ZAGREB, 13 October, 2021 - Economy Minister Tomislav Ćorić said on Tuesday the government was aware of the energy price crunch's negative impact on living standards and that, if necessary, it would act on excise tax or VAT.

Asked by the press when the state would intervene in fuel prices by cutting the excise tax, Ćorić said, "Soon".

"We are aware of the consequences which the increase in fuel prices is having on the widest circle of consumers in Croatia, all drivers and their families. That's why we'll estimate the fiscal effects and act on either the excise tax or VAT," he added.

Excise tax and VAT account for HRK 5 of the price of one litre of petrol and diesel, and if the growth continues, the prime minister has instructed "analysing the effects on some cost elements in the price," said Ćorić.

Croatia willing to participate in building second Krško block

He went on to say that next week in Slovenia, at a meeting of a Croatian and Slovenian governmental commission, he would "announce at the ministerial level Croatia's willingness for talks on building a second block of the Krško nuclear power plant."

Ćorić said Croatia's power supplier HEP, the co-owner of Krško, had already said that Croatia was interested in co-funding the construction of the second block and participating in sharing the output "because we need a stable and long-term source of electricity."

That will allow Croatia to meet some of its needs from Krško in the long term and after the first block is phased out in 2043, Ćorić said, adding that he and Hungarian Innovation and Technology Minister Laslo Palkovics yesterday talked about the possibility of Croatia meeting its electricity needs from the Paks nuclear power plant for ten years or more.

He said Croatia would not build nuclear power plants on its territory due to the importance of tourism for its GDP.

Croatia is strategically oriented towards clean energy, from the renewables, but it has to accept the fact that part of its electricity comes from Krško, which it co-owns, and that it will be so until 2043 at least, the minister added.

ZAGREB, 13 October, 2021 - The Croatian Ministry of the Interior Civil Protection Directorate on Wednesday issued a statement marking the International Day for Disaster Risk Reduction, 13 October. 

This year's observance focuses on international cooperation for developing countries to reduce their disaster risk and losses so they could draw closer to the goals of the Sendai Framework for measuring progress on reducing disaster risk and losses.

During the UN's third world conference on disaster risk reduction, held in Sendai, Japan, in 2015, it was stressed that disasters have the gravest consequences at local level, causing significant losses and damage, which is why local capacity building is of the utmost importance.

Number of disasters on rise

Noting that disasters and the related human and material losses have been on the rise globally in the past few decades, the Civil Protection Directorate says that many of them are aggravated by the impact of climate change and negatively affect investment in sustainable development while sudden ones trigger major migration waves every year.

Noting that the world has been witnessing increasingly frequent and strong natural disasters as a consequence of climate change, the Directorate points to the need to take all available measures to reduce their consequences to the minimum.

By adopting "Disaster Risk Assessment for Croatia", "Risk Management Capacity Assessment" and "The Strategy for Disaster Risk Management", made by the Civil Protection Directorate, Croatia will significantly contribute to meeting the goals of the Sendai Framework for measuring progress on reducing disaster risk and losses for 2015-2030, the UN's 2015 Sustainable Development Goals and the Paris Agreement, the Directorate says.

It notes that the Strategy for Disaster Risk Management is a precondition for the absorption of EU funds that will primarily be used to finance infrastructure projects designed to develop the system of civil protection, including education about the need to reduce disaster risk.

Proactive approach important for sustainable future

Underlining the importance of a proactive approach to disaster risk management, the Directorate recalls that together with the Agency for Education and Teacher Training it has been implementing an EU-funded project for disaster risk reduction, which includes the making of handbooks for teachers and brochures and the procurement of an earthquake simulation vehicle, with the aim of educating young people and children. Civil Protection Directorate members regularly conduct courses for kindergarten and school children, persons with special needs and teachers and school principals, the purpose being the introduction of the topic of disaster risk reduction in schools.

This year, in the week when the International Day for Disaster Risk Reduction is marked, an exercise will be held as part of the IPA project "Capacity Building and Preparing BiH for EU Civil Protection Mechanism".

A number of activities will be held across Croatia to put emphasis on the education of children and young people about disaster risk reduction, the central part of the events marking the observance being a presentation of educational disaster models made as part of an EU project, to be held for children in eight primary schools in Zagreb, Split, Rijeka and Osijek.

The International Day for Disaster Risk Reduction has been marked since 1989 and the initiative to introduce it was launched by the UN.

ZAGREB, 12 October, 2021 - The Croatian Institute of Public Health on Tuesday issued recommendations for third doses and booster shots in the process of immunisation against coronavirus.

The administration of the third dose is recommended for people with severe underlying health conditions and they should receive it within a time-frame defined by doctors who are treating their diseases.

Booster shots are given within a larger time span since the completion of primary inoculation and they are administered to provide extra protection over a longer period of time.

People who have recovered from COVID-19 and have been vaccinated against this infection do not need the third dose, says the HZJZ.

The Comirnaty (Pfizer) vaccine is recommended for additional inoculation and it should be applied after at least six months since the completion of the two-round vaccination.

ZAGREB, 13 October, 2021 - President Zoran Milanović on Tuesday attended a military exercise on the Eugen Kvaternik artillery range in Slunj, calling it impressive and telling soldiers that they were, first of all, the Croatian army and that they defended the Croatian state.

The 11-22 October exercise is also taking place at the Gašinci artillery range and at the military barracks in Petrinja to evaluate forces for participation in NATO missions, operations and initiatives.

The state and the politics democratically elected by the Croatian people are expected to ensure the material conditions for the army, Milanović said, according to a press release from his office.

"What the priorities will be, how much money will be set aside and to what end, what is most important - democratic politics has an important role in that. I expect and see understanding for it, there are resources," he said.

"You are, first of all, the Croatian army, defending the Croatian state, Croatian sovereignty, territorial integrity and Croatian borders, although formally you are not guardians of the border nor should you be," he added.

Speaking of Croatia's role as a NATO member, the president said a lot had changed in international relations, with new partnerships, new conflicts and new aspirations being created.

"Our strategic position is relatively comfortable at the moment, our interest is, first of all, our interest. You are, first of all, the Croatian army and then, of course, an army within NATO, without a hidden agenda, fairly, openly. But, I repeat, first of all the Croatian army. This is the homeland, you defend it," the president said.

ZAGREB, 13 October, 2021 - Prime Minister Andrej Plenković said on Tuesday the decision to make COVID certificates mandatory in health and social care was made solely to protect people's health.

"I think the decision to introduce COVID certificates in health and social care is logical and normal," he told the press.

Plenković was commenting on the fact that the Constitutional Court will rule if that decision by the national COVID-19 crisis management team is in line with the constitution, as confirmed by Court president Miroslav Šeparović yesterday.

As of 4 October, employees in the health and social care sectors, as well as some patients, must have a COVID certificate or undergo testing if they have not been vaccinated or recovered from the virus.

That decision was made to protect the health of everyone working in those institutions as well as their residents and patients, said Plenković. "I think that's normal... And I think the principle of proportionality has been fully honoured."

"I don't know what the Constitutional Court will decide... However, questioning all decisions, including this one, is normal. And the only reason we adopt any epidemiological measure is the protection of our fellow citizens' health," he said, once again calling on those have not to get vaccinated.

October the 13th, 2021 - Tasks from the Zagreb kids Escape Room are set to be solved across the pond in the world's strongest economy, the United States of America.

As Poslovni Dnevnik/Sergej Novosel Vuckovic writes, entering the United States of America, the world's strongest economy, is an unfulfilled dream for many Croatian citizens, let alone entrepreneurs and business owners, which will in some ways be much easier to achieve when the needs for visas is revoked on December the 1st, 2021.

Kruna Josimovic is from Zagreb, she's an author and the initiator of the Zagreb kids Escape Room, a playroom at the Zagreb Fair (Velesajam) for children aged 8 to 12. She's looking forward to heading across the pond, because she has managed to export her concept, the only one of its kind in Croatia and all of Europe. Her escape room will find a home in Chicago and Philadelphia.

Variations on the topic of solving tasks in space and time are part of the entertainment and tourism repertoire in many cities, including Zagreb, and this has been the case for years, but it's all mostly been for adults.

The peculiarity of this lies in the name - for children, from those who have just started school to the "preteen" generation, which is an increasingly lucrative category of consumers whose appetites, especially in America, are challenging to satisfy. Josimovic started this business, which will open franchises through the Bright Entertainment Group.

The first already exists in Podgorica, Montenegro.

"I accidentally discovered escape rooms in Zagreb, I did them all all and the concept delighted me. That sort of thing only appeared in this country five or six years ago and the target audience was adults, so the tasks, the elements, the "time limits" and the fact that you were left to work things out for yourself weren't adequate for younger children,'' says the entrepreneur, who has a wealth of experience with children to boast of. She therefore wanted to "translate" the model of decipherment through play, with an educational note, into the language of children, then came the proverbial birth of the Zagreb kids Escape Room.

"Researching the market, I saw that there's something similar in Slovenia, but they gave up with the idea, so everything was up to me. We started with 80 square metres of space in Maksimirska, in the first year, I created three new themed rooms and due to great interest I moved to the current larger space we have now,'' explained Josimovic.

Each room includes 10-15 tasks to be completed by a group of up to 9-10 children, which takes an hour, and the work is based on three things - the gamemasters (leaders) are with the children, they help guide them in solving the tasks, there are no limits and there is nothing intimidating in the rooms.

The current setup proves it - The Land of Sweets (on the theme of fairy tales, more specifically The Nutcracker), Aliens (exploring the planets and escaping from aliens) and Professor B. (a detective on the hunt for a miracle drink). A treasure hunt for 20 children will be introduced soon.

Unlike museums, theatres, exhibitions and the like where children have to be quiet, calm and not touch anything, here they have full freedom, everything is available to them and they can and must touch and open, view, explore, and use their brains,'' the creator of the first Zagreb kids Escape Room explained.

Such a description also attracted Americans, more specifically the Bright Entertainment Group, which is present here in the Republic of Croatia with the Museum of Illusions, also an original Zagreb product that has expanded globally through franchises.

“As franchise expansion partners, they were thrilled with the content, they got in touch with Lol Entertainment, which operates predominantly in Chicago and Philadelphia, and presented the concept to them. Negotiations lasted for three years, they were slowed down by the pandemic, and no matter how much explanations were provided by emails and Zoom, they had to physically see what it looked like and we finally met just now, back in September,'' Kruna explained, recalling the beginnings with the Americans.

They confirmed to her that they didn't have anything of the sort, and that in examining the market for children aged 8-12, they concluded that it would "fit" them. In her project, she says, they recognised originality, innovation, play and education. Money was, of course, also a very important factor in it all.

"The whole story is also profitable, the ratio of what's invested and what is returned is excellent. I can’t yet say how much they're willing to invest. We called the franchise project the Cluville Kids Escape Room and the plan is to have at least one of them in Chicago by the spring, maybe two, and then two more in Philadelphia,'' points out Josimovic.

Oman, Riyadh, Dubai, and Tel Aviv were all to follow, all on reconnaissance in Zagreb, but the coronavirus pandemic delayed the expansion of this Croatian product into the Middle East, so, what does Kruna actually expect from America?

"My expectations aren't small, it's a great success to be able to sell something at all, let alone to someone who invented the entertainment and edutainment industry, but it's very difficult to make something original and experience success like that here in Croatia," she said.

For more, check out Made in Croatia.

October the 13th, 2021 - Croatian employers, especially those in the tourism and construction industries, are so desperate for qualified staff that the issue is becoming more of a problem than the pandemic was.

As Poslovni Dnevnik/Marija Crnjak writes, although last year they barely made up 40 percent of 2019's revenue, thanks to state measures, moratoriums on loans and previous stocks, the leading large tourism companies managed to maintain the stability they needed to realise the remarkably successful 2021 season.

The biggest problem this year has been the lack of manpower, which has spread from uncertainty in the travel industry to other sectors, primarily the construction industry. When the results add up after the season, which continued at a more than decent pace throughout the month of September, decisions will be made to restart investments that were blocked by the pandemic.

Both ''pandemic years'' have shown that the best result was achieved by the premium segment of the offer, and there are many places to invest in all segments of accommodation, from campsites and hotels to family/private accommodation and entertainment.

Maistra, including Dubrovnik's Hilton Imperial, recorded 45 percent of the sales it had in pre-pandemic 2019 during a very difficult 2020, realising at the same time 41 percent of their sales of goods and services from 2019. Segment analysis showed that in 2020, campsites performed 9 percent better in terms of the number of units sold than the Maistra average. In the period from June to September, when the business was without significant epidemiological restrictions, the best sales compared to the previous year (2019) were achieved by the luxury hotel segment in the Istrian city of Rovinj.

In 2020, HUP-Zagreb generated only 18 percent of units sold and 18 percent of the sales revenue compared to the previous year of 2019, which is devastating. Maistra's consolidated revenue from the sale of the tourism segment in 2020 amounted to 587 million kuna, which is a mere 35 percent of the 2019's impressive realisation.

Profit before interest, taxes, depreciation and amortisation (EBITDA) amounted to 93 million kuna, with a net loss of 136 million kuna. Achieved positive EBITDA indicates the fact that in the crisis year of 2020, the tourism segment achieved a level of operating profit and liquidity sufficient for the operation of normal business, they explained from Maistra. In addition to the blossoming nautical sector, their campsites last year had ''full colour'' occupancy in comparison to hotels, which were also weaker than the private accommodation sector, but fortunately that changed this year.

Due to the continuation of the coronavirus pandemic during the first part of 2021, Maistra's business activity decreased, but sales of 335 thousand accommodation units were realised, which represents growth of 113 percent when compared to last year's reporting period, and is at 60 percent of 2019's figures.

In the first six months of this year, the Maistra Group generated 296.5 million kuna in operating revenue, which is about two and a half times more than last year, and is also at the level of 66 percent of the same period in 2019. A positive result before interest, taxes, depreciation and amortisation (EBITDA) was achieved in the amount of 49.2 million kuna. Although we're still waiting for the results for the third, key quarter, the physical occupancy of hotels this summer suggests significantly better results than last year, for all tourist companies on the Adriatic coast.

So far, only the Pula Arena Hospitality Group has reported on their results for this summer season, revealing that operations in the Republic of Croatia exceeded expectations during July and August, with total unaudited revenue in these two months reaching approximately 90 percent of the total revenue in the same period back in 2019.

Revenue generated in August 2021 is at the level of revenue generated in August 2019. “This result was achieved without the usual gradual growth of seasonal activity, at a time when the rules on covid passports and testing were still in force, and when certain countries from which people usually come had placed travel restrictions on those coming to and arriving from Croatia. Our second region, which consists of operations in Germany, Hungary and Serbia, has also shown signs of recovery, although the pace of such recovery varies depending on the market and is slower compared to the Croatian holiday tourism segment. Unaudited total revenue for this region in July and August represents 39 percent of the total revenue realised back during the same period in 2019. However, with the reopening of the market and the continued progress of the vaccination rollout, we expect this sort of recovery to continue,'' they stated from the company.

This excellent tourist season has generally positively surprised the entire sector, because although improvements were expected in comparison to last year, no one could have predicted that August would almost reach pre-pandemic figures and that fiscalisation would even exceed those numbers. Namely, in August 2021, 4.3 million arrivals and 30.7 million overnight stays were realised in Croatia, equal to 59 percent more arrivals and 46 percent more overnight stays than in the same period last year.

Now that it appears things are back on track in comparison to a dire 2020, Croatian employers from some of the most negatively affected industries are on the hunt for qualified staff and this issue is becoming more of an issue than the pandemic and lockdowns were. People who had always worked in construction, tourism and catering and hospitality began moving away from those fields in search of more stability, and it will now prove a challenge to attract them back to the sector which so easily dropped them.

Investments were halted, shelved and in some cases binned entirely as a result of the deep uncertainty the public health crisis caused. If those blocked investments can now get moving, we might just be seeing the light at the end of the tunnel of a truly horrendous and unprecedented period in history.

For more, make sure to check out our business section.

October the 13th, 2021 - Eko Medjimurje is a Croatian processing company and is one of the leading companies of its type in this part of Europe. It has been making significant business moves of late, one of which has caught quite a bit of attention.

As Poslovni Dnevnik writes, Eko Medjimurje, the leading metal processing company in this part of Europe, recently completed the process of taking over a majority stake in the Bjelovar-based Hittner family company which deals with tractor production, according to a statement issued on Monday. The statement did not specify the value of this transaction.

The Hittner family will remain as the long-standing company's co-owners as minority stakeholders and is launching a new development cycle with their new partner, the two companies said in a joint statement.

For the last thirty years, Eko Medjimurje has been producing parts for a wide range of machines such as cabins, tanks, consoles and finally assembled machines for large international companies, including the likes of Liebherr, Komatsu, Caterpillar, Wirtgen and Rubble Master.

The company was founded back in 1990, is headquartered in Senkovec near Cakovec close to the Hungarian border, and currently employs 420 employees with a handsome annual income of 250 million kuna.

For some time now, with the constant expansion of business and organic growth, it has been looking for a partner with whom it will achieve synergy and growth in new market segments.

Hittner is otherwise a family-owned company for the production of forestry and agricultural articulated tractors, agricultural machinery and spare parts and gears, which has turned from a craft workshop into a highly successful private company with 90 employees since 1987.

Hittner plans to excel even further over the next five years with significant investments in production processes, the development of new product types and even more employment, the statement said.

For more, make sure to check out our dedicated business section.