As Poslovni Dnevnik writes on the 10th of April, 2019, Chinese interest continues to grow as the Republic of Croatia and China opened a new, ambitious chapter of economic and trade relations on Wednesday, deepening their relationship even more after talks between the two prime ministers who both considered the talks to be a "fruitful turnaround".

Relations between Zagreb and Beijing initially reached a higher level after the Chinese company China Road and Bridge Corporation was chosen as the much anticipated Pelješac bridge builder.

The two countries readily signed six agreements, which cover the segments of rail, agriculture, digital technology and tourism. Four more will be signed on Thursday and Friday down in Dubrovnik at the 16 + 1 summit.

"We have signed a memorandum on a much more serious, transparent and easier cooperation between companies, on the transfer of capital from China to Croatia, as well as a two-way transfer, and the possibility of capital from Croatia being invested in China. This opens up the possibility of trust and a much stronger and more serious transfer, investing and manufacturing, and we've been able to talk about other large-scale structuring projects, especially given the fact that a Chinese company is building Pelješac bridge,'' said Croatian Economy Minister Darko Horvat for RTL.

He also noted that at this point in time, Croatia has a bilateral economic exchange with China which is somewhere close to the level of a billion euros, in a much larger deficit on the Croatian side.

Horvat also confirmed that Chinese companies are offering to be the ones to construct the Rijeka-Zagreb line.

"This project has to happen, the Chinese side has shown its interest. Whether that is going to come in the shape of a long-term concession agreement or in another model... Minister [Oleg] Butković is engaged in very intensive negotiations [on that matter] at the moment,'' stated Horvat.

In conversation with RTL, Horvat also revealed that they now have a clear signal that there is interest from the Chinese side to invest in Croatia's burdened shipyards, Uljanik and 3 Maj, in Pula and Rijeka.

"The real conversations are just starting, and I'm sure we will have some concrete figures tomorrow,'' he added briefly.

When asked whether or not Chinese could end up becoming the strategic partner needed to finally save Uljanik, the economy minister simply said that nobody was trying to hide the fact that the Chinese had been called upon.

Make sure to follow our dedicated business and politics pages for more information on the blossoming China-Croatia relations, why some remain suspicious, why the European Commission has raised its eyebrows at the fact that a Chinese company is building a bridge funded primarily with EU money, and much more.

April 3, 2019 - The latest news from around Croatia’s airports for new flights to Croatia with updates from Zadar, Pula, and Zagreb.

March 30, 2019 - Putting Croatian adventure tourism on the map, with the biggest welcome in the world. Day 3 of this incredible 2011 adrenaline trip covering 2,500 km along the Croatian coast. 

The World's Biggest Welcome, an ambitious adventure tourism project in 2011 in Croatia enters Day 3 of this 2019 appreciation of one of the finest tourism promotion projects ever in Croatia.  

The plan? To showcase the diversity and fabulous offer of adventure tourism in Croatia by following a GPS route the length of the Croatian coast in the shape of the word 'Welcome' - thereby creating the biggest welcome in the world from a hospitable tourism country. 

Having started on the Slovenian border in Savudrija, Daniel Lacko spent the first two days kayaking 80 km along the Istrian coastline to Brijuni. Another early start on Day 3. 

In order to work on forming the first letter 'W', Lacko headed north and inland, combining his kayaking with cycling and speleo-alpinism. 

He was not the only man up early that morning. The timeless Adriatic. 

The first part of a busy day was a 25 km kayak paddle from Brijuni to Pula, passing Verudela.

Time to head north at the southernmost part of the Istrian Peninsula, Cape Kamenjak. 

After more than 100 km of sea kayaking, the journey hit dry land for the first time, with the kayak exchanged for a bicycle. Destination Pazin, some 60 km away. 

One of the most impressive and important tourist attractions in all Croatia had to be visited along the way. The outstanding Pula Area, the sixth largest Roman amphitheatre in the world. 

Did you know that this ancient treasure has been used for some of the most innovative modern-day tourism projects, including an ice-hockey match, gladiator fights and concert venue for the likes of Sting and Leonard Cohen? 

Cycling the green hills of Istria with its idyllic historic mountain villages is an increasingly popular attraction, and no wonder with beauty like this. A quick stop at St. Vincent. 

Final stop Pazin, but there was no time to rest just yet. One more kilometre to go, with a little speleo-alpinism at Pazin Pit, quite a change from paddling the calm waters of the Adriatic. 

A key part of the project was promoting tourism, and the official website has details of the key places visited during the day. Brijuni. 

Pula and Pazin. 

You can see the entire project on the Welcome website, as well as much more of Luka Tambaca's stunning photography on the Welcome Facebook page. 

Tune in tomorrow for Day 4, as Lacko moves from Pazin to Labin by bike and kayak. 

To follow the whole project from the start, follow the dedicated TCN page. 

At the start of the enfeebled Uljanik's bigger problems, the Croatian Government's view was either restructuring or bankruptcy, and now there's no time to devise any sort of new solution.

As Marija Brnic/Poslovni Dnevnik writes on the 28th of March, 2019, the government rejected the offer of strategic partner Brodosplit for Uljanik's restructuring, and thus, although the prime minister tried to avoid actually saying it, a process that would have a domino effect on all the companies operating within the Pula-based group system was launched.

The fact that there is no longer a strategic partner for Uljanik, which was the main argument for the postponement of the opening of bankruptcy proceedings in the previous proceedings on the 3 Maj shipyard and Uljanik's other companies, is changing the situation and it is now clear that no matter how much room the government initially left for some possible new solutions, the judge in Pazin doesn't have much of a choice today and will determine that the conditions for declaring bankruptcy for the Uljanik shipyard are now fulfilled. Such a decision automatically withdraws what the Rijeka court stated and opens bankruptcy proceedings for the 3 Maj shipyard.

All the speculations that there could be another possibility for Uljanik, for which Prime Minister Andrej Plenković left space in his statement, are empty stories, not only because of the fact that right at the very beginning of Uljanik's growing woes, the government's position was that the only possible scenarios for Uljanik's rescue were restructuring or bankruptcy, but also because of the fact that now, there is definitely no more time available to come up with a new solution for the burdened shipyard. When it comes to the question of the possibility of the continuation of shipbuilding in Pula and Rijeka as a whole, the key question remains the same - how many ships could buyers actually be found for, and then arrive other questions regarding financing through bankruptcy.

Two ships that are now in their final stages of construction in Pula were de facto detained over the past few days by the company's emotionally exhausted employees, and Uljanik's workers aren't finishing the job, because "other" workers, not from that shipyard, are working on Scenic's polar cruiser, while Jan de Nul is awaiting the government's decision to pay the requested difference of 22 million euros and to take over and finish it in Trieste, Italy.

From Pula, the request was for the completion of construction to be carried out in Uljanik, but the government didn't even discuss that yesterday, so it remains unknown as to whether the Ministry of Finance has worked to meet the necessary conditions, and if so, when it intends to pay any price differences and deal with the issue of the contracted vessels.

Although it's quite impossible to describe the situation surrounding Uljanik and Croatian shipbuilding as a whole as anything remotely positive, its rather lucky, analysts agree, that all of this happened and seems to have finally reached its peak in a year in which a surplus was recorded, but that doesn't minimise the issues Uljanik faces, nor does it even begin to confront the shipyard's overworked and well and truly underpaid employees.

The interesting thing which always happens in Croatia is the intertwining of business and politics. Just like with the messy Agrokor situation that has dominated the Croatian media for the past couple of years, there is always a political element, and if there isn't really one, someone will make you believe there is. The Istrian Democratic Party (IDS) has accused the Croatian Government of purposely trying to cause issues by using the Uljanik saga to its benefit, even claiming that the ''government's lack of action and indecisiveness'' is an attempt to destabilise Istria.

Make sure to stay up to date by following our dedicated business and politics pages for much more.

Click here for the original article by Marija Brnic for Poslovni Dnevnik

As Morski writes on the 25th of March, 2019, the specialised portal Gastroposao, which was launched last year, and the City of Pula are continuing their cooperation this year, too.

The portal's aim is to tackle the problem of the lack of quality seasonal workers in hospitality and tourism, which is one of the biggest problems Croatian tourism has faced in recent years.

Following the good results of last year's pilot cooperation between the Gastroposao portal and the City of Pula, when during May and June, Pula's small and medium entrepreneurs in the fields of hospitality and tourism were greatly helped in terms of finding a quality workforce, this year the project is also including Istria, Rovinj and Medulin, as well as the town of Novalja on the island of Pag.

The City of Pula is the first city to recognise the need to create much more simple and exact measures of employment assistance in the field of hospitality and tourism, and has decided that all restaurants from the City of Pula can use incentives in the amount of 90 percent to finance their search for a quality workforce by announcing their search on Gastroposao.

''We're witnessing just how challenging it is to find a quality workforce today, especially in tourism. The tourist season is knocking at the front door and our intention is to quickly and easily "connect" the supply and demand on the labour market and this is why this project is important. If we continue to want to develop and make steps with our [tourist] offer, then it's crucial to have a high-quality workforce,'' said Pula's mayor, Boris Miletić.

Pula will provide direct assistance to all those in the tourism and hospitality sector before the tourist season kicks off, allowing them to easily and quickly find high quality seasonal workers from all over Croatia and beyond, without having to pay extra cash, and with minimal amounts of paperwork.

This means that those looking for staff only pay 100 kuna in costs when publishing an ad on Gastroposao, while the rest will be subsidised by their local government. This approach helps those in the hospitality and tourism industry because a great many small and medium-sized businesses are struggling to be able to get hold of the necessary resources needed for such moves otherwise. The only condition they must fulfil is that they are beneficiaries of measures in the areas of the cities of Pula, Rovinj and Novalja, or in the municipality of Medulin.

It's important to mention that Gastroposao cuts out the middle man and allows employer and employee to communicate directly to each other without any third parties. Employees don't need to write out any job applications and resumes, and they only need to fill in a prepared questionnaire on the Gastroposao portal which has been tailored to the professional terms and written language rules that chefs, waiters and other employees in such fields understand.

Otherwise, the Gastroposao project is co-funded under the IPA Local Employment Promotion Initiative - phase II of the European Social Fund, in the amount of 178,938.00 euro. Gastroposao is the only specialist portal in the Republic of Croatia for employment assistance in the tourism and hospitality sector.

Make sure to stay up to date by following our dedicated lifestyle and business pages for much more.

It’ll be another busy year for Croatian airports as some 11 million passengers are expected to travel through them in 2019. Recall, this is quite an increase from last year’s 10.5 million. But who’s counting. 

Here’s a breakdown of what Croatia’s nine commercial airports expect this year, courtesy of Ex-Yu Aviation on March 21, 2019. 

Zagreb Airport: The airport in Croatia’s capital expects a 5% increase in passengers in 2019, with a 3% growth in operations. This is thanks to several carriers boosting capacities this summer, including Iberia, Vueling, LOT Polish Airlines, Qatar Airways, and Eurowings. Many other airlines, however, will expand operations. 

Split Airport: It’ll be an exciting year for Split airport, which will open their new terminal in June. As works are still aggressively underway to meet the summer deadline, Pero Bilas, Deputy General Manager of Split Airport, announced the usual 5 to 10% increase in passengers this year. Split airport will also see 50 airlines this summer, with many new carriers including Air France, British Airways, Luxair, Ryanair and Laudamotion.

Dubrovnik Airport: It’ll be another solid year for Dubrovnik airport, which expects passenger growth of 4.59% in 2019. Most travelers are expected from the United Kingdom, France, the Netherlands, Sweden, Poland, and the Czech Republic. Nearly 70 airlines will operate to the city this year, and most exciting is the launch of the American Airlines flight from Philadelphia, which will connect the US to Croatia for the first time in 28 years. Also impressive is that Flydubai will continue with trips this summer and Ryanair will launch flights to Dubrovnik. A significant increase in traffic should be seen from London, Paris, Amsterdam, and Dublin said Dubrovnik airport general manager Frano Luetić.

Pula Airport: After a record 2018, Pula airport projects growth of 7% this year and expects to handle 750,000 travelers. Eleven thousand flights will operate out of the airport in 2019, with airlines EasyJet, Laudamotion, TUI Airways, Jet2, and Condor all introducing new services. Brexit, however, could affect the airport this year, as 32% of passengers traveling through Pula are British. 

Zadar Airport: It’ll be a big year for Zadar airport as Ryanair introduces eight new routes from the city. Easyjet will add two new lines, while Iberia Express, Air Serbia, Transavia, Laudamotion and Condor will launch seasonal flights this summer. Zadar airport will count 16 airlines and 51 trips to 31 destinations in Europe this year and should count an additional 100,000 passengers to last year’s 603,819. 

Rijeka Airport: Lufthansa, Air Serbia, TUI Airways and Volotea will launch operations at Rijeka airport this year, which should see a 16% increase in passengers. Operations at Rijeka airport should also increase by 6%. Many airlines will also boost activities to Rijeka, such as Transavia, who will increase flights by 300% compared to last year. 

Osijek Airport: A growth of 11% and 74,300 travelers are expected at Osijek airport this year. While Wizz Air will boost operations on its Basel service, Eurowings will begin their service from Cologne forty days earlier. 

Brač Airport: Dalmatia’s island airport should see around 31,000 travelers in 2019, which is the same as last year. Recall, the airport is currently in the process of expanding its runway and terminal, which is the primary focus. Works should begin in 2020. 

Lošinj Airport: To conclude, the seasonal Lošinj airport will maintain flights from Zagreb and Lugano on Silver Air this summer, while the Czech carrier will introduce a new operation to Venice twice a week, replacing their Pula route. 

You can read the full report on Ex-Yu Aviation. 

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

As Barbara Ban/Novac writes on the 19th of March, 2019, Pula's biggest hotel group, the Arena Hospitality Group announced the continuation of its large investment cycle yesterday, the amount of which will be about half a billion kuna. These are investments in the hotel Brioni (Brijuni) and the apartment resort of Verudela Beach in Pula, the Kažela camp in Medulin, and the doing up of the Art'otel Berlin Kudamm over in Berlin, Germany.

Namely, this Pula hotel company is the only one which owns hotels in Germany and Hungary at the moment. The Arena Hospitality Group recalled that by mid-2017, via a public offer on the Zagreb Stock Exchange, they raised about 750 million kuna to continue their investment cycle.

''We're continuing with our investment cycle, which will be around half a billion kuna from 2018 to 2022. Some of the investments have already been done, some have started, and some are just beginning. Last year we renewed camp Pomer, which became the first glamping site in the country, and we believe it's one of the best in the world. That investment stood at 70 million kuna,'' said the Arena Hospitality Group's Reli Slonim.

With that move, the path to rejuvenating their camps is definitely wide open, which is a sector of theirs which they haven't invested significantly in before last year, as they devoted themselves to raising the quality of their hotels and apartment resorts, as well as their numerous acquisitions in Europe. Part of their facilities are also branded as Park Plaza.

''This year we started with the complete doing up of the Kažela camp in Medulin, and this investment is worth 128 million kuna, which is our biggest investment in the camps. After the completion of the investment, the camp will offer its guests 1,300 spacious places and 164 new luxury mobile homes. In addition, the camp will get a new entrance and reception, new beach bars, and entertainment and sports facilities,'' Arena Hospitality Group's Reli Slonim said.

It is interesting to note that mobile homes in this camp will be made up of ecological and recycled materials, and each of them will be about 40 square metres in size. This will be one of the biggest investments in camps this year in the country, and it should be finished by this [tourist] season.

A member of the management of the Arena Hospitality Group, Manuela Kraljević, also added that along with all of their current investments, they are preparing for the renovation of the Verudela Beach apartment complex too, which will begin in autumn this year. As of now, they have refurbished a ten-unit building, which is an example of how the other apartments will look when finished.

In the tourist resort of Verudela Beach, the plans are to invest about 60 million kuna during the second half of 2019. Ten accommodation units will be upgraded by this season, while the remaining 146 units and 20 villas will be renewed in time for the 2020 summer season. After the completion of the investment, the resort will be under the brand of Arena Hotels & Apartments, Kraljević said.

They also announced the reconstruction of Hotel Brioni, which for the time being, remains the only hotel in Punta Verudela that hasn't been given a ''fresh face''. It is a cult hotel which was built back in the 1970s, primarily for American guests. So far, only two showrooms have been done up, which will be somewhat larger than the existing ones, but this won't change the number of rooms.

''We have decided that we're not going to change the size of this hotel, but we will rebuild it as it is, and the room sizes will be about the same. We will invest 190 million kuna into it, and we'll start doing it up in 2020 after the [tourist] season. The hotel will be finished in one year and [everything] will be completed by 2022,'' Slonim said. In addition to investments in Croatia, this year the Pula hotel group is also renovating its hotel in Berlin, investing the equivalent of 53 million kuna into it. The hotel is located in Berlin's famous Charlottenburg district and is dedicated to the works of the famous pop art artist Andy Warhol. The investment will include a total accommodation capacity of of 152 rooms, as well as all of the other hotel facilities one might expect.

As Luka Cvitan said, the German part of the portfolio is extremely important to the Arena Hospitality Group because it gives them stability and doesn't depend solely on tourism flows in Croatia. Last year, hotels in Germany saw the largest growth, while in Croatia, things unfortunately stagnated somewhat. Business last year amounted to 758 million kuna, and was higher than last year's gain by 30 percent. That is why the Arena Hospitality Group is also thinking about further acquisitions in Belgrade in Serbia, as well as in other countries in the region.

''Also, since we have a portfolio abroad, we can offer our employees full-time employment,'' said Cvitan.

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

Click here for the original article by Barbara Ban for Novac/Jutarnji

March 14, 2019 - The latest news from around Croatia’s airports for new flights to Croatia with updates from Pula, Dubrovnik, and Split.

Pula's Arena Hospitality Group, which refers to itself as one of the most dynamic hospitality groups in Central and Eastern Europe, currently offers a portfolio of 26 owned, co-owned, leased and managed properties with more than 10,000 rooms and accommodation units here in Croatia, as well as in Germany and Hungary.

As Marija Crnjak/Poslovni Dnevnik writes on the 5th of March, 2019, the total investments of the Arena Hospitality Group in 2018 and 2019 amount to 447 million kuna in hotels and camps in both the Republic of Croatia and over in Germany, plus the 190 million kuna that the group plans to invest in the reconstruction of the much loved Hotel Brioni (Brijuni). 

This was stated in the presentation of the Arena Hospitality Group's very impressive business results. The company claims it is also now ready for yet more new acquisitions across Central and Eastern Europe. As is already known, through public offers, the group collected a massive 788 million kuna back in 2017, and since then, they have invested on average three times more than before the public offer.

The Arena Hospitality Group is currently operating in the aforementioned three countries, under four brands, including Park Plaza and Art'otel, last year the company earned 758 million kuna in total revenue, an increase of 5.6 percent when compared to their record back in 2017, accompanied by healthy growth in all segments, hotels, tourist resorts and camp sites. In Croatia alone, they experienced handsome revenues of 503.8 million kuna.

After 2018's big investment in Glamping Arena One 99, worth 70 million kuna, this year, an investment of 128 million kuna is planned in Kažela camp, 60 million kuna is the planned amount to invest in Verudela Beach, a tourist resort, which should be completed by the year 2020, when the beginning of the works at Hotel Brioni (Brijuni) are planned. In the reconstruction of Art'otel Berlin Kudamm alone, the company will invest 53 million kuna.

Make sure to stay up to date on investments in Croatia, doing business in Croatia and everything in between by following our dedicated business page.

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

Investment in Croatia continues despite problematic red tape, and thanks to EU funds (among others), Istria County is set to see a huge cash injection for their numerous ports.

As Poslovni Dnevnik writes on the 4th of March, 2019, Istria County is the founder of five port authorities: Pula Port Authority, Rovinj Port Authority, Rabac Port Authority, Poreč Port Authority and Umag-Novigrad Port Authority, which are expecting big investments this year, according to a report from Glas Istre.

In Pula, the completion of the new 130-metre-long coastline is expected, which will surely contribute to the further overall growth of maritime traffic in the busy Port of Pula. The construction of the new operational coast/shoreline is a project which has been being carried out in several phases, and the latter part of it is worth 3.5 million kuna. Another significant move is that at the end of this year, the design of the passenger terminal project in Pula should begin.

In addition to the ''doing up'' of Pula's coastline, Pula Port Authority is also expecting several other projects to begin, including the replacement of pontoon at Bunarina, the continuation of the promenade towards Veli Vrh, the redoing of the coastline in Fažana, as well as the harbour in Krnica, and works on the beloved Brijuni island which stand at about seven million kuna.

In 2019, Rovinj Port Administration plans to build the San Pelagio communal port, estimated at a value of 32 million kuna, in which Istria County, the City of Rovinj and Rovinj Port Authority will jointly participate.

Significant investments, announced by county prefect Flego, are also expected in the area of ​​the Port of Rabac. The plan is to reconstruct the Trget communal barges, the value of which is estimated at 13.3 million kuna.

Other projects in the works are the construction of a primary breakwater in the port of Rabac, estimated at 72 million kuna, for which a financing model is currently being sought, while the project of Brestov Port, worth 23.7 million kuna, is set to be financed through European Union funds.

Poreč Port Authority is also expecting a number of projects, and the most significant of them all is extension is the existing naval structure in Vrsar Port, which serves as a home for fishing vessels, amounting to 10.5 million kuna. With the extension of the existing area, fifteen brand bew anchorage sites will be provided, meeting the needs of Vrsar Port, as one of the most active fishing centres on the western coast of Istria.

In addition, progress is being made on works on the Barbaran breakwater, through with Poreč Port Authority continues to invest in the Poreč aquatorium. This is the most important investment this year in Poreč, worth 4.8 million kuna, which is financed from the aforementioned port authority's own funds, Istria County and the Ministry of Maritime Affairs, Transport and Infrastructure.

A welcome 5.1 million kuna was allocated by the EU Maritime and Fisheries Fund to the Umag-Novigrad Port Authority, for the demolition of the old pier and the construction of a new one in Savudrija harbour, seventeen new lighting posts, the introduction of video surveillance cameras, and the installation of an ''eco-island'' for waste separation for local fishermen.

In addition to all of the above, another major project is under preparation for the construction of the new Dajla-Belveder port, and all the necessary permits to get the green light are now underway.

The start of construction is planned for this year and will continue through 2020. The construction of the port will provide sixty communal berths, a landing place for fishing vessels and an appropriate operational shoreline for small boat excursions. The project value amounts to 24.3 million kuna, with the funds provided by the Ministry of Maritime Affairs, Transport and Infrastructure, Istria County, the City of Novigrad, and the Umag-Novigrad Port Authority.

Make sure to stay up to date with investment in Croatia, doing business in Croatia, and the overall business and investment climate by following our dedicated business page.

Click here for the original article by Glas Istre