April 16, 2021 - Croatia Luxury Rent, an agency that offers luxury vacations in beautiful villas all along the Croatian coast, has conducted a study about European travel behavior this season. 

A study by Croatia Luxury Rent (CLR) reveals that Croats and most Europeans are ready to travel again, whether it be in their own country or abroad. The good news for Croatia is that it is trusted as a safe destination, with vaccinations on the rise, and many remote locations and exclusive accommodations to book outside of all-inclusive hotels. 

Based on booking figures and Google Trends search statistics, CLR was able to evaluate European travel behavior for the upcoming season. 

Namely, Croats currently make up 1 percent of CLR reservations, which could be thanks to the relatively small Croatian population, privately owned holiday homes, a more spontaneous mentality when it comes to travel, and that vaccination has only just begun.

Interestingly, more than a third of CLR's bookings come from German guests (39 percent), followed by Austrians (17 percent) and 11 percent from the UK. This could be a consequence of both early vaccination programs and those hoping to travel to the sun and the sea, as snow and viruses rage elsewhere. 

Eight percent of CLR's reservations are from Scandinavia, and 5 percent from Swiss and French guests. 

Although the number seems relatively small, demand for holiday homes and villas has increased in recent months. 

"I think we are in a better situation this summer than last year. We know what COVID-19 is and how to behave in a pandemic situation. Vaccination has also just begun. I expect the tourist season to be between the last and record 2019 summer. Croatia will follow the guidelines of the "Stay Safe in Croatia" initiative, which will guarantee guests the safe implementation of all epidemiological regulations. In addition, vaccinations of employees in the tourism sector are planned before the main season," said Veljko Ostojic, former Minister of Tourism and current director of the Croatian Tourism Association.

"Based on the reservations we received in the new year, we can say that the Croatian people want to return to 'normal' life. While tourism stagnated last year due to planning difficulties and many countries blocked, there is new hope this year thanks to vaccination. Countries like Croatia are better prepared now - they know what they are dealing with and how to safely deal with anti-virus regulations. Of course, this could not be possible without the cooperation of tourists, who can't wait to have a nice holiday again," said Tomislav Fain, President of the Association of Croatian Travel Agencies.

You can find the full study on CLR HERE.

For more on travel in Croatia, follow TCN's dedicated page.

April 16, 2021 - The latest flight news to Croatia as 10 Eurowings flights to Zagreb, Split, Zadar, and Rijeka will operate from next month!

Croatian Aviation reports that Eurowings, a low-cost airline from the Lufthansa Group, will resume traffic to several Croatian airports in May and have a total of as many as 10 scheduled flights to four Croatian airports - Zagreb, Rijeka, Zadar, and Split.

The company currently operates three international routes to Croatia (one to Zagreb and two to Split) and will resume operations on seven more in May.

More flights to Zagreb Airport and Split Airport

Zagreb will continue to be connected to Cologne three times a week (Wednesdays, Fridays, and Sundays), and Eurowings will resume traffic on the line between Stuttgart and Zagreb on May 20 with two flights a week, on Thursdays and Sundays.

Eurowings currently operates on two lines to Split, and in May it will have a total of five.

Lines from Dusseldorf and Stuttgart to Split currently operate once a week, and a second flight per week is introduced on both routes (in addition to Saturday, an additional flight on Tuesdays).

Eurowings will introduce lines from Cologne, Dortmund, and Hamburg to Split in early May, and all lines will be open once a week, on Saturdays.

Lines to Zadar Airport and Rijeka Airport are being introduced

Zadar and Rijeka airports will welcome the first planes of this airline in this year's summer flight schedule in May.

The Dusseldorf - Rijeka - Dusseldorf line will start operating at the very end of the month (May 29), once a week, on Saturdays, while Eurowings will resume traffic to Zadar on two lines.

The Stuttgart - Zadar - Stuttgart line will operate from May 23, once a week, on Sundays, while the Cologne - Zadar - Cologne line will operate from May 22, also once a week, on Saturdays.

In May, Eurowings will perform almost 100 rotations on 10 international routes to and from four Croatian airports, with the largest number of seats being offered to Zagreb and Split. In June, we can expect a larger number of weekly operations on these lines, as well as the introduction of additional and renewed traffic to Pula Airport. We remind you that the line to Osijek is not on sale for this year.

Aircraft from the A320 family was announced on all routes to Croatia in May.

Follow the latest on flights to Croatia HERE and the latest travel updates and COVID-19 news from Croatia HERE.

For more on travel in Croatia, follow TCN's dedicated page.

April 16, 2021 - The global promotion of Croatia Rally is said to be around EUR 40 million, positioning the country on the map of motorsports fans worldwide.

There is one week left until the start of the biggest sporting event in Croatia this year - the Croatia Rally, the third stage of the World Rally Championship (WRC). It is a sports spectacle of the highest level that will put Croatia on the automotive map of the world, and in addition to its sporting size, the event also brings a significant economic and tourist impact, reports HRTurizam.

Analyzes show that the value of global media visibility for Croatia alone from the Croatia Rally is over 40 million euro. Apart from the media value, Croatia Rally is also of great importance for the image of Croatia because it positions the country on the map of motorsports fans worldwide.

"Although the coronavirus and restrictions prevented us from realizing all the ideas we had, Croatia Rally will bring us global visibility among hundreds of millions of WRC fans around the world this year as well. It is important that we show the FIA ​​and the WRC Promoter that we are a reliable partner and justify the tremendous trust they have given us. I am sure that, thanks to the hard-working team that works day and night and our loyal partners, we will succeed in this plan and show that Croatia deserves to host this great event," said Daniel Šaškin, President of the Croatia Rally Organizing Committee.

Under strict epidemiological standards, 1,200 participants of the competition - drivers and support staff - will arrive in Zagreb, and the event will be watched online or live by about 1,500 journalists and camera crews.

"Sport is once again functioning as an ambassador for branding Croatian tourism because it is an excellent indirect way to attract the attention of the world public and create interest in Croatia. Global publicity with a strong media reach that we get by participating in the WRC has a stronger effect on potential consumers in tourism compared to paid tourism advertising, and thus is a very effective part of integrated marketing communication in Croatia as a tourist destination," said Sanja Čižmar, consultant at hospitality and company director 505 Consulting.

Portugal often stands out as an example of a country that has made very good use of the World Rally Championship potential. 

Studies show that the direct spending of fans, organizations, and teams during Rally Portugal 2019 exceeded 73 million euro. And it is with Portugal, which has made great use of the potential of organizing the WRC stage, that Croatia very often compares itself in terms of tourism.

"We must not neglect the economic effects that Croatia can achieve. Although the current year is marked by a pandemic and most of the economic impact of this global spectacle will be absent, an important aspect is that the race takes place in April, thus drawing public attention and potentially creating effects outside the main summer season. In addition, economic research conducted by Croatian scientific institutions several years ago showed that the estimated generated consumption in a stable market situation according to the conservative scenario is over 22 million euro. Although this level of effects will not be fully achieved this year due to pandemic restrictions, Croatia has the opportunity to host the World Cup in the coming years, when significant economic effects are expected," adds Čižmar.

Relevant research by economic analysts shows that the direct economic effects of the organization of the World Rally Championship are realized primarily in the activities of transport, catering, and accommodation, but also through accompanying events.

In addition to generating the consumption of visitors, journalists, and participants, the attractiveness of the landscape, road infrastructure, and local eno-gastronomic specialties will be promoted in parallel. International research also indicates that a very large proportion of WRC visitors visiting their destination for the first time intend to return for a tourist visit.

To follow the latest sports news in Croatia, follow TCN's dedicated page.

To learn more about sport in Croatia, CLICK HERE. 

April 16, 2021 - Making an investment into the private sector a priority is crucial for the National Recovery and Resilience Plan to have a greater impact. Economic Council of the Glas poduzetnika Association supports that claim with a detailed analysis

With this press release, we want to bring to your attention the concerning situation in Croatia that might significantly influence the country’s economy and society as a whole. Economic Council of Glas poduzetnika made the analysis of the current National Recovery and Resilience Plan that is due by the end of April. We wanted to propose specific measures and aid the Croatian government in speeding up the economic recovery, in order to avoid the 2009 crisis scenario that took Croatia six long years to recover from. Unfortunately, the Croatian government does not want to include social partners in negotiations and is ignoring the actual state of the economy.

Experts from the Economic Council of the Glas poduzetnika have expressed their concerns over the recovery of the Croatian economy from the impacts of the COVID-19 pandemic. As already pointed out on multiple occasions, the National Recovery and Resilience Plan will not allocate enough funds to small and medium-sized enterprises which, in turn, will reflect negatively on Croatia’s economy. The Economic Council of the Glas poduzetnika has therefore analysed the results of both domestic and foreign scientific research papers on the effectiveness of state support given to businesses for development and recovery from the impacts of crises.

The analysis of recovery measures taken by other world economies shows that the majority of countries have directed more substantial shares of their support packages to those businesses (sectors) and citizens who have been hit the hardest. It would be advisable for Croatia to use its EU funds in a similar manner, since it is the road to accelerating economic recovery. However, the Croatian government has opted for a copy/paste approach of recycling projects from the Government 2020-2024 Programme and 2030 National Development Strategy, projects that would have been funded regardless of the pandemic. The current National Recovery and Resilience Plan focuses mostly on projects carried out by state and local authorities; projects with low and long-term return on investments (or even a negative one), which contradicts the general objective of a quick recovery.  Academic research has shown that these types of investment deliver a negative return on investment. 

Moreover, it should be pointed out that the National Recovery and Resilience Plan proposes the allocation of 54% of funds for the economy and 46% for public sector “reforms”. However, the 54% of funds allocated to the economy include funds for wastewater treatment projects, waste management projects, as well as road construction and transport infrastructure projects, which again implies investment into public companies that have so far proven their low efficiency (companies such as Hrvatske vode, Hrvatske ceste, Hrvatska elektroprivreda, Hrvatske željeznice, and local utilities companies). It can therefore safely be argued that the National Recovery and Resilience Plan is not focused on supporting the private sector or improving the competitiveness of the Croatian economy. Not a single aspect of the current Plan is oriented towards the quick recovery of domestic demand, investment into high return projects or technological innovations.

Making an investment into the private sector a priority, focusing on high return projects and monitoring returns on investments and fiscal impacts, is crucial for the National Recovery and Resilience Plan to generate a greater impact. Besides that, it is necessary to disable corruption channels and preferential, politically influenced allocations in the process of distribution of funds.

The Economic Council proposes the following steps in order to successfully ignite an economic recovery: 

1. Substantial amendments to the National Recovery and Resilience Plan – a more significant relative share of funds should be directed towards the private sector and citizens for the recovery of aggregate demand, in accordance with recovery plans of other comparable EU Member States.

-          Design aid models for citizens who were rendered unemployed due to the pandemic

-          Support for private companies should be implemented

-          Tax reliefs for hardest-hit sectors

-          Renewable energy investments

-          Complete transparency of the funding allocation process

1. Detailed elaboration of the funding distribution criteria by the Government and ministries. We are entitled to know which criteria and models are being used to determine which sectors and projects receive funding. Without the specified criteria, there are greater risks of an arbitrary, chaotic and politically motivated allocation procedure, which would reduce impacts on economic recovery.
2. Absolute transparency of the allocation process and funding management for the National Recovery and Resilience Plan funds, including the analysis of input and output for every finalized project.
3. Inclusion of Glas poduzetnika and other interested stakeholders into the funding allocation and evaluation process, which would contribute to the efficiency and supervision of the implementation of the National Recovery and Resilience Plan.

If the Government of the Republic of Croatia continues to insist on the current National Recovery and Resilience Plan, while retaining the existing political and economic limitations, it is realistic to expect a non-effective allocation of the EU funding. This would result in low return on investments and ultimately a subpar recovery. Consequently, lower growth rates and a relative falling behind of Croatia compared to other EU member states can be expected. The National Recovery and Resilience Plan represents an opportunity for reforms in Croatia, for the strengthening of the rule of law, reduction of corruption, strengthening of market institutions and market freedoms, thus creating conditions for EU funds to be used effectively for enabling fast-paced economic growth. The abovementioned can only be accomplished through private sector investments, innovations, and investments in new technologies, which would ultimately help create a sustainable and competitive economic structure in Croatia.

“According to the currently proposed National Recovery and Resilience Plan, only 7% of funds will be allocated to the private sector. All infrastructural, digitalization, and green economy investments (54%) will, in line with the standard Croatian political and economic pattern, end up in the quasi-private sector, in the hands of companies associated with the political structures. We consider this to be the worst possible scenario for an investment of this type of funds, simply because it generates negative return on investment. With such distribution of the funds we cannot expect a strong economic recovery nor sustainable economic growth.” – said Vuk Vuković, Ph.D., the head of the Economic Council of the Glas poduzetnika.

*Members of the Economic Council of the Glas poduzetnika include: Vuk Vuković, PhD (Oxford), Prof. Jakša Cvitanović, PhD (CalTech), Ria Ivandić (LSE/Oxford), PhD, Leonard Kukić, PhD (Carlos III, Madrid), Prof. Boris Podobnik, PhD (Boston/Rijeka/ZSEM), Vedrana Pribičević, MSc (ZSEM), Mislav Radić, PhD (LSE) and Stjepan Srhoj, PhD (Sveučilište Dubrovnik).

 ***

The GLAS PODUZETNIKA (VOICE OF ENTREPRENEURS) initiative took off as a self-organization of citizens, mostly small business owners, after the Croatian government presented the first package of measures for the salvation of the economy, deemed insufficient by the Initiative. Having gathered more than 100,000 micro, small and medium-sized entrepreneurs, small business owners, self-employed, employees in the private sector in less than 15 days and has attracted massive media attention owing to its uncompromising demands, GLAS PODUZETNIKA has positioned itself as a relevant factor in public discussions concerning the new economic direction Croatia should take. This was confirmed by the Government when it included some of the proposals made by the Initiative into the second package of measures, affirming its undeniable influence. The GLAS PODUZETNIKA was founded at the request of the Initiative members, and it has since its establishment gathered more than 16,700 members and more than 200,000 supporters.

To read more about business in Croatia, follow TCN's dedicated page.

April 16, 2021 - While we have to wait a bit longer for USA direct flights to Croatia, at least travelers can get from Sarajevo to Chicago. Welcome, Eastern Airlines! 

Klix.ba and Ex Yu Aviation report that at the end of May, the American airline Eastern Airlines will launch a weekly flight between Chicago and Sarajevo, which will introduce the first direct flights from the capital of Bosnia and Herzegovina and the USA.

A flight is planned every Friday from Chicago from O’Hare Airport, starting May 28 through September 3, while the return will be on Sunday. The line is conceived as seasonal.

The price of a one-way ticket is $898, and a return ticket is $1,826.

All flights will be operated by Boeing 767-200ER aircraft, which can accommodate 238 passengers, of which eighteen are in the premium class and the remaining 220 in economy class.

Chicago has previously been the second busiest route from Sarajevo to the United States after New York. Namely, in 2019, 5,995 passengers flew indirectly between the two cities. Ex Yu Aviation adds that it was the sixteenth busiest unserved route from Bosnia and Herzegovina's capital overall, jumping to eleventh in 2020. Passenger volumes, however, were significantly lower due to the pandemic. 

"We want our passengers to have a good experience while traveling with Eastern. Instead of spending on frills, go with our low fare, no-frills ticket and save your money. All Eastern Airlines flights are always direct and nonstop. This means significant time savings and no wasted time changing planes or reaching through the airport to catch your connection. More importantly, your health and safety are more valuable than ever. Nonstop flights equal less time spent in airports, less touchpoints, and a safer adventure", the company said.

Citizens of Bosnia and Herzegovina may enter the United States with a valid visa and a negative coronavirus test. At the same time, US citizens may also enter Bosnia and Herzegovina with a negative PCR test.

Tickets for the flights have already been released through the airline's website.

Follow the latest on flights to Croatia HERE and the latest travel updates and COVID-19 news from Croatia HERE.

For more on travel in Croatia, follow TCN's dedicated page.

April 16, 2021 - The 10 winners of the innovative Dubrovnik Digital Nomad-in-Residence (DNiR) competition have been announced. Meet them one by one. Next up, Carolyn Zelikow from the USA, currently living in the Dalmatian paradise that is Stari Grad on Hvar.

The DNiR programme, which has been designed by Saltwater Nomads, in partnership with Total Croatia News, the CIty of Dubrovnik and the Dubrovnik Tourist Board (and financed by the latter two), is an innovative direction for the Pearl of the Adriatic, as it looks to diversify its tourism strategy away from overtourism and in the wake of the pandemic. 

Carolyn Zelikow is an American digital marketer from Virginia living the good life in the ancient port town of Stari Grad on island Hvar.

1. You are a DN-i-R winner. Congratulations! How do you feel?

Thrilled of course! And honored to take part in such an innovative program. 

2. How did you hear about the competition, and why did you decide to apply?

I read about the competition on TCN, which has been such a great resource since I started planning to visit Croatia last summer. I applied to the program because I have fallen in love with this country and want to understand it better. The DN-i-R initiative struck me as an unbelievable opportunity to meet some of the country’s most innovative policymakers and business owners.

3. Which particular skills and ideas will you be bringing to the party?

I’m a digital marketer with a background in policy and the humanities. For my job in the United States, I work with clients who are trying to compete and win online. I sense that Croatia could also do more in that area and I’m eager to learn about the state of e-commerce, tech education, and other factors that might build the country’s knowledge economy. What role, if any, can expats play in accelerating that diversification?

4. What are you most looking forward to about DNIR?

Without question, it’s the people. After so many months of pandemic-enforced hibernation I’m just eager to collaborate and brainstorm with real living humans again. I hope I still remember how! And Dubrovnik is such a compelling location. I’ve visited only briefly in the past, and can’t wait to explore the city and surrounding region with more time and great company. 

5. Let's get you involved in the Dubrovnik community. Who or what would you like to connect with?

Where to begin? I’d love to get to know the tech, small business, and economic development community here.

Here is Carolyn's application video:

You can learn more about the programme here. 

Saltwater Nomads' Tanja Polegubic on Dubrovnik Digital Nomad-in-Residence Programme

Dubrovnik Mayor Mato Frankovic on Digital Nomads, US Flights, 2021 Season

For the latest digital nomad news from Croatia, follow the dedicated TCN section.

The winner announcement video:

Other winners featured so far:

Albert Cañigueral in Barcelona

Marlee McCormick in Texas

Kelsey Kay Love from Texas in LA

Rob Schubert from the Netherlands in Estonia

Ron Tardiff from USA in Budapest

Kaisu Koskela from Finland in Las Palmas

April the 16th, 2021 - Yet another beautiful Opatija Riviera hotel is set to be constructed in autumn this year, bringing yet more luxury to this picturesque part of Croatia.

As Poslovni Dnevnik/Marija Crnjak writes, although there are still a lot of challenges ahead of this Opatija Riviera hotel project, the construction of a brand new luxury hotel next to the marina in Icici should begin this year. It marks an investment from the Hungarian entrepreneur Lorinz Meszaros worth a massive 50 million euros, which may bring a new global hotel brand to Kvarner.

Optimism despite the ongoing coronavirus crisis

Denis Sikljan, the owner of the DDG Group, which developed the project on the land of a former hospital, which covers 20,000 square metres next to Marina Icici, confirmed that the main project has faced delays because of the pandemic.

The new Opatija Riviera hotel will be a five star facility with 180 rooms and 12 villas, next to which a square for public use will be built, and the project includes the construction of an access road, a pedestrian bridge to the sea, and a new rainwater drainage system from Ucka. Fountains, shopping facilities and complete horticultural landscaping are planned on the public square, which will become the new center of Icici.

"We're very optimistic about it all, although we do still have a lot of work to do, precisely because a number of public institutions are involved in all of this, from the state to local government and public companies, and it involves a series of permits that must be obtained for implementation.

For now, everything is going according to plan, although slower because the pandemic has slowed down the administrative processes, and part of the property status of some of the land needs to be resolved. Once the works start, and we expect them to begin to be right after this summer season, everything should be completed within two calendar years.

It would have been earlier, but we have to take into account the ban on such work during the tourist season, which automatically takes away eight months of work,'' revealed Sikljan, who took over the project from Karlovacka banka after the bankruptcy of Industrogradnja, which initially purchased it from KBC Rijeka. There used to be a hospital for lung diseases on the land, and it end up being left totally neglected for a long time.

The investor, Meszaros, is known to the public as the owner of NK Osijek, and he connected with Sikljan, a well-known developer of luxury tourist projects in Kvarner, mostly on Krk, through sport.

The investor profile

The company that is implementing the project in Icici is Rivas Hotels & Resort, registered back at the end of 2019 in Rijeka, and its founder is the company Talentis group, owned by the family of Lorinzo Meszaros.

The company has 30 hotels in its portfolio in Austria, Hungary, Romania and Montenegro, and soon plans to develop a strategy for its expansion in Croatia, with Icici as the first hotel project.

Meszaros is also the owner of the company Mirno more, which owns Vila Maria in the bay of Ceprljanda in Ugljan, and reached the eyes of the media when five years ago a group of hooligans shot at the windows in the house where national team member Ivan Rakitic was staying with his family.

The Talentis Group points out on its Linkedin profile that it is one of the most prestigious investors in Hungary, which is currently developing a new innovative city on 5,000 hectares, with more than 300 real estate projects in the western suburbs of the capital city of Budapest.

Over the last few years, they have completed projects worth more than 100 million euros in total, and in addition to hotel facilities, they have also developed a shopping centre and logistics centres.

For more on upcoming business ventures and projects in Croatia, follow our dedicated section.

April the 16th, 2021 - There may well be numerous Croatian products now protected at the European Union level, but many are still sitting waiting on the list, hoping to get their hands on that much desired label.

As Poslovni Dnevnik/Marta Duic writes, April the 14th, 2015, was the date on which Krk prosciutto became the very first Croatian food product registered in the European Union (EU), and the Croatian Parliament passed a decision marking that day as the Day of Protected Croatian Indigenous Products.

To this day, the Republic of Croatia has 31 agricultural and food products whose names are registered with a protected designation of origin or a protected geographical indication label, ranking Croatia ninth in the entire bloc when it comes to protected local products.

In addition, 21 other procedures for the protection of the names of various Croatian products are currently in progress. This refers more precisely to the registration of the names of edible Croatian products, and the last ones to have been registered are Dalmatian pancetta and pečenica.

According to the relevant ministry, the ultimate goal of manufacturers is not to protect their names and the registration of the label, but the added value of the products they use in marketing and achieving better sales prices for protected Croatian products, as well as the raising of competitiveness here on the local market and further afield on the highly demanding European Union market.

“The Republic of Croatia has a rich tradition of the production and preparation of various agricultural and food products that are characterised by a special quality and a traditional way of production.

The recognisability of the products is also connected with the recognisability of the area in which they're produced, which contributes to the strengthening of tourism, but also to the sustainable development of more rural areas of the country,'' pointed out Marija Vuckovic, Minister of Agriculture.

For more on Croatian products, including edible ones, as well as restaurants and recipes, check out our dedicated section.