ZAGREB, July 1, 2019 - President of the Croatian Chamber of Commerce Luka Burilović said on Monday that Croatia had benefited from its membership of the European Union, however, the labour shortage was becoming a burning issue and required a radical approach.

Asked what the past six years of EU membership means for the HGK, Burilović said that Croatia had joined the EU in its "golden years" and that six years on the country was economically stronger.

Croatia joined the European Union on July 1, 2013 as the 28th member of the bloc.

"We have seen continued growth in exports, a decreasing deficit and public debt, lower unemployment and increased employment. Exports to the EU alone have increased by 50 percent and naturally EU membership has inevitably impacted positive economic indicators," he said.

Asked why more EU funding wasn't being absorbed and remained relatively moderate, Burilović said that Croatia has partially failed in that regard, particularly in the earlier years, however in the past two to three years that has improved and he is certain that before the end of the current term the maximum amount at Croatia's disposal of 10.7 billion euro will have been absorbed.

If we significantly use European funds, that alone could increase GDP by two to three percent annually, he said adding that according to forecasts, Croatia's GDP in Q2 could be even higher than 3.9 percent in Q1.

Loss of labour force is Croatia's biggest problem

"Before Croatia joined the EU, we spoke of the lack of jobs and that people could not find work and now we are talking about labour shortages. There is hardly any sector of the Croatian economy that is not seeking workers," Burilović said.

Import quotas for workers have become senseless and it is time for something more concrete to be done. The long-term aim and strategy have to be to adjust the education system with the needs of the labour market and ensure dual vocational education for occupations in greatest demand.

Keeping our people to remain and work here has to first of all be related to increasing salaries, he added. "It is not easy for entrepreneurs but they have to take that additional step because without increasing wages we cannot keep our skilled labour," Burilović concluded.

More news about Croatia and the European Union can be found in the Politics section.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

May 18, 2019 - "Buy Croatian" returns to Split from May 21 to 22, 2019.

Although we're aware that it is healthier and fresher to shop from our neighbor’s garden than from a factory in far-away China, many of us will often opt for a foreign, imported product thanks to better-known brand names and cheaper prices. In the end, you might be a couple kuna richer, but you'll also impoverish domestic production.

Domestic production is the foundation of the economy of each country. The money spent on domestic products remains in Croatia, thus strengthening the community. Domestic producers equally assist a grandson buying home-made sweets for his grandmother, hotel owners who serve meals made with local ingredients, or someone who chooses Croatian design as part of their own identity. A smart buyer knows that buying local is investing in the future.

Each of us can be a guardian of domestic production. That is why the Croatian Chamber of Commerce has organized the "Buy Croatian" event for 22 years as a way to make citizens aware of the importance of purchasing domestic products.

The "Buy Croatian" action began with a general view that, in the conditions of crisis and recession, it is imperative to preserve the level of domestic consumption and to maintain the economic activity of the country. 

“If spending decreases, the country will enter a negative spiral that leads into stagnation, backwardness and a series of social problems. In this context, these acknowledgments for quality have a special dimension. The global crisis will pass, but our structural problems will not be solved by anyone outside. To be able to solve problems ourselves, we must have a product. It is the product that expresses how cultural and civilized a nation is, because people are not expressed anywhere in the product.

The product, however, is not just for business, though it naturally has a commitment to being innovative and competitive. Competitive products have efficient education, healthcare, and pension funds, because all that goes into calculating the product.

Competitiveness has to come from all sectors of society. The success of a society is measured through its product, and it contains everything good or bad in that society. There is no awareness of us yet. We want to express our sincere respect to those who create a quality product under these conditions. They are the ones who give the optimism that we can, that there are people in Croatia who can create something relevant in the world. That we can create a product that has the character of Croatian quality or is an original Croatian product that can be competitive in any part of the world, assuming our society is competitive.

In the long term, we expect that Croatian products on foreign markets are recognizable by their authenticity and top quality. We desire to recognize Croatia as a quality homeland through its quality products,” reads the description of the HGK action. 

This year, “Buy Croatian” continues in Split, Varaždin, Karlovac, and Zagreb, while a special project "Buy Croatian-Croatian products for Croatian tourism" will be held at the end of the year in Istria. 

Visit the Split Riva on May 21 and 22 to check out over 100 local producers and their products. The already cheerful atmosphere will include Croatian actors Doris Pinčić Rogoznica and Darko Janeša and a vibrant entertainment program.

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

The Mediterranean Festival of Books in Split, the largest Dalmatian festival of books, was completed on Sunday evening. This year’s edition saw a forty percent increase in visitors at Split's Gripe arena compared to the previous year, and its reanimation and organization of engaging panel discussions, which brought famous names of the Croatian literary scene, proved to be more than successful, reports Dalmacija Danas on May 13, 2019.

“Special significance was given to the creation of future readers thanks to a children's program designed to foster imagination and the love for reading. It has been shown that Split has the potential to make this cultural step sustainable,” said organizer Mišo Nejašmić.

“We believe that the forthcoming festival releases will be at an even higher level. This year's program was exceptionally attended and met all expectations. The last day of the fair, many visitors were sad that the festival must end.

This edition of the festival was really colorful. Along with the quality literature, thanks to sponsors, Black'n'Easy coffee, radlers and beers from Laško brewery, CedeviteGo and Kala water were distributed all day. Meeting acquaintances, new friends and socializing with books is what adds value to the Mediterranean Festival of Books.”

The organizers of the festival were particularly pleased with the number of visitors, who came via catamarans from the islands and on buses from Makarska, Šibenik, Sinj, Herzegovina,and Montenegro. And no one left the festival empty-handed - thanks to a varied offer, visitors could enjoy everything from Alan Ford hardcovers for 10 kuna to “Anima Delmatice” which dropped from 750 to 199 kuna. 

“Even panel discussions with topics that were not for the wider audience, such as those on architecture or libraries, were exceptionally attended - and the organizers even made sure to include gastronomy and stand up comedy in the whole story. When the mayor of Split arrives in civilian clothes the day after the opening, then you know that you have done a good thing,” said Slavko Kozina, the head of the Association of Publishers and Bookstores of the Croatian Chamber of Commerce.

In addition to Andro Krstulović Opara, the festival also welcomed many other famous names, including Dalija Orešković, Ivano Balić, Tisja Kljaković Braić, Viktor Ivančić, representatives of local and county authorities, Ivan Pažanin, Matko Marušić, Ivica Ivanišević, Jurica Pavičić, Marko Tomaš, Tanja Mravak, Emir Imamović Pirke, Damir Karakaš, Pavao Pavličić, Nebojša Lujanović, and Julijana Matanović. 

The Mediterranean Festival of Books, organized by the Association of Publishers and Bookstores of the Croatian Chamber of Commerce (HGK) and under the auspices of the Ministry of Culture, Split-Dalmatia County and the City of Split, was held from the 8th to the 12th of May, 2019.

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

The entrance to the festival was free, and visitors could see the latest publications covering a space of more than two thousand square meters in the large hall of ŠC (Arena) Gripe. 

Fifty program activities were prepared, with as many as 35 promotions of the latest works of some award-winning and acclaimed authors taking place. 

The panels consisted of prominent lecturers who spoke about important local topics, as well as a multitude of workshops for the youngest among the festival's visitors on offer. 

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

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

As Morski writes on the 19th of April, 2019, Croatia's nautical tourism season has already started, beginning about a month ago and lasts the longest of all, for about eight months in total. What can be expected this season and whether or not the Greeks have taken away part of what would have been Croatian guests due to the Greek state's measures, are just a couple of the issues that Robert Pende, an assistant in the Croatian Ministry of Tourism, Roko Vuletić, the president of HUP's nautical sector and the Croatian Chamber of Commerce's Sean Lisjak discussed on HTV's "Good morning, Croatia" show.

Robert Pende stated the nautical season has just begun, and so far we have room to be satisfied and we can expect the season to be on the same level as last year.

Vuletić said that according to field information, the data isn't so great.

"We're the leaders in the world in one segment of nautical tourism, and that's renting a boat without a crew. We're receiving information from our colleagues who have charter agencies that some existing reservations have been canceled due to Croatia's price increases, which has been a big trend in recent years, although charter agencies raised their prices the least, given the growth of offers and competition,'' said Vuletić.

He added that guests are increasingly looking for package deals and that there are less and less classic nautical guests - they're wanting to have a whole package, from airline transfers, accommodation, gastronomic offers, and all of that has increased in price, including in marinas.

''In combination with the announced recession, people are becoming more cautious about what they're spending, they want to go to new destinations, and Greece and Turkey are growing rapidly,'' he said.

Lisjak said he was not afraid about people cancelling their reservations, he stated that Croatia's nautical tourism sector is a vigorous activity and in the last fifteen years Croatia has had continuity. He added that Croatia needs to be careful because new markets are opening their doors that have recently been avoided for security and various other reasons. He added that believes that if Croatia manages to accomplish last year's results despite all of that, then it can be satisfied.

He said that Croatia made 860 billion kuna from tourism last year and added that a way should be found to allow existing investors to invest in marinas.

He noted that a certain drop in transit has been recorded with the aforementioned Croatian price increases, adding that Croatia does have to be careful with its pricing policy and that the country needs to focus on being as competitive as possible.

Vuletić believes that boosting advertising activities on new markets needs to be done. Austria, Germany, Slovenia, Slovakia and the Czech Republic are Croatia's traditional markets, and the country should turn to the growing American or Scandinavian market, reports HRT.

Make sure to follow our dedicated lifestyle page for much more. Interested in learning more about sailing in Croatia? Give Total Croatia Sailing a follow.

Croatia hasn't done the best job of showcasing itself in the investment world, with investors often referring to it as the ''Bermuda Triangle'' and with the phrase ''ABC'' having come to mean ''Anything but Croatia'', things aren't looking all too bright. Things can be altered, but as the old British saying goes; mud sticks.

As Ana Blaskovic/Poslovni Dnevnik writes on the 16th of April, 2019, when compared to 2018, the share of companies that would reinvest in the Republic of Croatia dropped from 68 down to 54 percent. If they were asked to do so again today, almost half of the German companies operating here would decide against investing here again, and over sixty percent of those investors have an extremely poor economic picture of the country.

This is the result of a survey by the German-Croatian Chamber of Commerce conducted between February and April of this year among 150 of its member companies. In almost six years since joining the European Union, investors first had high expectations which quickly fell, but that was apparently somewhat expected. Following Croatia's accession to the EU, there was a period of transition in which investors were waiting anxiously and looking forward to seeing European practices come to life here, but that wasn't quite the case here.

Unlike former new member states of the EU who were given the green light to join during previous wave of the EU's enlargement, Croatia stalled, at least that is the overall impression one gets when asking members of the German Chamber of Commerce, including huge names such as Allianz, Siemens, Bauerfeind, Knauf, Müller, Spar, RWE...

"The survey is a perception, but it speaks about the overall impression of companies doing business [in Croatia], and that's that nothing important is changing,'' said Thomas Sichla, president of the Chamber. As stated, when compared with the previous year, the share of companies that would reinvest in the country dropped from 68 percent to 54 percent, which speaks volumes about perception and just how mud really does stick.

The fact that this isn't just an isolated case of pessimism, but is the contour of very worrying trends is best illustrated by the fact that eighty percent of the respondents had already previously responded to the survey.

While in Croatia almost half of investors would say "Auf Wiedersehen" to investing here again, in other countries in Central and Eastern Europe where parallel research was conducted, only one fifth of the companies who responded would say the same, so it shouldn't come as any surprise whatsoever that investments and their investors simply bypass Croatia entirely. Things aren't changing in Croatia, and if they are, it isn't fast enough at all.

Out of twenty Central and Eastern European countries, Croatia is still "relatively attractive" in eighth place on the list. Siemens' leader Medeja Lončar says that "more flexibility and speed in Croatia for a better economic and investment climate are needed", adding that Siemens will continue to invest in Croatia, depending on the business environment. If one scratches the surface, the companies that make up the German-Croatian Chamber of Commerce are almost repeating some very well-known criticisms that many have about Croatia.

At the top of that ''criticism list'' lies an insufficient fight against corruption and crime, followed by the burden of high taxes and general dissatisfaction with the tax authorities and the system despite the three waves of ''tax relief'' under Finance Minister Zdravko Marić. The top five barriers are Croatia's below par public administration and lack of legal security.

On the other hand, as a business advantage, investors pointed out the fact that operating in Croatia opens the door to the EU's single market and to infrastructure. Despite the ever-burning workforce problem that is rapidly evolving into an enormous problem of epic proportions for Croatia, employee qualifications and the quality of higher education continue to be among the main benefits in Croatia, are are productivity and employee motivation. However, in Germany the Chamber notes that the Croatian state should engage and talk much more to the private sector about the demand for labour and adapt its education system to that need.

With Croatia's continually deteriorating growth prognosis, which without reform is falling more and more, more than sixty percent of the surveyed companies find Croatia's economic environment to be very poor, and only a third claim it to be satisfactory.

Make sure to stay up to date by following our dedicated business page for more information on doing business and investment in Croatia.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

More energy news can be found in the Business section.