ZAGREB, May 10, 2019 - The Croatian Chamber of Commerce (HGK) on Friday signed an agreement with the Association of German Chambers of Industry and Commerce (DIHK) and the German Chambers of Commerce Abroad (AHK) under which Croatian companies operating abroad would be able to use the services of German foreign trade chambers under the same terms as German companies, the HGK said.

HGK president Luka Burilović said that only an export-oriented economy could guarantee sustainable long-term development to Croatia.

"The agreement means easier access to the markets where DIHK has foreign trade representations, and we are talking about more than 140 locations in 92 countries," Burilović said, calling on all HGK members to use that support on the ground in all markets where they have a business interest.

The services to be provided to the HGK by German foreign trade chambers include market research, support in the search for business partners and accounting services.

The HGK is a natural partner to the German network of chambers, which comprises 79 chambers of industry and commerce (IHK) in Germany, representations and foreign trade chambers (AHK) around the world and the DIHK, based in Berlin and Brussels, said DIHK deputy director Volker Treier.

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

As Morski writes on the 15th of April, 2019, the Mediterranean Festival of Books, a book fair with a sales and festival nature will be organised by the Association of Publishers and Bookstores of the Croatian Chamber of Commerce (HGK) and under the auspices of the Ministry of Culture, Split-Dalmatia County and the City of Split, will be held from the 8th to the 12th of May, 2019.

A record 100 exhibitors will be offering discounted books with up to seventy percent off, with around 10,000 titles to choose from.

As always, entrance is free and during the five days of the festival, you will be able to see the latest publications covering a space of more than two thousand square metres in the large hall of ŠC (Arena) Gripe, and there are also three other stages where the Mediterranean Festival of Books program will take place.

In addition to the well-known Bookvarij and Mali Bookvarij locations where children's workshops, panel discussions and a professional program will be held, the evening part of this event related to all things books will also be located at the "Cukarin" hospitality facility in Gripe.

Fifty program activities have been prepared, and the expectation is for as many as 35 promotions of the latest works of some award-winning and acclaimed authors to take place.

Among other things, this year's Mediterranean Festival of Books program will include panels consisting of prominent lecturers who will talk about important local topics, and there will of course be a multitude of workshops for the youngest among the festival's visitors on offer. Numerous promotions for new children's editions are also being planned.

All information and a detailed oveview of the Mediterranean Festival of Books 2019 program with its workshop schedule is available here, as well as having been published on the event's official Facebook page and on Instagram.

The Mediterranean Book Festival is being organised with the support of numerous partners such as the Split Tourist Board, Split University, Split Student Centre, the Split Sports Facilities public institution, Hotel Zagreb - Split, Cukarin Gripe, Slobodna Dalmacija, Europlakat, Mandis, CineStar, Barcaffè, CedevitaGo, and Kala.

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

As Morski writes on the 12th of April, 2019, the Republic of Croatia has achieved growth in terms of nautical tourism, but the problem of the lack of berths has to be resolved - these were some of the conclusions drawn from the meeting of the nautical associations of the Croatian Chamber of Commerce (HGK) with the relevant nautical institutions, which took place within the framework of the two-day Nautical Tourism Days conference organised by HGK for the preparation of a peaceful, successful and safe season at sea.

The conference covered the need for communication on all of the important issues which concern and involve Croatia's blossoming nautical tourism sector.

''With a fleet of more than 4000 charter boats, with over 140 nautical tourism ports, 17,000 berths, and then more than a million passengers having arrived on cruise ships back in 2018, Croatia is a nautical superpower and one of the most important nautical destinations not only in the Mediterranean, but in the world,'' said HGK's Dragan Kovačević on the first day of the conference.

The revenue achieved by Croatia's nautical tourism ports amounted to 857 million kuna, while the average guest spends a handsome 183 euros per day on a charter vessel, which is more than twice the daily consumption of the average Croatian tourist.

''Money is not only spent on boats, but on all other forms of tourism, and more than 30 percent at that; from culture, sport, entertainment to gourmet and gastronomic offerings, Kovačević pointed out, adding that all these are parameters that speak volumes about nautical tourism in the Republic of Croatia as the country's most dynamic tourist offer and has enormous potential. However, Croatia also needs to make sure to take wise steps to direct the further development of this branch of tourism.

HGK's Paško Klisović pointed out a number of problems facing members of this association, as well as the Croatian nautical tourism sector itself.

''Part of the problem can be solved by better promotion on some markets, especially in the United States. We need to motivate Americans to come in larger numbers, at least as far as Croatia's nautical tourism is concerned. Existing markets are stagnating because we've reached the limit. Last year, our fleet grew by seven percent, and the number of guests grew by less than two percent. The fleet will grow this year, and we will be happy to repeat the past. We're somewhat concerned about the fact that, as far as bookings are concerned, Greece has become the most sought after charter destination. These are the trends and we need to make the right moves,'' stated Klisović.

The conference also discussed new regulations for nautical tourism, the prevention of unregistered activities, as well as the overall sustainability and safety of nautical tourism.

Make sure to stay up to date by following our dedicated lifestyle and travel pages for much more. If it's just nautical tourism and sailing in Croatia you're interested in, give Total Croatia Sailing a follow.

ZAGREB, April 11, 2019 - The energy sector can be the driver of Croatia's investment development, so it is important to have a good energy strategy, the head of the Energy and Environmental Protection Division at the Croatian Chamber of Commerce (HGK), Marija Šćulac Domac, said on the occasion of the Energy Democracy Summit, the HGK said in a statement on Thursday.

The summit is taking place in the northern coastal city of Pula from 10 to 12 April and has brought together over 400 participants from 14 countries.

The idea of energy democracy implies the highest level of responsibility for the future of the planet through energy policies, technological development, international and regional cooperation, and vision, the statement said.

"The energy transition on which we are embarking is not just an energy and economic issue, but also a major social and political issue. The importance of energy for economic activity and growth is unquestionable. It is to be expected that the energy sector will be the main driver of Croatia's investment development with a series of projects that will come not just from public companies but also from the private sector. That's why it is very important to have a good energy strategy," Šćulac Domac said.

Ortal Elbaz, Consul at the Israeli Embassy in Croatia, said that her country, which is the partner country of the energy summit, had once been an energy importer and the situation had changed after the discovery of natural gas sources in the Mediterranean.

The summit will discuss the wider regional context of the complexity of the energy sector and supply security, with emphasis on the priorities of Croatia's energy policy by 2030. Among the key issues are the institutional framework in the energy sector, the implementation of short-term sectoral measures aimed at encouraging growth, the launch of medium- and long-term measures in specific energy subsectors, and the promotion of the advanced energy network.

More energy news can be found in the Business section.

As Morski writes on the 3rd of April, 2019, what has been happening with prosciutto for the past three to four years is truly spectacular. Due to its superior properties and specific traditional production technology, Croatian prosciutto producers have stumbled upon some great export potential and even more potential for the product's better placement in Croatian tourism through the country's already rich gastronomic offer.

When compared to five years ago in 2014, exports have increased in quantity by fourteen times, and perhaps most importantly, in value eleven times. Approximately 88 percent of total exports go to the EU market, and just over eleven percent go to CEFTA countries.

''The latest 2018 statistics show an increase in exports of shank and aitchbone products by nearly sixty percent, but unfortunately, we still don't even cover a third of imports. We need new investments and we need to invest in new prosciutto production capacities to double our production, and 700,000 pieces annually to at least meet the needs of the domestic market,'' said Dragan Kovačević, vice president of the Croatian Chamber of Economy for Agriculture and Tourism, at a press conference announcing the event Days of Croatian Prosciutto.

Ante Madir, Executive Director of the "Hrvatsko pršuta" (Croatian prosciutto) cluster, which brings together producers responsible for 95 percent of the total prosciutto production in the Republic of Croatia, explained more precisely what awaits Croatia on the fifth Days of Croatian prosciutto, which is being held from the 26th to the 27th of April at the Zagreb International Hotel this year.

''On the first day, we'll have a manifestation with round tables and workshops, the expert part of the gathering, and the second day at Ban Jelačić Square, there'll be a show-selling part where people can taste our prosciutto,'' Madir said, adding that they decided on Zagreb because quite a large market and a high demand for the product can be found in the Croatian capital.

"What's been happening with prosciutto over the past three to four years is truly spectacular. The signs of protection (special labels) are our tickets to the wider European Union market, that's very important for being able to [have our products] arrive to shop shelves. In Croatia, we still need to work on presenting [our products] to consumers to have them pay more money for something which is domestic and specific,'' said Igor Miljak, chairman of the PPK Karlovac meat industry, stressing that Croatia still doesn't have key gastro brands that are recognised on the European or global market, but it definitely does have the quality to be able to cope well with the competition.

Ana Babić from Voštane pršut, a representative of the Association of Dalmatian Prosciutto, explained the difference between Dalmatian and Istrian, or more specifically Krk prosciutto.

''Dalmatian prosciutto is smoked, while Istrian and Krk prosciutto isn't. There are no additives or preservatives in its production, and the process itself lasts for at least a year,'' Babić explained, adding that the tradition of Dalmatian prosciutto production draws its roots from as far back as ancient Roman times.

Drago Pletikosa of Belcrotrade and the president of the Association of Drniš pršut stressed that Drniš prosciutto is a little and is therefore certified, although there is no difference between Drniš and Dalmatian prosciutto when it comes to the production process itself.

''Last year, we imported 3,848 tons of products worth more than 21.5 million euros and exported 1.113 tons (6.5 million euros). Compared to 2014, exports have increased in quantity fourteen times, and by value eleven times. Approximately 88 percent of our total exports go to the EU market, and just over eleven percent go to CEFTA countries. We export the most to Slovenia (35.5 percent of total exports) and to Italy (28.1 percent),'' stated Pletikosa.

''This event brings together and promotes prosciutto producers from all over the country, whose products are protected by a stamp of designation of origin, and labels of geographical origin (Krk, Dalmatian and Drniš prosciutto) at the EU level,'' stated the Croatian Chamber of Commerce (HGK).

Quality labels for consumers guarantee the purchase of authentic and properly controlled products, with recognised quality and a local origin. Protecting products without educating consumers and business partners about its proper valuation has no great benefit. Therefore, this event contributes to the strengthening of the recognisability of these Croatian meat products with higher added value and a better market positioning, all with the aim of developing the wider Croatian economy.

Make sure to follow our dedicated business and Made in Croatia pages for much more.

As Bernard Ivezic/Poslovni Dnevnik writes on the 14th of March, 2019, the Austrian capital of Vienna boasts as many as 5,830 IT companies currently in operation, which is more than are in operation on the entire territory of Croatia.

The Croatian Chamber of Commerce (HGK) took with them as many as 32 Croatian companies, mostly from the IT sector, to Vienna's fifth international B2B Software Days.

Among them, the conference was participated in by King ICT, Megatrend business solutions, Mediatoolkit and Ekobit. Tajana Kesić Šapić, the director of the Croatian Chamber of Commerce's industry sector, said that the visit was organised in cooperation with the Austrian Chamber of Commerce, Advantage Austria, and the European Entrepreneurship Network who are interested in the Croatian IT sector.

"Over the last five years, IT companies' revenue in Croatia grew by 7.4 percent, and exports rose almost twice as fast, to 11.3 percent per year," stated Kesić Šapić.

Although the startup scene in the Croatian capital of Zagreb has been ''coming to life'' over the last few years, the same sector in Austria's capital city has been growing stronger at double Zagreb's rate. In Vienna alone, there are more IT companies than are in operation in the whole of the Republic of Croatia, an impressive 5,830 of them.

Vienna is investing more than the equivalent of a quarter of a billion kuna per year into the city's startup scene, and just like in Zagreb, the city readily provides all the necessary support for the free establishment of startups, up to half a million euros worth.

Goran Mrvoš, director of Infosite, one of the Croatian IT companies at the fair, said that in Vienna he realised that the overall awareness of digitalisation in Croatia was low, and that it created a market advantage for foreign competition.

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

Click here for the original article by Bernard Ivezic for Poslovni Dnevnik

Investment in Croatia is at an all time low. With the phrase ''ABC'' having become the term for ''Anything But Croatia'' in investor circles, the country needs to do some serious work in order to redeem itself. In order for Croatia to become much more attractive to foreign strategic investors, more concrete and clear steps need to be taken, and high on the agenda lie the proper preparation of public finances and more legal security.

As Ana Blaskovic/Poslovni Dnevnik writes on the 21st of February, 2019, despite dramatic headlines, the economy is growing and Croatia's level of public debt is falling. It is commonly forgotten that Croatia is growing at a pace below three percent - the slowest of all. Neighbouring Slovenia experienced 4.9 percent GDP growth, Hungary experienced growth of 4.1 percent, and Bulgaria saw 3.8 percent growth. There's no such great wisdom to be spoken of in Croatia's case here, the economy will grow as much as it has, or is given, the power to do so, and its momentum is the only thing that can make Croatia look much more friendly to investors, a move it desperately needs to make.

Even if there was a real willingness and the capacity for proper reforms existed, which are both evidently lacking, the key question is what moves should be made first to garner the fastest results in terms of investment in Croatia.

In that regard, there are no real dilemmas in the mind of respected economist Velimir Šonje, and what needs to be ensured are business climate reforms which include the Doing Business Report of the World Bank's recommendations for Croatia.

"By moving to around number 30 on the Doing Business Report, we've entered the club of countries like Poland, we're visible on the Eastern European map (which isn't the case today) and we have a marketing tool to attract investors," said Šonje, adding that these concrete measures would have a direct impact on Croatia's ability to properly facilitate business and investment, such as issuing building permits or reducing the number of steps required when paying taxes.

At the very top of the Croatian Government's priorities lies the transparent privatisation of state-owned companies through their listing on the stock market within the wider revitalisation plan of the capital market in order to better stimulate foreign investment in Croatia.

"It's no accident that investments are at a relatively low level since the capital market has died in Croatia. Without its revival through several major privatisations and listing and strengthening programs to attract medium-sized businesses in some of the simpler stock quotes, there will be no better investments, as capital market development has positive spill-over effects and attracts the interest of foreign investors,'' stated the esteemed economist.

Following the liberalisation of the internal market, the strengthening of the protection of equal market competition (so that there are no already protected existing players), the transparency of public procurement and the abolition of parafiscal charges and other obstacles to strengthening competition, especially in the service sectors where there are significant area of potential such as the health, education and IT industries,''

When it comes to better attracting investment in Croatia, the proper and decent handling of public finances also ranks very high on the list of consultant Andrej Grubišić from Grubišić and partners, with a very specific goal.

"It's necessary to reduce government spending, ie, a 30 billion kuna budget over a five-year period, and thus leave more money to a private initiative that will drive the development of small and medium-sized enterprises for their own economic interests (independently and without the help of the state),'' said Grubišić. This would become more attractive for investment by foreign strategic investors through takeovers and/or recapitalisations through which intensified internationalisation would continue.

The hope is that the state will cease their classic style of favouring particular sectors or industries, such as IT or renewable energy sources, as this approach almost always promotes unwanted crony capitalism. Moreover, treating everyone in the same way is a clear signal to a foreign investor that he does not have to fear that his industry will be considered less desirable tomorrow and lose his privileged status to someone else who is deemed closer to the wishes of the political elites and those who are better lobbied.

In this context, there is a real need for adequate judicial protection. In the Croatian Chamber of Commerce (HGK), the emphasis is placed on attracting investors to production and opening up an investment space that would be geared towards the design of high value added products, investments in research, and in development and exports.

"We need to create a business climate that will stimulate domestic entrepreneurs, thus creating the conditions for the stronger engagement of foreign entrepreneurs and investments in Croatia," stated HGK's Luka Burilović.

He added that entrepreneurs have the most objections in the area of ​​legal certainty, justice, taxation and public administration.

"Here we can take the appropriate concrete measures that could immediately show results. Investors are becoming more demanding, they're looking for solutions, not just locations. One of the options for a change of approach is to put the focus on Croatia's "portfolio", and not on the entire territory,'' Burilović stated.

When asked how Croatia will look in the eyes of an investor, the answer remains very the same according to Burilović: "We're relatively unknown to investors, we don't have a brand built, and we're mostly recognised as a tourist destination,''

Make sure to stay up to date with our dedicated business and politics pages for much more on investment in Croatia.

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

ZAGREB, February 18, 2019 - Several Croatian companies are presenting their products at the IDEX defence industry exhibition in Abu Dhabi from February 17 to 21, the Croatian Chamber of Commerce (HGK) said on Monday. The Croatian companies exhibiting at the world's largest defence industry show are Šestan Busch, Galeb, Agencija Alan, DOK-ING, Odjeća and Čateks.

One of the novelties of the exhibition is that it includes more and more dual-purpose products, or those that can be used for both civilian and military purposes, the HGK said.

The HGK vice-president for industry and energy, Tomislav Radoš, said that Croatian defence companies are known as reliable suppliers of high quality products and that their exports exceed 100 million euro.

"Imports of goods designed for military use and non-military ordnance were reduced from 70 million euro in 2016 to 27 million euro in 2017. Recently, 34 domestic producers signed 314 million kuna (42.4 million euro) worth of military equipment procurement agreements for the Croatian armed forces. This speaks enough of the quality and standards that our producers have reached," Radoš said.

The IDEX show is expected to attract 1,200 exhibitors, 170 official delegations and over 100,000 visitors from some 60 countries.

More news on defence issues in Croatia can be found in the Politics section.

ZAGREB, January 20, 2019 (Hina) - Croatian winemakers are presenting their products at the 84th International Green Week fair in Berlin, which is taking place from January 18 to 27.

Thirteen Croatian companies are exhibiting their products with the support of the Croatian Chamber of Commerce (HGK) and the Ministry of Agriculture.

"Half a million visitors and a turnover of nearly 50 million euros generated through direct sales at the fair show that International Green Week is one of the most important events for the agricultural sector. This is an exceptional opportunity for Croatian producers to present their quality and expand to new export markets," HGK president Luka Burilović said at the opening ceremony.

With the aim of branding Croatia as a wine country, the HGK organised a promotional evening on Saturday to present Croatian wines to highly-regarded Berlin restaurant owners.

In 2017, Croatia exported 786 tonnes of wine worth over 2 million euros, while in the first nine months of 2018 exports exceeded 700 tonnes to reach the value of 1.9 million euros, the HGK said.

Croatia will be the partner country of next year's Green Week.

More news on the Croatian wines can be found in the Lifestyle section.

ZAGREB, January 17, 2019 - The adoption of the euro will benefit Croatian enterprises but will not resolve structural problems of the national economy, the chairman of the Croatian Chamber of Commerce (HGK), Luka Burilović, said on Thursday, calling for extra efforts to minimise the structural weaknesses of the economy before joining the common currency area.

"We see prevailing benefits of the adoption for our enterprises, but we must keep in mind that the adoption itself will not resolve the structural problems of the economy and that it is in our own interest to join the euro area as strong and stable as possible," Burilović said in a statement, commenting on the advantages and disadvantages of euro adoption.

That's why it is necessary to step up efforts to minimise the structural weaknesses of the Croatian economy in this pre-accession phase, he added.

Burilović noted that the Croatian economy is closely tied to the euro-area economy because euro-area member states are Croatia's most important trading partners. Two-thirds of Croatia's trade is done with the 19 members of the euro area, which also account for 66 percent of foreign direct investment in the country.

The Croatian tourism industry depends on visitors from the countries with the European currency, who generate about 70 percent of all tourism revenues and about 60 percent of tourist bed-nights in Croatia, Burilović said and added that the Croatian financial system is also highly euroised.

He said that it is much easier to do business and reduce business risks in a system in which revenues and obligations are in the same currency.

"That's why the principal benefit of the euro adoption for the Croatian economy is removing the currency risk," Burilović said, noting that at present the main instrument of monetary policy is to maintain the stability of the kuna exchange rate.

Another positive aspect of the adoption for Croatian citizens would be lower interest rates and more favourable borrowing conditions. Interest rates would be closer to those in the euro area, which are currently considerably lower than in Croatia, despite the fact that they are generally low.

Burilović said that the adoption would also provide a boost to exports and employment growth. "Lower capital costs and export risks and the removal of exchange-rate differences will make exporters more competitive," he concluded.

Earlier this month, European Commission Vice-President Valdis Dombrovskis said that Croatia was very seriously and intensively working on euro adoption and that the process of its accession to the euro area would be similar to that of Bulgaria, which has already sent in a letter of intent.

More news on the introduction of euro in Croatia can be found in the Business section.