S U P P O R T E D B Y T H E C R O A T I A N C H A M B E R O F E C O N O M Y

pvpvinternationalinternationalCroatian Business & Finance WeeklyEstablished in 1953Monday / 12th July / 2010Year III / No 0116www.privredni.hr

Božidar Aleksandrović, owner, Podrum Aleksandrović, VinčaThe first private Serbian winemaker to enter the Croatian marketINTERVIEW

PAGE 4

Business zones in DalmatiaEconomic incentivesModerate prices and low-cost communal services encourage potential clients to investINDUSTRY

PAGES 2-3

Lighthouses as tourist attractionsPrivacy has a price – the sea view is free11 lighthouses for rental in CroatiaTOURISM

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HUMAN CAPITAL THE MOST IMPORTANT ASSET

EDUCATED EMPLOYEES NEEDEDTwo different models should be applied when interpreting operating results: one would consider accounting procedures whilst the second would measure the success of intellectual assets

Drago Živković

As money makes the world go around, the availabil-ity of financial capital is

one of the most widely discussed topics. However, these funds are managed by people whose intel-lectual abilities and commitment play a crucial role in successful investment. On the other hand, the Croatian public seldom if ever consider how efficient these people are. The Intellectual Capi-tal Promotion Affiliation, a small but persistent member of the Croatian Chamber of Economy, is trying to change the general view by publish-ing a yearly report on the impact of intellectual capital on the Croatian e c o n o m y . Data within

the body of the report coincide with growth and reduction trends to a large extent, implying that the methodology applied is of great value in prognosticating the future.Klaudio Tominović, the Affilia-tion President, claims the report has foreseen current events with-in Podravka and Hrvatska ele-ktroprivreda. Irregularities have been found in standard account-ing procedures, as depreciation and work-in-process can be eas-ily manipulated. Hence, two dif-ferent models should be applied in the interpretation of operating results: one interpretation would

consider accounting procedures whilst the latter would measure the success of intellectual assets. According to such indicators, the Croatian economy acquired 8% less value when compared with results from 2008. In other words, for each €0.10¢ invested, €0.28¢ was earned whereas three years ago the figure was €0.32¢.

Added value standing at 2006 levelAfter a long period of steady growth, the added value created within the economy decreased to 2006 levels.According to the Affiliation re-port, the first measures for the prevention of financial crisis had to be undertaken as soon as 2007, when the falling trend was first felt. If specific eco-nomic branches are considered,

finance and insurance experi-enced the most significant de-crease, followed by mining and trade whereas energy and water supply, the real estate market, health and social welfare are the only areas noting any growth. How much value has been cre-ated per capita for each county, including Zagreb, has been in-cluded in the report for the first time this year.The Croatian average stands at €4,318 of added value. Accord-ing to Ante Pulić, professor at the Zagreb Faculty of Law, these data show that GDP per capita, totalling some €8,600, is twice as large as the national average. GDP for Zagreb, at €12,883, is three times higher than the national average, which is fol-lowed only by Istarska county at €5,322.

Klaudio Tominović, the Affiliation president, estimates that Croatian in-tellectual capital is worth €2.75 billion, the amount which is unfortu-nately frozen, with both management and the political establishment showing no interest in its activation. Developed countries have alre-ady accepted basic ideas related to intellectual capital, with individual companies showing a bright future if its efficiency indicator totals more than 2. If the indicator drops below this level, it is considered that such a company may well face major problems. However, according to Tomino-vić, there are exceptions. Therefore, some companies in the same bran-ch flourish whereas others go under.

€2.75 billion frozen

2

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Privredni vjesnikYear III No 0116

GORDANA DERANJA, MANAGER, TEHNOMONT PULA

VIEWPOINTVIEWPOINT

Small boat market has weathered the financial crisis

BUSINESS ZONES IN DALMATIA

Economic Past profitability has been invested into new technolo-gy as their projections foresaw future profit reductions

Tehnomont Pula is a medi-um-size shipyard, which has, for the last 40 years,

primarily manufactured large vessels for shipping lines in Croatia and globally. In order to diminish risk related to insta-bilities in the international ship building market, this Pula based company has intensified its pro-duction of boats of up to 50 me-ters in length, mostly fishing, patrol, tourist and other types of steel work boats and started pro-ducing aluminium patrol boats two years ago.This business policy proved to be a break-through, especially when the global financial crisis sig-nificantly affected the industry in 2008. Past profitability has been invested into new technology as their projections foresaw future profit reductions. The compa-ny is currently focusing on the manufacture of aluminium boats, such as rapid-response boats for police, coast guard and customs as well as various other purposes.Currently, 20 aluminium boats for the Romanian police as well as a ferry for a Montenegrin cus-tomer are being manufactured in their facilities and management are currently negotiating the manufacture of five patrol boats for Asian naval forces as well as the production of port ships for several African countries.Fortunately, the small boat mar-ket appears to have weathered the financial crisis as their order-book has remained reasonably constant. The Tehnomont strate-gic goal for the near future envi-sions it becoming one of the best European shipyards specialised in such manufacture.The company also owns the Teh-

nomont Marina Veruda which has 630 berths and 200 on-land over-wintering storage facilities. For 12 yeas the marina has been a member of the Blue Flag Pro-gramme, guaranteeing its eco-logical awareness and the pro-tection of its natural resources. Additionally, Tehnomont BMN manufactures light metal frames for both the construction and ship building industries as well as top quality solar collectors for water heating, which have been allo-cated the Croatian Quality cer-tificate. Future goals include the further development of various business activities as well as the implementation of new technol-ogy, which has so far proved a successful policy.

Jozo Vrdoljak

The relocation of companies from city centres due to ever-rising business oper-

ating costs as well as attempts to attract new investors has resulted in the opening of business zones as a fundamental part of local government activities. Despite certain regions experiencing minimal economic activity, busi-ness zones have been developed in several smaller locations as they offer more attractive terms for vacant plot purchase as well as low-cost communal services. As current investors have thus far been obliged to operate within the borders of larger city centres, these new business zones offer a variety of benefits, from regional and urban planning, attractive prices of construction sites, tax relief, exemption from charge for communal services for a spe-cific number of years as well as already-prepared infrastructure, to name but a few.

Zadar: sites in operating zones already sold

31 local government units in the region of Zadar are currently preparing 74 business zones of various sizes which are open to investors offering services in pro-duction operations and tertiary sector. 107 companies were reg-istered in eight active zones last year, manufacturing concrete and metal products, construction ma-terials, PVC ducts, ship engines, vessels, sun-blinds, covers, and tents as well as fish products.“Individual costs related to each business zone are covered by

local government so only their representatives would be able to give information on the scale of investment. The Ministry of Economy, Labour and Entrepre-neurship and the County contrib-ute only to the implementation of their development. Potential investors are encouraged by rea-sonable prices of individual sites and low-cost communal serv-ices”, emphasises Dario Ivankov, Head of Economic Development Administration of the Zadar area. Ivankov adds that foreign inves-tors have shown considerable interest, although they require fully-developed infrastructure.

Šibensko-kninska: foreign investors showing interest

The Strategy Plan for the Šibensko-kninska region fore-sees infrastructural development for 19 business zones overall, with five zones and some 30 companies already operational. All zones are equipped with all necessary infrastructure, with the exception of the drainage system which has currently been only partially developed. Despite each zone being intended for general purposes, they have currently welcomed production operations such as stone process-ing, the manufacture of doors and wooden, PVC or aluminium windows, aluminium strip and foil, aluminium parts for the car industry, metal constructions and filters.“The moderate prices of available land as well as low-cost commu-nal services encourage potential clients to invest. Entrepreneurs

Zadar region to offer eighzones and Splitsko-dalma

3

incentives

www.privredni.hrBusiness & Finance Weekly

willing to finance construction in Areas of Special State Concern enjoy both tax and other benefits and can claim priority for re-gional loan programmes as well as loans provided by the County in co-operation with the Ministry of Economy, Labour and Entre-preneurship”, says Goran Pauk, of the Šibensko-kninska region.Two Austrian companies are currently operating. Bramac has constructed a plant for the manu-facture of covering brick in the Drniš business zone, and J.U.A. Frischies, which manages the wholesale of various construc-tion materials, especially wood, has opened a facility in Podi.

Splitsko-dalmatinska: zones divided into four groups

The Incentive Plan for Splitsko-dalmatinska sees the construc-tion of 39 business zones which will be divided into four groups. Ten zones are already opera-tional and a further ten are to be opened in the near future. The third group comprises a group of eight zones which are currently under development whilst no economic activity has yet been planned for the remaining seven. With the exception of Dugopolje, which is dominated by commer-cial services, all other zones will provide facilities intended for production operations and serv-icing. The Prisike entrepreneurial zone, for example, includes the most up-to-date facilities for the production of hydro insulating strips and plaster as well as the manufacture of motor yachts. Two water bottling plants and a stone processing facility are situ-ated in Kosore, with facilities for salt and oily fish processing hav-ing been constructed in Čaporice. In addition to these, a further 95 plots intended for the construc-tion of production facilities, have already been sold.“Business zones boost regional

economic development and cre-ate new employment opportuni-ties for local people. Notwith-standing the global financial crisis, investors are showing in-creased levels of interest, hence enabling further expansion. However in addition to current incentives, a scarcity of foreign investors will have to be amel-iorated by further marketing ac-tivities”, states Ante Sanader, of Splitsko-dalmatinska county.

Dubrovačko-neretvanska: an investment-friendly re-gion

Six of the 11 zones in the Dubrovačko-neretvanska region, accounting for 35 entrepreneurs, are already conducting a range of business activities. These regions have been awarded an interna-

tional certificate as a part of the Investment Certification Project for Regions, in April 2008. “This certificate ensures the application of The Property Standard which regulates the process of attract-ing investors to the 257 hectares business zone, as our county is regarded as a Croatian Investor Friendly Region (CIFR)”, point-ed out Nikola Dobroslavić, of Dubrovačko-neretvanska county. Dobroslavić believes that local government must play a key role in attracting investors to their area. Naturally this requires the regulation of property and own-ership rights within particular zones, the issuance of construc-tion permits, especially relating to infrastructure, as well as the development of urban and re-gional plans. In order to attract potential investors, a special catalogue of investment friendly zones is currently under develop-ment which will be published on the official county web site.The Strategy Plan covers further investment into existing zones, to be funded by the Ministry of Economy, Labour and Entrepre-neurship as well as the EU.

Moderate prices for available plots as well as low-cost communal services encourage potential clients to invest. Further efforts in marketing are required in order to attract larger numbers of foreign investors

Preparations under way for zones in Šibensko-kninska and Dubrovačko-neretvanska

ht active business atinska ten

Privredni vjesnikYear III No 01164 INTERVIEW

Jozo Vrdoljak

After graduating from the Belgrade Faculty of Ag-riculture, the most well-

known Serbian wine maker, Božidar Aleksandrović, started the renovation of the old family cellar and vineyard in the early 1990’s. Today, his company owns 50 hectares of vineyards as well as one of the most sophisticated cellars in Serbia, covering 2,000 square meters and having a total capacity of 500,000 litres annu-ally. Aleksandrović spoke with Privredni vjesnik about wine production and marketing prob-lems. He intends to become the first private Serbian winemaker to enter the Croatian market, specifically selling to Croatian restaurants.

As one of the few Serbian wine exporters, how would you de-scribe your business activities and which countries import your products?For the past several years our wines have been exported to the UK, Switzerland, Russia, Austria, Hungary and the USA, with plans to expand into the Scandinavian market, Belgium, the Netherlands, Germany and Japan. Our wines have also been recognised in Montenegro and Bosnia and Herzegovina. 25% of total production is intended for export. Some 400,000 bot-tles of internationally renowned varietals, such as Chardonnay, Sauvignon Blanc, Cabernet Sau-vignon, Merlot, Riesling, Muscat Hamburg and Pinot Noir, are pro-duced annually.

How would you describe your position on the Croatian mar-ket?For several years, we have at-tended wine festivals in Zagreb

and Istria with the aim of posi-tioning ourselves on the Croatian market with quality products. It is possible we might commence ex-porting in the near future as more and more Serbian tourists and business people visit Croatia and potential clients have shown con-siderable interested in selling our wines into the Croatian market. Whilst we have been negotiating with several distribution compa-nies interested in exporting our wines, to date no contracts have been signed.

Are you facing any obstacles in exporting your products to Croatia?Actually, we have found none. Croatian wines on the Serbian market have had a similar ex-perience, as they have recently gained in popularity and are sold in the more prestigious restau-rants in Belgrade and Novi Sad. Our policy is based on the contin-uous presence, professionalism and quality market positioning. We would like to select the right moment, when the quality of our wines will be fully acknowl-edged.

Would you describe the Ser-bian market as fully open to international wines?The Serbian wine market offers a tremendous variety of interna-tional wines. Customer aware-ness as well as wine culture has developed over the years. I could freely say that we show no preju-dice towards any wine as we are eager to experience the new and exotic.

Which Croatian winemakers have already positioned them-selves on the Serbian market?Let me name just a few, such as Kozlović, Matošević, Krau-thaker, Degrassi, Plenković,

Enjingi, Matuško, Zdjelarević, Coronica and Plančić. Croatian wines have been present on the Serbian market for some time; they need continuous market development and on-going up-rising in the standard of quality. I believe Croatian colleagues need to invest more into self-promotion.

Do winemakers need to join forces and how?Winemakers throughout the region can be more competi-tive on other markets if they act together. Potential new custom-ers can recognise a wine region

rather than individual manufac-turers. The wine market is per-haps, one of the last managing to resist globalisation, appre-ciates variety and a different, more thrilling terroir, the char-acteristics for one specific area of land. This is precisely what makes one wine different from another and presents a com-pletely different set of values and market requirements. Each new wine represents a new ter-roir the characteristics of which need to be presented to wine enthusiasts. Wisdom lies in rec-ognising the differences and en-joying them.

500,000 litres total capacity annually

BOŽIDAR ALEKSANDROVIĆ, OWNER, PODRUM ALEKSANDROVIĆ, VINČA

The first private Serbian winemaker to enter the Croatian marketThe wine market, one of the last managing to resist globalisation, appreciates variety and a different, more thrill-ing terroir

Aleksandrović vineyards cover 50 hectares

www.privredni.hrBusiness & Finance Weekly 5

Barbara Marjanović

The construction of a new Western Shopping Mall (ZTC) in Rijeka was re-

cently marked by the laying of a corner stone on the construc-tion site. Universale International GmbH from Vienna, wholly owned by UniCredit Bank Aus-tria, is to invest around €50 mil-lion in the construction of this mall, which will resemble the winding Korzo (the main prom-enade in Rijeka). Its construc-tion is expected to be finished by the end of 2011 with the official opening scheduled for spring, 2012.Due to required adjustments to the project files, changes in plans and other difficulties, the project preparation stretched over a pe-riod of 12 years. The mall will comprise of six storeys, of which only the top two will be vis-ible from the street whereas the

panoramic promenade and exte-rior glass elevators will provide a magnificent view over the Kvar-ner Bay area.

Individual units for lease onlyMichael Wittman, ZTC manager, says the mall will offer 60 stores on three levels, offered to inter-nationally-known brands. All units will be available for lease only and Plodine, a Croatian supermarket chain, has been the first to sign a contract. ZTC Man-

agement is currently negotiating with several well-known inter-national brands, such as C&A, Newyorker, Drogerie Müller and others, which appeal to younger customers.“The main difference lies in the fact that this mall will cater for shoppers. ZTC is to be a pure shopping mall, with no multiplex cinemas, casinos or similar types of entertainment, promoting the pleasure of shopping for all gen-erations”, says Wittman.Architect Dario Travaš says

the total gross developed area amounts to around 57,000 square meters. He expects that some 800 people will be employed, not only during the construction phase but also after comple-tion. Vojko Obersnel, the Rijeka mayor, welcomed the start of construction and emphasised that “the start of every new project or investment is a magnificent mo-ment as it introduces optimism in these hard times as well as opens new job possibilities for the un-employed.”

The consulting company A.T. Kearny has recently con-

ducted a survey on retail sector development for 2010. Results show that Croatia is no longer among the top 30 most attractive countries for retail investment. According to the Global Retail Development Index, Croatia was placed 24 in 2009. However, reduced consumption as well as market saturation have both adversely impacted upon its ap-peal. Surveys conducted by A.T. Kearney since 2002, enable large sales chains to easily determine priority markets as these surveys cover 25 different elements, such as the economy and political risk, market potential, development of sales chains as well as differ-ences in GDP and trade growth.Croatia is not included in the list due to high a market concentra-

tion with powerful local players, a highly developed market and a marked decrease in consumption, according to Zlatko Bazianec, senior consultant with A.T. Kear-ney. “As opposed to other coun-tries in the region, such as Alba-nia, Macedonia and Bosnia and Herzegovina, which have been included on the list, Croatia has over-capacity and slower growth. Large sales chains, such as Spar, Kaufland and Lidl, have been present on the Croatian market for some time with significant growth preventing other compa-nies from entering the market. On the other hand, several poten-tial investors wait for Croatia to enter the EU as membership will significantly reduce obstacles and simplify the start-up of busi-ness operations”, says Bazianec. (K.S.)

The pressure of taxation in Croatia is so extreme that it

is questionable whether the mar-ket economy really exists. Such an intractable problem could be solved through the application of a partially satisfactory solution, according to tax experts. Guste Santini, president of the Asso-ciation, believes that one reform would be to enhance the overall competitiveness of the economy indirectly devaluing the currency by co-ordinating monetary and fiscal policies, the exchange rate and tax policies in order to give an impetus to development. Ac-cording to Branko Parać, a certi-fied auditor, subsidised interest rates should be reincorporated into the tax system. Srđan Kliska,

HUPO vice-president, proposes that excise duties should increase their share of tax revenue. How-ever, a differentiated approach should be applied to excise duty rates in order to avoid any nega-tive side-effects. Kliska believes that excise duties should not ex-ceed thiose rates in neighbouring countries, regardless of EU direc-tives.

CONSTRUCTION OF WESTERN SHOPPING MALL IN RIJEKA

COMPLETELY DIFFERENT FROM ANY OTHERAustrian owner to invest €50 million into a six-storey building

Retail survey

Croatia no longer attractive

Tax reform

Partial solution may be most acceptable

6 Privredni vjesnikYear III No 0116

CROATIAN FOREIGN CURRENCY MARKET

Source: HNB WEEK JULY 10, 2010

Currency Kuna exchange mid-rate

AUD 4,961297CAD 5,438201JPY 6,405412CHF 5,373935GBP 8,616082USD 5,673524EUR 7,184951

::: news PBZ ANALYSIS

GDP TO DECREASE BY 1.5% IN 2010According to analysts, a positive impact is expected only from exports

Balance of payments decrease According to data from the Cen-tral Bureau of Statistics, the balance of payments showed a deficit of €1.4 billion for the first quarter of 2010. This is a fall of €440 million or 23.8% when compared with the first quar-ter of 2009. This reduction was primarily influenced by import/export levels. Statistics for the first quarter predicted the trend by noting an increase in exports as well as a decrease in imports.

Janaf ordered the construction of three new tanks

Montmontaža Group is to con-struct three new storage tanks for Jadranski naftovod at the Janaf Terminal in Sisak. Montmontaža reported to the Zagreb Stock Exchange that the contracts are worth slightly more than €21.37 million. The construction of all three units is scheduled to be completed within 20 months starting as soon as the construc-tion is initiated.

Equity increase of €82.87 millionAtlantic Group Board of Di-rectors reached the decision to increase its equity by issuing a further 864,305 shares of €5.50 each. As the new shares are to be sold at €96 per share, the to-tal equity will amount to €82.87 million, as reported by Atlantic Group to the Zagreb Stock Ex-change. The management sup-ported this decision as the com-pany requires funding to finance Droga Kolinska.

In relation to a notable GDP decrease of 2.5% in the first quarter as well as further

negative trends of most high-frequency indicators for April and May, Ivana Jović and Marko Škreb, PBZ analysts, have re-evaluated their expectations pre-viously published in their earlier report. The estimated reduction in GDP for 2010 has been re-duced from 0.5% to 1.5 %.It is obvious that demand at a national level is not expected to increase in 2010, regardless of the solidarity tax abolition and changes in income tax policy. The expectations of consumers remain low, with the short-term decrease in unemployment pri-marily related to the current tour-ist season and will last until the final visitor leaves the country. According to Škreb and Jović, the autumn budget revision should reflect results of fiscal re-forms, in particular related to the implementation and approved measures of the Government Economic Recovery Programme.

Tourism to remain at 2009 levelsWhen considering the standstill in the investment activity of local entrepreneurs, low expectations of public consumption as well as the expected reduction in govern-ment expenditure, PBZ analysts expect a positive impact only from exports. However, any re-covery will remain unstable and significantly influenced by the export of ships and petroleum de-

rivatives. Ivana Jović and Marko Škreb believe that the financial effects from tourism are likely to remain at 2009 levels due to other competitive destinations, such as Greece and Turkey. In ad-dition, reduced consumption by European visitors is reflected in the weakness of the Euro as well as in scheduled fiscal consolida-tion, as for instance, that planned by Germany.“2010 will not give much reason for optimism although this is not considered as a disadvantage, es-

pecially if the scheduled reforms are implemented as planned. Re-garding the fact that reforms usu-ally have a negative short-term effect on economic growth, 2011 is not expected to show a more significant growth rate, which is not expected to exceed 2%. How-ever, successful and rapid reform implementation in 2010 and 2011 will lay the foundations for the medium-term period, which will hopefully show more positive results”, conclude PBZ analysts. (V.A.)

6.7. 7.7. 8.7. 9.7. 10.7.

7.22

7.21

7.20

7.19

7.18

7.17

EUR 5.75

5.73

5.71

5.69

5.67

4.65

USD 5.41

5.40

5.39

5.38

5.37

5.36

CHF

6.7. 7.7. 8.7. 9.7. 10.7. 6.7. 7.7. 8.7. 9.7. 10.7.

www.privredni.hrBusiness & Finance Weekly 7WE PRESENT

MULTIMEDIA TRADE CENTRE IN SEGET DONJIIVANČICA, VELIKA GORICA

Recycling for quality printIn addition to recycling toners and cartridges, MOT maintains and sells IT equipment, empty CDs and DVDs as well as providing catering services for its cus-tomers

With a little bit of imagi-nation and a lot of hard work, wooden souvenirs

manufactured from old oak bar-rels can be turned into unique items. The Ivančica boutique and ethnic souvenir shop started with such manufacture seven years ago in order to preserve Croatian cultural heritage and tradition. Its owners produce chests, poculica (specific head coverings for mar-ried women) and other replicas, such as clothes and knitted prod-ucts, ethnic-fashionable clothes and handbags, jewellery and souvenirs based on original folk handicrafts. In addition, they re-pair and renovate folk costumes and textile handicrafts as well as sew tailor-made items. “Fabrics are acquired from throughout Croatia.

Everyday objects as an exquisite souvenirWe have collected loom-woven material for some 20 years. They are used in the manufacture of ethnic products. By doing this, we are trying to preserve tradi-tional embroidery and materials which are redesigned into one-of-a-kind and up-to-date clothing and accessories”, says Ivančica

Ivka Srdar, the boutique owner.The Ivančica souvenir shop pro-motes paintings with typical mo-tifs including reproductions of traditional handicrafts, as well as other items such as towels, tablecloths, handbags, chests, podgutnica (a scarf similar to a necktie), which was traditionally worn by Banderijalci (independ-ent soldiers from Turopolje who served as personal guards to the Croatian Governor), old mirrors, original handicrafts, clothing and everyday household objects. Although faced with numerous problems, its owners have al-ready established their reputation among similar traditional and art crafts by attending various ex-hibitions in Croatia and abroad, where their products and souve-nirs have been awarded numer-ous prizes and received major ac-claim, two of which carry special importance.The first acknowledgment for the promotion of cultural heritage was granted at the souvenir ex-hibition and ethnic fashion show in New York whilst the boutique was awarded first prize for the best souvenir and everyday ob-ject at a souvenir exhibition in Opatija. (S.P.)

MOT, or literally Mul-timedia “Oasis” of Trade, owes its popu-

larity to its past market outlet Re-fill Toner Shop. Since its creation in 1993, it has developed into a well-known company whose primary business relates to the recycling of laser toners and ink-jet cartridges as well as sales and maintenance. 95% of recycled cartridges are tested and resold with a quality certificate, being refilled with up-market quality German ink and American ton-ers.Bernard Udiljak, MOT manager, stresses that this company, with headquarters in Seget Donji near Trogir and manufacturing facili-ties in Split, employs 19 staff. It opted to recycle laser and ink-jet cartridges in 1999.“The basic idea was conceptual-ised during my studies at the Fac-ulty of Mechanical Engineering as I could not afford to buy rather expensive toners, but decided to manufacture them myself. A small shop, where I and another employee filled the cartridges by hand, developed into a store with €27,400 worth of recycling tech-nology”, says Udiljak.

Internet cafésAlthough beset by initial dif-

ficulties, the business activi-ties developed and MOT has so far recycled 240,000 cartridges and repaired more than 10,000 printers and computers. They currently co-operate with some 1,000 mostly small private companies, whose owners have quickly recognised his quality products which are up to 70% cheaper than the original.This branch of industry faces a bright future although it is not easy when a company has to fi-nance its activities from current transactions, he adds. Udiljak describes the competition which does not use quality production materials as grossly unfair and underhand as they provide low-quality products to the final cus-tomer. In addition to recycling toners and cartridges, MOT maintains and sells IT equip-ment, empty CDs and DVDs (some 700,000 items are sold annually) as well as provides catering services for custom-ers. More specifically, MOT has opened Internet cafés with the total of 40 computers, offering Internet access as well as print-ing and scanning services. Fu-ture plans include retaining old and gaining new customers by providing new products and In-ternet services. (B.O.)

Mirrors and scarves receive new looksIvančica collects loom-woven fabrics used in the man-ufacture of ethnic products

8 Privredni vjesnikYear II No 0116

::: news

Lighthouses as tourist attractions

PRIVACY HAS A PRICE – THE SEA VIEW IS FREEThere are currently 11 lighthouses for rent in Croatia, with prices ranging up to more than €1,000

Sanja Plješa

Lighthouses, once the larg-est and the most important sites for safe day and night

navigation, are today categorised as world heritage monuments and have become a popular tourist attraction. Their history on the coast of Croatia can be traced back to 1818 when the Austrian-Hungarian monarchy constructed Savudrija, the first of 48 lighthouses still functioning on the Adriatic coast. The con-cept of turning them into tourist facilities occurred in 1995. The majority of the 11 lighthouses available for rent, were renovat-ed in 2000 whilst others require more demanding reconstruction. Croatian Plovput specialises in renting lighthouses, which are available to potential customers

through numerous travel agen-cies.The 11 lighthouses, available for visitors, are located at Savudrija, Rt Zub, Sveti Ivan na pučini, Porer, Veli Rat, Prišnjak, Sveti Petar, Sušac, Palagruža, Stru-ga and Pločica. Most of them, with the exception of Rt Zub, Prišnjak, Pločica and Sveti Petar, are still managed by lighthouse keepers. According to statistics from the Plovput Tourism De-partment, Struga was occupied for 49 weeks last year and is fol-lowed by Veli Rat, with an occu-pancy period of 45 weeks.

A high price for a quiet holiday“Although the daily rental ranges from several hundred to slightly over €1,000, lighthouses mainly welcome visitors with an aver-

age income level. They can ac-commodate two to six people and have been renovated into apartments with all facilities. Deck chairs and umbrellas are also available. In addition, visitors may opt for fishing, diving or boat rental, although these opportunities are rarely sought as such tourists require a peaceful and quiet holi-day”, says Hr-voje Mandekić from Plovput. Although the number of visi-tors opting for l i g h t h o u s e holidays in-creases on a regular ba-sis, this area of tourism needs fur-ther pro-motion as it has not been rec-ognised

at an international level, adds Mandekić. He

believes that light-houses could eas-

ily become an aspect of elite

tourism but only if

they of-f e r e d exclu-s i v e s e r v -

ices in a particular attractive location.

Tourism income increased by 8%Income from tourism and the travel industry for the first quar-ter 2010 amounted to almost €324.7 million, an increase of 8% over the same period of the previous year. At the same time statistics from the Croatian Na-tional Bank show that tourist expenditure in foreign coun-tries increased by 6%, totalling €136.6 million.

26% more cruise liners in the Adriatic than in 2009During the first five months of 2010, 208 foreign cruise boats visited tourist destinations on the Adriatic coast, an increase of 26.1% when compared with the same period in 2009. Ac-cording to the Central Bureau of Statistics, these ships accom-modated the total of 237,800 passengers, a 14.9% increase year-on-year.

Luxurious apartments completedP.S. IMMO, a Zadar based in-vestor, and the contractor, Bro-domerkur, have jointly com-pleted the construction works on a series of luxurious apartments in Punta Skala - IMMO Exclu-sive Petrčane - giving the final flourish to the whole upmasrket-project.This tourist resort is situated on the Punta Skala peninsula, 11

kilometres north-west of Zadar. It stretches over 33,871 square meters and comprises 50 individ-ual buildings; 9 luxurious villas, situated on the coast as well as 41 villas, each with three or four individual flats, according to P.S. IMMO.More than 30% of the units have been either sold or reserved be-fore construction was completed, confirmed Ivan Duka, the sales representative for P.S. IMMO.