ZAGREB, July 27, 2020 - Despite lower prices, tourist accommodation for families in Croatia is seeing a steep decline in bookings and most providers of such accommodation are facing financial losses of up to HRK 50,000, a survey on the coronacrisis impact on the business operations of family accommodation providers shows.

The survey, conducted by the Croatian Chamber of Commerce (HGK) on a sample of 2,100 people, revealed that as many as 95 percent of respondents reported a decline in the number of bookings compared with last year, despite the fact that three-quarters of them had cut prices, mostly by up to 30 percent.

Nearly a third of those interviewed, or 31 percent, recorded a drop in bookings of more than 80 percent, while 90 percent also reported cancellations of bookings. The share of cancelled bookings for July and August was mostly up to 60 percent.

"The financial damage suffered by most of the accommodation providers, 77 percent, reached up to HRK 50,000 in the first six months of the year, while the estimate for the next three months climbs to HRK 100,000," the HGK said on Monday, noting that only six percent of the respondents said they did not have any significant financial losses.

A third of those interviewed were pensioners, with 75 percent of them saying that their livelihood would be threatened without this income.

As Novac writes on the 11th of June, 2020, the Croatian Chamber of Commerce (HGK) has asked the Ministry of Construction and Physical Planning to send a recommendation to the local self-government unit on lifting the ban on construction works during the summer.

"We sent the request on behalf of construction companies whose working conditions were significantly hampered by the coronavirus crisis. During the pandemic, the Croatian Chamber of Commerce managed to prevent construction sites from closing and to open shops for construction materials and equipment as soon as possible, which preserved activity and jobs in this industry. The complete cessation of all earthworks and construction works would make it difficult to recover and realise the scheduled works, which would cause additional financial damage and consequently lead to the dismissal of a large number of workers,'' said Mirjana Cagalj, vice president of the Croatian Chamber of Commerce for construction, transport and communications.

According to the current Construction Act, cities and municipalities can make decisions on banning works, but the Construction and Utilities Sector of the Croatian Chamber of Commerce says that exceptional conditions have been met due to the coronavirus pandemic and that the necessary approvals and consents of local authorities must allow activities within this sector to continue.

"Lifting the ban would significantly help the construction sector and its related branches, and at the same time, it wouldn't seriously endanger the tourist season, which will be somewhat more modest due to objective reasons," explained Cagalj.

On behalf of the construction companies located in Split-Dalmatia County, the Croatian Chamber of Commerce also sent a letter to the Mayor of Split, Andra Krstulovic Opara, requesting that earthworks and construction works be allowed in the city throughout the summer (from June the 15th to September the 15th).

Opara supported the proposal and invited all interested investors and contractors to send their requests for the continuation of construction work during the summer months so that he could submit them to the City Council for discussion.

"At this moment in time, I consider it extremely important that the investments that can start the economy the most quickly are enabled and encouraged, so, I'm going to recommend a positive solution to all of the received requests to the Council," Opara said.

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Croatia has gradually begun to loosen up its formerly stringent anti-epidemic measures, and the Croatian Chamber of Commerce (HGK) is seeking more freedoms for driving schools and international drivers.

As Novac writes on the 4th of May, 2020, the Croatian Chamber of Commerce has asked the National Civil Protection Headquarters to relax some of the measures applicable to drivers in international road freight transport, as well as others which will provide better grounding for the start of driving school operations on May the 11th, 2020.

At the request of the members of the Road Freight Association, the Croatian Chamber of Commerce has proposed that quarantine and home/self-isolation measures for international drivers be carried out under the same conditions as drivers in domestic transport.

''According to the current regulations, a driver must not leave their house or their assigned accommodation where they're self-isolating, except in the case of a call from their employer for transport. On their return from a foreign country, they then begin a new cycle of self-isolation, and changing the driving and staying-at-home cycles in this regime can take up to a month, in some cases it takes even longer.

As the drivers operating under this regime don't have symptoms of illness, the Croatian Chamber of Commerce believes that they should be allowed to go to the store and pharmacy as needed and have a limited stay outside of their homes just like other people do,'' said the Croatian Chamber of Commerce's Vice President for Construction, Transport and Communications, Mirjana Cagalj.

The Association of Driving Schools of the Croatian Chamber of Commerce has also proposed that the measures for them be relaxed in order to enable the continued running of driving lessons from May the 11th onwards, with the application of horizontal and specific protection measures. They believe that with the education of staff and strict adherence to health regulations, both theory and practical teaching can be held smoothly, and they have been given specific suggestions on how to implement it by the National Cvil Protection Headquarters.

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As Novac writes on the 26th of April, 2020, one of the lessons during this pandemic that Croatia needs to learn is certainly that it needs to rely more on indigenous resources and reduce its dependence on imports, and this includes the production of energy from renewable energy sources, which is constantly and strongly growing, the Croatian Chamber of Commerce (HGK) has stated.

The coronavirus pandemic, on the one hand, has shown what the planet can look like with reduced pollution, and on the other, it has shed light on all of the vulnerabilities of the system and the need to change our behaviour.

"Most EU member states support the initiative to put the European Green Plan at the very heart of the post-pandemic economic recovery, because the world can only make economic, environmental and social progress if we clearly and firmly commit to clean and renewable energy. We need to strategically make sure that we're developing the resources we already have, thus enhancing the competitiveness of the economy,'' said Ivo Covic, President of the Croatian Chamber of Commerce's Renewable Energy Community, which has been advocating for the development of this energy sector for fifteen years now, with its main focus on establishing a regulatory framework for renewable energy.

April the 26th marked World Renewable Energy Day, it commemorated the tragic Chernobyl nuclear catastrophe and the necessity to continue research and apply renewable energy as much as possible.

Croatian legislation is awaiting significant changes this year in regard to the energy sector. In addition to the European Green Plan, which brings with it major changes and the implementation of new technological and systematic solutions throughout the entire European Union, a law on amendments to the Energy Efficiency Act is expected in Croatia by the end of the year, which will further strengthen efforts to reduce dependence on energy imports.

The Law on the electricity market is planned for the end of this year, and the Croatian Government is planning to submit a new law in September to Parliament on renewable energy sources and high efficiency cogeneration.

"With regard to the new energy development strategy, as well as the objectives of the European Green Plan, Croatia has a great challenge ahead of it to achieve the set goals by the end of 2030, so the adoption of regulations and laws is of enormous importance. Now is an opportunity to prepare the local economy, but also citizens, to be involved as much as possible in the preparation and construction of new projects,'' said the Croatian Chamber of Commerce's Energy and Environmental Sector Director, Marija Šćulac Domac, noting that by increasing the use of renewable energy sources, not only will Croatia contribute to reducing greenhouse gas emissions and protecting the environment, but it will also help the local economy and job creation within the sector.

The International Renewable Energy Agency predicts that the number of jobs in the renewable energy sector will increase to 42 million over the next thirty years.

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The Croatian Chamber of Commerce (HGK) has started to get itchy feet in the face of the stringent anti-epidemic measures put into place by the Croatian Government and the National Civil Protection Headquarters. The opening hours for shops are giving them the biggest headache.

As Poslovni Dnevnik writes on the 22nd of April, 2020, Croatian wholesale trade has dropped significantly, more precisely from 8.1 percent (from 9.6 billion kuna down to 8.9 billion kuna) in the previous month compared to March last year, while the situation in the retail trade was slightly better as the amount of fiscal receipts issued decreased by just 2.9 per cent, from 7.3 billion kuna down to 7.1 billion kuna.

The Croatian Chamber of Commerce has asked the National Civil Protection Headquarters to lift the current coronavirus restrictions on the operation of all Croatian shops.

"The current favourable epidemiological picture makes it possible for us to be able to open all stores, of course, with the strict implementation of the necessary epidemiological measures. These days, more and more people are returning to work, and most aren't managing to arrive at stores until 17:00, which puts unnecessary pressure on both the stores and on the health of the crowds of people waiting. Re-introducing normal working hours would optimise this and benefit the whole economy,'' said the Croatian Chamber of Commerce's Vice President for Trade and Finance, Josip Zaher, adding that security measures should be determined by the number of visitors relative to the square footage of the shop's premises.

"This will enable the opening of almost all stores without any discrimination, and special attention should be paid to the opening of large shopping centres due to the large fluctuation of customers," Zaher explained, noting that trade is an extremely important activity for the Croatian economy and that we should enable the normalisation of the conditions for it as soon as possible, in order to try to stem the decline in Croatia's economic activity.

Make sure to follow our dedicated section for all you need to know about coronavirus in Croatia. Follow our business page for more on the Croatian economy.

As the coronavirus crisis tightens its grip on public health and the gloal economy, the powers that be in Croatia are stepping forward to at least bring more financial ease to Croatian companies and enterprises during these extremely tying and unpredictable times. The Croatian Chamber of Commerce, which is frequently otherwise critised, is one of them.

As Novac/Adriano Milovan writes on the 20th of March, 2020, the Croatian Chamber of Commerce (HGK) has decided to suspend the obligation for Croatian companies to have to pay membership fees if their operations have been disabled due to the coronavirus epidemic.

The move from the Croatian Chamber of Commerce was also based on the decision of the Civil Protection Staff of the Republic of Croatia and their measures on limiting social gatherings, social and sporting events, and so on.

''This is a situation where we all have to carry the burden and show some solidarity. We're reduce wages and defering any expenses not necessary for function. The focus of all our activities is on solving the problems of businesses. Our expert services receive thousands of inquiries per day, and the contact centre is available for contact 24 hours a day. At this point, the Croatian Chamber of Commerce is the economic headquarters of the entire country,'' said the Croatian Chamber of Commerce's president, Luka Burilovic.

The Financial Services Department of the Croatian Chamber of Commerce undertook an analysis and made the decision to cancel membership fees for the next three months, or for as long as necessary, depending on the situation with coronavirus, for all entrepreneurs who, due to the difficult situation in which they've now found themselves, aren't generating income.

"Given the current situation, this step is the only logical continuation of our efforts to make life easier for businesses during this crisis," Burilovic concluded.

Make sure to follow our business page for more on business in Croatia. Stay up to date with our dedicated section for rolling information in English on coronavirus in Croatia.

As Novac/Adriano Milovan writes on the 1st of November, 2019, innovation is the basis of further economic growth, and Croatia is a land of huge potential when it comes to innovation, states a message from the conference "Croatia - a Place for Innovation and Smart Investment", organised yesterday by the Ministry of Economy and the Croatian Chamber of Commerce (HGK) at the Westin Hotel in Zagreb.

The aim of the conference was to connect innovative Croatian companies with investors and other partners. These involve more than 300 projects, which have crystallised on thematic innovation councils, with an estimated value of more than 5 billion kuna. They are all open to investment, which is why matchmaking meetings were organised at the end of the conference.

Although Croatia has a long tradition in innovation, the realisation of any of it has so far been stalling and lagging behind far more than it should be. Simply put, it lacked the path for the commercialisation of its innovation. However, Darko Horvat, Minister of Economy, is convinced that a step has now been taken in the right direction.

''Networking the real entrepreneurial sector, academia and local and central government officials and getting all of that through a maze relatively quickly, all this was done this year and in the future we'll talk no more about speed but acceleration,'' Horvat stated at the conference, adding that things are definitely changing for the better in Croatia.

Luka Burilović, President of the Croatian Chamber of Economy, recalled the long tradition of innovation in Croatia and said that Croatian innovators are stilling following global trends.

''Today, we have a new generation of minds, who are pushing our economy into a new, digital age,'' Burilović pointed out, pointing specifically to Rimac Automobili's owner, Mate Rimac.

Tomislav Sokol, MEP, warned that the EU is lagging behind the US, China and India in innovation. One of the main reasons for this, at least according to Sokol, is the overregulation of the European Union, which is why the aim is to reduce red tape by a third.

Despite its aspirations and goals, Croatia still lags behind others in R&D investment. For example, according to Eurostat's data for 2017, appropriations for this purpose in the EU accounted for 2.06 percent of GDP, and in Croatia, they amounted to 0.86 percent of GDP.

On the other hand, in Israel, these expenditures, according to Nili Shalev, director-general of the Directorate for Research and Development at the Israeli Innovation Agency, have reached 4.3 percent of GDP, with the largest share being provided by the private sector. The main driver of investment in innovation in Israel are large multinational companies, but the state, and especially the military, are both contributing, Shalev said.

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ZAGREB, October 3, 2019 - The Croatian Chamber of Commerce (HGK) said on Thursday new US import tariffs would not significantly impact Croatian exports to the United States or the Croatian economy.

"Based on the information we have, we think the new tariffs the US will impose on products from Croatia won't have a significant direct impact on Croatian exports to the US or a significant direct impact on the Croatian economy," the HGK said in response to a query from Hina.

Although the tariffs will make access to the US market more difficult for some businesses, higher tariffs for Croatia will be imposed on agricultural goods which do not account for major Croatian exports to the US, the HGK said.

According to the national statistical office, Croatian exports to the US in 2018 totalled $403.9 million while imports were $213.8 million.

On Wednesday, the World Trade Organization granted the United States permission to tax as much as $7.5 billion of European exports annually over European subsidies to the plane maker Airbus. The US has announced that it will place a 25% tax on food imports from the European Union, including milk, dairy products, meat, fruit, juices, wine and whiskey.

The US plans to impose the tax on Croatian goods such as milk and dairy products, pork and its products, shellfish, prunes, cherries, peaches, pears, fruit and vegetable juices, except tomato juice.

European food producers have said the tariffs will cause them major damage.

More news about relations between Croatia and the United States can be found in the Politics section.

ZAGREB, June 18, 2019 - The Croatian Chamber of Commerce (HGK) on Tuesday organised a conference called "Can Croatia make it without foreign workers?" which heard that Croatia needs a no-quota model for the import of labour, that 500,000 left the country over the past decade and that the able-bodied population will drop by one million by 2051.

According to projections, the number of able-bodied persons will drop from 2.8 million today to 1.8 million in 30 years or so and today it is clear that demographic changes will restrict GDP growth, said Anđelko Akrap, a professor at the Zagreb School of Economics.

We need decentralisation and a long-term strategy of the country's development focusing on a population policy, he said, adding that countries with insufficient fertility rates for a natural population renewal were not well-organised.

HGK president Luka Burilović said Croatia lost about 500,000 able-bodied persons over the past dozen years because of emigration and population ageing.

"That's why today we have a current chronic labour shortage which should be dealt with at once as it will be the main brake to our development. The new law on foreigners will abolish quotas and allow companies to hire as many workers as they need," he said.

Burilović said Croatia must not allow bureaucratic sluggishness to hinder economic growth as it was already lagging behind the competition.

"This year Croatia's GDP growth will reach the pre-crisis year 2008, while comparable countries went ahead by almost 30%. The most worrying fact is that the number of persons employed, despite solid growth, was still 100,000 lower than in 2008, which is the most important indicator of a country's economic success and the basis for estimating the viability of social security, social progress and prosperity," he said.

The state secretary at the Interior Ministry, Žarko Katić, said the current quota model would be replaced with a no-quota system in order to enable employers to get permits to import workers within five days.

He added that in the first five months of the year, the Interior Ministry issued over 40,000 work permits for citizens of 55 countries.

Ruža Hrga of the Croatian Employment Service said the number of the jobless dropped by 65% since 2013, adding that 140,000 jobs were created over the past five years and that the registered employment rate had gone up 10%.

More news about employment in Croatia can be found in the Business section.

ZAGREB, June 17, 2019 - The Croatian economy's main problem at the moment is a labour shortage so quotas for foreigners should be urgently abolished, Chamber of Commerce (HGK) president Luka Burilović said on Monday.

"At nearly four percent, economic growth is finally approaching the rates we desired and expected, and interest rates are at the lowest levels. But the labour shortage is the main obstacle to the continuation of those positive trends. It's the issue of all issues at the moment," he said at an HGK Assembly meeting.

Burilović said the government had listened to the economic sector in the preparation of new regulations and that it was drawing up amendments to the law on foreigners that are expected to abolish quotas and facilitate the hiring of foreigners.

"It's a step in the right direction, but we must... put the draft of the new bill on foreigners to public consultation as soon as possible," he said.

The HGK Assembly adopted a report on the HGK's work in 2018 which shows that revenues totalled 208.1 million kuna, 11.5 million more than in 2017. Expenditures were lower than revenues by 19,800 kuna.

Revenues from EU projects increased by 14.8 million kuna to 33.1 million, and revenues from membership fees by 3.9 million kuna to 151.8 million.

It was announced that HGK will open offices in Vienna, Munich, Milan and Istanbul, and sell its building in Brussels.

More news about Croatian economy can be found in the Business section.