Saturday, 5 December 2020

Faculty of Economics University of Zagreb Celebrates 100 Years

ZAGREB December 5, 2020 – With over 9000 students currently enrolled, the Faculty of Economics University of Zagreb is the largest faculty in Croatia. In 2020, this internationally renowned institution celebrates its 100th birthday, so TCN decided to take a closer look.

Every other student you meet in Croatia seems to study economy. It makes you wonder where they all go to after their studies are complete. Are there really so many positions for economists in Croatia?

In 2020, the Faculty of Economics University of Zagreb celebrates its 100th birthday. The long list of its famous former students gives a clue to where all the Croatian economists go – the tourism sector, diplomacy and international relations, business, politics and government.

SG-council-of-europe-2020-42020.jpgMarija Pejčinović Burić, a graduate of the Faculty of Economics of the University of Zagreb and the current Secretary General of the Council of Europe. After graduating, like Savka Dabčević-Kučar, she became o doctor of economics and before taking her current position served as Croatia's Deputy Prime Minister and Minister of Foreign and European Affairs © Council of Europe

Graduates of the Faculty of Economics University of Zagreb have served as mayors of Zagreb and Split, Deputy Prime Minister of Croatia, Minister of Finance, Minister of the Economy, Secretary-General of the Council of Europe, Governers of the Croatian National Bank, Vice-President of the UN World Food Council, President of the Croatian Football Association, Minister of Environmental and Nature Protection, special advisors to the President of Croatia and countless university professors, including several former rectors of the University of Zagreb. Within its graduate professors, it has produced no less than 19 full members of the prestigious Croatian Academy of Sciences and Arts, more than any other single institution in the country.

wikiSlavka.jpgSavka Dabčević-Kučar, a graduate of the Faculty of Economics of the University of Zagreb. Born on Korčula, she became an anti-fascist in World War II, joining the partisans after her brother was beaten by fascists. After graduating, she continued to study at the faculty and became one of the first doctors of economics in Croatia, raising eyebrows by choosing to write her doctorate dissertation about a non-Marxist economic theorist (Englishman John Maynard Keynes). She became a professor at the faculty in the 1950s and despite her great advances in political life, remained a committed teacher at the faculty until 1971. In 1967, she was elected President of the Socialist Republic of Croatia. In 1969, she moved to an even more important position - that of president of the Central Committee of the League of Communists of Croatia. She was the first woman in Europe to be appointed head of government of a political entity and the first female in Croatia to hold an office equivalent to a head of government. In this picture, she addressed supporters on Ban Jelacic Square Zagreb during the movement called the Croatian Spring, which called for greater autonomy for Croatia. At the address, thousands cheered her as “Savka, queen of the Croats”. For her pivotal role in the movement, she was removed from her positions and public life and retired. She returned to politics in 1990 upon the collapse of communism in Europe and during the Croatian war of independence was one of the few politicians who visited the front lines of battle in Slavonia, Petrinja, Pokupski and the Dalmatian hinterland

The Faculty of Economics University of Zagreb is the largest faculty in the country. Over its 100 year history, it has established itself as an internationally respected institution. Today, it has around 9000 persons enrolled, caters for international students with some courses in English and has produced over 86, 000 graduates, including 856 doctors of science.

muo_zagreb_povijestmimara.jpgIn its infancy, students of the College of Trade and Transport were taught at the Technical College, which is today the Museum of Arts and Crafts in Zagreb © National and University Library in Zagreb

The history of the Faculty of Economics University of Zagreb starts with the opening in 1920 of its forerunner, the Zagreb College of Trade and Transport. Its purpose was to educate in the areas of banking, domestic and international trade, transport, consular services, insurance and the education of teachers. Its courses lasted three years and it proved so popular that in the academic year 1923/24, some 1,125 students were enrolled.

The institution held college status until 1925 when Stjepan Radić became the Minister of Education. It must have been unusual for Radić to find himself as part of the government of the Kingdom of Serbs, Croats and Slovenes, the state which preceded the Kingdom of Yugoslavia. Today, Radić is best remembered as a politician outspoken in his advocacy of autonomy for Croatia. Before his appointment to the government, he had always done so in opposition. Indeed, he had been imprisoned several times for his views, which were proclaimed loudly in his writings or in person (he was a gifted public speaker). As recently as March 1925 he had been in prison but, when the political party of which he was a member officially recognised the monarchy and the state constitution, he was freed. In a remarkable turnaround, before the year's end, he was a minister in the government.

Stjepan_Radi_2.jpegStjepan Radić, pictured in the 1920s © public domain. In 1895 Radić was sent to prison for the public burning of the Hungarian flag in Zagreb – alongside Antun Dabčević, the father of Savka Dabčević-Kučar.

Stjepan Radić's desire for Croatian autonomy was not born from the ideals of the political class of Zagreb. The ninth of eleven children, born to a peasant family in a small village on the banks of the Sava river, just north of Sisak, Radić was very much a representative of the people whence he came. To him (and others in his family – his brother and nephew also being prominent politicians), education had the most important role to play in emancipation. He had lived in poverty in order to complete his own - after being banned from university-level educational institutions throughout the whole of the Austro-Hungarian empire for his protests against the state, he travelled penniless to Russia, France and Switzerland to complete his studies. In the latter, finance was one of his chosen subjects.

efzg_zvonimirovafirst.jpgThe first dedicated building of the Higher School of Economics and Commerce was located on the corner of Bauerova and Zvonirmirova © Faculty of Economics University of Zagreb

Under Radić's spell in office, the Zagreb College of Trade and Transport became the Higher School of Economics and Commerce. Its courses extended to four years, it attained university status. With no building designated to the increasingly popular institution, students had sometimes been taught at the Technical College (today's Museum of Arts and Crafts) and in parts of what is now the Mimara Museum. A dedicated home for the faculty was authorised and its construction started in 1927. Classes began at the faculty, located on the corner of Bauerova and Zvonimirova, in 1928, but within the decade the institution had outgrown its home and a plot of land in Svetice was acquired in order to build a new, larger facility. Its construction was interrupted by the Second World War and students would end up being taught on the Bauerova and Zvonimirova site all the way up to 1952.

efzg-1980-ihuniverz.jpgThe faculty's modern building, pictured in 1987. Today, the faculty has 17 departments - Finance, Demography, Economic Theory, Business Economics, Informatics, Macroeconomics and Economic Development, Marketing, Mathematics, International Economics, Business in Foreign Languages, Organization and Management, Law, Accounting, Statistics, Trade and International Business, Tourism, Physical Education and Health © Faculty of Economics University of Zagreb

In 1947, the Higher School of Economics and Commerce became the Faculty of Economics University of Zagreb. In 1952, the faculty officially moved to the new site in Svetice. In 1968 it expanded once more when it merged with the 12-year-old College of Economics. Since then, the building at Svetice has received major upgrades and further facilities of the faculty can now also be found at the university campus in Borongaj, in Varaždin, in Koprivnica and in Bjelovar. After a century of existence, the Faculty of Economics University of Zagreb's longstanding difficulties to meet the popularity of its courses with the space available are now over. Not only can they accommodate every Croatian economy student who makes the grade, but they are also able to offer places to some of the best international students. It would surely come as no surprise if they are still educating the future elites of business, banking, finance and politics in another 100 years.

AnyConv.com__Vrt,_pogled_na_glavni_ulaz.jpg
The Faculty of Economics University of Zagreb site in Svetice, as seen from its garden © Wolf - Pidgeon

Monday, 30 November 2020

Restaurant and Cafe Owners Stage Protest Rally in Front of Finance Ministry

ZAGREB, November 30, 2020 - Dozens of restaurant and cafe owners whose businesses had to close last weekend due to new epidemiological restrictions expressed their dissatisfaction on Monday by staging a peaceful protest rally and lighting lanterns outside the Ministry of Finance.

The protest rally started before noon at Zagreb's main Trg Bana Jelacica square and ended at about 1 p.m., and the protesters estimate that there were several dozens of them.

From the main square, the protesters walked to Katanciceva Street, where the Finance Ministry's building is located, and they lit lanterns in front of the building.

The rally was not organised by any association, the protesters said, adding that it was a spontaneous gathering to protest against closing hospitality and other establishments, such as gyms, and to protest because tighter restrictions were introduced last weekend and operating was made difficult, which puts the survival of businesses, employees and owners themselves at risk.

Drazen Orescanin, representative of the Voice of Entrepreneurs association, said that the gathering was spontaneous and that they were waiting for the results of the meeting between hospitality stakeholders and entrepreneurs with ministers at the Ministry of Labour and Pension System, but what the government was offering was not in line with their requests, according to what he had heard.

"We will keep asking for the compensation to be fair and in accordance with other EU countries, so that everyone who had a significant drop in business is eligible. We also continue our fight for the survival of the economy, for which it is necessary to reduce the VAT rate and for government to make substantial reforms," Orescanin said.

In addition to owners of restaurants and cafe bars, owners of gyms, fitness clubs and others whose businesses cannot operate now also took part in the protest rally, warning that they can no longer survive in the new circumstances.

Monday, 30 November 2020

FinMin Presents Three Measures to Help Entrepreneurs

ZAGREB, November 30, 2020 - Finance Minister Zdravko Maric presented on Monday, after talks with employers' and entrepreneurs' associations, three measures to help entrepreneurs whose businesses are closed due to new epidemiological measures, including job-retention measures, "COVID loans" and covering fixed costs.

The government, he said, will continue paying HRK 4,000 per worker under the job-retention scheme, and HRK 470 million has been provided for that purpose for the period until the end of the year.

"COVID loans" for liquidity, totalling HRK 1.3 billion, will remain to be available for "closed" business, which are the priority, and for other businesses, as well.

The third measure will cover entrepreneurs' fixed costs, or part of them, such as rent, lease, RTV subscription, monument annuity, music licensing fee, etc.

The decline in turnover in December will be compared to last year's results, the minister said, with businesses that have seen a drop in turnover of at least 60% being eligible for the measure, and the Tax Administration will be in charge of administration, based on fixed costs invoices.

Representatives of hospitality stakeholders said the measures were too weak and insufficient, noting especially that it is necessary to reduce VAT.

Wednesday, 30 September 2020

Croatia Initiates Procedure to Conclude Double Taxation Convention with USA

ZAGREB, Sept 30, 2020 - The Andrej Plenkovic government on Wednesday launched procedures to conclude the double taxation convention between Croatia and the USA for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

Finance Minister Zdravko Maric told the press before the government's meeting that the conclusion of the Convention would lead to many benefits in the taxation of all kinds of income and to the improvement of conditions for boosting bilateral trade.

"This is a great signal for investors. We are tackling the matter that has been present for more than two and a half decades," the Croatian minister said.

In October, the country's Tax Administration will open preliminary talks on holding negotiations on the document.

The convention will be beneficial to all industrial sectors, notably the IT sector.

Companies' income will be taxed in their countries of residence, the draft convention reads.

It will enable Croatian air and shipping companies that transport goods between the two countries to pay profit tax in Croatia only.

Croatian builders operating in the USA for less than 12 months will not pay taxes in the USA.

The convention regulates the taxation of income from real property, income, and salaries of athletes, artists, and so on.

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Friday, 21 August 2020

Amendments To Four Laws On Tax Matters Put Up For Public Consultation

ZAGREB, Aug 21, 2020 - The Finance Ministry has put up for public consultation documents for amending four taxation laws: income tax, profit tax, and Value Added Tax laws and legislation on fiscal receipts in cash flow, the Jutarnji List daily said on Friday.

The finance ministry recalls its promises on the continuation of the reduction of the tax burden and underlines that the income tax legislation will be amended with the aim of facilitating efforts to increase the amount of after-tax available income to citizens.

To this aim, the income tax brackets will be lowered: the current 36% will be scaled down to 30%, 24% to 20%, and 12% to 10%, and the changes could go into force in early 2021.

This move will increase the available income after tax from 100 kunas for lower wages to 800 kunas for the highest gross monthly wages.

The profit tax is likely to be cut from the current 12% to 10% for small and medium-sized companies with the annual earnings up to 7.5 million.

The national VAT regulations are going to be adjusted to the European Union's directives.

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Thursday, 11 June 2020

Croatia Issues 11-year €2 bn Bond

ZAGREB, June 11, 2020- The Finance Ministry on Wednesday issued an 11-year €2 billion bonds on the international capital market at 1.5% interest and 1.643% yield, the ministry said in a press release on Thursday.

The issue was arranged by Banca IMI/Privredna Banka Zagreb, Barclays, Deutsche Bank, and J.P. Morgan.

The transaction was announced on Tuesday, after which the ministry held a global teleconference to prepare the broadest market possible.

The investment community's interest was exceptional, with more than 400 potential investors, which was helped by investors who invest only in investment credit rating securities.

Investors were from the UK, the US, Germany, Italy, Austria, France, Benelux as well as Central and Eastern European countries. Strong demand was generated in the amount of €8.45 billion, about 4.2 times more than the nominal amount of the issue.

This enabled Croatia to make the latest borrowing 45 basis points below the initially published price, the ministry said.

The revenue from the issue will be used to refinance a US$ 1.25 billion euro bond due in July. Nearly HRK 360 million will be saved on interest annually.

The rest of the issue will be used to finance government aid for businesses affected by the COVID-19 pandemic, as envisaged in the revised 2020 budget in early May. In it, revenues from financial assets and borrowing increased from HRK 30.5 billion to HRK 63.4 billion. Until then, HRK 35.6 billion of that amount was already covered.

In February, the government issued three bond tranches in the amount of HRK 15 billion at 1% interest. In early May, it issued a seven-year bond on the domestic market amounting to €1.445 billion and refinanced an HRK 7.8 billion treasury note as well as making loan arrangements with banks in Croatia.

Credit agencies say the shock will be temporary

The ministry said the latest transaction came in the week after Fitch affirmed Croatia's BBB- rating with a stable outlook.

The stable outlook reflects the confidence that Croatia will maintain medium-term fiscal stability, while at the same time extending short term support for the fight against the COVID-19 pandemic. In May, Standard & Poor's affirmed Croatia's BBB-/A-3 rating with a stable outlook, while Moody's affirmed the Ba2 rating with a positive outlook, the ministry said.

The agencies say the pandemic will weaken Croatia's economic and fiscal results this year, but that the shock will be temporary and that previous fiscal data improvements and the stronger economy support the country's credit profile, the ministry added.

The final conditions of the issue and the level of interest once again confirmed Croatia's strong status as an attractive issuer on the international capital market, it concluded.

Thursday, 12 March 2020

Minister Maric: Shorter Work Week is Possible Because of COVID-19

As far as Croatian companies are concerned, the most important thing for them is to ensure liquidity. As Poslovni Dnevnik writes on the 12th of March, 2020, Finance Minister Maric made a guest appearance yesterday on RTL to talk about responses to the economic crisis that could be caused by the coronavirus outbreak.

''I understand, but with all due respect, I think that these are moments for constructive criticism, for us to put all our heads together, which is the message of today's meeting. I think a timely dialogue has been launched,'' Finance Minister Zdravko Maric said during his appearance on RTL Direkt.

"Everything the headquarters [for civil protection] is doing is within existing means. The situation is serious, but at this point, based on all the parameters, nothing has happened that would insist on taking an extreme measure. The ''zero'' goal is people's health, and then the first goal is to preserve jobs and liquidity for our companies,'' Maric pointed out.

''A year and a half ago, five billion kuna was paid out to citizens. We did something long before the crisis came so that employers can pay more to their workers,'' Minister Maric said.

Schools are closing in Istria on Friday, raising the question of what will happen to parents who will not be able to work because they will have to stay home with their child. "We had a similar topic a few months ago and at that time, as parents, we had to deal with it in one way or another," Maric said, alluding to the teachers' strike.

Increasingly, one of the possible measures for the public is the shortening of the working week.

"It's one of the things we can talk about, but we're not specifically talking about it today. Employers are first concerned with liquidity. From the point of view of preserving the workplace, shortening working hours would be possible in the next step if things became further complicated,'' noted Maric.

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Wednesday, 1 May 2019

Marić on Potential Chinese Investment: Too Early to Talk About Anything

As Poslovni Dnevnik writes on the 30th of April, 2019, Croatian Finance Minister Zdravko Marić said on Tuesday that he still needs to see if there really is specific interest from the Chinese shipbuilding company, whose representatives are visiting the ailing shipyards in Pula (Uljanik) and Rijeka (3 Maj), saying that it's too early to be able to say anything and that we "need to be completely realistic".

When aked by a journalist about the expectations of the Croatian Government, given that a delegation from the Chinese shipbuilding company China Shipbuilding Industry Corporation (CSIC) has visited the Uljanik and 3 Maj shipyards, Marić said that first of all, we should be realistic and after CISC's representatives get a proper look at the state of affairs with those shipyards and answers to the questions they are interested in, we will need to wait and see what their response to all of it will be.

At this point, it's still too early for that, he added, recalling yesterday's introductory meeting between the Croatian prime minister, his ministers and the aforementioned Chinese delegation at Banski Dvori in Zagreb, where everything was transparent and very clearly presented.

"A really high level team from the perspective of that company has arrived, but on the other hand, we need to be completely realistic. So, today they will spend all day in both Rijeka and Pula and then after that, of course, we can't expect it immediately but within a reasonable time frame, they'll determine what they saw, state what they think about it, and whether or not there is a certain level of interest,'' said Marić when answering journalists' questions after attending the annual European Investment Bank (EIB) press conference.

The CSIC delegation, headed by Hu Wenming, arrived at the enfeebled Uljanik on Tuesday morning, where talks with the members of Uljanik's management board and its supervisory board took place. Assistant Minister of Economy Zvonimir Novak has also been participating in these talks.

Several representatives of the aforementioned Chinese company arrived at Uljanik as early as Monday afternoon, where they viewed the plants and made an unofficial assessment of the capabilities of the Pula shipyard's production facilities, ie, they got better acquainted with its technical capabilities, the processes that take place there, the technology and its general capacities.

What will coe of the visit is anyone's guess so far, but despite suspicion from some, an injection of Chinese money could truly be Uljanik's very last hope.

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Thursday, 18 April 2019

''Business Model of Croatian Tourism is Unsustainable''

As Lea Balenovic/Iva Grubisa/Novac writes on the 17th of April, 2019, Croatian tourism's current business model is unsustainable and has some serious challenges, according to Emanuel Tutek, a partner at the Horwath HTL consulting house, who stated this at the very beginning of a conference on the challenges of the Croatian tourism sector at Edward Bernays High School, the co-organiser of which was Jutarnji list.

Since 19 percent of Croatian GDP comes either directly or indirectly from tourism, the unsustainability of the system is a more serious issue, he added.

''First of all, our tourism is an extremely seasonal sector and as much as 86 percent of all tourism activities in Croatia take place during the summer months. It's also problematic that 96 per cent of these activities are realised on the coast and in Zagreb. In translation, this means that we have plenty of room for progress and the development of our tourist offer across the rest of Croatia, as well as the extension of the season. We are well below the European average. For example, if we compare just the peak of the tourist season, ie July and August, there is 10 to 20 times more of a burden on the area and the residents in Croatia than there is in other European countries. Just remember how some of the destinations and beaches look in July or August,'' warned Tutek.

He also added that Croatia has plenty of room for progress and development in the quality of the accommodation it provides. The Croatian hotels that, as Tutek says, are the pearl of Croatia's hospitality, are very much losing the battle with the hotel industry in the rest of Europe, and the alarm that should be enough to wake the country up is also the fact that the revenue made from tourists' overnight stays in Croatia is less every year.

In addition to this, Croatian tourism is feeling the country's ongoing demographic crisis bite hard, and has a human resource problem as a consequence. This is, as was explained by Tutek, actually a global problem. However, since the international labour market is far more competitive than the Croatian one is, foreign countries are filling their gaps with Croatian workers. Croatia is, unfortunately, at an unimpressive 100 of 138 countries in the world according to the labour market competitiveness index. An even more concerning piece of information shared by the Horwath HTL consultant was that Croatia is the last and second to last in the world on the ladder of attracting and retaining workers.

''We have no solution. The answers to this can't just be some lump sums and other initiatives, we need something more fundamental,'' he warned. One of the negative factors in each case is the uncompetitive average salary. In nearby Austria, for example, in the hotel sector, wages are about 122 percent higher. Still, the hotel industry here in Croatia has experienced a great discrepancy in numbers, and they have therefore begun to increase employee salaries for the last two summer seasons, which has been a fruitful decision. With the rise in salaries and expenses, revenue also grew.

In addition to the inadequate management of human resources, huge problems are also created by the Croatian tax policy. Property tax, Tutek said, practically doesn't exist in Croatia. ''We're the champions of how good private landlords have it. Croatia is a tax oasis,'' he claims.

''We want to be competitive, but there are a number of things that we're not even close to, not even in the wider environment. VAT reduction is certainly important, and there is also the question of consistent policies. It is important for us to have a perception of what will happen in the future at some point, but if the policies constantly change then we can't have a stable business,'' said Sanjin Šolić of the Lošinj hotel group Jadranka.

Davor Lukšić, President of the Lukšić Croatia Group, agreed with him, pointing out that Croatia's 25 percent VAT rate is very high, and even with a rate of 13 percent there would still be room for progress. "We have to remain competitive, especially now when other destinations in the Mediterranean are making a come back," Lukšić added.

But if one was to as Croatian Tourism Minister Gari Cappelli, the problem of the high VAT rate is one of the easiest problems to solve in the Croatian tourism industry. The minister claims that the Croatian Government could lower the VAT rate with one decree, bringing it down to 10 or 13 percent, and such a decision is in the government's plans for the beginning of next year.

''We have a problem with having five-star hotels in two star destinations. First of all, we have to start improving the quality of the destination and spend the whole year measuring what's happening and only after a few years will we see whether both residents and tourists are happy, as well as service providers and the environment. If everyone is more or less happy, then it makes sense to invest in a four or five-star hotel,'' stated Minister Cappelli, adding that in Croatia, it often happens that investments are made in luxurious hotels first, but not in the development of the destination in which it is located.

"Well, we have cases where five-star hotels don't have sewage systems but septic tanks," he said. The minister also referred to the initial lecture by Emanuel Tutek about the key challenges facing Croatian tourism. He agreed that there was always room for progress, but he also pointed out that he was tracking the figures daily and that he couldn't bring himself to agree with all the alarming warnings about the unsustainability of Croatian tourism.

''We're a strange people, two years ago there were no tourists and they wanted to get rid of me, now there are a lot of tourists, and they want to get rid of me again, the projections of what's to come in two years keep coming in, and they're already that I'm shaking in my chair,'' said Cappelli, adding that Croatia is spending what it earns and has therefore finally got an investment rating.

''Now the pressure on public finances is being relieved and the taxes on the economy can be reduced slowly,'' he said.

If the Croatian tourism association is asked for their opinion on the matter, this is last chance saloon for this tax relief to actually become a reality. Namely, it is anticipated that hotels could reduce the volume of their investments by as much as thirty percent over the next three to four years. ''We want to warn the government that it must not let that happen. We have to invest, but we expect that the government to create measures to encourage that and not just put us off,'' said Jadranka's Sanjin Šolić.

Dubrovnik has experienced not only growth in terms of tourism but also the improvement of infrastructure in recent years, Lukšić believes. However, despite the wild popularity of this particular southern Croatian city, it has multiple problems during the winter season.

''In the last two years, we have extended the [tourist] season and the so called ''congress season'' has helped a lot. But we all have to sit around the table and design a strategy for the winter season, which is actually the only problem,'' Lukšić said, arousing a grin from Šolić, who, having being on an island, has much bigger problems.

''It's easy for Dubrovnik. Imagine how it is for us to extend the season! You need to get to the island, the bridge is a problem, the bura is a problem, everything is a problem. We're less competitive than our colleagues on the mainland whichever way you turn. The Chinese, the Koreans, whoever comes to Croatia, lands in Zagreb, goes to Plitvice, Split and Dubrovnik, nobody comes to us,'' complained Sanjin Šolić.

That is why his team sat down together at the table and decided to turn to health tourism for which Lošinj has natural resources, a strategy and a future, said Šolić. Another solution for the development of island tourism is golf. Therefore, a location permit is currently being sought for the construction of a golf course with eighteen holes, with which will be a hotel and villa that will have a total of 800 beds.

''These are the two routes we have on Lošinj. People don't play golf in July and August because its too hot. During November, December, January, February and March, the weather is wonderful and we'll fill our capacities that way,'' he noted.

Emanuel Tutek welcomed this discrepancy in Croatia's tourism development strategies at various locations.

''Not all destinations are suffering the same issues. In Dubrovnik, there is a problem with excessive demand, and the quality of the offer needs to be worked on to reduce the number of tourists. In Istria, the offer should be increased. This has, for example, been done in Maistra. Nobody thought it would pay off to build a five-star hotel in Rovinj, but after the construction of the hotel, the rest of the sector was accompanied by the arrival of tourists and the development of the destination.

However, in addition to the respective issues destinations face in Croatia, the eternal problem facing the entire Croatian tourism sector is labour and wages.

''Salaries are a problem, they're still a base for attracting workers,'' said Tutek, agreeing with the CEO of Jadranka, but as he said, it's difficult to increase salaries because there isn't enough revenue.

"When the minister sorts us out with less taxes, I'll give the rest of it in salaries," he stated.

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Click here for the original article by Lea Balenovic and Iva Grubisa for Novac/Jutarnji

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