July the 2nd, 2021 - The Croatian events industry has finally been given the green light to gradually return to some form of normal, following a horrendous period of uncertainty and depression as a result of the coronavirus pandemic, but at what cost?

As Poslovni Dnevnik/Marija Crnjak writes, 100 people are allowed to be gathered together following yesterday's new changes, and even more people can come together if they have their digital certificates. This will finally facilitate the holding of various business and entertainment events, but provisions are in force that will significantly affect the financial structure of participants and organisers.

When it comes to the Croatian events industry, particularly business events, such as conferences and the like, it is still forbidden to set up sponsor stands, which is important for the income of the events. When it comes to ''fun'' events, clubbing will be a very expensive thing to engage in for guests this summer, because when entering each of these events they will need to prove that they have been vaccinated or pay for a fresh covid test each time.

As of July the 1st, the application of EU digital certificates for travel within the European Union also officially started, but the freedom of travel that these certificates were supposed to bring has already been called into question, as some countries have introduced quarantines due to the emergence of the Delta virus strain, rendering those apparently now somewhat empty promises void.

New rules

As is now known, new epidemiological measures to prevent the transmission of the novel coronavirus, which mostly concerns gatherings and public events, came into force in Croatia on the 1st of July, 2021. As of that date, a ban on holding all public events and gatherings attended by more than 100 people in one place is in force, unless it is a public event or gathering attended only by persons with an EU digital covid certificate and with permission from the powers that be.

Public events and gatherings and ceremonies of all kinds may last until midnight, unless it is a public event or gathering attended only by persons with a covid certificate. The rules on the sale of alcohol remains in force, and catering and hospitality facilities will only be allowed to serve guests if they're seated. Facilities registered as night clubs, night bars, disco bars and disco clubs from the category of bars are allowed to work and serve all guests without restrictions on working hours, but only in open spaces and provided that entry to their premises is allowed only to persons who present a covid certificate.

Conferences and congresses attended by up to 100 people may be held in compliance with all of the current anti-epidemic measures, but the suspension of fairs and other forms of economic and tourist events or events where products are sold, exhibited or displayed indoors remains in force. This is exactly the provision for which the Croatian events industry and various event organisers have been trying to get an exemption over recent days.

"It's good that we can finally work with more than 25 people, which was valid until July the 1st for our industry, while, let's say, cultural events had much more relaxed measures, although these are very similar forms of gatherings. A significant problem, however, is that we won't be allowed to have sponsor stands, which can easily be organised in compliance with all of the measures. We've warned the representatives of the Ministry of Tourism several times about this, and they're our address in communication with the National Civil Protection Headquarters, but so far we haven't received any response from the Ministry,'' revealed Jasmina Bilac, President of the Business Tourism Association at the Croatian Chamber of Commerce (HGK).

In the entertainment industry, more or less all guests will have to pay for covid tests, because many younger people still haven't managed to get vaccinated.

Boris Suljic, the owner of the clubs on Zrce beach, points out that Novalja has prepared for that, and organised a kiosk for rapid tests that will be carried out by the Medico health institution from Rijeka.

“Entry to clubs will be possible for those who have proof that they've been vaccinated, have a negative test or have proof of having recovered. We've prepared at Zrce with a kiosk for rapid tests for guests, and so we'll function like that in the next fifteen days. Namely, until then, these measures are valid, we don't know what will happen next, and this lack of certainty continues to be the biggest issue for us,'' stated Suljic.

At more or less 100 kuna for a rapid antigen test for each entrance to the club, 550 kuna for a PCR test and 650 kuna for a rapid PCR test, guests aren't going to be particularly happy with this summer's offer from the Croatian events industry, which has been among the worst affected.

For more, follow our lifestyle section.

May 3, 2020 - The biggest Croatian companies in events, sporting events, concerts, and festivals have sent a letter to Economy Minister Darko Horvat, Tourism Minister Gari Cappelli and Culture Minister Nina Obuljen Korzinek asking if they can expect measures to be loosened this summer or to forget about Croatian events entirely this season.

Slobodna Dalmacija writes that one entrepreneur said that he and his colleagues are aware of the situation, do not want to endanger the health of visitors and their employees, but also add that waiting and uncertainty are the worst possible option.

Namely, they cannot plan anything, do not know whether they should hire or fire employees, and that their situation is unsustainable. They have to pay their debts and their current income is zero. The uncertainty is also shared by the thousands of workers permanently or seasonally employed by this industry.

Therefore, they want an answer as soon as possible: Is the upcoming summer season of festivals, sports, cultural and other events canceled or is there still a chance that smaller and larger gatherings will be allowed?

If it is not canceled, they ask for a guideline of loosening the measures, as soon as possible, because events are also being prepared several weeks/months away. If everything is canceled, then they will try to survive and somehow save their jobs.

"Within the Voice of Entrepreneurs Association, an Event Committee has been set up to bring together all entrepreneurs, craftspeople and sole traders living from the event industry, or all of whom have been unable to work due to the ban on public gatherings, without any indication of when relaxed measures will occur. The Croatian event industry has about 2000 entities, employing 10,000 people and making more than HRK 4.5 billion annually. In the crisis caused by the coronavirus, the entire event industry is the first to be disabled when public gatherings are banned, and will be the last industry to start operating.

The ban on public gatherings directly threatens all culture, festivals, theaters, conferences, concerts, performances, clubs, performers, DJs, congresses, sporting events, and weddings, but also related businesses such as equipment rental companies, hall and venue owners, photographers, and everyone else who lives in the event industry, whose gradual opening will be the last in a row," say the group of entrepreneurs, including those organizing festivals and events such as Ultra Europe, SeaStar, Fresh Island Festival, Weekend Media Festival, ATP Umag, Seasplash, Outlook, Ferragosto JAM Festival, Garden and more.

The owners of various objects and companies are also included: Papaya Zrće, Aquarius Zrće, Nomad Zrće, Noa Zrće, Kalypso Zrće, Dallas, RTL music, Scardona music production, Aquarius Records, Tvornica Kulture, Boogaloo Event and many others.

Therefore, Slobodna Dalmacija has asked the National Civil Protection Headquarters, the Croatian Institute for Public Health, the Ministry of Tourism and the Ministry of Culture, and the Tourist Board to address them at the request of entrepreneurs in the entertainment industry.

The Headquarters replied:

"We believe that it is extremely important for the organizers of major events to know whether these events can be organized or not, but unfortunately, at this time, it is impossible to predict the epidemiological situation in Croatia this summer and what measures will then be in force."

So, nothing is known yet.

However, this response did not satisfy the entrepreneurs, who sent their requests to the Government and ministries.

"We consider these emergency measures crucial for the survival of the Croatian event industry:

1. Urgent Adoption of a Plan - a guideline for loosening the measures for banning public gatherings, especially for events of up to 100, 300, 500 and 1000 or more visitors. We believe it is important that smaller events of up to 100 people start their work as soon as possible, since they are not riskier than i.e., large shops, religious gatherings, etc. In addition, it is necessary to define the expected protection measures at public gatherings in event industries so that we could begin to prepare adequately. We ask the Government to urgently announce the date before which major events (over 1000 people) will certainly not be allowed, so that the organizers have a legal basis for postponing or canceling the event and minimizing costs.

2. Extension of HZZ measures for companies most affected by the corona crisis, which particularly applies to companies from the event industry that will be most disabled for work, for an additional 3 + 3 months or a total of 3 + 3 + 3 + 3. Companies that continue to have a turnover drop of more than 70% over the same quarter last year may qualify as extended measures, that is, those who are extremely affected.

3. Extend the voucher system to event tickets - We ask that changes already integrated in Art. 38a of the Law on Provision of Tourism Services, which relates to issuing vouchers, i.e., deferring money for package arrangements, including tickets for events (concerts, festivals, conferences), because the organizers of eventss are similarly endangered and are essential to the same illiquidity problem. We suggest that the voucher issued can be redeemed within 365 days of the event being delayed for the same or another event by that organizer. If the buyer does not match it, he/she may receive a refund within 30 days after the expiration of 365 days from the date of the delayed event.

4. Relaxing the terms of HAMAG's COVID-19 loans for smaller companies by extending the loan period from 6 to 12 months, so that smaller companies can survive the extended period with the loan obtained. In addition, it is extremely important to increase HBOR's COVID-19 loan pool and relax the conditions so that it includes all the businesses at risk, so that the companies that live from the event can apply," the entrepreneurs say.

Slobodna Dalmacija also requested a comment from the Croatian National Tourist Board.

"The Croatian National Tourist Board is primarily responsible for the promotion of tourism in the country and the world, and so far we have supported a number of music festivals in the country, which enrich the Croatian tourist offer and result in the arrival and overnight stay of more tourists in the destination.

Whether major events, festivals and events will take place this year, the epidemiologists and the National Headquarters will say, because the health of all domestic and foreign guests remains a priority.

At the same time, at this moment, it is not known yet when and under what conditions tourists will be able to enter our country. What is important to emphasize is that such a decision will not only depend on Croatia, but also on when other countries will decide to open their borders for the entry and exit of tourists from the country.

There will certainly be specific security protocols that we will all need to abide by," said Kristina Mamic, the Director of the Office.

Tomo in der Mühlen, President of the Creative and Cultural Industries Association of the Croatian Chamber of Commerce (HGK), is aware of the gravity of the situation in the Croatian event industry.

"The HGK's Creative and Cultural Community brings together more than 7000 companies. Creative industries have been hit hard by this crisis, and it is evident that no measures have been devised to date to address the adverse effects of the music industry, media, cultural events and many other areas of the creative industries," quotes in der Mühlen.

The filming of all television formats that cannot meet the rules of social distance has been suspended. Because these are expensive productions, losses are measured in millions of dollars, and it is evident that the only thing that works right now is purely informational formats in which there is almost no marketing.

The same is the case with the production of radio programs - namely, radio stations are mostly financed through local marketing, which is almost non-existent at these times. The music industry is affected because there are no public appearances and clubs and festivals are left without 100% of income, and it should be emphasized that festival tourism, which involves music artists, is a significant segment in Croatia's overall tourism offer," says in der Mühlen, noting that government measures have not covered these specific areas, especially businesses that employ a significant number of seasons engaged in clubs and festivals, which they bring in a considerable number of tourists from around the world under normal circumstances.

These crises will have a long-term adverse impact on the creative industries, especially considering that copyright royalties will only go into crisis next year, as payment is made now, and this year's royalties will only be paid next year, when there are likely to be no measures," states in der Mühlen, noting that it is possible to allow further TV and radio productions to proceed immediately, while respecting social distance measures. Namely, according to him, these are not large groups of people, and since they come from a relatively closed circle, they can be easily controlled.

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