The City of Dubrovnik wants 30 million kuna and 30 percent of future revenue for the use of the popular Srđ cable car without a concession contract.

As Marija Crnjak/Poslovni Dnevnik writes on the 21st of March, 2019, the several year long ''argument'' over the concession of the Srđ cable car has escalated to the extent it has because the City of Dubrovnik filed a lawsuit against Excelsa nekretnine (real estate) owned by the Lukšić family, accusing them of the unlawful acquisition of money. The amount that City of Dubrovnik is seeking for the use of the popular cable car without a concession agreement is 30 million kuna, as Dubrovnik's mayor Mato Franković announced last week.

He also explained that DORH had given the company a deadline which is the end of this month to comply with the law of the Republic of Croatia, to pay a concession fee to both the City of Dubrovnik and to the state, and by April the 1st, they are obliged to sign a concession agreement with the City of Dubrovnik.

If this doesn't happen, the cable car will be closed because its use would then be illegal, Mato Franković said, adding that a new report showed that the concession fee of 15 percent is too low and the belief is that it should be 30 percent. At the next session of Dubrovnik's City Council, a proposal to annul the old motion and to propose a new one will take place. In an interview with Poslovni Dnevnik, Anto Rusković, the director of Excelsa nekretnine explained why a concession contract has not yet been signed and that the company will not agree to an even higher fee than the one which was previously proposed.

Do you admit that there is a 30 million kuna debt to the City of Dubrovnik? Do you consider that the city's claim is justified?

The City of Dubrovnik filed a lawsuit against Excelsa nekretnine in the amount of 20.1 million kuna, and Excelsa nekretnine will pay as much as is determined by a final court judgment. Given that such verdicts still haven't come to pass, and in order to ensure that the City will be able to be paid if the court's verdict goes in its favour, we have offered the City of Dubrovnik the appropriate means of securing its eventual receivables in good will. It should be stressed that, if [any debt] exists at all, then it has arisen because the City of Dubrovnik hasn't offered a conclusion to the concession contract to date.

Why has a concession agreement between Excelsa nekretnine and the City of Dubrovnik not been signed yet?

Excelsa nekretnine has applied for a concession, with the concessionary terms agreed with the City of Dubrovnik, filed in August 2015, while the City of Dubrovnik hadn't issued a concession decision in accordance with the agreed terms until April 2018. In the meantime, the city brought in and then revoked several concession-related decisions, and the last one from April 2018 hasn't yet been implemented. It's necessary to clarify that we have been seeking concessions since 2010, but we had to wait for the applicable legislation by the state. The law granting concessions to cable cars entrusted to local self-government units was passed in 2014 and then we started negotiations with the city, finally agreeing on the concession conditions in July 2015. Since then, the process has only become more complex and has led us to the situation in which we find ourselves today. If the concession contract was signed in 2015 as was agreed, the City of Dubrovnik would have got its concession fee the entire time and there would be no dispute today.

Is the closure of the cable car expected?

In the potential situation of the closure of the cable car, all sides will suffer significant losses, especially Excelsa nekretnine and its partners, since the work of the cable car provides jobs for a significant number of people.

Furthermore, if the cable car closes, the state budget will lose part of the tax revenue, and the City of Dubrovnik will not receive any revenue from the concession. It's important to note that since the beginning [of the work of the cable car] Excelsa nekretnine has contributed more than 122 million kuna in taxes and contributions to the state budget, predominantly based on the cable car's business.

We believe that the scenario of its potential closure should be avoided, but we're not in a position to make such a decision. Not only are we disappointed in the way the authorities are acting, but we're also frustrated by the fact that, unsuccessfully, we've repeatedly tried to solve this problem with a reasonable and rational approach. Unfortunately, this negative attitude towards investors will not contribute to improving the investment climate in Croatia.

Do you have a license from the Ministry of Transport to work on the lift and on what basis does has it been provided?

Excelsa nekretnine received approval from the Ministry of Transport for the carriage of passengers by cable car before the cable car even started working back in 2010. At that time, such approval was granted instead of a concession due to the long duration of the concession-issuing procedure, as is written in the very approval. Had Excelsa nekretnine not received explicit permission to carry out activities of the carriage of passengers by cable car, we wouldn't have even begun doing so.

The mayor has announced that he will seek 30 percent of the revenue in the concession contract, which should be signed by April the 1st. Are you ready to agree to that?

We still haven't had any insight [into that] and we don't have access to the new expert testimony mentioned by the mayor which points to the need to increase the fee by 30 percent, so we can't comment on it either. On the basis of the previous expert testimony, we can see that such fees, twice the amount previously agreed, is unfounded. The City Council already approved the concession fee in April last year. We consider that the City of Dubrovnik should send a contract under the previously agreed terms and end this whole situation, which has already been going on for far too long.

Make sure to follow our dedicated business page for much more. If it's just Dubrovnik and the extreme south of Dalmatia you're interested in, give Total Dubrovnik a follow.

Click here for the original article/interview by Marija Crnjak for Poslovni Dnevnik

As Barbara Ban/Novac writes on the 19th of March, 2019, Pula's biggest hotel group, the Arena Hospitality Group announced the continuation of its large investment cycle yesterday, the amount of which will be about half a billion kuna. These are investments in the hotel Brioni (Brijuni) and the apartment resort of Verudela Beach in Pula, the Kažela camp in Medulin, and the doing up of the Art'otel Berlin Kudamm over in Berlin, Germany.

Namely, this Pula hotel company is the only one which owns hotels in Germany and Hungary at the moment. The Arena Hospitality Group recalled that by mid-2017, via a public offer on the Zagreb Stock Exchange, they raised about 750 million kuna to continue their investment cycle.

''We're continuing with our investment cycle, which will be around half a billion kuna from 2018 to 2022. Some of the investments have already been done, some have started, and some are just beginning. Last year we renewed camp Pomer, which became the first glamping site in the country, and we believe it's one of the best in the world. That investment stood at 70 million kuna,'' said the Arena Hospitality Group's Reli Slonim.

With that move, the path to rejuvenating their camps is definitely wide open, which is a sector of theirs which they haven't invested significantly in before last year, as they devoted themselves to raising the quality of their hotels and apartment resorts, as well as their numerous acquisitions in Europe. Part of their facilities are also branded as Park Plaza.

''This year we started with the complete doing up of the Kažela camp in Medulin, and this investment is worth 128 million kuna, which is our biggest investment in the camps. After the completion of the investment, the camp will offer its guests 1,300 spacious places and 164 new luxury mobile homes. In addition, the camp will get a new entrance and reception, new beach bars, and entertainment and sports facilities,'' Arena Hospitality Group's Reli Slonim said.

It is interesting to note that mobile homes in this camp will be made up of ecological and recycled materials, and each of them will be about 40 square metres in size. This will be one of the biggest investments in camps this year in the country, and it should be finished by this [tourist] season.

A member of the management of the Arena Hospitality Group, Manuela Kraljević, also added that along with all of their current investments, they are preparing for the renovation of the Verudela Beach apartment complex too, which will begin in autumn this year. As of now, they have refurbished a ten-unit building, which is an example of how the other apartments will look when finished.

In the tourist resort of Verudela Beach, the plans are to invest about 60 million kuna during the second half of 2019. Ten accommodation units will be upgraded by this season, while the remaining 146 units and 20 villas will be renewed in time for the 2020 summer season. After the completion of the investment, the resort will be under the brand of Arena Hotels & Apartments, Kraljević said.

They also announced the reconstruction of Hotel Brioni, which for the time being, remains the only hotel in Punta Verudela that hasn't been given a ''fresh face''. It is a cult hotel which was built back in the 1970s, primarily for American guests. So far, only two showrooms have been done up, which will be somewhat larger than the existing ones, but this won't change the number of rooms.

''We have decided that we're not going to change the size of this hotel, but we will rebuild it as it is, and the room sizes will be about the same. We will invest 190 million kuna into it, and we'll start doing it up in 2020 after the [tourist] season. The hotel will be finished in one year and [everything] will be completed by 2022,'' Slonim said. In addition to investments in Croatia, this year the Pula hotel group is also renovating its hotel in Berlin, investing the equivalent of 53 million kuna into it. The hotel is located in Berlin's famous Charlottenburg district and is dedicated to the works of the famous pop art artist Andy Warhol. The investment will include a total accommodation capacity of of 152 rooms, as well as all of the other hotel facilities one might expect.

As Luka Cvitan said, the German part of the portfolio is extremely important to the Arena Hospitality Group because it gives them stability and doesn't depend solely on tourism flows in Croatia. Last year, hotels in Germany saw the largest growth, while in Croatia, things unfortunately stagnated somewhat. Business last year amounted to 758 million kuna, and was higher than last year's gain by 30 percent. That is why the Arena Hospitality Group is also thinking about further acquisitions in Belgrade in Serbia, as well as in other countries in the region.

''Also, since we have a portfolio abroad, we can offer our employees full-time employment,'' said Cvitan.

Make sure to follow our dedicated business page for much more.

Click here for the original article by Barbara Ban for Novac/Jutarnji

The continental Croatian county of Krapina-Zagorje and Krapina itself are both doing very well in terms of the amount of EU funds contracted for various projects over the last couple of years.

As Marta Duic/Poslovni Dnevnik writes on the 19th of March, 2019, Krapina is the seventeenth town in which the Ministry of Regional Development and EU Funds, in cooperation with institutions in the EU funds management and control system, have succesfully organised the informative and educational event ''Regional EU Fund Days'' with the aim of better informing the general public about the possibilities of funding from EU funds, as well as the strengthening of regional development and the overall social and economic growth of the Republic of Croatia.

Krapina-Zagorje County, of fourteen continental Croatian counties, is somewhere in the middle when it comes to using EU funds, while Krapina alone is currently implementing projects worth 125 million kuna.

"Although Krapina has been talking about EU funds for years, it took time to actually start something, with problems with the shortage of labour and at the same time a great deal of work [that needed to be done]. But today we can boast about a series of projects funded with EU funds," said Zoran Gregurović, Krapina's mayor.

"In just a little over two years, the intensity of the announcement of tenders has increased, and by the end of 2016, Croatia was at nine percent of contracted EU funds, a year later it was at 35 percent, and according to the results at the end of last month, we're currently at 64 percent of the contracted funds. In Krapina-Zagorje County, projects worth one billion and three hundred million kuna have now been contracted,'' said Velimir Žunac, State Secretary at the Ministry of Regional Development and EU Funds.

Croatia is, while taking into account the cost of European Union membership, in a plus, and by more than ten billion euros, by the year 2023, that figure will be even higher, the State Secretary encouragingly said. There was also an interesting panel discussion on the development of Krapina, where numerous projects were presented, indicating that Krapina-Zagorje County has some great potential across several sectors.

There are, therefore, projects currently being carried out, of which Crna kraljica (Black queen) is highlighted, a significant project worth 3 million kuna relating to the doing up and the renewal of the Old Town of Krapina, the Forma Prima sculpture park in Josipovac Forest, and the construction of a 300-metre-long pedestrian bridge connecting these locations. Other projects which involve street construction, kindergarten works and waste management are also in the works.

In addition to the above mentioned projects, Gregurović mentioned the problems that are also being faced.

"A large number of projects got the go ahead from our own resources too, which was a burden for us with regard to our financial capacity and the share of financing," Gregurović said, and as an example, he used the Sports and Recreation Centre in Podgora. It was approved, as was 40 percent of the cofinancing, and the city had to allocate 1.7 million kuna of its own finances to it. Although there is interest in the measures set out by the Rural Development Program, Gregurović says it is hampered by the high development index. "We lost points due to the development index when we registered for the Youth Centre, and we don't have enough resources to prepare the project documentation, so we hope the ministry will increase the funds that it allocates within the framework of the cofinancing of EU projects,'' said Gregurović.

Development would certainly not be possible without EU funds, said Vlatka Mlakar, head of the Public Procurement Department and EU funds of Krapina-Zagorje County.

"We've noted a positive contracting trend over the last two years, with the contracting rate in the area of ​​our county being 42 percent higher in 2018 than it was the year before. Looking at 2017 and 2018, the value of contracted projects stands at 1.3 billion kuna,'' said Mlakar. She added that more tenders mean more market demand.

She also announced a strategic project currently being implemented and worth 33 million kuna - the construction of a Business-technology incubator. Numerous projects have also been being carried out in the area of ​​education and health, including the project of energy renewal in nine schools, three of which are now complete.

"We're focused on the new financial period, we've got a lot of plans, and we have several strategic projects - the doing up of the hospital in Krapinske Toplice in the amount of 150 million kuna, then the Zagorje Scientific-education centre worth 120 million kuna, and a competence center worth 85 million kuna. Public procurement procedures are important because the success of every EU project lies there - the rules must be respected, as should be the procedures, the regulations, and the state commission's control procedures should be followed,'' Mlakar said.

Make sure to follow our dedicated business and politics pages for more information on EU funds across Croatia and much more.

Click here for the original article by Marta Duic for Poslovni Dnevnik

The Republic of Croatia is in a group of four European Union member states with a lower uncovered demand for workers when compared to one year earlier. The Croatian paradox of staff fighting over workers who either don't exist or don't want to work, while would-be staff complain about there being no jobs continues.

As Ana Blaskovic/Poslovni Dnevnik writes on the 19th of March, 2019, the workforce problem is rapidly becoming one of the most burning issues not only here in Croatia but across the European Union. In the last quarter of last year, Croatia ranked among the four EU member states with a lower uncovered demand for workers than was recorded during the same period last year, Eurostat figures show.

At the Union level, as well as at its very core in which the euro currency wains, the rate of vacancies grew to 2.3 percent during the fourth quarter of 2018. Just for comparison, this rate, which shows uncovered demand for labour, was 2.1 percent in the previous quarter, and 2.2 percent in the Eurozone.

The availability of labour in the last year has become the top theme for domestic employers. While a few years ago this issue was only mentioned from time to time, in the last surveys answered by business owners, it emerged at the very top of the list. In Poslovni Dnevnik's recent interview with AmCham, Andrea Doko Jelušić pointed out that when the last survey was taken, their members underlined this topic as the main constraining factor in 2018, while back in 2017, it was placed on the list for the first time ever.

Reflecting on the workforce as an inevitable issue of the competitiveness of the domestic economy, CNB/HNB Governor Boris Vujčić said on Monday that Croatia is specific in the EU because as many as 40 percent of working-age citizens don't work. "When looking at the employment rate, Croatia is the second worst in the European Union after Greece, which means that everyone else has to work harder to maintain the same level of living standards," said the governor.

The key to the mobilisation of this population, Vujčić believes, is to evaluate the positive changes in pension regulations which extend the working life. The EU and the Eurozone are currently experiencing the most problems with finding workers in the service sector, with the job vacancy rate standing at 2.6 percent. Industry and construction account for 2.1 percent in the EU, and 2 percent in the Eurozone. In Croatia, the vacancy rate in the fourth quarter fell to 1.4 percent, which was the lowest level in just over a year. The highest jump in labour demand for the same period last year was in the fourth quarter in the Czech Republic, Austria, Malta, and Germany.

Make sure to follow our dedicated business and politics pages for much more.

Click here for the original article by Ana Blaskovic for Poslovni Dnevnik

The Pearl of the Adriatic is known for its wealth of natural beauty in addition to its rich list of historical and cultural attractions. Dubrovnik is visited by millions from around the world year on year, and in addition to its magnificent walls, which are among the most impressive Medieval structures which are still standing today in Europe, its cable car which attracts seemingly endless queues during the summer months is unarguably among its top tourist attractions.

While the typical ''fights'' about Dubrovnik's cable car are almost identical to those frequently had over the old city walls - the price, there appears to be much more going on under the surface when it comes to perhaps the most expensive three minute ride you'll ever take.

For a single adult, a mere three minute cable car ride from just above the Old City of Dubrovnik to the top of mount Srđ and back comes with a price tag of 150 kuna. Dubrovnik's locals get it cheaper, however many avoid the cable car entirely, opting instead to hike or drive up the rugged 412 metre mountain which towers over the city.

Srđ is, despite the apparently eternally increasing cost of the use of the cable car, a unique must-see location when in Dubrovnik. The mountain provides stunning views over the extreme south of Dalmatia, the sparkling Adriatic sea and the Elaphite islands (Lopud, Koločep (Kalamota) and Šipan), and when turning around, a view over the mountainous and somewhat baron interior of neighbouring Bosnia and Herzegovina, the border of which is extremely close to Dubrovnik (Ivanica).

In addition, a restaurant and the Homeland War Museum sits at the top of Srđ, housed in an unassuming Napoleonic building known as Fort Imperijal. The museum should be visited by all those wanting to learn more and pay their respects to the sacrifice made by Dubrovnik's brave defenders during the Yugoslav and Serbo-Montenegrin attacks on the UNESCO protected city in the not so distant past.

Alright, now we're done talking about Srđ as a destination, let's get to the point. 150 kuna per ride or not, it seems that one of Dubrovnik's top attractions, the cable car, could be threatened with closure, according to a report from RTL vijesti (news).

As Poslovni Dnevnik writes on the 18th of March, 2019, according to Dubrovnik's mayor Mato Franković, DORH (State Attorney's Office of the Republic of Croatia) has given the somewhat ''famous'' Lukšić family company until the first April to pay huge compensation to the City of Dubrovnik and to the state, and to sign a concession agreement. Otherwise, the iconic cable car will be suspended.

A 150 kuna price tag for a three minute ride up a mountain is a bit steep (no pun intended, well, maybe a bit), and as prices for some of Dubrovnik's main attractions continue to rise, many tourists are beginning to become disillusioned with the Pearl of the Adriatic's offer. "For 150 kuna, I think the ride is too short, but the view is fantastic," said Indian tourists Karthi and Sushma.

It is precisely that beautiful view that makes the cable car as popular of an attraction as it is, and there is always row after row of tourists standing along the poorly laid out street with no shade (which also acts as a bus stop for regular city buses and for the airport shuttle) regardless of the ticket price.

The cable car's turnover stands at about 60 million kuna per year, Excelsa real estate accounts for about 65 percent of the net profit, while the City of Dubrovnik has apparently never even received even one kuna in revenue from the cable car. Could all that be about to change in a matter of mere days? Apparently so.

Make sure to follow our dedicated business and news pages for more. If it's just Dubrovnik and the extreme south of Dalmatia you're interested in, give Total Dubrovnik a follow.

The InvestCro conference was opened by the editor-in-chief of Poslovni Dnevnik, Vladimir Nišević, who stressed the fact that this project opens up discussions topics that are of great importance to our society.

As Poslovni Dnevnik writes on the 18th of March, 2019, the "InvestCro: Investment in (Non) Opportunities in Croatia" conference, whose central theme is rather depressingly inspired by missed opportunities, ie planned investments that have not been realised, as well as obstacles investors encounter and also possible improvements to the arrival and treatment of foreign investors, is being held at the Westin hotel in Zagreb.

This conference is the second in a series of four conferences as part of the all-year-round multimedia project headed by Croatian news and media outlets Večernji list, Poslovni Dnevnik and 24sata entitled "InvestCro: Kako do ulagača" which discusses how investors can be attracted.

The President of the Republic of Croatia, Kolinda Grabar-Kitarović, stated that the current results of foreign investments don't match the desired image. She said that lessons should be learned from the mistakes alreayd made to avoid repetition.

President Kolinda Grabar-Kitarović said that Croatia was missing out on so-called Greenfield investments and has proposed five specific guidelines to the Croatian Government in order to attempt to tackle that problem.

"The results of direct foreign investment don't match the desired image. In 26 years, 33.5 billion euros has been invested in Croatia, but the problem is that the investments were mostly Brownfield [investments] and focused on ''nontradeable'' sectors. We're missing out on Greenfield investments, investment in the production of goods and services that will create quality jobs and be more export-oriented,'' said the president at the InvestCro conference in Zagreb.

She feels that the direction of development can be directed in the desirable direction if the appropriate lessons learned from the mistakes made are properly taken into consideration. "First of all, I'm thinking of investment woes, the shortage of people involved in attracting investors, the lack of approach planning and coordination," she said.

On their way directly from Pantovčak to the Croatian Government are five key guidelines for the faster and easier growth of investments in Croatia. It is necessary to consolidate the competences of all those responsible for attracting FDI (foreign direct investment) at a single national level, to create an investment attracting strategy aligned with other economic strategies, to focus on new models and soft investment incentives for added value and to constantly create an attractive investment climate.

The five recommendations include the continuation of work on a better overall image of the Republic of Croatia and the promotion of the country as a destination for investment, not just a tourist destination. In this regard, Grabar-Kitarović announced that the working group who deal with branding Croatia will come out with guidelines within a month.

"We decided to do something for our society, as well as for those who will still be here when we're gone. Without healthy investments, we will remain without investors, and for this reason we have just decided to speak [on the subject] through various conferences, just like this one today.

''I hope this conference will contribute to the progress of Croatia,'' Niševic said.

'' the last two years, two-thirds of greenfield investments in the EU took place in just six European countries. I believe that Croatia will raise its rating in 2019 and come over to the side of these six countries, with the help of new laws and a better quality framework for stimulating investment,'' said Minister of Economy Darko Horvat at the InvestCro conference.

"The share of investment in GDP is growing, we're at the average of EU countries. The third quarter in 2018 was, according to current information, optimistic, as there was a 4.9 percent rise. Croatia needs economic growth of five percent. Step by step, we're strengthening competition, there is no instant solution, and changes need to be deeply rooted.

We should help entrepreneurs to retain as much of their own funds as possible for the new investment cycle. We're digitising business and the state, in order to reduce the burden on entrepreneurs. Therefore, I expect growth in production, especially in the private sector. Through the Investment Incentive Act alone we attracted 16 billion kuna, with 12,750 new jobs being planned. We know exactly what kind of educational profile we need, we need to make sure we've got young people who will be employed there. We need a synergistic effect with cities and counties," the minister said, hinting at the need to all be on the same level.

"We want investments with new technologies and added value. Despite the global boom in the digital economy, less than 20 percent of such investments fell into the ICT sector. We are not only looking at the volume, but also the character and type of investment, as well as the quality of jobs which is what our young people who are leaving are looking for abroad. We need a bit of courage and some enthusiasm in order to turn these issues into a chance.

The Ministry of Economy has announced five new tenders, which is an innovation opportunity for domestic entrepreneurs. I'm sure that 303 million euros will be invested in Croatia's investment potential and that this year will end with development,'' concluded Horvat, adding the encouraging fact that this week, the representatives of several Swiss companies are browsing northwestern Croatia and looking for business zones that are ready for them to move part of their business to.

Mladen Fogec, president of the Association of Foreign Investors in Croatia, noted that Croatian pessimism could affect foreign investors very much.

"The rating agencies are constantly positioning us at the end of the second-third on the doing business scale, but they all get their perceptions from talking to our political parties, non-governmental organisations, and we're very inclined to being negative - we have to turn to optimism. When it comes to the perception of corruption... we're not in the best position, but when you ask a person whether or not they bribed someone, the answer is always that they didn't. Please spread optimism because Croatia has a lot of potential. In principle, there's an enormous problem with our mentality, the capacity for change isn't big enough, we're still not ready to start to change, and we're living in the era of digitisation and computerisation,'' Fogec said.

"We've spent far too much time wrestling with the past, we spent an actual minister of economy on Agrokor, and her successor is now spending most of his time trying to deal with Uljanik, which is also grappling with the past. We need to deal with the future. It's good that we have introduced a law on strategic planning. It's not a question of whether foreign investors want to come to Croatia, but whether or not we actually want foreign investors,'' claims Fogec.

He noted that the association he leads didn't issue the so-called ''white book'' for business for 2019 because the problems still remain exactly the same as they were before. "Nothing has changed, or it has changed at a slower rate compared to changes in neighbouring countries, so our latest edition is still valid," he concluded rather sarcastically.

For those of you who understand Croatian, here's a video of what has been said, suggested and discussed at the conference:

Make sure to follow our dedicated business page for more on doing business and the overall investment climate in Croatia.

If one goes in search of a definitive answer to the question of what type of business concept with great market potential and small initial investments is currently worth investing in in the Republic of Croatia, few people would be able to give you the real answer, and the real answer is as bland as laundry. No, really.

As Jasmina Trstenjak/Poslovni Dnevnik writes on the 15th of March, 2019, the current estimates are that the number of overnight stays realised by foreign tourists, especially in private accommodation, will increase in Croatia this sumemr season, and such commercial facilities will have virtually no real outlet to deal with proper cleaning, washing, drying and the general supply of products for accommodation units like hotels do, which is an increasing problem with each passing season.

Along with the strengthening of the position of Croatia as an attractive tourist destination far from Europe's shores all the way over on distant markets such as China and Korea, it's expected that this guest profile will visit more than one destination within the country. As the trend of short overnight stays of course goes hand in hand with doing a lot of laundry, this is a big challenge for renters along the coast and beyond.

In Croatia, numerous hospitality and accommodation facilities rely heavily on laundry services to enable them to operate smoothly throughout the season. Although such facilities, which until rather recently only appeared in American films, are becoming more and more of a common sight here in Croatia. Regardless of the fact that they're making more ''regular appearences'', there still aren't enough of them currently in operation.

Mario Martinek, the owner of the Bijeli svijet (White world) company that has been doing business successfully on both the domestic and European markets for many years now, says that a significant number of Croatian workers are working abroad now, and lack of service staff is one of the main obstacles to overcome:

"Because of this, there's often a lack of people to do the basic activities such as the frequent washing and drying of bedding,'' says Bijeli svijet's owner. In the last four years in Croatia, Martinek's company has worked to open more than 80 such facilities, through which more than 200 people were employed.

"In addition to hotels and campsites, there are many families looking for an independent source of income, and we're particularly proud of that,'' he added, noting that no special technical skills or previous entrepreneurial experience are needed to run a laundry service.

They offer their clients free education, assistance with self-employment, and a step by step guide through the entire whole process: from collecting grants to starting work and opening and working in their own facilities. On the other hand, hotels, camps, restaurants and other larger facilities, by incorporating professional equipment, manage to realise significant savings on energy, such as on electricity and water. Savings on electricity consumption are 25 percent, and on water, a significant 44 percent per year.

According to the Bijeli svijet's data, in 90 percent of cases, laundry facilities are profitable business-wise all year long, and the process from idea to realisation takes a mere two months on average.

Make sure to stay up to date with investment and doing business in Croatia by following our dedicated business page.

Click here for the original article by Jasmina Trstenjak for Poslovni Dnevnik

Daniel Boehi, Miodrag Borojević, Paul Foley, Kelly Griffith, Maxim Poletajev, Jullian Michael Simmons, Sergey Volk and Fabris Peruško are a list of names that will enter the ''new'' Agrokor, or Fortenova's management.

As Poslovni Dnevnik writes on the 15th of March, 2019, Sberbank's Maksim Poletajev will be the head of Fortenova's board of directors, as was decided upon by the concern's owners during meeting in London, Večernji list writes.

At the moment, this information remains unofficial and should be confirmed at the end of March, when new functions will be recorded in the Court Registry of companies. Namely, on the first day of April, the Fortenova Group, formerly Agrokor, will be chaired by a board of nine directors and an executive board consisting of three members. Daniel Boehi, Miodrag Borojević, Paul Foley, Kelly Griffith, Maxim Poletaev, Jullian Michael Simmons, Sergey Volk and Fabris Peruško, Agrokor's current extraordinary administrator, are already known.

Maxim Poletajev of Russia's Sberbank, will be at the helm of this body which will make all strategic decisions on the involved companies.

This body decides on the selling and acquiring part of the business, appointments, and other major contracts. Along with Poletajev as a representative of Sberbank, the largest shareholder, which has a 39.2 percent stake in the new ownership structure, Sergey Volk will also enter the body, who as a member of the temporary creditors' council has been present within Agrokor since the very beginning of the extraordinary administration process. Both bankers are well acquainted with the opportunities within Agrokor, over the past two years they have become well acquainted with Agrokor's suppliers and most of the owners of major Croatian companies.

In an interview with Večernji list, Poletajev announced that the company, which will continue to operate under Fortenova's name, will boast some powerful management names.

For now, all operating company directors have retained their positions in mirror companies, and some very powerful names are set to enter the board of directors. Miodrag Borojević is certainly one of them. He currently runs the O'KEY Group, one of the leading retail chains in Russia, and also boasts an exceedingly rich career in the sector. He was the director of REWE Italy, which was rescued during his mandate, he has also operated Kaufland's business in Romania, Croatia, Bulgaria, Slovakia and in the Czech Republic.

Foley has valuable long-standing experience in large retail chains and has been leading the large chain of Aldi in his career and is now in the Magnitum Management, a Russian chain where VTB Bank, which owns about seven percent of the new Fortenova, bought and sold shares from February to May 2018.

The board of directors also includes a workers' representative whose name is as yet unknown. The executive board of directors who will operate the company will have three members, Fabris Peruško, Irena Weber and a member who will be responsible for finances, their name is as yet is unknown.

Make sure to follow our dedicated business page for much more on Agrokor.

A takeover for Istrian Supermarkets (IS) by the popular retail giant Studenac is in the works as potential new investments and the strengthening of the company loom.

As Poslovni Dnevnik writes on the 14th of March, 2019, Studenac, one of the leading retail chains in the Republic of Croatia, has officially submitted a request for the takeover of the Poreč-based retail company Istrian Supermarkets (IS) to the Croatian Competition Agency (AZTN). Upon receiving approval from AZTN and properly meeting all the terms and conditions agreed between the involved parties, Studenac will acquire 100 percent of Istrian Supermarket's shares based on the recently signed contract between the two companies.

This transaction will certainly pave the way and provide fertile ground for yet more investments and the transfer of knowledge and experience for both Istrian Supermarkets and Studenac, and will significantly increase the volume of business, further enabling the market leader to build its already strong retail portfolio along the Adriatic coast.

Michal Senczuk, the head of Studenac's management body, stated:

"Studenac is continuing to improve its offers to domestic customers through the takeover of a company that is [already] well positioned and highly valued by its customers in Istria. Istrian Supermarkets (IS) is a successful organisation with excellent resources and we believe that this synergistic effect will lead us all to new opportunities which will contribute to the satisfaction of our customers as well as our employees.''

Vedran Banovac, Istrian Supermarkets' main director added:

"We're extremely happy to have a chance to be a significant part of the consolidation process of the Croatian retail market, and for Istrian Supermarkets, this transaction represents a strategic opportunity to increase our market share in the dynamic growth within the region. We're looking forward to the integration of our team with Studenac and the joint work we'll undertake, through which we'll continue to strengthen our business.''

Make sure to follow our dedicated business page for much more.

One successful Zagreb company has been exploring outside of the Croatian market and has found a plethora of opportunities and interest on foreign markets.

As Lucija Spiljak/Poslovni Dnevnik writes on the 14th of March, 2019, thanks to its long tradition, identity, high quality, attractive design and practical accessories, the Zagreb-based company Mediaform has been positioning in Croatia for over twenty whole years as a market leader in the field of the production of top of the range diaries made from some of the highest quality materials.

The company was founded back in 1997 by Nedeljko Šukurma, who is currently working with numerous other companies and designers. They have been selling their company's products for years through retail stores such as Narodne novine, Školske knjige (School books), and others. However, Šukurma didn't want to just stop and stay on the Croatian market alone, but he, with a dose of success and an excellent idea, decided to dip his toes into foreign markets.

"Over the past few years, we've been trying to break into the European market in the segment of office and school materials with notebooks called Keyboard in two groups. The first group are premium notebooks - such as Moleskine, Lanybook and the like, while the other group are school notebooks. The Keyboard notebooks were successfully sold in the bookstores of the former Algoritam company, but even after its closure, customers were still asking after Mediaform's notebooks,'' explained Šukurma.

This was just another incentive for Šukurma and his Zagreb company to try out their products overseas where his company came across very positive reactions and a lot of praise.

"To be able to position yourself successfully on the global market in a segment that has long been covered by world-renowned brands, you need to do something innovative, something interesting and specific. With our new collection of Keyboard notebooks, we have been able to attract a great level of interest from foreign distributors and bookstores. On the front page, the notebooks are simple and minimalistic, but the design is impressive. The letters on the embossed, styled keyboard on the notebook's covers form an inspirational message - Handwriting beats a keyboard, which promotes handwriting as one of the timeless ways through which people can express their personalities,'' stated the founder of this successful Zagreb-based company which is clearly going from strength to strength.

Therefore, in addition to the business side of things, this Zagreb company's notebooks also feature an aesthetic function that will attract anyone who is used to using laptops and the like. For two consecutive years, Zagreb's Mediaform has been expanding its product group at the world-renowned and specialised Paperworld fair in Frankfurt, Germany. At the end of last year, they first exhibited their products at the Insights-X fair in Nuremberg for the German market and at the Big Buyer fair in Bologna for the Italian market.

"At the last Paperworld fair in Frankfurt, the organisers officially drew attention to our Keyboard notebooks. At this fair, there's also a separate space that acts as an exhibition gallery called Trends. When it comes to [exhibiting there] the fair organiser selects the most innovative and creative articles that should have particular emphasis drawn to them, with the focus being placed on excellence. Our Keyboard notebook found itself among this group of the world's top manufacturers,'' said Mediaform's owner.

Make sure to follow our dedicated business and Made in Croatia pages for more on Croatian products, services and inventions. If it's just Zagreb you're interested in, give Total Zagreb a follow.

Click here for the original article by Lucija Spiljak for Poslovni Dnevnik