Friday, 31 July 2020

Dubrovnik Mayor Writes to Boris Johnson: We Need British Tourists

July 31, 2020 - After British media announced that a two-week quarantine could be introduced for tourists returning from Croatia, Dubrovnik Mayor Mato Frankovic wrote to Prime Minister Boris Johnson, asking him to look at Croatia by region, and not as a whole, when making a decision.

Index.hr reports that in a letter to the British Prime Minister, Mayor Frankovic reminded that the British are traditionally the most numerous guests in Dubrovnik and that a relationship based on friendship has been developed for decades.

"I know that you are well acquainted with this part of Croatia, and that is one of the reasons why I am addressing you personally.

The total number of positive COVID-19 cases from the area of the city of Dubrovnik is three, and currently, over eight thousand tourists are in our city.

We are making every effort at all levels to maintain a favorable epidemiological picture and provide all our guests with a pleasant and safe stay," reads Frankovic's letter to Johnson.

Franković pointed out that Dubrovnik is one of the safest European destinations for travel with detailed protocols in all situations, including procedures if the number of infected people starts to grow.

"Taking all the above into account and respecting the fact that Dubrovnik tourism depends on the United Kingdom market, I ask you to look at Croatia and its regions when making decisions, and not just as a whole," concluded Frankovic.

Frankovic also sent a letter to Prime Minister Johnson to the Croatian Embassy in the United Kingdom and the United Kingdom Embassy in Croatia.

According to British media reports, Croatia, along with Belgium and Luxembourg, could join Spain, for which a two-week quarantine was imposed last weekend.

British authorities are currently keeping a very close eye on the jump in the number of infected people in Belgium, Luxembourg and Croatia. This could deliver a major shock to the Croatian economy, which was hanging onto making up for as many losses as possible during August. The British market is among the most important in all of Europe.

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Tuesday, 28 July 2020

VIDEO: Learn The History Of Quarantine From The City That Invented It – Dubrovnik

July 28, 2020 - The Pearl of the Adriatic is back open for business. Dubrovnik Tourist Board reflect on the recent quarantine by looking into a fascinating world first from the walled city.

Dubrovnik – the Peal of the Adriatic – is back open for business. Its charming alleyways and historic architecture are once again experiencing the footfall of visitors from all over the world. Sun shines down on the beach bars and marina, reflected in every direction by the gentle waves of its turquoise seas. And there's never been a better time to visit.

Like the rest of Croatia, the city was on lockdown for several months in response to COVID-19. Now, Dubrovnik has woken from its sleep. But, visitor numbers are smaller than ever. It's doubtful you'll ever get such a unique opportunity to calmly take in the air from the city walls or soak up the relaxed atmosphere on the limestone walkway of Stradun than in summer 2020.

Dubrovnik's reawakening has provided Dubrovnik Tourist Board the perfect opportunity to reflect on the recent lockdown and shed light on a small segment of the walled city's fascinating history. For this was not the first time Dubrovnik has closed its gates to visitors. This is the city where quarantine was invented.

This new video, filmed in the heart of the former independent city-state, offers an insight into the history of quarantine from the place that invented it. Quarantine was first implemented in 1377 as a drastic response to recurring rounds of the Black Death which devastated Dubrovnik's population numbers over the preceding three decades. As a major port of the Mediterranean, the city struggled more than most to keep the disease away. But, the radical plan worked and became the template for every subsequent action of quarantine.

Learn more by checking out the video, or better still, get yourself down to Dubrovnik this summer and find out all about the city for yourself.

Sunday, 26 July 2020

As Dubrovnik Tourism Suffers, Mayor Tells State: You Owe Dubrovnik

Dubrovnik tourism has always been able to rest on its laurels. The sheer beauty of the city and its incredible landscape have both always been more than enough to draw tourists in in their droves. Then the coronavirus pandemic struck and the city that was once a victim of its own success was flipped upside down.

As Morski writes on the 26th of July, 2020, the mayor of Dubrovnik, Mato Frankovic, commented on the numbers being realised in Croatia's southernmost city during the tourist season at the end of July. Dubrovnik is one of the cities that have requested the division of the Republic of Croatia into four zones - the northern and southern coasts, and then central Croatia and the eastern part of the country to make it easier for tourists to follow which areas are ''coronavirus free''.

Frankovic says that they sent a request for such a division to the National Civil Protection Headquarters.

''It's very important that the statistical data, when sent to the European Centre for COVID Disease Control, is divided by region so that European countries and indeed other countries know exactly what is happening in Croatia,'' said the mayor of Dubrovnik. He believes that the Headquarters will accept this request.

Frankovic pointed out that Dubrovnik will report to the ambassadors of other countries on a weekly basis on the situation with the ongoing epidemic.

When asked when the strengthening of air traffic is expected, Frankovic said that by the middle of next week, Dubrovnik will be connected with 51 destinations, which will hopefully give Dubrovnik tourism a much needed boost.

''August will be much better, we have announcements for the whole of autumn. I believe we will manage to reach the target of traffic of 30 percent for the season,'' he says. He also explained why Dubrovnik is asking for state help.

''I wouldn't like it to turn out that Dubrovnik is a beggar city, but I'd like to mention that the records of Dubrovnik were the ones to have filled the state budget. Now Dubrovnik expects a small part  of that to keep us stable for the future,'' said Mato Frankovic, adding that the state is in some way indebted to Dubrovnik.

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Sunday, 14 June 2020

Coronavirus: Are Dubrovnik's Expensive Glory Days Over? Maybe...

Coronavirus has dealt global travel and tourism a huge blow, and even the City of Dubrovnik, which prides itself on tourism and is known for coming with a hefty price tag for just about everything, is suffering.

Dubrovnik is known for being the first to abolish slavery, its glorious Medieval walls, its UNESCO status, and its often extortionate prices. While it is true that there are many places in Croatia's southernmost city that are inexpensive (or at least there used to be, I live in Zagreb and it's been a while since I lived in the country's tourist Mecca), the most common complaints about Dubrovnik are the traffic and the price of things. Could coronavirus mark the end of that long-lived trend? Maybe...

As Poslovni Dnevnik writes on the 12th of June, 2020, the coronavirus pandemic has dealt a severe blow to tourism, even to Dubrovnik, which is also the primary economic branch from which Dubrovnik exists, and the dire numbers speak for themselves. According to the data of the Tourist Board of the City of Dubrovnik, on June the 1st, 2020, 86 arrivals and 316 overnight stays were recorded in the area of ​​the City of Dubrovnik. For comparison, on the same day last year, there were 6,747 arrivals and 18,481 overnight stays realised, which are incomparably higher numbers.

In the city where almost every street has its own catering and hospitality facility, only about 50 of them are currently open. Currently, only seven of Dubrovnik's hotels have opened their doors to guests. These are the Dubrovnik Palace, Hilton Imperial, Hotel Lero, Hotel Park, Hotel Petka, the Pucic Palace and Royal Blue.

The president of the Dubrovnik County Chamber, Nikolina Trojic, revealed that the value of issued invoices in the tourism sector fell by an enormous 92 percent.

"According to the Tax Administration, from February the 24th to May the 17th, 2020, 78 percent fewer invoices were fiscalised than in the same period back in 2019, and the total amount of these invoices is 63 percent lower in all activities across Dubrovnik-Neretva County. In the tourism sector, which includes accommodation, catering/hospitality and travel agencies, the value of issued invoices fell by 92 percent,'' Trojic told the local Dubrovnik portal, Dubrovacki Dnevnik.

Although a work ban was in place for most industries, trade and traffic were the few that could still work. However, no positive figures were recorded in these sectors either.

"The data shows that the number of invoices issued in the trade sector was 41 percent lower, while the value of those invoices issued in trade was 27 percent lower. Among the most affected activities was the activity of travel agencies, where, during these observed three months of ''lock down'', the value of issued invoices fell by 98 percent compared to the same period back in 2019. Additionally, for the period from May the 11th, when caterers and those in the hospitality industry were allowed to work again, until May the 17th, 2020 (when compared to the same period in 2019) there was a decrease in the number of issued invoices by 71 percent and a decrease in the value of those same invoices by 96 percent in the tourism sector,'' Trojic explained.

Although the problem of labour shortages in tourist-oriented Dubrovnik used to exist because of demographic issues, now the priority has become to keep hold of these people and preserve the ability to pay their salaries.

"The absence of tourist figures from previous years will certainly have consequences for our economy. The reduced levels of demand for accommodation services, catering services, excursions and other tourist facilities will affect the downward price correction, it's an economic fact, the law of supply and demand. The fall in prices will depend on the level of indebtedness of economic entities and the possibility of servicing fixed costs.

Care should be taken to keep the value for money, because in the coming years that will be the biggest engine of recovery of our economy. It's to be expected that at some point, there will be a reduction in salaries, a reduction of the working week and other mechanisms for preserving these jobs,'' concluded Trojic.

For more on the Croatian economy and tourism in the coronavirus era, follow our lifestyle page.

Monday, 18 May 2020

Dubrovnik Mayor’s Plan for 2020 Season: Survive Until Next Year

May 18, 2020 — The Croatian government hopes travel-hungry Croats and foreigners within driving distance will salvage what’s left of its summer tourism. But where does that leave Dubrovnik, a destination dependent on flights and cruise ships?

Over 14,000 travelers entered Croatia since its borders opened on May 9. Locals flocked to destinations like Plitvice Lakes National Park, exploiting a lack of tourists to monopolize the bucolic waterfalls.

Dubrovnik, meanwhile, sat empty. 

Not because of the coronavirus. It’s been 11 days since the city’s most recent infection. 

One can’t blame a lack of investment either, which keeps rolling in. The Tourism Ministry announced about HRK 400 million investment in six hospitality training centers, including HRK 72 million injection for the Dubrovnik School of Tourism and Catering.

It’s not for a lack of irony either. The city’s Lazarettos, the mythical birthplace of the “quarantine”, reopened for tourists.

Dubrovnik now finds itself imperiled by the one trait which has kept it whole all these centuries: geographic isolation. Too far to reach by car, and perhaps too familiar to the locals within driving distance, it hasn’t benefited from the Tourism Ministry’s efforts. A cut in budget airlines and higher-priced international flights, and the virtual lockdown on cruises, leaves the coastal magnet unreachable to the millions of guests planning to visit.

The Pearl of the Adriatic won’t relive its halcyon days as the poster child for “overtourism” (unless you count a Marin Čilić sighting as recompense).

But a dearth of tourists is more than just a budgetary hiccup. Dubrovnik, much like the rest of Croatia, depends solely on the travel industry. It funds about 70 percent of the city’s budget directly, and the remaining 30 percent indirectly. There is no “rainy day” economic branch shoring up Dubrovnik’s finances or employing a segment of the population. The Pearl of the Adriatic produces nothing and exports even less.

Dubrovnik Mayor Mato Franković sees the season as a total loss. Early forecasts of a 70 percent drop now seem optimistic. So he has a plan: survive. 

Survive just enough to come back next year. 

Nobody said it was an upbeat plan.

He outlined the city’s current state, its lack of hope for this year, and plans for next year in an extensive interview in Jutarnji List.

You announced that there are three scenarios in the city for this year's season, is it already clear which of them is the most likely?

I think that the most likely, unfortunately, is the one in which the tourist season won’t take place until April 2021, because crumbs await us in the current year. Our goal this year is to achieve up to 30 percent of last year's season, so even those crumbs will still be enough for us to survive until next summer. Not only for the city administration but the entire tourism sector. 

However, according to our projections, that 30 percent is an optimistic scenario, which is why we are already working intensively on contacting airlines, offering them the possibility of subsidizing their flights to Dubrovnik, because I am convinced that all other air destinations will do the same.

The messages coming from the world's airlines are that they themselves will not activate more than 30 to 40 percent of capacity, so it is crucial for each destination to have a direct flight, and then especially for Dubrovnik, where air guests make up 90 percent of the total.

This does not include cruise guests and one-day guests, who are unlikely to be here this year, especially after the news that TUI's ship has an entire home port. According to everything we see, cruisers do not expect to start operating before January 2021.

Well, the people of Dubrovnik were already complaining about the cruise guests, so it could be good for some.

No, that's not good at all because we finally managed to establish a scenario in which there are no crowds in the city or more than two cruisers at the same time. Just when we achieved that, the whole story turned upside down. Dubrovnik needs both, but with moderation.

Speaking of air connections, Croatia Airlines has re-established domestic traffic to reduce it after only three days due to a lack of passengers. That doesn’t really sound encouraging to your city?

No, it doesn't sound optimistic. I have to admit that I expected the national carrier to make a little sacrifice, regardless of the situation the company is in, because as a carrier it must be the backbone of connecting tourist destinations, especially Dubrovnik, with the rest of the world. I think that the company should have made such decisions in agreement with the city and the competent ministry. This move is not right, especially considering that we expected a partnership from it. 

I think we will very soon see how important it is to have a domestic carrier, because we cannot depend on Lufthansa, British Airways and others. If we have our own operator, then we need to invest more money, maybe even consciously enter into a loss, especially in a situation where the state would benefit from it in the long run.

Namely, we currently have a line from Frankfurt and that is now the only way for foreigners to come to the country. I guess it was not profitable for Croatia, but I hope that at the moment when the EU opens, the national operator will introduce regular lines and that there will be interest in them. Namely, I know from conversations with hoteliers that no one has canceled our reservations for July and August yet. 

This, of course, does not mean that they will not be canceled later, but for now it still gives us hope. Our key markets are the United Kingdom and the United States; these are guests who come to Dubrovnik. Both are severely affected by the coronavirus, so this is an additional problem in the organization of the season.

Last year, the first direct line between Croatia and the USA was introduced on the route Dubrovnik - Philadelphia, but I guess it should not be counted on in the near future?

Yes, it was also well-filled. For this year, 70 percent of the capacity was sold out in advance, which means that we should have recorded great results from that market. Unfortunately, all this has now been canceled and it is unclear what the future holds for us on this issue. 

As a city, we will co-finance airlines to come to our city, and the plan is for the city to borrow for that purpose. We are in intensive negotiations with British Airways, Jet2com, and Croatia Airlines. 

We have already offered this possibility and we are currently working out the financial parameters on how to sort it all out. We received information that the Croatian National Tourism Board is ready to help us because everyone is aware that no destination will be damaged like Dubrovnik. My thinking is that between 10 and 14 million kuna should be invested by the end of this year in order for the flights and guests to come. We are ready to take out a loan to achieve at least one season, but that will, of course, mean that we will have to ‘shorten’ the funds somewhere in order to sort it all out. Tourism funds 70 percent of our budget, the rest is also income from tourism, but indirect, and when that money suddenly stops coming, it is clear to everyone what is happening next.

Where you will have to cut the costs?

In the new drafting of the supplementary budget, we stopped everything that was possible. All projects except those current and those financed by the European Union. 

We had more than 40 projects in the pipeline, but we will not be able to get into them. We must be aware that by the end of this, and perhaps 2021, there will hardly be any serious major project funded by the city. 

We continue with infrastructure projects related to agglomeration, such as water supply and drainage. We are building as many as 30 kilometers of sewerage network, and the project of the Lapad coast, which is financed by the European Union, continues. The project of building a road from the Franjo Tuđman Bridge to Pobrežje, worth 30 million kuna, is also planned, and we are also building the first primary school since 1975.

The messages from the Ministry of Tourism are that this year's season will depend on domestic guests. Do you agree with that?

It is difficult for me to say that. We are too small a country to be able to rely on our own capacities. I think that this is an impossible mission and that nothing will happen there. These are empty wishes. 

Nevertheless, I am convinced that, at the moment when international lines are re-established, there will be interest in Dubrovnik.

What is the City's plan for establishing tourism? Apart from subsidies to air operators, how else can it participate?

We have prepared a whole package of discounts. We will go with lower prices in museums and reservations, then with special free programs for guests. In addition, we are working on a cultural program in which we will organize free concerts and classical concerts of our symphony orchestra once a week. On our “Dubrovnik card”, we will offer guests a 50 percent discount on bus transportation. 

So there will be events, there will be summer games, but we would like to organize international programs that could also be a reason to come to Dubrovnik. I can’t tell you specifically, but we’re arranging to host one of the world’s biggest music stars for this year, but we need to sort out the financial construction first. Of course, the plan is to lower the price of visits to the walls, as well as Lokrum.

So you, like Minister Cappelli, think that ticket prices for the walls must fall?

Of course. I clearly told the leadership of the Society of Friends of Dubrovnik Antiquities that they will not decide, but the City will decide on the price policy because the City is above the Society, and it must listen to what it commands instead of implementing its own policy.

Well, there are conflicting opinions. Some say that a lower ticket price for the walls won’t attract guests anyway, so then why lower it?

It is necessary to do it in terms of marketing. People all over the world have not given up on travel, so I think it is a good opportunity to tell guests that Dubrovnik will now be more beautiful, a city without crowds and with measure, and if the price correction is another reason to visit, why not? 

In addition, the policy of raising ticket prices for the walls and Lokrum was conducted as an attempt to reduce the pressure of visitors to these locations. As there will be no such pressure now, the prices should be corrected as well. I believe that the association will do so.

Speaking of prices, Dubrovnik is already criticized for too high prices. Do you expect reductions from caterers and hoteliers?

It is clear that in entrepreneurship the price is generated by supply and demand. I believe that there will be corrections here as well, because everyone will try to grab at least something from this season, so they will also give discounts in order to attract guests. I repeat, no one expects a good season. We are working for crumbs and preparing for 2021.

What do hoteliers say, how much capacity will be open this year?

Valamar will probably open only two, Lukšić also two at most. The Hilton is currently open, but I estimate that a total of five to six facilities will be open this season, so it will be like in our classic winter mode.

In its guidelines, the European Commission recommends that destinations that plan tourism this year must have sufficient hospital capacity, rapid tests, etc ... Is the City preparing in this regard as well?

We are 100 percent ready. Two weeks ago, we bought a new serological device with which we can finally test people in the city. The hospital is ready. We will soon have five new respirators, and by the end of June five more, which will have the most respirators per capita nationwide. 

When it comes to hospital beds, we are fully equipped, we also have an additional hospital in the Student Dormitory, which we dismantled, but, God forbid, we can re-establish it within a week. However, at last week's meeting, I suggested to the Prime Minister that it would be good to condition the entry of guests into Croatia with a negative test for COVID-19, which is in line with what Greece announced last week. This gives us a little more security and the ability to reduce the potential threat. The Prime Minister was positive about that idea, so we'll see.

You mentioned Greece. It is interesting because it is also an air destination, and considering that the whole country has as many patients as Croatia, we can say that the Greeks have managed to preserve the ‘corona-free’ image even more successfully. Will they be a threat to Dubrovnik?

I wouldn't say a threat, but the competition for sure. We will continue with the advertising measures. I think we have a hit advertising model, so we are preparing a short animated film that will be shown on CNN and the BBC, and which will tell the story of Dubrovnik as a city that was the first in the world to have quarantine and already in the time of the Dubrovnik Republic learned to deal with difficult situations. 

Everyone will, of course, in this situation try to make the most of their advantages, although I must say that our competitors like Italy and Spain are still in much bigger trouble than us.

Should the state, if it wants to help tourism and domestic guests, lower toll prices?

That would certainly be good and I hope it will happen. Everyone expects a lot, but we need to follow some pace and solve problems one by one. Now it's finally time for reactivation. I believe that it is on the table and that it will certainly be discussed, although for Dubrovnik, which does not have a kilometer of highway in its county, it does not matter. However, that would be good for domestic tourism, and even for [the state road authority] “Hrvatske Ceste”, if necessary, to borrow.

You commented in an interview that you do not understand how Dubrovnik caterers, who have been boasting record seasons in recent years, managed to spend all the money and as soon as the crisis arrived, be in trouble?

I will say clearly: when you have successful seasons 2019, 2018, 2017 and so on and when after each you say it is a record, you buy boats, cars, planes and apartments, we are happy because a man is able to afford it. But when these same people, as soon as the crisis knocked lightly on the door, immediately ask for forgiveness of debts and dismiss me, it is extremely rude and hypocritical to me and it completely threw me off balance. 

But well, the situation has calmed down, we have agreed to lower the rent by 50 percent for April, May and June, and we have forgiven 70 percent of the public space fees for those months. 

In addition, for the following months, until October, we have agreed to see how the season develops and, depending on that, continue to charge. I didn’t want to sit on the backs of the caterers, but I felt that in times of health threats they had to bear part of the burden because they, unlike the City, could save, put aside and prepare for the dark days. I think that people should still be more socially sensitive, that they should think about health first, and then about money. It is easiest for us politicians to forgive everything, then everyone loves you and you are the best in the world. I'm not that kind of man.

Wednesday, 11 March 2020

Coronavirus Hits Tourism: Dubrovnik Projecting 30 Million Kuna Loss in First Half of 2020

March 11, 2020 - The City of Dubrovnik is monitoring the development of the situation and is looking at the effects that the spread of the virus has on the local economy, which relies mainly on tourism.

Dalmacija Danas reports that Dubrovnik Mayor Mato Frankovic and his associates held a meeting with Dubrovnik Tourist Board Director Ana Hrnic, members of the Dubrovnik Tourist Board Tourism Council and representatives of tourism-related professional associations on Tuesday, followed by a press conference to draw conclusions about the impact of the coronavirus in tourism as the most important economic branch in the Dubrovnik area.

Mayor Mato Frankovic expressed satisfaction with the way in which the national epidemic was approached nationally. He said the City of Dubrovnik is monitoring the situation and looking at the effects that the spread of the virus has on the local economy, which relies mostly on tourism.

“Our expert services have made rough estimates of the financial structure of revenues in the first six months, and they tell us that as a unit of local self-government, we will earn less than 30 million kuna in that period, but we are ready to adapt to any new situation,” the mayor said. He adds that this roughly estimated loss will be offset by surplus revenue generated in 2019, which will be spread over the May budget revision.

“After June, we will re-examine the situation and make further decisions regarding maintaining financial stability in the public sector,” the mayor announced, noting that we must be prepared for each scenario. He also expressed the readiness of the City to support the business people through various measures. If the situation with the coronavirus extended to the main season, it would also help businesses.

Director of the Tourist Board Ana Hrnic and a member of the Tourist Council Stanko Ljubic also spoke at the press conference.

“This situation is affecting tourism globally and we need to prepare ourselves as best we can. There will definitely be an impact on Dubrovnik tourism, but we must work to make the impact as mild as possible,” said Hrnic.

The Mayor concluded that the City of Dubrovnik fully respects the hierarchy of competences in the public health sense and will continue to act in accordance with the recommendations of the Civil Protection Headquarters of the Republic of Croatia, according to the City pages.

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

Saturday, 9 November 2019

Dubrovnik Considering Ban on New Restaurants for Five Years

November 9, 2019 -  A new measure could see Dubrovnik ban all new restaurants in the Old Town for five years. 

“It has so far fought overtourism by limiting the number of cruise ships that dock in its ports, banning four in five souvenir stalls, and cutting the number of tables and chairs outside restaurants by 20%. And now the Croatian port of Dubrovnik has suggested an even more stringent measure: an effective ban of all new restaurants,” wrote CNN on November 5th about the potential of a five-year ban for new restaurants in the city. The Dubrovnik Council will vote on the proposal next month. 

Mayor of Dubrovnik, Mato Frankovic, told CNN that, “anyone wanting to open a restaurant in the Old Town cannot put down new tables and chairs for the next five years. They can open inside, but knowing the Old City, it's very hard to find a place where you can work inside. Ninety nine percent of restaurants work mainly with outside tables."

Frankovic added that if a restaurant chose to close down, it would remain ‘fully closed’, meaning no new business could enter. 

Since the city council owns all the public space in Dubrovnik, they get to decide whether or not a restaurant can be allocated space outside for tables, CNN explained. 

Slobodna Dalmacija reported that Dubrovnik caterers do not mind the five-year embargo announced by the mayor of Dubrovnik.

For starters, there are already too many restaurants in Dubrovnik’s historic center - and as many as 150 different types, from snack bars to taverns. The locals say they must protect themselves from the competition coming from the outside:

“We agreed that a five-year moratorium would be a good idea because it makes it easier for everyone to do business and plan. Under such a condition, we would have a normal business environment, so this arrangement seems very good to me.

There is also one problem, and I do not know how it will be solved. For example, if one outlet closes in those five years, another outlet cannot be opened in its place, and that public space ceases to exist,” notes Ante Vlasic, head of the Dubrovnik Caterers Association.

Vlasic highlights another drawback:

“We don't even know what will happen if, for example, the owners of a restaurant change and everything else remains the same. But, in principle, the idea is good, it would provide us with better and easier work,” added Vlasic. The proposal stems from the cooperation between the City and the caterers according to the famous "5x5x5" model, which goes into effect from January 1, 2020.

Mayor Frankovic offered restaurateurs a lease extension on urban spaces and the lease of public spaces to five years, with a five-year moratorium on changes in public spaces and the number of tables.

“All those who have leased space owned by the City of Dubrovnik know that after the contract expires, we are obliged to call for tenders, place the premises on the market, and get new tenants according to the criterion of the best offer. The law did not envisage the possibility of offering a good tenant lease priority. 

We thought for a long time how to protect existing caterers, hired legal experts, and came up with this solution. For all those who lease space in our property, the lease will be extended to five years, which is the maximum legal deadline. Any price adjustments are minimal,” the mayor explained.

“The second amendment relates to the lease of public lands, which has been ongoing year after year, and the new proposal is to conclude public lease agreements for the first time for five years, which is the legal maximum. This applies to caterers both in the city and in private areas. It means five years for everyone, and the price remains the same.

We want to guarantee everyone more business security. Now you know that you will have contracts for five years and you will not be too concerned with who is in power,” said Frankovic.

Finally, Frankovic explained the last "5" of this model, which refers to the moratorium on leasing new public spaces.

“When we sign new contracts on January 1, 2020, there will be no lease of new public spaces for the next five years. There will not be one more table or surface. That's it. I think this is correct and fair and limits the enormous boom of restaurants inside the historic core that we no longer really need. Catering facilities can still open, but in private facilities and outside a public area,” concluded Frankovic.

Caterers have agreed to the embargo proposal, but are somewhat less satisfied with reducing the number of tables and chairs in public spaces.

Namely, the tables and chairs of hospitality facilities within the historic core extend over 3795 square meters of public space. On the first day of 2020, the coverage will be reduced by about three hundred square meters, as all catering establishments that have leased more than 25 square meters of public space so far will be reduced by ten percent. That provision hits as many as 56 catering establishments.

The restaurant "Dalmatino" has so far occupied 29.5 square meters of space. Owner Robert Jasprica thinks the decision to cut this by 10 percent is not a good one.

“What matters is how the number of tables will be cut. If it's going to be linear, as I've heard, I'm not losing those three, four chairs, but actually more. There will be ten centimeters between these tables, who will want to sit there?” says Jasprica, one of the few caterers who keeps his restaurant open in the winter.

“It’ll cut ten percent of the tables now, which is ten percent less public space, ten percent less traffic. This reduction is crucial to me for 12 full-time employees and for working in the winter. It is easier for me to close the facility on November 1st,” says Jasprica.

Recall, in the flight against ovetourism, Dubrovnik mayor Mato Frankovic also announced last year that no more than two cruise ships per day could dock in the city, which has a 70% success rate for 2019. 

Frankovic also shut down 80% of souvenir stands and 20% of outdoor seating. This other 10% will be cut from January 1, 2020, CNN concluded. 

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

Monday, 30 September 2019

Dubrovnik to be Connected to Seven World Capitals this Winter

September 30, 2019 -  This winter, Dubrovnik will be connected to seven world capitals (Frankfurt, London, Istanbul, Warsaw, Rome, Barcelona, and Athens), and with the Croatian capital - Zagreb.

HRTurizam reports that direct flights between Frankfurt and Dubrovnik throughout the year, co-organized by the Dubrovnik National Tourist Board, the Croatian national carrier Croatia Airlines and the Croatian National Tourist Board, was presented in Frankfurt late last week to fifty German travel agents and travel journalists.

At the Croatian restaurant Damiro Westsite in downtown Frankfurt, director of the Representative Office of the Croatian National Tourist Board in Frankfurt, Romeo Draghicchio, emphasized that the promotion of Dubrovnik in the winter months fits into the strategic plans of Croatian tourism, which seeks to extend the season. Dubrovnik has made the most progress in this regard, and this direct connection in the winter is ideal for attracting additional guests from Frankfurt and its surroundings in the winter.

Mato Radic, director of the Croatia Airlines branch in Frankfurt, presented the winter flights with an emphasis on the direct connection from Frankfurt, which will operate three times a week during the winter months, while Silvana Turcic, director of the Travel Observatory in Zagreb, presented the winter package deals to the present travel agents.

“The Frankfurt-Dubrovnik direct winter flight will operate for the third year within the strategic projects of the Croatian National Tourist Board, the Dubrovnik Tourist Board and Croatia Airlines. At the initiative of the Tourist Board and Croatia Airlines, all open hotels participate in the winter programs," said the director of the Tourist Board, Romana Vlasic.

Vlasic expressed her satisfaction with the excellent air connectivity of the two cities and the number of German tourists, who make up the third-biggest tourist market in Dubrovnik. 

The Dubrovnik Tourist Board has designed and printed leaflets on all events during the winter in Croatian, English, and German, which will be available to all visitors at the Tourist Information Offices.

Dubrovnik welcomed 77,723 German guests in 2018, which is 22% more than the previous year. The German market also achieved 273,764 overnights, or 7% more than in 2017.

You can read more about Dubrovnik’s winter program here

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

Thursday, 28 March 2019

Dubrovnik's Tourists Spend More Per Day Than in Other Coastal Areas

As Novac writes on the 27th of March, 2019, tourists staying in both hotels and private accommodation in Dubrovnik are on average 42 years of age, of a higher level of education and possess decent paying power. They typically spend 170 euros per day on average, which is 90 euros more than the average stands in seven other coastal Croatian counties, according to a survey taken by TOMAS Dubrovnik 2018.

This research was conducted by Zrinka Marušić from the Institute for Tourism, for the needs of the City of Dubrovnik, only for Dubrovnik, conducted on a sample of 1,600 respondents.

"Dubrovnik attracts a specific sort of guest, due to broadcasting markets that aren't specific to the rest of Croatia. According to the motives of the visits, we can no longer speak of a [typical] holiday destination," Marušić said.

Namely, while visiting Croatia's southernmost city, guests are mostly attracted to new experiences, gastronomy and cultural sights, as well as swimming, local portal Dubrovački vjesnik writes.

According to the survey's data, the average daily spending of stationary guests staying in Dubrovnik is 170 euros, of which about half or 87 euros refers to accommodation, food and drink outside the accommodation facility accounts for 43 euros, culture and entertainment accounts for 14 euros, purchases account for 11 euros, etc.

The biggest spenders are from non European, more distant countries, topped quite unsurprisingly by the Americans, followed by tourists from Australia and from various Asian countries. Two thirds of Dubrovnik's stationary guests arrive in Dubrovnik with their partner, and 86 percent of them who visit the city are doing so for the very first time.

Research has shown that Croatia's long-standing tourism Mecca is a distinct airport destination as more than 85 percent of the respondents arrived by air. As many as 70 percent of the southern Dalmatian city's guests stay from four to seven days.

The city's visitors are most pleased with the beauty of the city, the levels of safety and security, the hospitality, and the typically high quality of the provided accommodation. They are least satisfied, however, with local transportation, shopping opportunities and the intolerable crowding and traffic in public places and on the city's numerous beaches.

The survey also included visitors who arrived in Dubrovnik on a cruise ship and shows that they are on average 49 years old and spend on average 51 euros per day. The most extravagant among them are once again Americans, and the most frugal are our neighbours from across the Adriatic, the Italians.

As many as 92 percent of the tourists asked were visiting Dubrovnik for the very first time, discouragingly, they are mostly ''one-day visitors'' and remain in Dubrovnik for a mere five and a half hours. Most often, they visit sights and eat at restaurants, and these guests are by far the least satisfied with the shopping opportunities and the total lack of organisation of the traffic and the huge crowds.

Make sure to follow our dedicated lifestyle and travel pages for much more. If it's just Dubrovnik you're interested in, give Total Dubrovnik a follow.

Friday, 22 March 2019

''Closing Dubrovnik's Cable Car to Srđ Would be Loss for Everyone''

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

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

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

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

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

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

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

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

Is the closure of the cable car expected?

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

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

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

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

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

 

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

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

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

 

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

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