Bol Tourist Board Director Markito Marinkovic Consults Constitutional Court on New Law
May the 25th, 2022 - The new Law on Tourist Boards and the Promotion of Croatian Tourism, more precisely the legal provisions which entered into force on the 1st of January this year, has made it so that the term of office of elected directors of tourist boards will now last for four years, and contracts concluded for indefinite periods will be changed to fixed-term contracts. Bol Tourist Board director Markito Marinkovic has taken his argument all the way to the Constitutional Court.
As Dalmatinski portal writes, this resulted in some very serious headaches to multiple local tourist boards. More and more tourist boards are publicly pointing out the illogicality of legal changes that have now put directors at a disadvantage. Criticism was directed primarily at the relevant Ministry of Tourism and Sport, the initiator of the disputed law, holding it responsible for what they consider to be such poor legislation.
Everything is actually happening at a very untimely moment, at a time when local communities are preparing seriously and diligently for the rapidly approaching summer tourist season, which, according to all projections, is expected to surpass last year's. There's no doubt that the most is expected from the tourist boards during this preparatory time. They are all already designing and planning their tourist programmes and facilities, organising events, and offering training sessions for private renters so that everyone is ready to accept tourists. Instead of all energies being directed to the best possible preparation of tourist destinations, the leaders of tourist boards, as well as the local governing units are having to spend their precious time dealing with the election of their directors, Brac danas (Brac today) writes.
The directors of local tourist boards are outraged at the move
It was these elections that caused an avalanche of dissatisfaction, and the tourist boards were forced to act according to legal provisions which, according to the public, don't really seem very logical, justified or meaningful. The negative reactions are mostly coming in from out in the field, and the directors of the tourist boards are indignant. I can't believe what they're doing at the moment and how, in their opinion, the Ministry is overstepping when it comes to their rights and everything they've done and are doing for the development of local tourism. One of them, the long-term director of the Tourist Board in Bol, Markito Marinkovic, went through all the joys and sorrows of engaging in work related to tourism, in that particular island tourist Mecca, won numerous awards, and is now full of astonishment at the controversial decisions being made by the Ministry of Tourism and Sport in the form of a law which applies to the directors of tourist boards.
Marinkovic warns: This provision is applicable only in pro futuro sense...
''After 27 years of work, the Ministry of Tourism and Sport is questioning my employment contract, which I've concluded for an indefinite period of time,'' said the current director of the Bol Tourist Board, Markito Marinkovic, who is also a signatory of the request for constitutional review of the Law on Tourist Boards and the Promotion of Croatian Tourism. After consulting with legal experts, that request was sent to the address of the Constitutional Court, requesting that the Constitutional Court address this issue, which, as he said, will result in some serious legal consequences.
Marinkovic is ready to show the documentation with which he's armed himself, including the request he sent to the Constitutional Court, emphasising that the main problem of legal norms is their application to current (read existing) directors of tourist boards, instead of having them apply solely to any new directors.
''This provision is applicable only pro futuro (for future actions) and only for new employment and concluding employment contracts with directors of tourist boards who were employed after the 1st of January 2022. We can't apply this provision to directors who concluded their employment contracts for an indefinite period of time before the entry into force of the new Law on Tourist Board, because in that case, there'd be a violation of Article 90 Paragraph 4 of the Constitution of the Republic of Croatia on the prohibition of the retroactive application of the law,'' Markito Marinkovic says when reading part of the request that has now been sent to the Constitutional Court, not hesitating to say that this is a law that is unconstitutional and illegal.
The Ministry of Tourism wrote back in 2012: There are no obstacles to the conclusion of an indefinite contract
In an interview for Brac danas, Markito Marinkovic openly asked the following:
''Why would I agree to have my contract for an indefinite period of time terminated and instead accept an offer a contract for a part-time job?'' He noted that he signed his employment contract back on December the 15th, 2009, for an indefinite period of time as the tourist board director there. His contract was concluded in accordance with the provisions of the then Labour Act, the Law on Tourist Boards and the Promotion of Croatian Tourism, as well as the provisions of the Statute of the Tourist Board of the Municipality of Bol. The fact that there is nothing disputable in his contract was confirmed by the Ministry of Tourism in its interpretation on June the 27th, 2012, to which Marinkovic refers, and in which he unequivocally points out that ''there is no obstacle to concluding an employment contract for an indefinite period in accordance with the Labour Law as the regulator''.
Marinkovic also pointed out the absurdity of these new legal provisions, claiming that tourist boards will elect directors who already have employees within the tourist board.
Marinkovic: We'll end up with two directors, one for an indefinite period and the other for a definite period...
Formerly ''protected'' directors of tourist boards, who were employed indefinitely with their employers, will now be elected for a fixed term, more precisely for a term of four years, as determined by the now disputed law. Current directors will now find themselves at the mercy of their employers who, according to instructions issued to the tourist boards by the competent Ministry, should terminate existing contracts and offer them amended contracts with a specific duration attached to them. Such a thing is simply not acceptable for Markito Marinkovic, which is the reason why he didn't apply for the position of head of the Bol Tourist Board.
''It seems that we're going to have two directors by the will of the ministry; one for an indefinite period of time, and the other for a definite period, which will be elected by the Tourist Council under the new Act,'' he added, noting that the instructions, written back in December last year and subsequently sent out to the country's local tourist boards, are also confusing and difficult to follow properly. According to the guidelines signed by the Ministry of Tourism and Sport's Monika Udovicic, current directors who aren't selected in a tender and those to whom the institution doesn't offer another job within the tourist board will receive a termination of their employment contract.
''How is it possible for a director to become an organisational redundancy, and for someone else to be hired for that position? The Labour Law stipulates that a business-related dismissal (contract termination) can only be given if the need to perform a certain job ceases. In addition to that, another person can't be hired following that for the next six months,'' Markito Marinkovic said, clearly terribly surprised by the numerous illogicalities that the Ministry somehow keeps on coming up with owing to their controversial decisions and interpretations of things.
Why was the tender for the position of the director of the Bol Tourist Board cancelled?
When it comes to the tender for the election of the director of the Tourist Board of Bol, it became somewhat unstuck on the very first step. After the tender deadline expired, and interested candidates submitted their applications and received notification(s) of the presentation of the programme at a session of the Tourist Council, the same council, at the suggestion of the President of that body of the Tourist Board, Katarina Marcic, agreed to the cancellation of the tender. The explanation for that was:
''We want to eliminate every single slight suspicion of illegality of the procedure. According to Marcic's announcement and her public attempt to explain the reasons why the tender was annulled, these aren't serious irregularities, at least not according to the statement of the Ministry to which Marcic refers. It's true, the tender was open for 21 days, while the recommendations lasted from 8 to 15 days. Experts on the election procedures we contacted are of the opinion that the tender deadline which is longer than the deadline recommended by the competent ministry should not call into question the legality of the election procedure. All in all, a new tender will be drawn up, a check by the Ministry will be awaited, and then another tender will be announced. Whether it's really an election procedure or some other reason why the Tourist Council decided to return everything to the beginning, only time can tell.
The Constitutional Court has since confirmed: The case has been assigned to a judge-rapporteur
Brac danas contacted the Constitutional Court. They were interested in what happened to the request for a review of constitutionality under the controversial Law on Tourist Boards and the Promotion of Croatian Tourism, and when the request would be on the agenda. The Constitutional Court confirmed that it had received a motion for assessment.
''The case has been assigned to a judge-rapporteur, and at this moment it isn't possible to predict when it could be sent to the session of the Court to decide on the proposal,'' said the Secretary General of the Constitutional Court, Dr. Teodor Antic. Back in mid-April, Markito Marinkovic addressed the Constitutional Court yet again, this time in a hurry, at a time when the tender for the position of director was open.
''Considering that in the meantime, more precisely on April the 1st, 2022, the Tourist Council of the Tourist Board of Bol announced a public tender for the election of the director for a term of four years referring to the provisions of ZTZ, and ignoring the employment contract concluded on an indefinite basis between me and the Tourist Board of Bol for the same job for which a public tender has now been announced. It's obvious that the implementation of this tender will violate my employment rights,'' Markito Marinkovic wrote in his letter. He emphasised, in addition, that the above-mentioned actions of tourist boards will generate numerous lawsuits in the near future due to the disputed provisions of the law.
The Ministry of Tourism and Sport isn't responding to press inquiries on the matter
Given the fact that only the competent ministry is looking at the disputed tender for the director of the Bol Tourist Board, and especially at the request sent to Prisavlje 14 in Zagreb by a concerned resident of Bol, asking for the tender to be annulled, the ministry was also asked to comment on the topic. A press inquiry with specific questions was sent to the Press Service on May the 1st, as Brac danas had received an anonymous letter to its editorial e-mail about a possible illegal tender being announced by the Tourist Council.
The aforementioned publication still hasn't received a response from the Ministry of Tourism and Sport. On several occasions, they also tried to contact the Media Service by phone and find out what this delay was about. After several calls, they were once connected to the press service, and in another case, an official of the ministry apologised for not providing a timely response. A reminder of the inquiry was then sent to the cabinet of the same Ministry, on May the 6th, asking for answers to the questions which had been sent already. However, the main cabinet of the Ministry of Tourism and Sport hasn't yet responded or attempted to clarify any of the issued mentioned in this article.
For more, check out our politics section.
Bol&Culture: Bol Tourist Board Awarded Distinguished International Award for Tourism Film
May 25, 2022 - The Bol&Culture tourism film has won the Golden Bear Award in the “Art & Culture” category!
Everybody knows that the sun and the sea are not enough for memorable summer holidays anymore. The town of Bol on the island of Brač, a famous Croatian tourist destination, is especially aware of that. This picturesque town has a rich and versatile offer irresistible for international and domestic visitors. Apart from the cycling tourism and many other sports activities and one of the most beautiful beaches in the world, Golden Horn (Zlatni Rat), the citizens of Bol also take pride in their rich cultural heritage and are dedicated to preserving it. The value of this heritage has also been recognized recently at a prestigious international film, print, and multimedia competition, the Golden City Gate 2022, held during the famous international tourism fair ITB Berlin. Amongst a selection of tourism films from all over the world, 45 professional judges chose “Bol&Culture”, as the winner (The Golden Bear Award) in the “Art & Culture” category.
The basis of evaluation criteria followed by the jury was creativity, storytelling, emotional effect, and information value communicated in the film. The film was made in cooperation with the DOKU FILMS production team, Mihaela Reščić, the producer, and the screen-wright, Hana Klain from the Klain PR Agency. Tourist fairs are an excellent opportunity for the global promotion of natural beauties and the rich cultural heritage of Croatia. Every year, this prestigious event attracts more and more visitors and tourism professionals seeking to learn about famous and beautiful tourist destinations, and Croatia is one of them.
The awarded film is an omnibus that brings together three stories: Zmajeva špilja (The Dragon's Cave), the Dominican monastery, and the Branislav Dešković Art Gallery. Zmajeva špilja (The Dragon's Cave) is a place of ultimate peace. Its walls are decorated with a fascinating and unusual set of reliefs believed to be sculpted by 15-century friars who expressed their faith, preaching, and asceticism through them. A 15-century Dominican monastery hides a collection of valuable works of art dating back to the 16th to 19th centuries. Archaeological finds, liturgical items, many rare manuscripts, and a numismatic collection with samples of rare antique coins are just a part of this valuable display. The most attractive piece of artwork in this collection is an altar painting Madonna with a Child and Saints by Tintoretto. A visit to the Branislav Dešković Art Gallery, located in the Bol centre, is an opportunity to experience Brač through the eyes of famous Croatian painters. This Renaissance-baroque palace is the home of hundreds of artworks by Croatian painters and sculptors.
“I am really happy to see that more and more visitors show interest in our rich cultural heritage. The art is eternal, and it adds unmeasurable value to Bol. We are sincerely proud to offer this authentic treasure dating back to distant history. Like all the awards we have received so far (and there were many of them), this is an important recognition of our efforts and the quality of our projects that further strengthen our motivation to be even more dedicated to our work. At the same time, I am proud of 'the special recognition of the presentation of the excellence of the Bol tourist offer I received from international travel journalists last year," added Mr. Markito Marinković, Bol Tourist Board director.
Bol is actively preparing for the upcoming season. Almost all the hotels and resorts are open, and around 1.000 visitors are already spending their holidays in this town. We aim to accomplish 90% of the 2019 turnover. Most visitors are from Austria, Germany, Slovenia, and Croatia - visitors arriving here by car. We hope that this will change and that more guests from overseas will visit us. We have 14 ferry lines and 4 catamaran lines, all from Split, during the summer. We also have direct flights Zagreb-Bol throughout the season until October. We expect charter flights from Graz and Wien to start from May and new lines from Bratislava and Bolzano.
For more, make sure to check out our dedicated lifestyle section.
Bačvice Open-Air Cinema in Split Opening on Friday!
May 25, 2022 - As usual every year, cinema lovers in Split will be able to enjoy a magical location to experience film in a unique way, with the Bačvice Open-Air Cinema opening this Friday!
The open-air cinema season starts this Friday, and the unique ambiance of the Bačvice Open-Air Cinema will host its first visitors for this summer season. And there will be plenty of surprises, reports Slobodna Dalmacija.
Among the many films that will be available to the lucky audience during the summer, the latest "Top Gun" surely stands out (you can watch it on Saturday, May 28). There will also be a premiere with special guests from the film that won the audience award at the ZagrebDox festival held in early April, as well as a free-admission screening of the much-loved cult film by the great Federico Fellini, ''La Dolce Vita'' on Tuesday, May 31.
Kino Mediteran and the Center for Culture and Lifelong Learning Zlatna vrata - Summer Cinema Bačvice will also present one of the biggest surprises and films of the year, the action-comedy "Everything Everywhere All at Once" on Friday, May 27 at 9 pm.
On Sunday, the Split premiere and guest appearance of the team of the award-winning documentary "Greater than Trauma" will be held, with the presence of the authors Vedrana Pribačić and Mirta Puhlovski. The film follows three women who are facing the traumas of the Homeland War and are finally turning to the future, and the audience of ZagrebDox declared it the best film at the recently concluded festival.
Tickets are sold at the box office every day during the screenings, and it opens one hour before the start of the screening. The program of the cinema, as in previous years, is published on a weekly basis, and details about the films and online sales can be found at www.kinomediteran.hr.
For more, check out our lifestyle section.
Jug Becomes 2021/22 Croatian Water Polo Champion!
May 25, 2022 - Jug Dubrovnik celebrated against Jadran Split in Game 4 on Tuesday night to become the 2021/22 Croatian water polo champion.
Dubrovnik water polo club Jug AO thus won their 17th Croatian title on Tuesday night and 39th national champion title in total. It is also the 66th overall trophy for the club.
In the fourth game of this year's Croatian championship final playoff, Jug defeated Jadran Split on penalties at their pool in Gruž, thus ending the series with 3:1 for Jug.
The result was 6:6 after 32 minutes of play, forcing the match into penalties. All four Jug players were accurate with their shots, while Marin Delić and Jerko Marinić Kragić did not score for Jadran.
It was a meeting with few goals, dominated by goalkeepers on both sides, and Jug held a 5:4 advantage from the end of the third quarter until a minute and a half before the end of the match. Then, Konstantin Kharkov scored for 5:5, which was Jadran's first goal after almost 14 minutes of play. Rino Burić then gave Jadran a 6:5 advantage 35 seconds before the final buzzer, i.e., one step closer to the decisive fifth game.
However, Jug started the last attack with seven attackers, which paid off because Hrvoje Benić equalized for 6:6 nine seconds before the end. The game was then decided on penalties, as was the first game, and Jug was more successful in the shootout once again.
Just before the Croatian champion medals and trophies were distributed, individual awards and trophies for the 2021/22 season were presented in Dubrovnik:
Jerko Marinić Kragić (Jadran) was named the top scorer in the Croatian Championship (63 goals)
Toni Popadić (Jug) was named the best goalkeeper in the Croatian Championship
Konstantinos Kakaris (Jug) was named the best player in the Croatian Championship.
Congrats to both Jug and Jadran on a season well done!
Source: HVS
For more, make sure to check out our dedicated travel section.
Air Serbia Flights to Croatia Significantly Boosted this Summer from Belgrade
May 25, 2022 - The latest flight news to Croatia as Air Serbia flights to Croatia have been significantly boosted from Belgrade this summer.
Serbian national airline Air Serbia will launch two seasonal routes to Split and Dubrovnik by the end of May, and flights from Belgrade to Pula, Rijeka, and Zadar by mid-June, reports Croatian Aviation.
Namely, Air Serbia plans to operate to six Croatian airports this summer, with only the route to Zagreb being year-round.
Already this Thursday, May 26, two lines will start operating from Belgrade to Split and Dubrovnik. These are also the two most popular of Air Serbia lines to and from Croatia.
The line between Belgrade and Split will operate from May 26, twice a week, on Thursdays and Sundays, and the number of weekly operations will gradually increase. Namely, first on June 6, an additional flight will be introduced on Mondays, and then on June 24 with a flight on Fridays, which will allow Air Serbia to operate between the two cities four times a week, using ATR72, A319, and A320 aircraft.
The line between Dubrovnik and Belgrade will start operating on the same day. Currently, two flights a week have been announced, also on Thursdays and Sundays, with an additional flight available on Mondays from June 13. ATR72 and A319 aircraft have also been announced on this route.
From mid-June, there will be lines from Belgrade to Pula, Rijeka, and Zadar, and everything will start around the same period. Namely, the line between Belgrade and Zadar will start with traffic from June 14 with two flights a week, a day later (June 15), the line between Belgrade and Rijeka will begin, and from June 16, flights between Belgrade and Pula will launch.
All three mentioned lines have announced two flights a week in June with ATR72 aircraft. The line to Zadar will operate on Tuesdays and Saturdays, to Rijeka on Wednesdays and Saturdays, and to Pula on Thursdays and Sundays.
The only year-round Air Serbia route between Belgrade and Zagreb will also have more flights in June than the current schedule. Namely, on Mondays and Fridays, the airline will offer two flights a day between the two cities, while one daily flight is available on Thursdays, Saturdays, and Sundays.
In June, Air Serbia will operate on 6 mentioned routes to Croatia with a total of 20 weekly flights, which is a significant increase, especially compared to the same period last year and the year before. The number of flights will continue to grow in the peak summer season.
For more on flights to Croatia and other travel announcements, make sure to check out our dedicated travel section.
FIFA Approves: Igor Matanović Will Play for Croatia!
May 25, 2022 - 19-year-old German-born Igor Matanović will play for the Croatia national team!
Igor Matanović, the Eintracht Frankfurt striker currently on loan to St. Pauli, born on March 31, 2003, in Hamburg, played in the younger ranks of the German national team. However, his Croatian roots pulled him toward the homeland and representing Croatia. Therefore, the Croatian Football Federation initiated proceedings with FIFA to change his football citizenship and acquire the right to play for Croatia, reports HNS.
FIFA approved the change on Tuesday and confirmed that Matanović could immediately defend the colors of Croatia. Furthermore, Croatia U-21 coach Igor Bišćan invited him to the national team for the upcoming qualifying matches in Norway and Estonia at the end of the fight for a spot at the European Championships.
"I am thrilled that the procedure with FIFA has been completed and that Croatia will be stronger in the future thanks to another talented player who looks forward to wearing the Croatia jersey. I want to thank all the Croatian Football Federation services for excellent work - Pletikosa and U-21 coach Igor Bišćan. With the secretary of the younger teams, Josip Tomašek, they actively participated in this process from the very beginning. It is also worth mentioning Ivica Olić, who made quality contact with Igor and his family, and I am sure that the inclusion of coach Zlatko Dalić also played a significant role. We showed great unity, everyone got involved, and obviously, Igor and his family recognized that," said the president of the Croatian Football Federation, Marijan Kustić.
"Of course, we are extremely pleased that FIFA made this decision in Matanović's case. I am sure that with his football knowledge and skills, he can immediately make a great contribution to the further success of the Croatia national teams, and his right to play for Croatia is a successful continuation of the Croatian Football Federation's efforts to put many quality players from the diaspora in our jersey. Stanišić, Sučić, Vidović, and Pašalić have already made great gains, and we will continue to work in that direction. With all deserving individuals in the Federation, from the coaches Dalić and Bišćan through Ivica Olić to President Kustić, who gave us great support in these activities, it is also worth thanking the lawyers who prepared the extensive documentation very well and presented the whole case to Fifa's body and enabled this decision to be made," said Technical Director Stipe Pletikosa.
You can read more about Igor here.
For more, make sure to check out our dedicated travel section.
Croatian IT Sector Wages Lowest in European Union
May the 25th, 2022 - Croatian IT sector wages continue to be the lowest in the entire European Union (EU) despite the fact that this rapidly blossoming field has experienced a very real boom over the last few years.
As Poslovni Dnevnik/Marija Brnic writes, the cost of paying out wages for EU-based employers has continued to rise in most countries, with the exception of a few countries that stalled in 2020 and continued to grow, including the Republic of Croatia.
According to a quarterly analysis of labour market trends by the Croatian Bureau of Statistics (CBS), based on Eurostat data, only Ireland, Croatia and Cyprus had a temporary halt in gross hourly wage growth, while in Spain and Italy, gross hourly wages rose in the first year of the coronavirus pandemic, but last year they ended up below the levels seen back in 2020.
The level of wage costs paid by employers per hour with all costs varies significantly between EU member states, from 7 euros in Bulgaria and 8.5 in Romania, to 41.6 euros in Belgium, 43 in Luxembourg and 46.9 in Denmark.
Compared to Croatia, where the average hour of work costs an employer around 11.2 euros, Bulgaria and Romania have a lower hourly rate, as do Latvia and Hungary, and employers in Lithuania and Poland have slightly higher costs to deal with. In neighbouring Slovenia, with which Croatia often likes to compare itself, the gross hourly wage is almost twice as high (21.1 euros).
Given the current alarm bells ringing from certain sectors, primarily hotels and the hospitality and catering field, the lack of qualified workers even despite the abolition of the annual quota system for the employment of foreign (non-EEA) workers, we can expect that in the Croatian case, hourly rates will have stronger growth in the 2020 report, but if we look back three years, wages have fallen in most sectors, with the exception of education, healthcare, entertainment and the arts.
The lowest hourly rates in Croatia were in administrative services (8.3 euros) and hotels and restaurants (8.6 euros), and the highest in the information and communication sectors (15.9 euros), finance (15.5 euros) and science (15.2 euros).
In the EU's finance and insurance sector last year, hourly rates ranged from 9.9 euros in Bulgaria to 77.3 euros in Luxembourg, and in professional, scientific and technical activities, they ranged from 10.9 euros in Bulgaria to a significantly higher 57.9 euros in Denmark.
In healthcare, hourly wages in the EU rose in all countries except Greece, ranging from 8.1 euros in Bulgaria to 45.2 euros in Luxembourg. And although the sector is the largest, Croatian IT sector wages remain the lowest in the entire EU, with Sweden leading in that regard with an impressive 57.7 euros per hour.
When it comes to tourism, last year, ranges from a mere 3.8 euros in Bulgaria to 40.7 euros in Denmark were the norm. Croatian hourly rates were at the level of Estonia, and Cyprus, Latvia, Lithuania, Hungary, Poland, Malta, and Romania take home less per hour.
Looking at other competitors when it comes to sea and sunshine, only in Greece, regardless of the coronavirus pandemic, the price of an hour of work in tourism rose (to 15.2 euros), while in Spain and Italy it decreased slightly last year, and in the Croatian case, last year saw slight recovery, but that recovery failed to reach the record high of pre-pandemic 2019 of 9.1 euros. In neighbouring Slovenia, on the other hand, the hourly wage in the tourism sector stands at 14.6 euros.
In the manufacturing industry, hourly rates last year ranged from 5.8 euros in Bulgaria to 48.5 euros in Denmark, with only Germany, Sweden and Belgium seeing people take home more than 40 euros per hour. Here in Croatia, the price of an hour's work stood at 10.3 euros and is slightly higher than before the pandemic, but it is significantly lower than the sum just across the border in Slovenia (20.3 euros).
They have a lower gross hourly wage than Croatian industrialists in Romania (7.3 euros). In construction, only in Denmark do employees have an hourly salary of more than 40 euros, and the lowest of all can be seen in Bulgaria, Romania and neighbouring Hungary, and Croatian salaries are just over theirs, standing at 10 euros.
In Germany, on the other hand, where Croatian builders like to head to, gross hourly rates are lower than those in the manufacturing industry, which analysts associate with the employment of foreign workers, which increases labour supply and reduces wages. This is not the case, for example, in nearby Austria.
Much like in construction, the Danes are the only ones in trade to have an hourly rate above 40 euros, and the lowest can, once again, be seen in Bulgaria (6.3 euros), which is less than in Croatia (11.1 euros).
For more, make sure to check out our dedicated business section.
Czech Tourists in Croatia Could Dominate This Summer Season
May the 25th, 2022 - Czech tourists in Croatia throughout this year's rapidly approaching summer season could be a ''hit'', at least according to the current indicators of Croatia Luxury Rent's sales statistics.
As Poslovni Dnevnik/Marija Crnjak writes, the number of bookings in luxury private accommodation from individuals living in the Czech Republic is growing significantly according to the share of the total number of bookings, and has approached the number of arrangements sold from nearby Austria and neighbouring Slovenia. This is an increase of as much as 23 percent compared to last season, which could put Czech tourists in Croatia in 2022 very high on the list when it comes to foreign visitors.
"On the other hand, it seems that due to the impact of the war in Ukraine, instability and the influx of large numbers of refugees, the markets of Poland and Slovakia are recording a decline in reservations," the aforementioned agency said.
With that said, economic growth and gradually deepening pockets which are strengthening the Czech market have caused a significant increase in the number of requests, bookings and overall interest in coming to the Republic of Croatia this summer from that country.
The Czech Republic is otherwise one of the fastest growing economies in all of Europe, and their positive economic results of course bring an increase in wages and, consequently, purchasing power and general consumption. Those factors were visibly declining back during the beginning of the global coronavirus pandemic in 2020, but have thankfully returned to a higher level over the last year.
The fact that the Czech Republic has one of the lowest unemployment rates within the entire European Union (EU) should be especially emphasised when it comes to spending power, and as such the likelihood of Czech tourists in Croatia being very numerous this summer. Last year, Croatia recorded an impressive 775,000 arrivals from the Czech Republic with 5.2 million overnight stays also realised, about 50 percent more than back during the previous year, and it was Croatia's fifth largest emitting market of all.
For more, make sure to check out our dedicated travel section.
Huge Sums Secured for Post-Pandemic Croatian Tourism Recovery
May the 25th, 2022 - A massive 1.3 billion kuna has been secured for Croatian tourism recovery following to unprecedented pandemic-dominated years in which very little, if anything, was realised at all.
As Dora Koretic/Jutarnji/Novac writes, according to the Ministry of Tourism, for the first time, a significant amount has been secured for Croatian tourism recovery in the next Multiannual Financial Framework, from which the sector will have access to 1.3 billion kuna.
These are funds from within the Competitiveness and Cohesion Operational Programme and the Integrated Territorial Programme for the period from 2021 to 2027, of which most of the money should be available to small and medium enterprises which operate in the field of tourism.
As has since been learned from the Ministry of Tourism and Sport, companies will have 689.4 million kuna available under the allocation for Croatian tourism recovery, which will be made available through financial instruments.
"The money is intended for investment in smart technologies, innovation and development, job creation, for the growth of competitiveness and new products, such as the construction of small hotels, renovation, digitalisation or the green transition," the competent ministry revealed.
Wellness tourism
In addition, 40 million euros/302 million kuna were provided for tourism - twice.
The first part of this cash refers to "improving the role of culture and sustainable tourism in economic development, social inclusion and social innovation", where money is being provided for investments in public tourism infrastructure, primarily healthcare, wellness and wellbeing tourism, then follows active tourism, that is, sports infrastructure and the valorization of natural and cultural heritage.
According to the ministry, this is a grant, while a new 302 million kuna has been provided through the "Integrated Territorial Programme", which is responsible for the development and implementation of the Ministry of Regional Development and EU Funds.
"These investments are focused on public tourism and sports infrastructure in urban areas, hilly and mountainous areas, as well as the islands. All of the investments, as well as those financed by the National Fund for Recovery and Resilience (Croatian: NPOO), focus primarily on the digital and green transition,'' they said from the Ministry, which noted that the ultimate goals should be to reduce the impact of tourism on the environment, reduce energy consumption, increase the production of clean energy and reduce costs in general.
This week, the Croatian tourism sector finally welcomed the announcement of the full and detailed criteria for the possibility of using the money earmarked for tourism under the National Recovery and Resilience Plan, under which, the plan for Croatian tourism recovery will have access to money amounting to a massive 2.1 billion kuna.
You can find out more about how Bjelovar is planning to utilise these huge sums by clicking here.
Tourist infrastructure
Details for applying for the first tender, intended to finance tourist infrastructure, after much anticipation, were finally announced at a public consultation this week. These are the details of the call worth 930 million kuna, intended for local and regional self-government units, but also with the possibility of applying to private investors, mainly through public-private partnerships.
Half of the money is actually intended for publicly owned spas, ie for the purpose of wellness and health tourism, while the rest relates to visitor infrastructure and active tourism infrastructure.
However, most of the sector, ie its private part, is most looking forward to the publication of all of the details and criteria for applying for the second call within the NPOO, worth 1.2 billion kuna in total.
The Tourism Ministry revealed that most of the money will be used for hotels, worth 720 million kuna, mainly for investment in accommodation facilities, including ancillary facilities such as bars, restaurants, congress halls or amusement parks.
For more on post-pandemic Croatian tourism recovery, make sure to keep up with our dedicated politics section.
Former CNB Governor Damir Odak Talks Eurozone Entry
May the 25th, 2022 - Former CNB governor Damir Odak has discussed Croatia's current final preparations for entrance into the Eurozone, scheduled for the very beginning of next year.
As Poslovni Dnevnik writes, the Croatian kuna that has been deposited into banks by the last day of this year, will ''wake up'' on January the 1st, 2023, as euros, said former CNB governor Damir Odak.
Odak was a recent moderator of the round table ''The expected impact of the euro on banks'' which was held as part of a larger conference called ''The Financial Market'' in Opatija. Former governor Damir Odak said that then, at the time of conversion, the amounts will be ''divided by 7.5 and something'', kuna and euro bank accounts will be merged into one single account, and of course, all Croatian bank accounts will have new balances shown in the new currency - the euro. Whoever comes to an ATM or branch to withdraw cash will receive euros instead of kuna, he explained, as Novi list reports.
The round table was attended by the presidents of the leading domestic banks, all of whom are preparing for the huge project of introducing the euro as Croatia's currency in 2023. In some banks, as it was said, there is a ''general mobilisation'', to make sure that everything is in order so that all processes run smoothly and the transition to the new currency is as painless as possible.
Mario Zizek, President of the Management Board of Addiko, says that the project of introducing the euro is priority number one in that bank. "It often happens to all of us that projects slip out of people's full attention within a few days, but with the introduction of the euro, this is far from the case," said Zizek. Balazs Bekeffy, President of the Management Board of OTP banka, says that, based on the experience of others, some services and products may become more expensive, but this will not be anything drastic.
Liana Keseric, President of the Management Board of Raiffeisen Bank, said that they have five key focuses at this moment in time: their clients, leadership, risk management, technology and processes. Marko Badurina, President of the Management Board of Hrvatska postanska banka, says that despite the short-term costs, the long-term net effects are positive. Christoph Schoefboeck said additional cost optimisation will be needed.
By joining the Eurozone, the day before, CNB Governor Boris Vujcic reminded the banks that they would have the full help of the European Central Bank/EC) at their disposal, which is something the CNB had issues with due to its limited maneuver due and the already very high ''euroization'' of the banking system. Therefore, many restrictions will be lifted, the required reserve will be significantly reduced, and the obligation to cover foreign currency liabilities with foreign currency claims will be abolished. Therefore, a new wave of liquidity awaits them. However, it has also been said that banks are also facing negligible costs due to the adjustment of all of their internal processes, IT systems, applications, information campaigns, and also the loss of some jobs, such as those held by people working in exchange offices.
The most interesting presentation was given by the President of the Management Board of Privredna banka Zagreb, Dinko Lucic. He said that banks are big advocates of the introduction of the euro in Croatia precisely because they aren't looking at the short term, because if they did only take that into consideration, he said, then they'd really have high costs. Lucic recalled the experience of Slovakia's accession to the Eurozone:
"According to the experience there, and knowing the opportunities here, for larger banks on the Croatian market, the costs related to the introduction of the euro could range between 10 and 17 million euros, which is a serious cost in the short term. In the long run, however, we expect an increase in economic activity, greater attractiveness of the state for foreign investment, greater need for financial instruments and we see this as an opportunity to partially compensate for the costs incurred,'' said Lucic.
"It will be smoother in Croatia than it was in some other countries where the euro was introduced. However, when I compare Croatia and Slovakia, there was a much bigger national consensus in Slovakia on the introduction of the euro, while some recent research shows that there are still many Eurosceptics and those who argue that this is something very negative. That said, the euro brings long-term benefits to society as a whole, that’s for sure. Its importance for crisis stability is particularly evident. The sooner we adopt the euro, the better,'' concluded Lucic.
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