croatian economic environment

Ministry of the Sea, Tourism, Transport and Development
POSITION AND ROLE OF TOURISM IN
CROATIAN ECONOMIC ENVIRONMENT
State Secretary for Tourism
Zdenko Mičić
Zagreb, 17 July 2007
Position and role
CROATIAN TOURISM
„ Plays a strategic part in the Croatian economy
„ Tourism has great influence on the lifestyle of Croatian citizens
CROATIAN TOURISM ON INTERNATION LEVEL
„ The winner of many prestigious awards
„ Croatian tourism is internationally as well-known as Croatian
sportsmen
„ Croatia is head of the European Commission of the UNWTO
Tourism in figures
TOURIST TRAFFIC AND REVENUE
2001
2002
2003
2004
2005
2006
Arrivals (in million)
7,9
8,3
8,9
9,4
10,0
10,4
Nights (in million)
43,4
44,7
46,6
47,8
51,4
53,0
3,7
4,0
5,6
5,5
6,0
6,3
22,2
24,5
26,2
28,7
31,3
34,2
16,9%
16,2%
21,2%
19,2%
19,2%
18,4%
Income from tourism (in billion €)
GDP (in billion €)
Part. of tourism in GDP
60
7
50
6
5
40
4
30
3
20
2
10
1
0
0
2001
2002
2003
2004
2005
2006
Revenue from tourism (billion €)
Tourist arrivals (million)
Source: Central Bureau of Statistics
Nights (in million)
Tourist arrivals (in
million)
Revenue from t.
(in billion €)
TOURST FIGURES
TOURIT TRAFFIC I–VI 2007
(in 000)
FOREIGN
DOMESTIC
TOTAL
Region
ISTRIA
KVARNER
DALMACIA
Other regions
TOTAL
ARRIVALS
2007
Index 07/06
2.563
110
559
108
3.132
110
NIGHTS
2007
Index 07/06
10.836
106
1.645
102
12.481
105
ARRIVALS
2007.
Index 07/06
925
110
735
113
1.210
106
262
115
3.132
110
NIGHTS
2007
Index 07/06
4.515
103
2.795
108
4.674
106
496
114
12.481
105
Source: Croatian National Tourist Bord – temporary data
Survey on tourist investments
In January 2007 the Ministry of the Sea, Tourism, Transport and Development
organized a survey regarding
„
Investments of counties into tourist infrastructure which enhances directly the
quality of the tourist product (local traffic, municipal services, protection of
environment…)
„
Investments of county tourist offices into the broadening of tourist offer and the
promotion of tourist destinations
„
Investments of hotel companies into the construction of new objects and
reconstruction of existing objects
„
Results show investment activities in the amount of approximately € 2 billon.
„
The results are not final – most of the investments will be realized during 2007 and
2008 and a smaller amount in 2009 and 2010
Tourist figures
ACCOMODATION CAPACITIES
(in 000)
TYPES OF
ACCOMODATION
Hotels & suite hotels
Tourist resorts
Camping sites
Private accommod.
Other objects
TOTAL
NUMBER
PARTIC. IN
OF BEDS
STRUCT.%
2006
113
12%
55
6%
225
23%
405
44%
127
14%
926
100%
HOTELS
4* i 5*
1*, 2* i 3*
TOTAL
Partic.%
14%
86%
100%
„ Hotels present 12% of capacities - camps and private accomm. up to 67%
„ Only 14% of all hotels have a 4* i 5*
„ All this results in a:
„ Short tourist season
„ Tourists - low spending
Program “Incentive for Success” (I)
CHARACTERISTICS
„ Promotion of construction of small family hotels and boarding houses
„ Transformation of one part of private accommodation facilities into family
hotels
„ Ministry grants interest – rate subsidies for credits
„ Object capacity: 10 – 40 rooms
„ Object quality – minimum of 3* category
RESULTS
„ Program started in 2002
„ 365 credits granted in the total amount of HRK 1,3 billion
„ 11.570 new beds
„ 3.055 new jobs
Program “Incentive for Success” (II)
EXAMPLES OF INVESTMENTS
Hotel San Rocco 4*, Brtonigla
Hotel Maestral 3*, Prvic Luka
Hotel Villa Astra 4*, Lovran
Hotel Palace Deskovic 4*, Pucisca
Hotel Korana 4*, Karlovac
Hotel Bacchus 4*, Baska Voda
Examples of quality enhancements in
privatized tourist objects
Grand Hotel Elaphusa 4*, Island of Bol
Snimljeno
Project
2005
2004.
– 2006
Paramteres
Investment
Allocation
Capacity
Value
€ 15 million
Total reconstruction of 3* and 4* hotel
306 rooms – 612 beds
Examples of quality enhancements in
privatized tourist objects
Hotel Le MERIDIEN Lav 5*, Podstrana (near Split)
Opened in December 2006
Parameters
Value
Investment
€ 55 million
Capacity
380 units of accomodation, approx. 1000 beds
Facilities:
Spa & wellness center with open pool (4 700 m2), congress center (2 500 m2), marina, casino
and other
New investments
Rezidencija Skiper, Savudrija
Project 2005 –
2008
Parameters
Value
Investment
€ 100 million
Capacity
1.500 beds
Facilities:
Hotels and villas of category 5 plus* with pools, tourist village, spa &
wellness, congress center, small marina, golf course 18 holes…
Privatization of former military objects
CLUB ADRIATIC Ltd.
PREDVIĐENO ZA JPP
„ Compound Kupari, Mlini
Planned reconstruction of
historic hotel Grand,
disintegration of other objects,
construction of new hotels,
villas and other – high category
(total of 2500 beds)
„ Tourist resort Basko Polje
Planned disintegration of exist.
Objects and construction of new
hotels, villas and appartm.- high
category (total of 1500 beds)
„ Tourist resort Perna, Orebic
Planned disintegration of
existing bungalows and
construction of new hotels and
villas – high category (total of
900 beds)
Kupari 1990
TR Basko polje
TR Perna
County “Greenfield” projects
BRIJUNI RIVIERA I PARK PREVLAKA
BRIJUNI RIVIERA
„ Joint project of Rep. of Croatia and the
County of Istria for the development of
high quality destinations in the area of
the National park Brijuni and coastal
area (Bale to Port Pula).
„ The project also plans to transform
former military and other objects owned
by the State into tourist objects
PARK PREVLAKA
„ Joint project of Rep. Of Croatia, County of
Dubrovnik and County of Konavle for the
construction of tourist compounds in the
area of the peninsula Ostro - Prevlaka
„ The project plans the construction of high
category destination with 3500 beds, big
marina and other exclusive facilities
Municipality and city “Greenfield” projects
„ At locations in Dalmatia: Posedarje, Ninsko blato,
Tustica, Sibenik, Skradin, …
Employment in tourist and hospitality
industry
(in 000)
2005
month
Total number
of employees
in Croatia
Employees in
tourism and
hospitality ind.
Tourism and hosp.
industry
participating in total
number of empl.
I
1.317
70
5,3%
II
1.332
71
5,3%
III
1.333
72
5,4%
IV
1.341
74
5,5%
V
1.354
80
5,9%
VI
1.368
88
6,4%
VII
1.379
93
6,7%
VIII
1.381
94
6,8%
„
Hospitality and Tourism sector has a large seasonal fluctuation of employees
„
According to official data, on September 30th 2006 – regarding the tourist
sector 50 000 unemployed persons were registered, 88% of them were
women
Seasonal employment in tourist and
hospitality industry
Highest demand in 2006
Salespersonnel
Waiters
Chambermaids
Cooks
Kitchen personnel
Cleaning personnel
Chef assistants
Hotel-tourist clerks
Waiter assistants
Receptionists
Laundresses
other
TOTAL
„
„
Employees
1.807
1.688
1.584
1.272
968
951
598
537
388
321
201
4.634
14.949
Participation (%)
12
11
11
9
7
6
4
4
3
2
1
31
100
Source: Croatian
Employment service
Most of seasonal personnel are under 35 (high school education or
non-qualified)
The requirements for all jobs have become by far more demanding
(ex. chambermaid – understanding of 2 foreign lang.)
Nautical tourism
„ Generates 10% of total income from tourism
– 550 000 nautic. tourists in 2006
„ They spend per day twice as much as
“regular” guests
„ Currently Croatia counts 50 marinas and 33
other ports for nautic. tourism with 16 000
berths in the sea and 5 500 on land
„ Additional 15 000 berths are offered in other
ports
Study for the development of nautic.
tourism in Croatia
z Construction of 15 000 new berths in next 10
years, 5 000 on land and 10 000 in the sea
z The building of marinas for mega-yachts
close to airports
z Primarily the transformation of existing ports
into ports for nautic. tourism.
Continental tourism
Program for the promotion, conservation, reconstruction and inclusion
of cultural and natural heritage into the tourist offer of turist. nondeveloped areas
440
450
400
350
Continent
308
300
256
281
279
Other areas
8%
250
200
136
150
100
48
50
17 3
55
14
58
55
61
18
0
2000. 2001. 2002. 2003. 2004 2005 2006 2007
Number of requests
Number of granted requ.
„
92%
During 2000-2006 a total of 264 projects were co-financed with approx.
€ 3 million
„
In 2007 the means allocated for the Program were increased from HRK 3.5 to 5
million/ almost € 700 thousand
-
440 Projects applied – 79 were selected – highest amount of subsidy per project – over
€ 13 000
Examples of completed reconstruction
and revitalization
Traditional house,
Lonjsko Polje Nature Park
Traditional saw-mill,
Plitvica lakes
Traditional house,
St. Martin at the Mura river
Ethnic-village Kokorici,
Vrgorac area
Continental tourism
NEW PROGRAMS
1. Promotion of tourist theme routes
„
Allocated means for 2007: HRK 2,5 million / over € 330 thousand
„
119 Projects handed in – granted 33 subsidies
„
Goal: creation of tourist attractions by integrating natural, cultural and historical sights
2. Promotion of original Croatian souvenirs
„
Allocated means for 2007: HRK 1 million / over € 135 thousand
„
337 Projects handed in – granted 60 subsidies
„
Goal: promotion and affirmation of original souvenirs as additional tourist product
3. Programs for financing development of rural tourism
„
Allocated means for 2007: HRK 3 million / over € 400 thousand
„
Goal: development of tourist offer as an additional activity on rural estates
Goal: Increase of current 5% participation of continental tourism in all of
Croatian tourism
S
SWOT analysis regarding future
development of Croatian tourism
„ Excellent position of Croatia on
international market
„ Preserved environment
„ Realistic market potential for a speedy
growth as compared to other
Mediterranean countries
O
„ Increase of quality in current
accommodation facilities and construction
of new capacities (4*&5*) – only possibility
to secure sustainable growth of income and
profit
„ Development of selective forms of tourism
(congress, golf, skiing…) – prolongs the
season
„ Activating the potential of contin. tourist
regions
W
„ Structure of accommodation
facilities
„ Lack of tourist infrastructure (golf,
congress centers…)
„ Deficient diversification of offer
burdens the growth of income and
profit outside of main season
T
„ Devastation of coastal area by
non-controlled building of
apartment blocks – danger to most
importan resource
„ Missing of quality destination
management as an instrument for
sustainable development