various pavilions, dance floors and a bridge over the stream connecting the two areas. A special feature of Terme Jezerčica is that the conference area is almost fully booked throughout the year (300 days). Summer last year revealed the interest in organising seminars. The family atmosphere spreads throughout the complex, which offers the quality service to which our visitors are accustomed and always return. Furthermore, the quality of hospitality is that which conference participants are most delighted with, said Martina Kovačić, Director of Hotel Terme Jezerčica.

::: news HG spot negative operating results HG spot showed total revenue of €4.27 million at the end of 2011 with a loss of €2.9 million, according to the financial report providing consolidated results of HG spot computers d.o.o. in liquidation with no current business activity and HG spot real estate generating revenues from leasing business premises. HG spot saw €20 million transferred loss, €7.25 million long-term liabilities and €25.77 million shortterm liabilities.

ENT new contract signature Ericsson Nikola Tesla and BH Telecom have signed a contract for the support and maintenance of fixed and mobile BH Telecom network worth €8.7 million. Implementation will ensure quality operation and enhance top quality services and meeting deadlines. Badel increases market share Badel 1862 increased its local market share from 52% to 58%, according to data provided by Economic-Interest

of the decrease of 202,000 litres in local producer exports in 2011 compared with 2010.

Association of Beverage Producers of Croatia. Simultaneously, its share of exports rose from 74% to 80%. According to the data, the overall results of monitored local producers saw remarkable growth in production of 118,000 litres. Badel saw a 6% increase in exports, irrespective

Metronet reducing losses The company Metronet telecommunications reduced its losses by 22% in 2011, down to €5.8 million. The company is anticipating positive business results in the near future, primarily in core operations regarding business users. Total revenue fell to €26.3 million, as a strategic result of withdrawal from the wholesale market, to enhance profitability.


PV International 0191