Tuesday, 21 April 2020

Gari Cappelli: Croatian Tourism Will No Longer be the Same

When it comes to the hospitality industry and the closing of restaurants across Croatia, Croatian Tourism Minister Gari Cappelli says he feels no guilt.

As Poslovni Dnevnik writes on the 21st of April, 2020, Tourism Minister Gari Cappelli explained just how the Republic of Croatia is heading for the upcoming tourist season after the coronavirus epidemic.

"We did most of this last week. Now it's up to the epidemiologists to sit down together and brush it up to the finest detail. We, from the profession, sorted out every detail, and everyone sitting at the table did their bit. However, since this is an impossible situation, everything we plan to do in this way can collapse within 24 hours. However, our goal is to do it all,'' Gari Cappelli told Nova TV.

He said that state bodies are already meeting with Czech secretaries who want to close their borders for a year.

When asked how Croatia will attract guests, Gari Capelli says there is a prepared programme for that. "Next week, the Council of the Tourist Board will give it the green light and we'll be ready when we go into negotiations with any country to invest in PR marketing about things to do with security that are happening in Croatia,'' said the Minister of Tourism.

"You can see the benefit the Civil Protection Headquarters have brought about, the whole epidemiological situation and the people who worked hard [on Croatia's anti-epidemic measures], the Government that listened and did what it needed to. We've been recognised throughout Europe and the world, especially our neighbours, for controlling the situation and being a safe country. That's why people want to come. This is proof that the Government has been able to control the situation,'' Gari Cappelli said.

As touched on above, when it comes to the negative effects on the Croatian hospitality industry and the closing of the country's restaurants, the minister says he feels no guilt about it. "It doesn't matter now who is guilty or not guilty. Today, at the meeting, we addressed all the details of who and what was needed, the epidmeiologists gave us a more detailed explanation of what to do in the food industry,'' Gari Cappelli stated.

When asked about plexiglasses between tables at restaurants, Capelli said that after the epidemic, nothing would be the same again. "That must be made clear. We won't be able to even go onto a tram without a mask,'' the minister said.

He added that his ministry had made several suggestions regarding the hotel industry and how to what extent it would be able to accommodate guests. "We'll take things one step at a time, first, we'll open the facilities and maybe start with 30 percent of these strict measures," he explained.

"Tourism will no longer be what it once was, nor will I lives be what they once were. Things will be different, things will be done more carefully. Unfortunately, we may need to hang out less. Life will change, tourism will change. We'll have to get used to it, and in that direction, we'll work on marketing and all other actions,'' said Gari Cappelli. He pointed out that those in the catering and hospitality industry and all others working in Croatian tourism will be informed in due time of any new decisions and new measures.

When asked what might open first, Gari Cappelli said they are mainly committed to outdoor activities at this moment in time, such as nature parks and campgrounds.

Make sure to follow our dedicated coronavirus section for all you need to know in relation to Croatia.

Monday, 20 April 2020

Croatian Inspectors Seal 20 Restaurants Contrary to Tourism Ministry Instructions

April 20, 2020 - Glas Poduzetnika demands to enable the operation of Croatian entrepreneurs' restaurants.

The sad fact is that we became a slave nation that, through its supervisory activities, in an unprecedented situation in modern history, punishes small businesses who are trying to maintain work activity and keep job positions while letting global corporations work through drive-in facilities.

Yesterday, we received information about a large number of closed facilities due to the distribution of food in front of the objects or the food brought to the customer's car. As per their records, the decisions state the violation of article 9a of Hospitality and Catering Industry Law, i.e., "performing the activity contrary to the decision of Committee for Civilian Protection of Croatia (CZRH)."

"Yesterday, state inspectors banned work for 30 days and sealed off more than 20 restaurants in Zagreb, Rijeka, and other cities due to the handing food to the customers in front of the restaurant. Restaurants Tekka, Rustica, Čingač, and many more had to close. "This procedure will cause the additional unnecessary loss of several hundred jobs," said Vedran Jakominic, a member of the Board of Directors of the GLAS PODUZETNIKA Association and Vice-President of the National Hospitality Association. "Immediately after the decision of the Committee for Civilian Protection, a request was sent to the Ministry of Tourism related to this particular situation, and an official response was received at 15:20 h on 19th March 2020 stating the following: The customer can personally pick up the ordered food on the doorstep of the object or in its immediate vicinity. Regarding the queries on further interpretation following the inspection procedures against the instruction from the COMPETENT MINISTRY, CZRH did not respond, although the Committee's coordinator Mr. Karas on 2nd April 2020 pointed out the importance of clear and unambiguous interpretation of instructions, which would also be required from the Committee. All the listed restaurants acted per the instructions of the Ministry of Tourism and followed all security protocols, for which we have the documented correspondence."

The inevitable conclusion is that the formation of the Inspectorate which collectively assumed the responsibilities of inspection supervision in the name of the competent ministries was a rash decision without secured competencies since the Inspectorate acted contrary to the only valid interpretation of the instructions of responsible Ministry, which is superior to the Inspectorate. Upon the foundation of the Inspectorate, it was promised that all relevant regulations would be clearly stated on their website before they would enter the service. However, this promise was not fulfilled. It was guaranteed that the Inspectorate would primarily have the advisory role whose first step would be to warn on irregularities.

However, in the most challenging moment for small businesses, the Inspectorate does just the opposite and adds a new level of uncertainty to the plate of ever-exposed entrepreneurs. We have a gradual normalization with additional conditions ahead of us. Can we trust the Inspectorate that they will ensure uniform and precise treatment in the interests of all citizens, and even those who pay taxes? Actions per all available information were followed by a "reward" of 30 days of the closed object and a still unknown amount of the fine.

Entrepreneurs, do you feel protected? Do you feel calm and safe when representatives of Inspectorate, tax authorities, customs authorities, or representatives of the Ministry of Internal Affairs come to your premises? When they come to your battered offices, where you spend most of your working day and make every effort to do everything by the law, accounting by the rules? Do you feel safe and protected when you need advice, suggestions, or when you read laws that concern you? Do you have the confidence that when you do at the best of your abilities, per everything you have learned, when the authorities who are here to ensure the functioning of society on our behalf come, that they will correct you where you are wrong, refer to protocols and procedures, and explain the unknown?Article 49 of the Croatian Constitution says: "Entrepreneurial and market freedom are the basis of the economic structure of the Republic. The state provides all entrepreneurs with an equal legal position in the market. Monopolies are prohibited. The Republic contributes to the economic progress and social well-being of its citizens and takes care of the economic development of all its regions."We crave Croatia 2.0, where the work of the state and its bodies will be to carry out joint affairs of its citizens, following the Constitution of Croatia and for the benefit of all its citizens equally.On this occasion, UGP demands the removal of inspectors responsible for such actions, and their superiors who gave them such a task, from the service. They should be assigned to jobs according to their real abilities or finally share the fate of those in whose interests they should work, and become part of the statistics of the unemployed.

Why are we requesting this? For acting contrary to the instructions of the competent Ministry and for not reporting possible misinterpretation of the instructions, not asking for a correction, and not informing people who risked their health on the spot acting contrary to the advice of the epidemiological service. Because they were either arbitrarily punishing in this insane situation, or if they didn't, they allowed thousands of restaurant employees across the country to work outside the safety conditions provided by the expert team of people who are managing this crisis.We insist on the immediate annulation of all fines in these and similar situations, and on ensuring conditions for safe work in facilities. Besides, we demand that public sector employees include a novelty in their actions, which is the work in harmony and cooperation with entrepreneurs, rather than harassing, humiliating and punishing people who not only feed the private sector but provide for the National Treasury as well.

***

The GLAS PODUZETNIKA Initiative started as a citizens' self-organized group, most of which are small entrepreneurs, after the announcement of the first set of Government's measures, which the organizers deemed insufficient. The Initiative assembled more than 100,000 entrepreneurs, small business owners, self-employed, and the employees in the private sector in less than 15 days, drawing the media spotlight with its uncompromising requests and appearances. Considering this, GLAS PODUZETNIKA positioned itself as a relevant factor in public discussions aimed to determine Croatia's new economic direction. Its position was also confirmed by the Government of the Republic of Croatia, having included some of the Initiative's suggestions in the second set of economic measures, thus confirming Initiative's undeniable influence. At the request of the Initiative's members, the GLAS PODUZETNIKA Association was created and received more than 6,000 applications for membership until this moment.

To follow the latest from the Glas Poduzetnika initiative, follow them on Facebook

Sunday, 19 April 2020

Tourism Minister Gari Cappelli on Restarting Businesses, Private Renters, and More

April 19, 2020 - Croatian Tourism Minister Gari Cappelli talks about what Croatian tourism can expect this year and the measures in place to save the country's tourism industry. 

Tourism was the first to be hit by the coronavirus crisis. At the moment, everyone's primary goal is to survive. Whether or not there will be tourism, no one dares to forecast at the moment. However, some measures and instructions have been announced to restart business activity. In doing so, expectations are primarily on domestic guests. 

Croatian Tourism Minister Gari Cappelli explains further in an interview with Novi List, with excerpts transmitted in English below. 

How will businesses restart when the measures are loosened?

"In the coming week, we will know by sectors what can start first and how. At the moment, we believe that the first tourist traffic can be launched in segments that are actually more isolated, for example, holiday homes, i.e., private accommodation, then accommodation in smaller areas or outside major and urban destinations, and with the right prices, something can certainly be done in nautical tourism. There are also, for example, camps. So anything closer to nature, which still allows for some social distance and reduced contact with other people. However, the basic prerequisite for us is opening internal traffic and the issue of borders, especially for our important auto-destinations. Ultimately, we still have facilities that work like some hotels.

Among other things, we will also propose that in hotels, every third or fourth room would be open to guests. With the guests leaving, they would be left empty for a few days to be cleaned and disinfected according to the recommendations of the epidemiologist. At that time, a part of the rooms that were previously empty would be used; therefore, at any one time, a third or a quarter of the capacity would be available. Basically, there will be a lot of work to be done on security. One of our suggestions will also be to be among the first to open travel agencies where there will certainly be no invasion and I do not see a problem for tourists to enter the space one by one. Or into tourist boards. Also, we need to be aware that when things are up and runnning, there will not be five people at the table, but two, that not every table will be available, but every second or third. These are all suggestions we are putting on paper and are sitting down with epidemiologists to see what can be done and how. The reality is that it will be good to start anything. But I see that the experts have responded positively to this and want to talk about trying to do something at least. In this regard, we will send our proposal to the Government within a few days."

You have been analyzing a drop in traffic of 60, then 75, and in the worst case, more than 90 percent. While there is currently nothing to forecast, what are your reasonable expectations?

"We hold that at the moment, it may be the most realistic drop of 75 percent. So, to be able to accomplish 25 percent or less of last year's activities. I'm not ominous, but as the Prime Minister said, we want to speak very clearly and openly. Therefore, very frankly, if I expect business activity, then I expect it only after August 1, primarily in the domestic market, and it will be good if there are foreign guests at all. Certainly, foreign owners of houses and vessels on the Adriatic will have the most interest, be they Austrians, Slovenes, Germans, Hungarians or Czechs. They will be the first to look to Croatia. Information from the field, specifically from the marinas, indicates that foreign owners gave orders to take their ships out and prepare for navigation as if they were coming to the Adriatic. And maybe something positive can be done with charter people. Namely, the guest comes directly to the marina, to the ship with a car, and does not have to enter any marina at all. But all this clearly depends on other countries and their rules on leaving the country, returning to the country and the like. We cannot influence it, and I have no illusions here."

You have said that this year, the most is expected of local guests if the movement of people is allowed.

"In 2019, we had about 2.2 million arrivals in commercial accommodation with domestic guests, and from these data, it can be seen that the percentage of domestic guests was still negligible - about 12 percent. If we are talking about tourist overnights, we are talking about some 7.3 million commercial overnights of domestic guests. Clearly, in camps, for example, they were small, about four percent, while most were recorded in family accommodation."

What measures are being prepared for local guests? Like the Cro card?

"The Cro card, which is something that we have already prepared in the previous circumstances, will be reprogrammed and we will try to help the domestic market. So, the card is almost ready to be used, say from July. Namely, it is difficult to say that anything will go before that, it is much more realistic to talk about August and September as far as domestic guests are concerned. However, the card will be ready in any case. We will reprogram it so that it can be used in restaurants, hotels, private accommodation as well as agencies. Therefore, agencies will also be able to do certain programs, clearly for Croatia. You can use the Cro card explicitly for payment in Croatia and not for payment abroad."

What is the burden on the tourism sector through the two rounds of government-supported economic assistance measures?

"It is difficult to say how much is on tourism itself, given that it is a horizontal measure covering other activities. For example, if we take the Permanent Seasonal measure, which will continue to go at 3 plus 3 months, we are talking about HRK 11 million in just one month. So, everyone who was supposed to start work on April 1 because their six months at the Institute expired, will get three more months of entitlement, and then probably, if necessary, three more months. There were a lot of questions about job conservation measures. All those employers who made redundancies, and when they saw that the four thousand kuna plus payroll relief was very good, they asked if they could get those people back into employment. We said they could, with people having to get contracts permanently. So, we allowed them to give back to people, which is especially important. Otherwise, virtually all tourism is under job preservation measures because it simply falls more than 50 percent. This is one measure that made the most to save tourism because not only is there no traffic, but we also have a work ban. Among the measures, there are also deferrals of student scholarships for businesses. We continue to pay our share, but hoteliers do not have to now. Then they measure the concession on tourist land in the campsites and others."

A new law defining the issue of tourist land is coming to Parliament for a second reading soon, which is considered much better than the previous one. What does it entail?

"This Law is one of the most important foundations for future investments. If it were not for the corona situation, this would certainly be the most important thing for tourism at this time, given that it addresses the issue of tourist land that no one has been able to solve for decades. It is estimated that, by addressing this issue, we are opening up the possibility of three to five billion kuna in investments. No one believed that we would succeed and that the Law would be passed by May."

The sector also points to the cost-effectiveness coefficient at which some campsites will pay less for tourist land. 

"Let's take, for example, that a camper travels to a camp in Dubrovnik. He will spend one day staying in Istria or Kvarner and the trip alone will cost him more than staying in the northern Adriatic. Istria has 70 percent of the campsites, but that does not mean that we cannot help the development of camping offers in the south. We will also reduce camp fees on the islands, which, in my opinion, is realistic, given how much more it costs a camper to go to an island. We tried to balance these circumstances, but here, very soon, there will be opportunities in the Croatian Parliament to change things. But I think after the first reading, there was a consensus and we were able to find a balance. And again, no one has been able to solve the issue of the co-ownership community so far, nor that no one has paid anything for years, and that if it had been invested, it was not known what was being invested since the land was not from the camp."

What about HBOR lending? How much money is available to loan, how and who can get it?

"This is a measure we are implementing right through the Ministry of Tourism. We had certain funds that we have so far placed through the Competitiveness of the Tourist Economy (KTG) program, for which we have announced a competition every year. This year, HRK 26 million has been secured for this purpose, which this time we will pay to HBOR, thus practically subsidizing the entire interest on the loans. Loans to be distributed are worth HRK 600 million interest-free for up to three years. And if one does not manage to repay the principal in those three years, they have the right to extend the additional two years with a minimum interest rate of 1 to 1.5 percent."

Who will be able to use these loans?

"Small and medium-sized enterprises. So, for example, a small family-run hotel can run into liquidity when it goes back to work after a few months without income, and there is no money to buy groceries and generally supply and pay some obligations. As far as users are concerned, we have been looking at encompassing these, let's just say, medium-sized entrepreneurs. Namely, HAMAG-Bicro gives smaller loans, up to 25,000 euro, so we watched these loans amount to 100,000 euro or more. So we also covered these higher amounts. Small hotels have always been in the gap. With these loans, we wanted to save that part of small hotels, namely, hoteliers used to take out loans at the time, with relatively high-interest rates, and now they are in trouble because they have not been paid back and have no traffic, so we give them a chance to survive. And of course, we will talk about those old credits as well, is there anything that can be rescheduled."

When might these funds be available?

"We will receive requests safely by the end of the month, and if they are of good quality, some will be able to get funds by that deadline."

Renters as individuals are not in this arrangement?

"Private renters can apply for high-quality other credit lines. After all, we also subsidize the reclassification loan we have negotiated with banks. With that, we delayed the categorization by one year. We have written off the residence tax to the renters for six months, delayed the payment of the membership fee because it enters into the General Tax Law and it will be a topic of discussion when discussing para-fiscal levies. The flat-rate income tax for the second quarter was then written off, and the first quarter had to be postponed until March 30."

So, anyone who asked for the delay on March 31 is too late?

"They are late. I know that in some Field Tax Authorities, the interpretation was different, but the last day to report was March 30. Otherwise, as far as the measures are concerned, we will see how the situation will develop further and, if necessary, respond further."

Many will say that family accommodation may be the biggest hit in this situation. While it is difficult to predict anything, what do you expect, how will this segment sustain itself?

"In my opinion, private accommodation, nautical charter, and campsites are something that should be started first. When they decide to come, guests will first and foremost look at security, isolation, and quality. Also, foreigners who will come, that is, if the borders are open, will primarily seek security. Therefore, access to maintenance, or cleaning and disinfection, will be very important, we will have to give additional security to the guest that this apartment or holiday home has been prepared in accordance with the epidemiologist's orders. They will need to have an additional card, that is, a label, a card in two or three languages that the disinfection is really made according to the instructions of the expert services. That card will be in the apartment and we will sign it to guarantee that everything is done right."

In the end, what would you say to tourism workers in these unprecedented circumstances?

"That both public and private sectors are on the same wavelength. Our goal now is primarily to preserve those 'glass legs'. Our goal is to preserve it at least, to keep the system alive, and to try to get there by April or May next year. All that will happen in the meantime is a reward for patience, perseverance and quality and all that we will do in tourism to welcome next year. And I say again, both the public and private sectors are together. I am glad that all associations have recognized that we have done the best we can at this moment. There is still room for nautical charter, there is debate, say, about the extent of maritime concessions. If we find a solution to forgive one part of the obligations, then the charterers pay fewer concessions and have the additional benefit that will be good for them. So, we continue to discuss everything that we may not have elaborated and covered in the two phases."

How much space is left for further relief?

"Even the richer countries than us did not have such measures. We cannot, of course, compare ourselves to superpowers like Germany, but in many measures, we have come very close. And there is still debate about lifting some parafiscal taxes and the like. I can add that right now, it is clear how important it was to stabilize public finances. Having a responsible and quality fiscal and monetary policy has allowed us to make all these measures. And if we were in the eurozone now, we could have substantiated them even better. So patience and health come first. Ultimately, Croatia's health policy is already recognized internationally as one of the most rigid and restrictive in this situation. Likewise, in all TOMAS surveys of our guests' attitudes, nature and safety have always been emphasized as our strengths.

In this case, as well, potential guests will recognize Croatia as a safe country, because of all the countries of the European Union, we have taken the most serious approach to the safety and health protection of both our people and foreigners who found themselves here during the pandemic. After all, we still have foreigners living here in their homes, instead of in their own countries, because they feel safer here. This will now be our advantage, the safety of the public health system that has proven itself in this situation. With, for example, the fact that we are an auto-destination."

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

Sunday, 19 April 2020

Good News from Germany: Croatia on Radar for Tourists Traveling by Car

April. 19, 2020 - Will there be any tourism this summer? This is the golden question being asked not only in Croatia, but also in the rest of Europe. However, according to the first signs, Croatia could profit as an auto-destination thanks to its proximity to central Europe.

"This tourist summer will certainly be completely different from everything we've known so far," says the president of the Alliance of German Tour Operators, Norbert Fiebig, in an interview with Tagesspiegel. He predicts that unless travel restrictions are lifted, many will be spending this summer at one of Germany's tourist centers, Deutsche Welle writes and Slobodna Dalmacija reports.

If the borders do open at all, the goal for European tourists will be to European countries - and in this sense, the closer, the better. Croatia, which is only a few hours away by car from southern Germany, could certainly reap the benefits of this. 

"And in European countries that have carried out the second phase of combating the spread of the infection, travel will be possible under certain security conditions," says Fiebig.

TUI, Europe's largest tour operator, is signaling that they are ready to organize trips as soon as the countries in question give the green light.

"TUI is currently in talks with the governments of many tourist countries, which are preparing during the pandemic so that guests can return as soon as possible," TUI said when asked by AFP.

The position of German Foreign Minister Heik Maas also argues in favor of the theory that tourists will initially choose destinations closer to home.

"Of course, as soon as circumstances change, we will allow travel. But I can only lift the warnings if I am sure that citizens will be able to return to Germany on a regular basis," Maas said, pointing to a substantial, complicated (and expensive) action of returning German tourists home from different parts of the world.

Fortunately, destinations in the Mediterranean, such as Croatia, because of their proximity, do not fall into the category of countries in which return flights need to be organized.

These aspects, according to Norbert Kunz of the German Tourism Association, could, in the future, play an increasing role in choosing a holiday destination. For him, the important question is whether tourists will want to stay near their homes in the future in order to risk as little as possible in case they need to return home quickly.

"What role does safety play, including medical safety, in the place where we spend our holidays? These are all issues that we will deal with more intensely in the future," Kunz tells public service ARD. The crisis caused by the coronavirus pandemic could have far-reaching consequences for tourists, Deutsche Welle writes.

As far as the future is concerned, Kunz believes that the tourism industry will certainly not come into full operation this year but only next summer. The same is true in Spain, where the government has told tourism workers that the industry, if at all, will only be able to count on activating demand at the end of the year. But Kunz is optimistic in the long run:

"The citizens' longing to travel abroad will continue to exist. That is not out of the question."

In other news, Jutarnji List reports that Austria could allow tourists from Germany and other countries where the coronavirus is under control to visit Austria in the summer, Tourism Minister Elisabeth Koestinger said on Saturday.

German tourists accounted for more than 30 percent of arrivals last summer in Austria, according to official statistics.

The share of tourism in Austria's GDP is one of the largest in the EU.

"Freedom to travel will remain limited in the coming months.

However, if countries are successful (in the fight against the coronavirus), such as Germany, there is a real chance of bilateral agreements," Koestinger told the Saturday edition of the Austrian newspaper Die Presse.

Conservative Prime Minister Sebastian Kurz said Austrians should consider vacationing in their country to help the economy.

"However, without foreign tourists, we will have to bear the losses," Koestinger added.

By the end of April, the government plans to present a plan for the gradual opening of the restaurant and tourism sectors.

From Tuesday, garden centers and retail spaces of less than 400 square meters have were opened in Austria, which, as well as larger shops, though masks are required.

Masks are also mandatory in public transport and in taxis.

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

Friday, 17 April 2020

Coronavirus Answering Real Estate and Overtourism Issues - Brutally

As Poslovni Dnevnik/Marija Crnjak writes on the 16th of April, 2020, there is no doubt that the current coronavirus pandemic will hurt tourism globally and severely, including Croatian tourism, and that there will be a lot of losses this year, and maybe next year, too.

At the same time, however, it is already evident that this pandemic could lead to a transformation of the market, which will be beneficial for many in the medium term, from tourists to the resident population in overcrowded destinations up and down the country. Maybe we'll even get a chance to really experience what sustainable growth actually means in reality, a term that has otherwise sounded like a pie in the sky idea to many.

As the first analyses of the rental market have already shown, in the circumstances of Croatia's significantly diminished demand for short-term rentals, the future of renting apartments and other properties, an activity which has experienced a surreal boom in recent years and caused chaos in numerous places across Europe, has been called into serious question.

The notion of overtourism was a drum that was being banged constantly until just a few months ago in Croatia's highly specific case, and it came about primarily as a result of the private rental boom.

In Croatia, what for decades has been known as ''family accommodation'', under the blessing (or indeed ignorance) of the state and local government units has turned into a grimly disloyal business where everything seems to be permitted, from the devastation of the local environment, to permit and tax issues, right down to the direct and indirect mistreatment of the local population.

There can be no doubt that the residents of some Croatian cities and towns will finally be able get some sleep this summer.

Is this finally an opportunity for hotels?

Apartments in cities that are no longer profitable for renting out to foreign tourists have already begun to turn to long-term rentals, which should become cheaper with increasing supply, thus solving the problem for many who don't own their properties. This process is happening, gradually, across the whole of Europe, where many cities have been stifled by the breakthrough of Airbnb and similar platforms, which are now looking for salvation in long-term rentals.

This segment of the Airbnb market could be well-influenced with its tools that streamline and speed up the process and reduce red tape and potential problems. Consequently, the process can also go in the direction of seeing property prices diminish, which has also been a pendulum swinging rapidly due to this kind of "tourism".

With the unburdening of many cities, the hotel industry will benefit from stopping the boom of private rentals, which, whether they like it or not, has become direct and very serious competition. In addition, hotel owners have another opportunity to switch things up and enjoy potentially more favourable terms of contracting with global brands in the post-coronavirus crisis period.

Specifically, although the travel industry has changed rather dramatically over the last ten years, hotel brands persistently adhere to strict regulations and high franchise and management fees. At a time when most hotels in the world have closed their doors, leading hotel brands such as the Marriott or Wyndham allowed delays in investments for their interior, they also reduced their fees and marketing costs, and on top of that - they delayed inspections.

If the right parties manage to meet half way during the coronavirus crisis, hotel owners could end up with looser conditions, with brands making it easier to expand their portfolio to destinations like Croatia, but also the rest of the Mediterranean, which is a ''stronghold'' still mostly dominated by local brands or independent hotels.

In the ongoing coronavirus crisis, guests could also benefit, especially local ones, who make up the main target group of tourism marketing this year, and maybe in 2021, too. Summer 2020 will depend on domestic guests from all European countries, even if the borders are opened. This is an opportunity for Croatia to adapt and implement, for example, the Cro Cards project, and perhaps some new ideas and projects that will encourage Croatian residents to explore the country more.

The Croatian National Tourist Board (HTZ) and the Ministry of Tourism could use these "lockdown" days to consider, and very carefully so, what they have available in their arsenal in this regard. Just what local entrepreneurs, innovators and local tourism professionals have to offer? It will be a challenging job knowing that Croatian tourists typically make up about 10 percent of tourist traffic, and it's very difficult to convince Croats who simply go to the houses of relatives and friends to spend a kuna or two at a Croatian hotel or guest house, even when they can quite easily afford it.

What does Croatia want in five years?

A lot of energy needs to be invested immediately in devising the right strategy for 2021. It's already clear that due to the collapse awaiting the airline industry, Croatia won't be able to count on distant markets, and therefore in advertising - the country should focus on the European continent, with a particular emphasis on those who plan to arrive in Croatia by car.

Croatia is fortunate that the Germans, Austrians, and the neighbouring Slovenians have long been the base of tourist traffic in this sense, but it should be remembered that their respective governments are, more now than ever, working to keep their tourists within their own countries, too. Consideration should also be given to what travel opportunities the Italians, who have been hit hard by the coronavirus epidemic, will ultimately have.

Safety, availability, excellent hygiene, and a dose of good organisation will be the key benefits of various destinations for as long as the memory of the coronavirus pandemic lasts, and Croatia should take advantage of it.

Now is another opportunity to sit down and imagine what kind of tourism Croatia actually wants to have in five years, and on top of that - just what we want and can develop besides tourism. Placing all of your eggs in one basket is never a good idea, and Croatia's incredible reliance on tourism and very little else at all has now proven to have been a catastrophic choice.

Make sure to follow our dedicated section for more on coronavirus in Croatia.

Monday, 13 April 2020

Dealing with COVID-19: Small Tourist Business Stories from Split

April 13, 2020 - How are small tourism businesses dealing with COVID-19 in Croatia? TCN's UNESCO correspondent on the changing realities in the two tourism businesses in Split which feed her.  

It’s hard to say anything that’s not already all over the news about this unprecedented situation happening worldwide. In essence, we all follow the daily press conferences and updates on numbers of COVID-19. One thing is for sure, this Spring did not start the way any of us planned. We are all mostly working from home if we are working at all, limiting our social interactions, and avoiding leaving the house if not necessary.

This piece will look at the changes happening for two small businesses working in tourism in Split. Maybe not all similar companies are going through the same issues, but it might speak for most of them as we all face sadly the same problems. I work as a hotel manager of a small city centre hotel, and I’m the owner of a small tourist agency focusing mostly on food and wine tours. I need to admit my daily business motivation is changing almost daily in the last few weeks, and most of my work is dealing with cancellations and guests saying they can’t go on their long-planned vacation.

At the end of February, which seems like ages ago, I think most of Croatia, including me, didn’t take COVID-19 as seriously as we should have. In terms of work in tourism, I had isolated cases of canceled bookings, which were mostly for March. I even had hotel guests from Asia who were supposed to come to Split mid-March, and they asked if they would experience any racism in Split – I assured them this wouldn’t be the case. If they are ready to travel to Croatia, the hotel will be more than happy to welcome them. As you might assume, in the meantime, they needed to cancel cause all of their flights were canceled.

In the first week of March, when it comes to bookings and reservations, nothing seemed to indicate that things would escalate, or at least it seemed to be something happening far away from Split. Also, just a few cancellations, nothing more than usual. The second week of March brought a more serious approach on global and local levels. COVID-19 was declared a pandemic, and there was mandatory self-isolation proclaimed for numerous countries. From the side of the hotel business, we mostly had cancellations for the whole of March and several for April. The tourist agency had cancellations for the entire April and May – literally the entire preseason was down the drain.

The third and fourth week was just something that we all expected – almost the whole of April canceled; 30 % of May reservations withdrew, with more and more clients canceling summer dates. Luckily there were some rebookings, and that’s a small light of optimism in a sea of canceled reservations and mails starting with “We are sorry to inform you but due to the COVID-19 situation we need to cancel our reservation…” All tourism and hospitality businesses have experienced this situation in the past month.

After the first state of shock and fear due to health reasons, shock and fear transferred to the fact we are facing losing not only preseason but potentially the whole summer season, not to mention all the economic impacts on tourism and other industries. Tourism businesses are already suffering from the economic effects of COVID-19 on our lives. With pandemic dynamics and the fact there is no vaccine or cure, this is something that only logical to happen. In this situation, not many would want to travel, and if they would go somewhere, they can’t do it due to travel restrictions – I had a case of few optimistic clients, but this got canceled too. If we assume, we flatten the curve, some restrictions will be milder or removed, but people will still be cautious. At this moment, the majority of clients who had reservations till the end of June are rebooking their accommodation and tours for autumn or next year.

All this doesn’t sound like the summer we are used to having here in Split, and any other tourist destination has the same issues. Also, it’s not something we can influence or know when it will be over. As a business in this situation, we can’t do a lot, but a few things a small tourist business can do are the following:

  • • Adapt your business to a new situation – work with all precautions and safety measures
  • • Offer clients a flexible cancellation policy or rebooking
  • • Prepare the prices and promotions for summer months and postseason - by some predictions this could be the time when we could expect fewer travel restrictions
  • • Be ready to offer discounts and change price strategy
  • • Be present but not aggressive with marketing as this is not the time to sell vacation
  • • Be kind and understand clients and answer quickly to inquiries
  • • Be in touch with partners agents and hotels – they are going through the same stressful situation
  • • Analyse your current business situation and project your future cash flow and income
  • • Keep your staff if you can and be honest with them about the situation
  • • Apply for state-supported or other measures that could help your business

When this is over, inevitably, there will be people willing to go on vacation, and with some preparation now, we could attract them first to the destination and then to our business. Tourism, although it is the first to be affected by negative impacts it will be the first back on its feet – now we need to deal with preserving our health as well as the health of our families. As everything this will be over at some point – we need to keep sane, safe, and follow the instructions we have from health officials.

If you would like to dream a little about your next Split holiday, here is what Filipa's agency specialises in

For more on being prepared for the post-corona reality, Zoran Pejovic of Paradox Hospitality has written an excellent series for TCN.

Monday, 13 April 2020

Will Travel Vouchers Save Croatian Tourism? A Closer Look

April 13, 2020 - Will travel vouchers save Croatian tourism? A look at how one travel agency's campaign is fighting to salvage the season. 

HRTurizam writes that the tourism sector has been quietly talking about travel vouchers as one of the solutions to save this tourist season, i.e., to somehow activate tourism in the local population for at least some cash inflow and save what can be saved.

Additionally, in Croatia, the "Week's Vacation is Worth It" campaign is ready, as well as a Cro card from the Ministry of Tourism, as projects that can be activated as soon as we overcome the coronavirus crisis.

Although we do not know how these vouchers might look and or should be realized, one example comes from the DMC agency Pointers Travel from Osijek, who launched the positive Trust and Friendship campaign for the recovery of Croatian tourism. In this campaign, they want to intensify their marketing activities domestically and in foreign markets when COVID-19 measures begin to decline.

The special feature of the campaign is the introduction of a voucher to help the entire tourism sector.

Vouchers allow buyers in Croatia and worldwide to help caterers, hoteliers, private renters and other tourism participants with their purchases when they are most needed.

The goal of the Trust and Friendship voucher is to initiate a cash flow to the economic sector in tourism and ensure fresh cash with advance payments - all to help the tourism sector overcome the coronavirus crisis.

Specifically, vouchers can be redeemed in a minimum of one year from the date of purchase, and when using the voucher, the buyer realizes a minimum of 25% higher value.

In addition to vouchers, Pointers will promote the whole campaign on social networks and post more than 200 videos and VR360 content from Croatia, placing promotional videos of destinations and the reportage "Piece of Croatian Paradise" through local TV stations already involved in this action. They will also communicate with travel agencies in the surrounding countries by sending smart catalogs of Croatian destinations.

"We actively engage the entire tourism sector, our followers, tourists, guests and all partners, locally and globally," points out Krunoslav Weinpert of Pointers, adding: “All marketing and promotional information online is done by Pointers at no financial charge, thanks to our partners for their trust and contribution to the situation in our business sector.

We invite you to contribute to this action by supporting the Croatian tourism sector, promoting it, sharing this information, and inviting the tourism sector to contact us to post their Vouchers online.”

Optimism can be seen in the growing interest in video and VR360 content on their online channels.

"The statistics of our online channels show us that in these times of crisis in the world, regardless of the current situation, the interest in reviewing video and virtual reality content that represents Croatia is increasing every day," Weinpert points out, adding: "Concrete figures give us hope and show that tourists, both domestic and foreign, have not given up on beautiful destinations in Croatia and that we should not give up promoting the tourism sector at this time either," Weinpert points out.

“The goal is to sell as many vouchers as possible in advance to ensure cash flow in the tourism sector. Also, we have distributed all our destination video materials to local TV stations that have already started broadcasting them, in order to start tourist activity in Croatia at least, since the focus will definitely be on the local guest," concludes Weinpert.

Too read more about travel in Croatia, follow TCN's dedicated page.

Sunday, 12 April 2020

Glas Poduzetnika Survey on Croatian Tourist Season 2020 Status

April 12, 2020 - While nobody now expects a strong Croatian tourism season, what is the actual situation with bookings. Glas Poduzetnik, the Voice of Entrepreneurs association presents its findings. 

What can we expect from the tourist season 2020? A question for many in the tourism sector, but also for those who are not directly related to it, given there will be many indirect consequences. Following our survey on the usefulness and expectations that entrepreneurs (especially in the field of tourism) have from tourist boards, we were interested in further exploring this topic. Expectations for the season are undoubtedly poor, and it seems that significant help from the tourist boards is not counted on. We were interested in what is currently happening with tourist accommodation lessors and their bookings? We got the following results:

56% of lessors sustained a considerable drop in reservations or sales of their accommodation capacities. Another 4% of them advised that they had a medium-size decline with the beginning of April. Somewhat reassuringly, about 16%, fortunately, counts only a slight decrease in the number of bookings or sales for their accommodation capacities. Unfortunately, another 21% reported a large number of cancellations for existing reservations or previously sold arrangements. Only slightly less than 3% of participants said that there is no decrease in the number of bookings, or it is minimal.

 croatian-tourism-season-survey.png

I have a considerable drop in reservations/sales of accommodation capacities

I have a slight decline in reservations/sales of accommodation capacities

I have a medium-size drop in reservations/sales of accommodation capacities

Most of my reservations/sales of accommodation capacities have been canceled

I have no decrease in reservations/sales of accommodation capacities

Some of my reservations/sales of accommodation capacities have been canceled

This is yet another confirmation that we will have a challenging tourist season, and especially for all those categories that will not be able to realize the new income until the season 2021, which is now also difficult to predict. Given the size of this sector, we should certainly think carefully about additional intervention options to avoid domino effect causing even more damage.

You can follow the latest from the Glas Poduzetnika association on Facebook

Sunday, 12 April 2020

13,500 Tourists Registered in Croatia for Easter

April 12, 2020 - There are 13,500 tourists registered in Croatia for Easter this year, and most of them are on Vir Island. 

Dnevnik.hr reports that thousands of tourists will still spend Easter in Dalmatia this year. While some are hiding from the coronavirus, others are stuck here and unable to get back home. Most tourists, however, are on Vir Island.

Namely, out of the 13,500 tourists registered across Croatia, there are currently 600 tourists on the still corona-free island.

Barbara and Atila arrived in Croatia a month ago and have been staying in a weekend house on the island of Vir instead of an apartment in Budapest.

"Everyone would like to come here now, of course, but they need to wait a little longer," Atila says, adding that he followed the news and prepared his family to go to Croatia as soon as the pandemic appeared in China.

At a time when the coronavirus pandemic has taken over the world, Vir has become their haven.

"The tourists who found themselves on Vir at the time when the measures were announced are now sharing the fate of the corona crisis with us," says Kristijan Kapović, Mayor of Vir Municipality.

Barbara from Hungary says she feels completely safe on Vir, too.

"I feel safer here than in Hungary because there are no infections on Vir," says Barbara.

The Vir Crisis Headquarters says there are no infected people because they adhere to all the rules. However, a few days ago, the fishing rules were broken by two Czechs who, after a 20-hour search, were found on the high seas with high temperatures.

"The temperatures they had probably came from being outside all night. But no coronavirus was detected," says Antonio Vucetic, Chief of Vir Municipality's Civil Protection Headquarters. 

Around 600 tourists, mostly 'weekenders', will welcome Easter on Vir.

"All of them are welcome, all of them are registered, and everyone who changes their place of residence for more than 24 hours belongs to the status of a tourist," explains Srdjan Liveric, director of the Vir Tourist Board.

And not only Croats are among them.

"They are from central Europe, from those 700-800 kilometers around Vir. There are Slovenes, Hungarians, Slovaks, Poles, Czechs, Germans, Austrians, Bosnians, from the places that surround us. Vir is an auto destination," says Kristijan Kapović, Mayor of Vir Municipality.

Currently, out of the 13,500 tourists in Croatia, 3,800 of them are from abroad. Thus, nearly 10,000 Croats are likely escaping the coronavirus in their weekend homes. 

The least are registered in Dubrovnik-Neretva County, while in some counties, tourist numbers are rising despite the pandemic.

Zadar County ensured that it was a unique county in Croatia during this corona period. Specifically, in the corona-fueled March, and the first quarter of 2020, they recorded 5 percent more overnight stays than last year.

Vir is also convinced that this season will be an advantage for them, concluded Dnevnik.hr.

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

 

Thursday, 9 April 2020

Dreaming about Post-Corona Travel: THIS! Beautiful Croatia by Goran Safarek (VIDEO)

April 9, 2020 - 18 minutes of pure joy, as Goran Safarek's latest video, Beautiful Croatia, is a must-watch for those dreaming of post-corona travel. 

We WILL travel again, at some point, I promise. 

And when we do, we will appreciate it all the more. 

Perhaps there will be less selfies, less Instagram moments, and tourists will go back to their basic roots - smelling the herbs, feeling the wind in their hair, locking that magical sunset in their mind forever, rather than capturing the shot to share with thousands for a moment, and then losing the moment forever. 

People at the moment seem to either has way too much time (perhaps 90%) or have never worked harder in their lives. We at TCN are very much in the latter category, and part of our job is to provide great content for our readers to devour. 

And sometimes that job is hard, and sometimes it is made very easy indeed. 

I have always been a big fan of the work of Croatian photographer and videographer, and I have a feeling that his latest work will go down rather well. 

Entitled simply 'Beautiful Croatia', his new video takes us on a breathtaking tour of this magnificently beautiful country. 

So, if you have lots of time (or even if you don't), sit back and enjoy. 

And remember, this will not go on forever, and when the dust settles and we all emerge in our uncertain post-corona world, one thing will be certain. 

Croatia will still be one of the most gorgeous places on the planet and waiting for your visit. 

Until we meet again, here is Goran's little contribution to keeping those dreams alive. 

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