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 / 26th March / 2012Year V / No 0192www.privredni.hr

Darko Ranogajec, Board Presi-dent and CEO of Omco CroatiaWe are losing the battle for competitiveness due to exces-sive labour costsINTERVIEW

PAGES 2-3

Employment subsidiesThe Croatian Employment Bureau has launched six new measures to reduce un-employment by at least 10%EMPLOYMENT

PAGE 4

The ideal MediterraneanA large number of orders from inves-tors from overseass as well as local entrepreneurs as demand increasesTOURISM

PAGE 8

2008 20092010 2011

Igor Vukić

The Entrepreneurial stimu-lus programme will be a new government grant and

subsidy programme worth €50 million for small and medium-sized entrepreneurs for 2012, as has been announced by Gordan Maras, Minister of Entrepreneur-ship and Crafts at a recently held government session.

Subsidies can reach €95,000. Clustering will be subsidised with a total of €0.8 million. Subsidies will be also allocated for fran-chise development, female and young people entrepreneurship and for start-up entrepreneurs. The programme has allocated a total of €15.3 million for capable entrepreneurs, €15 million for convenient financing and guaran-tees and €7.5 million to develop entrepreneurial infrastructure. The government has adopted amend-ments to the Small Business Act, in compliance with new European regulations. Hence, following the recent changes, investment of up to €2 million is to be considered micro investment; small invest-ment projects are up to €10 mil-

lion, whilst investment up to €50 million will be considered medi-um-sized. Subsidy models will be allocated in accordance with this classification.

A guide through the bureaucratic mazeCroatian Agency for Small Enter-prises (HAMAG) will be author-ised to promote and attract in-vestment in entrepreneurship and will be named HAMAG invest. The government has great ex-pectations regarding the develop-ment of small and medium-sized companies. According to a recent analysis, nearly 80 projects have been implemented over the past several years in this sector, with small and medium-sized compa-nies have attracted around 30% of foreign direct investment. In addition, the government is planning to assist foreign inves-tors by founding an Agency for Investment and Competitiveness. According to Radimir Čačić, Gov-ernment Vice-President and Min-ister of Economy, the Agency will provide potential investors with assistance in local administrative procedures. Such agencies operate in nearly all transition countries and it is the third time that it is be-ing founded in Croatia. Relying on appropriate government and ministerial support, Čačić expects a significant enhancement in for-eign investment which is of funda-mental importance for Croatia.

Small and medium-sized companies have

attracted around 30% of foreign direct investment

ENTREPRENEURIAL STIMULUS PROGRAMME

Attracting foreign investorsCroatian Agency for Small Enterprises (HAMAG) authorised to promote and attract investment in entrepreneurship

The government has accepted the Samobor-based company DIV bid for the purchase of Brodosplit. It has refused Danko Končar and his company Jadranska ulaganja bid proposals for the purchase of Kraljevica and Bro-dotrogir shipyards. Kraljevica, the oldest shipyard on the Adriatic, will file for bankruptcy, as announced by the Prime Minister Zoran Milanović. Em-ployees will receive all salaries, as well as severance payments. On the other hand, new investment and restructuring models are pla-nned for the Rijeka-based 3. maj and Brodotrogir shipyards. The profita-ble Uljanik will offer 39% of its shares to its employees. Consequently, it will implement refinancing to provide fresh capital for new projects. The model has been approved by trade unions and has attracted the interest of banks, pointed out Radimir Čačić, Minister of Economy.

DIV to purchase Brodosplit, Kraljevica to file for bankruptcy

2 Privredni vjesnikYear V No 0192

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Bruno Trapan, owner and director, Trapan vina, Pula

No results without marketingSome wine producers managed to attract leading opinion makers since potential is large

Since competition is fierce on the local market as well as a limited market of su-

perb wines, it is to be presumed there is no room for new wine producers, and the sale of new wines has become more difficult. However, this is not always the case. Wine is a matter of taste, and there is always room and buyers for top-quality products. This is the reason why we, as a young wine house, without any tradition in either wine produc-tion nor any connection with ag-riculture, managed to succeed in a short period of time. We man-aged to position ourselves and become recognised in Croatia, and I dare say we achieved real-istic preconditions for selling our wine abroad. The key to success for any young and new wine pro-ducer is definitely an individual approach, especially the capabili-ty to assert himself in a sea of top quality Croatian wine producers. I managed to use my lack of tra-dition as an advantage. I mention this to warn producers about the

importance of marketing, since you may have the best product in the world, but you will not suc-ceed if no-one knows about it. It is impossible to achieve results without marketing.The Croatian market is small and there is not enough room for selling Croatian wines. Therefore, it is time we turn towards exports. World-known wine makers will start selling their wines on our market in a few years time, which will ad-ditionally aggravate the position of local wine producers. The

state must offer greater support in the sense of promoting wine producers abroad, where there is only room for premium quality wines. We can hardly compete with medium quality wines. During the past few years, some of our wine producers managed to attract leading opinion mak-ers since our potential is large. However, luck is also important when selecting global busi-ness partners. Vinistra 2010 was a turning point for Trapan, when our Uroboros 2008 was awarded the best malvasia in the category of mature wines. Robert Parker gave 90 points to Uroboros 2008, placing it amongst one of the best tasted Croatian wines. Malvazija Po-nente 2009 earned a high score of 89 points of a total 100.

(invested in modernisation of production plants

over €30 million

I used the lack of tradition in wine production as an advantage

INTERVIEW: DARKO RANOGAJEC, BOARD PRESID

We are losing tdue to excessivOmco in Europe owns production plants in Belgium, Great Bpackaging material. The factory in Croatia generates almost

Drago Živković

Founded as a tool workshop of the glass factory Straža, today Omco Croatia is the

most successful large company in Croatia and the winner of the Zlatna kuna awarded by the CCE for 2011. Board President and CEO, Darko Ranogajec, points out that as a member of Omco Group, they expanded from 100 to over 400 employees.

Omco Croatia is part of the in-ternational Omco Group. What is your place in the Group?The central office is in Belgium, and the company operates in eight countries with nine fac-

tories. We can say it is a global company considering it owns a branch in North America. In Eu-rope, it owns production plants in Belgium, Great Britain, Aus-tria, Croatia, Slovenia, Romania

and Turkey. Omco exclusively produces tools for manufactur-ing glass packaging material. Our place in this global system is very important since our factory generates almost 50% of total

Innovation is crucial for survival and this is the key to our success

www.privredni.hrBusiness & Finance Weekly 3

production of Omco Group. This is where the centre of Omco sales activities is situated, as well as the Design and Construction Office used by the entire Omco Group.

In 2011, you were awarded for your results in 2011 with Zlatna kuna as the best large compa-ny. What do you anticipate in 2012 and what are your plans? I fear we will not be able to win Zlatna kuna for 2012. I do not even know what the situation will be for other companies in Croatia, but what we can see as exporters is the global pres-sure on business. This primarily concerns decreased demand for all types of goods and services. On the other hand, price pres-sure on all products is intensi-fying, with a simultaneous price increase in energy generating products, strategic raw materi-als as well as other materials we necessarily depend upon. The final result is the generally known crisis in which we all struggle to survive.

You export most of your prod-ucts. What are your most im-portant markets? We export roughly 97% of total production and we are present on practically all continents. Of course, the largest share is ex-ported into European countries and we have recently signed a very important and valuable contract with a Japanese buyer. Australia and New Zealand are the most distant countries we have reached, where we export-ed goods worth several million euros last year. Therefore, we are globally present.

Innovation is crucial for sur-viving and succeeding on the world market. What is your in-novation record?Innovation is critical for survival. By innovation, I especially mean in terms of technological develop-ment, and in the sense of invest-ing in advanced technology. This

is actually the key to our success since during the past six or seven years we invested over €30 mil-lion in modernisation and equip-ment in our production plants. This resulted in constant increase in competition, which enables us to be a global producer and ex-porter over such a vast area.

The metal industry often com-plains about the lack of staff, especially skilled and highly skilled workers. Do you have the same problem? We have not had these kinds of problems so far. We could, how-ever, discuss their level of train-ing when we employ them. They are certainly not CNC operators

able to work independently. This is why we perform another two years of practical training after their formal high-school educa-tion, preparing them to become quality CNC operators. On the other hand, we have been lucky. We managed to develop a sys-tem with high-schools in our

environment, where the schools maintained metal professions in their curriculum and enrolled children for that particular pro-fession. We have contributed much by taking on all the chil-dren for practical training, moti-vating them to stay with us and employing them year by year, securing their future. Due to the partnership between our compa-ny and the schools, we have not experienced the lack of quali-fied workers.

According to analysts’ outlook, this could be another recession year. What do entrepreneurs expect from the state in such circumstances? What would

your advice be to the govern-ment? I have never really relied on how we as a company could benefit from the government. I did not build my success on this or blamed the present or past government for our possible failure. Our business policy is

based on always being in charge of our destiny. If the govern-ment measures are positive and helpful, this is additional bonus for our business. In case they are negative, then our business does not exceed our expecta-tions, but we always try to keep it within a positive framework. Nevertheless this government should take serious measures to increase competitiveness of the Croatian entrepreneurs by re-ducing total labour costs, since we, who operate in a European environment, see Croatia losing this battle day by day. Our work-ers are unhappy and dissatisfied since their nett salary cannot cover the increasing cost of liv-ing, and entrepreneurs are un-happy since the gross amounts they pay are too high, prevent-ing them to compete on the in-ternational market. This is the main problem.

(generated by factories in Croatia of the Group

almost 50% of total production

ENT AND CEO OF OMCO CROATIA

the battle for competitiveness ve labour costs

Britain, Austria, Croatia, Slovenia, Romania and Turkey. It specialises in manufacturing tools for producing glass half of group total production

We have recently signed an important and valuable contract with a Japanese buyer and Australia and New Zealand are the most distant countries we have reached

3

4 Privredni vjesnikYear V No 0192

Jasminka Filipas

T he Croatian Employment Bureau has recently invit-ed companies, small busi-

nesses and the unemployed to ap-ply for one of the newly launched measures to improve employ-ment or self-employment oppor-tunities; the budget allocated for this purpose is €46.6 million and it is estimated to help in the crea-tion of 35,000 jobs. The project covers six measures: employ-ment subsidies, self-employment subsidies, subsidies for education and professional training as well as for public works. Companies who decide to em-ploy young people with no previ-ous work experience can obtain subsidies ranging from €1,300 to €4,150, depending on qualifi-cations, whilst those employing those over 50 can obtain between €1,500 and €4,800. “The project has aroused consid-erable interest: we have received an enormous amount of emails and have been bombarded by constant phone calls from com-panies and the unemployed”, stated Matijana Blašković, spokeswoman for the Croatian Employment Bureau.

Subsidies entitlementEmployers who have not seen a decrease in employment dur-ing the last 12 months, with the exception of justified vacancies

(employee resignation or termi-nation of contract, retirement, work disability or similar), em-ployers without financial liabili-ties regarding their legal contri-butions and those who have been operating for at least 12 months and employing at least one mem-ber of staff for six months are entitled to subsidies. “We have not used these subsidies thus far.

Nevertheless, we will consider the terms and the amounts and, if we find them satisfactory, we will apply for them. The pro-cedure is extremely simple and convenient. We welcome the idea of employment subsidies for employers in need of additional staff”, explained Vladimir Halić, Board President of the Čakovec-based company Zrinski. Želimir Feitl, Director of Kaplast has not been fully advised on the subsi-dies thus far. He added that, in his experience, subsidies are usu-ally obtained for employees for whom there are opportunities for full-time employment. Unfortu-nately, Kaplast can currently only provide temporary employment.

“These measures have not im-pacted significantly on entrepre-neurs, particularly in the light of current professional training ex-penses of, for example, a quali-fied electrical engineer”, pointed out Darko Crha, Director of the Bjelovar-based company Data Link. “We need at least two years for the professional training for such a job, whilst, according to the proposed measures, the train-ing needs to be completed within one year. I am convinced that an employee can contribute greatly to a company only after two years of professional training. In addition, the measures do not en-hance employment of such pro-fessionals, since they usually find satisfactory employment within a shorter time span. The measures will not have a positive impact on high added-value technolo-gies which have a fundamental role for the country in overcom-ing the economic crisis”, stressed Crha, whose company operates in electronics and robotics.

Meagre figures and slight hopeAccording to data provided by the Croatian Employment Bu-reau, unemployment figures in March hit an 8 year high, standing at 338,000. Osijek-Baranja and Vukovar-Srijem Counties have been facing the most serious situ-ation, with 60,000 unemployed. On the other hand, Ličko-Senjska

and Požeško-Slavonska Counties have the lowest unemployment figures, standing at slightly below 10,000. The forthcoming tourist season is likely to provide some employment opportunities, yet they are seasonal and not a per-manent solution to the problem.

EMPLOYMENT SUBSIDIES

Subsidies to create 35,000 jobs The Croatian Employment Bureau has launched six new measures to reduce unemployment by at least 10%

(in budget compared with 2011

€8 million increase

employment measures: allo-cated to companies and small companies employing young people, people over 50 or long-term unemployed

self-employment: unemployed for over 6 months, aiming to launch their own business are entitled to between €2,400 and €3,200

additional training: those fa-cing lay-off or given the oppor-tunity for a new job provided they complete additional trai-ning

professional training: for the unemployed who can enhan-ce their employability by retra-ining

professional qualification: for the young who need to pass a professional examination or need to gain work experi-ence are not eligible for em-ployment

for public works where the em-ployer (municipalities, towns or counties) needs to provide 15% to 25% of funding

The six measures include:

According to Darko Crha, these measures

will not have a positive impact on high added-

value technologies

444444444444444444444444444

(to improve employment opportunities

€46.6 million

www.privredni.hrBusiness & Finance Weekly 5

Igor Vukić

D uring the first two and a half months of this year, tax income increased by

7.9%, according to data provided by the Ministry of Finance. In-come from profit tax achieved the highest increase since many companies had previously paid out profits in order to avoid pay-ing new tax on dividends. How-ever, in relation to the same peri-od of last year, profit tax income also increased (1.2%), as well as VAT (1.2%). The state budget received €0.25 billion from duties. High pet-rol prices have obviously led to saving, and oil derivatives duty contributed to the budget €10.4 million less than last year. Duties on cigarettes also increased (€18 million), and the state treasury received a total of €1.5 billion in income tax.

Despite the news on unemploy-ment growth, the budget accu-mulated a slightly higher income from contributions, totalling €1.15 billion, some 0.53% more in relation to the same period of 2011. According to the Ministry of Finance, tax from income and contributions show that despite the continuous crisis in Croatia, economic activity did not slow significantly at the beginning of 2010.From June 1 to March 15, 2010, budget income totalled €2.87 bil-lion, which is 6.6% more in rela-

tion to the same period of 2011. Expenditure decreased by €85.87 million or 2.5% and stood at €3.45 billion.This year, the Ministry of Fi-nance received 959 requests for tax debt reprogramming. Accord-ing to the new law, the deadline for clearing debt is 36 months. The requests for reprogramming have a value of €0.43 billion. A similar law was in force last year, when the payment deadline was 30 months. Of 2,284 requests ap-proved last year (€0.2 billion), around €26.67 million has been

collected to date. Around 300 entrepreneurs took advantages of the new law, to have their debt interest written off if they imme-diately paid the entire principal sum. A debt of around €6.75 mil-lion was settled in this manner, whereas around €1.87 million in interest was written off. Tax ad-ministrations began a new public tax control system, where large variations between income and assets had been noticed. Tax ad-ministrators have already ques-tioned around 100 people regard-ing how they acquired their prop-erty. When answers on the origin of their assets and income are not satisfying, assets are regarded as income for the current year, and they will have to pay income tax according to existing rates. Public income and assets will be questioned on the basis of tax re-turns from 2008 to that submitted in February 2012.

MINISTRY OF FINANCE

Tax income increased by almost 8%VAT achieved the highest increase of 32% as many companies had previously paid out profits in order to avoid paying new tax on dividends

(from contributions

€1.15 billion (for tax debt reprogramming

959 requests

C roatian Employers’ As-sociation representatives have expressed their

approval at the measures im-plemented by the government to enhance economic growth, particularly regarding the an-nounced investment cycle, as has been stated following the recent meeting between the government and the Croatian Employers’

Association delegation with the Prime Minister, Zoran Milanović and Radimir Čačić, Minister of Economy. Ivan Ergović, President of the Croatian Employers’ Association (HUP) and his colleagues agreed to submit proposals to ministries regarding further measures to be implemented by the government in the near future in order to fos-

ter economic growth and create a more favourable investment en-vironment. He also expressed his approval of recent activity by the Economic and Social Council. Government officials have pre-sented their plans of measures aimed at tackling investment ob-stacles. Ivan Ergović, President of HUP expressed his approval at publishing a taxpayer debtor

list. Nevertheless, he does not approve of turning it into a “list of shame”. Causes and conse-quences need to be considered in all cases, bearing in mind the general level of illiquidity. Re-lieving the economic burden is an imperative in order to start the process of creating profitability and settling all liabilities, stated Ergović. (I.V.)

ENTREPRENEURS JOIN WITH GOVERNMENT

Croatian Employers’ Association (HUP): more consideration for taxpayersCauses and consequences need to be considered in all cases prior to turning taxpayer debtor list into a “list of shame”

6 WE PRESENT Privredni vjesnikYear V No 0192

S everal years ago certain Baranja-based fruit-grow-ers saw a slump in the

sales of their top quality fruit and consequently started brandy production. “We have opted for traditional recipes and have used expert assistance from the Facul-ty of Food Technology and Bio-technology. As a result we have achieved considerable success and satisfactory results”, stated Davorin Škoflek, President of UPRIV, the Association of Fruit Brandy Producers, which has some 20 members. In addition to pear, apple, plum, quince and grape brandy, special attention has been given to apricot brandy production.

The optimum annual produc-tion of brandy is up to 10,000 litres. It is exclusive brandy in 0.7, 0.5 and 0.2 litre bottles, as

well as in souvenir packaging. In order to enhance its brand-ing, producers have presented it through Croatian sagas from his-tory. Hence, brandies are named after Croatian kings and dukes - Tomislav, Branimir, Ljudevit and Domagoj. Bottle design contains elements of wattle and Glagolitic script.

Exclusive products at exclusive pricesExclusive products are sold at appropriate prices which has ad-versely affected their market pen-etration. ‘Duke brandy’ is sold in quality hotels and restaurants throughout Croatia. Neverthe-less we have been completing the construction of “ducal style” tast-ing room, developing doorstep selling which is the most desir-able and the most cost-effective for producers. In addition, ‘duke brandy’ will be available in an online store. We cannot rely on classical retail selling, due to insufficient supplies to meet re-tail chain standards”, explained Škoflek. In addition, the architecture of the distillery and the ‘ducal style’ tasting is unique, with its octago-nal brick tower, fortress wall and chained wooden door and win-dows reminiscent of the 12th or 13th century, as well as the tower interior and the tasting room with a huge round table for top quality brandy enthusiasts. (S.S.)

Z denko Crnković was the goalkeeper of the nation-al team but following re-

tirement, he began training jun-iors and subsequently opened a sports equipment store Led i med (ice and honey). “Through my work with juniors, I became aware of the need for a special-ist sports equipment store and decided to open one”, he ex-plained pointing out the global trend of former players owning sports equipment stores. “A former professional player can

provide specific information on a wide range of sports equip-ment, for example, sports injury protection, thereby also provid-ing useful advice which is in-stantly recognised and valued by customers”, he emphasised. He owns two sports equipment stores in Zagreb, and also pro-viding skate sharpening and re-pair services.

Stars on iceHe began providing skate sharp-ening and repair services due to the fact that such services pro-vided by others did not meet his criteria. Consequently, he pro-vided skate sharpening services for the 1984 Olympic Winter

Games in Sarajevo. Currently, many hockey and ice skating professionals and enthusiasts also opt for his services. He also cares about their health and in addition to his love of ice hockey he has cultivated a deep love of bees and honey produc-tion. Hence he decided to focus more on his hobby. He currently owns over 130 hives. “I mainly sell honey to friends and by rec-ommendation and deliver it to customers as, in my opinion, trust between the consumer and

the producer is basic, particu-larly with so many products of dubious quality. The quality of my whole product range is without question and there are no problems with sales”, he stated, explaining that his love of ice hockey and honey, which is reflected in his company Led i med, make a perfect match. Thorough the winter he is in-volved primarily with ice hock-ey when bees are dormant but during the summer he returns to nature and his bees. (A.Š.)

UPRIV, ASSOCIATION OF FRUIT BRANDY PRODUCERS LED I MED, ZAGREB

Top quality brandy

Honey and hockey - an ideal match

Association members primarily focus on apricot

brandy

The owner owns over 130 hives

A former member of the national ice hockey team owns two stores selling sports equipment and during summer he produces honey

Sagas of brandy throughout history in the “ducal style” tasting room

www.privredni.hrBusiness & Finance Weekly 7CROATIAN FOREIGN CURRENCY MARKET

Source: HNB WEEK MARCH 24, 2012

Currency Kuna exchange mid-rate

AUD 5,904945CAD 5,671328JPY 6,868533CHF 6,245520GBP 9,000062USD 5,674321EUR 7,525852

Drago Živković

T he past three years have been marked by a slow insurance market decline,

where total gross premiums de-creased by €73.3 million. It is impossible to predict the near fu-ture and the influence of Croatian EU accession since the market is constantly changing, warned the Board President of Euroherc osig-uranje, Damir Zorić, at a round ta-

ble convened by Banka magazine. Since 2008 gross premiums have dropped by around 6% and the number of insurance policies 3% lower, which reveals taking on higher risks by decreasing prices under the pressure of a competi-tive environment. Zorić says final results will soon be visible in the

annual reports from insurance companies at the end of the first quarter. Insurance premiums per capita dropped to around €287, which is five times less than the EU average. The premium struc-ture is an additional problem: in Croatia, only one quarter refers to life insurance, but in the EU around 60%. Even though some see this as a possibility for indus-try growth, Zorić warns the public have to have extra money for pre-miums to grow, and this is obvi-ously not the case. To sum up, the insurance market has become a smaller and more expensive cake, but the numbers are increasing.

Law amendmentsEven though Zorić does not ex-pect significant changes when Croatia joins the EU, the claim that a market of several hun-dred million people will open to Croatian insurance agencies, Zorić regards an illusion. “The big EU markets will not open for us, but rather our small market will open to them, since we do

not have the potential to penetrate their market”, he explains. Insur-ance companies rely on advising the public about the necessity of personal pension savings in a society where the ratio between those employed and the number of non-working public is decreas-ing. This ratio should be 3:1. However, it has dropped to 1.2:1, which brings Zorić to the conclu-sion that the insurance industry is standing at an historical mile-stone and only those who survive will be able to speak of the out-come. An additional challenge for Croatian insurance companies refers to legislative amendments, conditioned by the implementa-tion of the Solvency II EU Direc-tive, which will introduce stricter risk management. Board member of Hanfa, Gordana Letica, an-nounced the forthcoming amend-ments to the Insurance Act and Compulsory Automobile Insur-ance Act, which should result in price increase during the first phase, and then their decrease in the long-run.

INSURANCE MARKET ON THE EU THRESHOLD

Insurance premium per capita dropped to around €287, which is five times less than the EU average.

Since 2008, gross premiums have dropped by around 6%, and the number of insurance policies is 3% down

The cake is getting smaller The cake is getting smaller but numbers increasingbut numbers increasing

Erste Bank profit increaseLast year, income from the nor-mal activities of Erste Bank in Croatia increased to €0.31 bil-lion, 7.4% more in relation to 2010, according to data provided by the bank. Nett profit came in at €86.8 million, 6.7% more in relation to 2010 and with which the bank managed to keep a sta-ble level of profitability. On De-cember 31, 2011, bank assets to-talled €7.6 billion, up 12.9% over the same month of 2010. Return on assets totalled 1.22% and re-turn on equity stood at 10.47%. Income to expenditure ratio was 37.5% in 2011. Total lending of Erste Bank increased to 12.6%, double the market average.

Fund assets declineIn February, total assets of open investment funds fell, primarily due to considerable asset reduc-tion by money market funds. According to data provided by the Croatian Financial Services Supervisory Agency (HANFA), total assets of open investment funds amounted to €1.43 billion, a 7.6% decrease. Only equity funds finished the month with an asset increase.

€75 million loan to AgrokorAgrokor has taken a loan of €75 million from a group of banks for a period of 3 years under a guar-antee from several companies within the consortium. The loan will be used to refinance exist-ing obligations and maintaining debt at the same level. BNP Pari-bas, J.P. Morgan and Zagrebačka banka participated.

::: news

19.3. 20.3. 21.3. 22.3. 23.3.

7.55

7.54

7.53

7.52

7.51

7.50

EUR 5.76

5.74

5.72

5.70

5.68

5.66

USD 6.27

6.26

6.25

6.24

6.23

6.22

CHF

19.3. 20.3. 21.3. 22.3. 23.3. 19.3. 20.3. 21.3. 22.3. 23.3.

8

Jozo Vrdoljak

The Split-based company Peristil is the sole Croatian construction company

specialising in the design and construction of luxury stone vil-las in the Dalmatian style. The idea of a joint project “A return to stone” was developed in Pula, Istria, following five years of co-operation between the founders in real estate intermediation and the traditional construction of stone houses. The company was found-ed at the end of 2004 in Split. It currently employs 12 staff, all qualified for working in stone and other traditional materials.

Increasing demand“In addition to the construction of Dalmatian style villas, we are specialists in property decora-tion, particularly dry stone walls. We have recently been contacted by several investors regarding the construction of villas with ac-companying facilities and prop-erty. We are currently working on a similar project covering an area of 27,000 m2”, stated Samir Koštić, owner and Director of Peristil. He pointed out his nega-tive stance on the trend towards the over-development of apart-ments in Croatia, adding that in his opinion the construction and rental of tourist villas will be fun-damental in the near future and a turning point in the development of Croatian tourism. “Legislation s a major hindrance to development and attracting in-vestors, with nearly insurmount-able problems regarding urban planning. Urban plans comprise many tourist zones, yet in real-ity they are non-existent. Con-sequently, we have only recently been contacted by foreign inves-tors interested in tourism. My company has received a welter of orders over a one year period from investors from Great Britain and Scandinavia, regarding pur-

chase and rental, as well as from local entrepreneurs. There is in-creasing demand for old stone houses”, pointed out Koštić.

Luxury and peaceHe added that he would be ex-tremely pleased to have com-petitors, as competition can sig-nificantly destination value. “Our project is a return to traditional Dalmatian values and Dalmatian culture which has been adverse-ly affected by mass tourism. In addition to the construction of individual villas, we focus prin-cipally on élite areas. We opt for selective construction within the local community”, explained Koštić, adding that in his opin-ion the creation of employment opportunities, focus on long neglected crafts and reduce the over-abundance of apartments on the Croatian coast is imperative in the not too distant future. “The beauty of a destination, an agreeable climate, top quality ac-

commodation in Croatian villas, as well as satisfactory organisa-tion, will all contribute to attract tourists with high purchasing power. According to information provided by real estate agencies, I believe that currently foreign investors are primarily inter-ested in villas with pools”, he explained. According to Koštić, there is high demand for villas in peaceful locations with a sea view, in towns with preserved lo-cal architecture, without hotel or apartment proposals, in locations far from power-transmission lines and transmitters. “Conse-quently, villages in the Istrian hinterland, which were almost deserted some 20 years ago, have been seeing a growth in population, as well as increased employment opportunities in ar-eas of facility maintenance and agricultural production. Hence, we believe our project is a return to traditional values”, concluded Koštić.

Privredni vjesnikYear V No 0192

::: news Peristil, Split: specialists for luxury stone villa construction

The ideal MediterraneanA large number of orders from investors from Great Britain and Scandinavia as well as local entrepreneurs as demand increases for old stone houses

The construction of luxury stone villas requires a deep knowledge of long neglected crafts, such as stone-cutting, finely forged locksmithery, tailor-made carpentry and similar. According to Koštić, a return on investment is likely within a period of between 12 and 15 years. In addition, the prices of such villas are constantly rising, as opposed to apartments for which there is currently little or no demand.

No demand for private apartments

Americans interested in CroatiaOver one third of American trav-el agencies surveyed have ranked Croatia as the most interesting and most desirable European destination, according to the re-sults of a survey conducted by the American company Travel Leaders Franchise Group. 640 American travel agents partici-pated in the survey.

Increase in tourist arrivals during Easter holidaysMembers of the Association of Croatian Travel Agencies (UHPA) record a 10% increase in holiday package sales for Croatia over the Easter holidays com-pared with the same period last year according to a survey con-ducted by UHPA. Local agencies have pointed out that most Easter holiday arrivals are expected from Austria, Italy, Germany, Hungary and Spain.

Feravino remarkable success at Split GAST fair The company Feravino, last year the champion at the International GAST fair in Split, has again won the highest number of medals for its wines amongst local competi-tors. Feravino holds 5 gold and 2 silver medals, as well as 1 bronze making it the regional quality leader. Its Zweigelt Miraz is the highest ranked local red wines.

The best local furniture designs

Local furniture producers have shown their products at the Fur-niture fair International GAST fair in Split. Journalists partici-pated in ranking the best local furniture design during Journal-ists’ Day at the exhibition. Lapi-bus was the winner with its prod-uct Varius for furniture and PPS Galeković with its product Dek-ing parquet for interior design products. Spin Valis, Naprijed, Interijer, Palković and DI GELI also participated.