Wednesday, 30 December 2020

HGK Calls On Croatian Companies With Machines to Help in Earthquake Efforts

December the 30th, 2020 - Two major earthquakes struck Petrinja and Sisak causing enormous levels of damage, more or less destroying the towns. As such, the Croatian Chamber of Commerce (HGK) and the Ministry of Physical Planning, Construction and State Property have called on all Croatian companies that have the necessary machinery to make themselves available and help those affected.

As Poslovni Dnevnik writes, currently, the most needed help is clearing the rubble, and anyone who has trucks, loaders and other machinery can help with that immediately. Croatian companies that are willing to make their resources available can contact the Construction Department of the Croatian Chamber of Commerce (tel: 01 460 6707, 01 460 6747) or the Ministry of Physical Planning, Construction and State Property (tel: 01/3782 143, 01/3782 445).

"In these difficult moments, we're all aware that our reaction must be quick and concrete, so we'd like to appeal to everyone to invest their resources and time to help out," said the president of the Croatian Chamber of Commerce Luka Burilovic.

An appeal to Croatian companies and all other individuals for help was also sent out by HUP.

"In these difficult times, which we've all witnessed, we sympathise with our fellow citizens who are particularly affected by this devastating earthquake. Each of you certainly has at least one friend, employee, seasonal employee, family member, partner or customer from Petrinja and Sisak. Maybe you went to school with someone from there. Maybe you cooperated with a company or two from this once highly industrial part of Croatia. It's very likely that one of these people or a member of his or her family was killed in the earthquake,'' they stated from HUP.

The aforementioned association therefore decided to collect donations to help all of the residents of Sisak, Petrinja and the surrounding areas where the earthquake damaged homes and other property.

''Let's show that HUP is made up of entrepreneurs and employers with big hearts, who care about individuals and the poorest parts of Croatia. Let's all come together to help those people who, throughout history, have always and unreservedly been ready to bear the heaviest burdens for all the rest of us,'' they said from HUP.

Anyone who wants to donate and thus help can do so by making a payment to the account:

The Croatian Employers' Association (Hrvatska Udruga Poslodavca/HUP)

Radnicka cesta 52, Zagreb

Privredna banka Zagreb, Radnicka cesta 50, Zagreb

IBAN: HR7123400091510359955

Reference number: OIB of the company

Description: HUP earthquake donation

The funds they collect will be given to those most in need, and HUP have extended their thanks in advance to everyone who donates or helps in any way.

For more on the Petrinja earthquake, follow our live updates for today. For more on how you can help/donate, click here.

Wednesday, 9 December 2020

Chamber of Commerce Encourages Purchase of Croatian Christmas Trees

December the 9th, 2020 - Christmas is drawing ever closer and with the festive period now well and truly here, despite it not feeling very joyous at all after a completely horrendous year, the Croatian Chamber of Commerce (HGK) is encouraging the purchase of Croatian Christmas trees in order to boost domestic production.

As Poslovni Dnevnik writes, in order to create a truly traditional Christmas atmosphere, a Christmas tree is inevitable. The mass sale of Christmas trees will soon begin, and the most common on the market are the common spruce (Picea abies) and the silver spruce (Picea punges), and to a lesser extent ordinary fir (Abies alba).

Here in Croatia, we have about a thousand local producers who mostly sell their own Croatian Christmas trees on the domestic market.

"According to the Central Bureau of Statistics, local producers placed more than 200,000 Croatian Christmas trees out on the market last year. Given such a large number of domestic producers, the export potential is significant, especially when we take into account that last year we exported only 310 trees to Bosnia and Herzegovina which amounted to a figure less than 1,300 euros. In that same period, more than 28 thousand Christmas trees were imported, of which two thirds came from Denmark, which is otherwise the largest European exporter of Christmas trees,'' said the Vice President of the Croatian Chamber of Commerce for Agriculture and Tourism, Dragan Kovacevic, explaining that it is mostly Nordic fir (Abies nordmanniana) which thrives better in a milder climate, and called on all those in Croatia to buy live, Croatian Christmas trees this year.

Natural trees have many advantages over artificial ones. They are grown in nurseries and on agricultural land, so they don't endanger forest ecosystems. At the same time, they produce oxygen and, during their lifetime, affect the removal of CO2 from the atmosphere. It is estimated that one hectare of Christmas tree growth area can absorb up to 1 tonne of CO2 per year.

Otherwise, only those natural and legal persons who are registered in the Register of Christmas Tree Suppliers can sell and produce Christmas trees, and Croatian forests (Hrvatske sume) are among the largest domestic producers of real Croatian Christmas trees.

"As part of our nursery production, we're also raising Christmas tree plantations. As of now, 140,000 seedlings of common and silver spruce have been planted on an area covering ​​approximately 40 hectares, and a smaller amount of fir and spruce spruce has been intended exclusively for Christmas trees. In the past year, about 7,300 finished products were sold, mostly to domestic shopping centres and partly in the retail segment. This year shows an upward trend in domestic market demand.

Our goal is to achieve an annual delivery of mature Croatian Christmas trees of 30 to 50 thousand pieces, both for the domestic and the European market, which is slowly opening up to us,'' said the President of the Croatian forests, Krunoslav Jakupcic.

''In this way, we strive to provide domestic producers with quality raw materials produced from seeds collected in indigenous forest stands and adapt all of that to our climatic conditions. By soing so, we continue to develop finished Croatian products, encourage private production and protect Croatian forests from illegal logging," he added.

It's worth mentioning that one single tree is grown for an average of ten years, and new ones are planted every year to replace the ones sold. Equally, the lifespan of a tree doesn't end with the expiration of the festive season. In accordance with the principles of the circular economy, the trees are collected and disposed of at composting sites, all of which is properly organised by authorised waste disposal companies.

If you want to support domestic producers and buy a Croatian Christmas tree, pay attention to the special stamps that all the trees that are sold here must have and choose the one that is produced at home in Croatia.

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Monday, 23 November 2020

Kutina Has First "Smart" Business Zone in Croatia

ZAGREB, November 23, 2020 - The Kutina industrial-logistic zone is the first smart business zone in Croatia and it offers future investors a series of benefits like digital technology, exemption from utility contributions and for waste management for a period of five years, the Croatian Chamber of Commerce (HGK) said on Monday.

Presenting the project on Monday HGK said that the zone extends over 74 hectares and provides a series of benefits for future investors.

Apart from ensuring utility services, power and transport infrastructure the zone is geographically situated well and future investors will be exempt from paying utility fees for a period of five years, HGK said in a press release.

The zone will be the site of a new unique pilot programme - SMART&KIND - which is for digitising business infrastructure, including the Internet of Things among other things, a unique software to monitor business management of infrastructure and city assets which should lead to energy savings, the digitisation of essential information for investors and connecting them with citizens, it was said at the presentation.

City authorities will equip entrepreneurs at the business zone with smart modules to gauge electricity, water and gas consumption. The modules present an overview of zoning in the city and an analysis of available labour force.

Kutina Mayor Zlatko Babic said that this is a strategic project for the town and apart from attracting investors it will improve the city administration's management, open new jobs and generally upgrade living standards.

State-Secretary in the Central Office for the Development of a Digital Society, Bernard Grsic said that digital transformation is not just technology, it is changing business models and creating new values. This is a horizontal topic that impacts all spheres of society.

HGK also presented its online services which concludes the project of digitising the chamber and its activities and services.

The system encompasses eight online services (e-financing, e-public authorities, e-membership, e-legislation, e-fairs and promotions, e-launch a business, e-commerce information, and e-training). The system accelerates communication between the chamber and its members, it was said at a press conference.

Thursday, 12 November 2020

Pandemic Has Affected Croatia-Russia Economic Relations, Forum Hears

ZAGREB, November 12, 2020 - The COVID pandemic has affected Croatian-Russian economic relations, with trade dropping 21% in the first seven months of the year, and the focus should be on turning the trend around, the Croatian Chamber of Commerce (HGK) said on Thursday in a press release on a Russian-Croatian banking forum.

In the first seven months of 2020, trade between the two countries totalled US$ 228 million, down 21% on the year. We must focus on turning the trend around and work together on returning to the volume of trade which used to exceed $2 billion, the online forum was told.

Banks must play a key role in that, said Josip Zaher, the HGK vice president for commerce and financial institutions.

Croatian Ambassador to Russia Tomislav Car said relations between the two countries were slowly becoming dynamic.

"Both the interstate and economic elements are looking forward, which is a message of encouragement to all of us. However, behind all that are people with their knowledge and ambitions," he said, adding that the embassy and the HGK's Moscow office were always at entrepreneurs' disposal.

Russian Ambassador to Croatia Andrey Nesterenko said all efforts must be focused on the normalisation of relations, with emphasis on banking.

In these difficult times it is very important to continue with activities and maintain continuity in relations. It is also important to learn from one another, exchange ideas and thus find new opportunities in this crisis, he said, announcing that the intergovernmental commission on economic cooperation would meet soon.

The forum's main topic was banking in conditions of the coronavirus pandemic.

Zaher said commercial bank assets at the end of June totalled HRK 444.3 billion, up 4.4% from the end of 2019, while bank profits plunged 48% annually.

The forum was organised by the Association of Russian Banks and the HGK, with the support of the Russian and Moscow Chambers of Commerce and Industry.

(€1 = HRK 7.5)

Sunday, 8 November 2020

Ivan Barbaric: Croatian Chamber of Commerce Adapted Communication

As Novac/Jozo Vrdoljak writes on the 7th of November, 2020, the development of the online platform Go Global - Go Virtual for B2B meetings presented itself as a decent occasion in which to talk with Ivan Barbaric, Vice President of the Croatian Chamber of Commerce for International Affairs and the EU. During the conversation, Ivan Barbaric didn't comment on anything outside the scope of his own work, except on the measures of the Croatian Government in order to try to help the economy during the coronavirus crisis within the framework of EU policies and perspectives.

Have the international activities of the Croatian Chamber of Commerce in this period been hindered due to the fact that fairs aren't being held and economic delegations aren't being organised?

Circumstances related to the coronavirus pandemic stopped regular activities and established practices, but improved communication and accelerated the application of digital platforms. At the Croatian Chamber of Commerce, we quickly adapted to these new circumstances and saw the opportunity in online connection, as such, we created an online platform for B2B meetings Go Global - Go Virtual.

How does the HGK Go Global - Go Virtual platform work?

With the support of the European Entrepreneurship Network, the Croatian Chamber of Commerce launched a platform for online B2B meetings on the markets for which Croatian businessmen have shown the greatest interest. In the first survey, we defined the markets of Slovenia, Russia, Austria, Germany and the countries of the Visegrad Group as key ones. The goal is to sustain foreign activity and accelerate the recovery of the Croatian economy. The platform enables foreign customers to find qualified Croatian suppliers, meet potential partners, and discover new products and services. Each edition begins with invitations to Croatian companies that bring their profiles, activities and interests for cooperation to the platform.

Can you tell us what activities you held thanks to that platform, as well as some of your plans?

We held meetings with Slovenia, Russia and the countries of the Visegrad Group. When we analyse the profiles of companies, imports, exports or distributors, we can see that this platform is by far the most interesting to exporters, in the case of Slovenia, almost 90 percent of the companies in the forum were interested in exporting. At times, it's important that they reach their potential partners through a platform backed by institutions, Croatian ones and those belonging to foreign chambers. We're now preparing for Austria, Germany and Israel, with the proviso that in 2021 we'll be able to identify additional markets in agreement with our companies.

Are there any concrete results?

I'll single out the most successful example of this approach. In the midst of the lockdown, we connected Vuplast with a French hospital that was looking for a supplier of soluble bags for biohazardous items. Recently, at the conference of the European Entrepreneurship Network, which operates within the Croatian Chamber of Commerce, they were named the best entrepreneurial story in all of Europe. They also reached out to their new Swiss partners through EEN. This is an example of how the Croatian Chamber of Commerce, through its strong international network and contacts, helps out with exports. This innovative company recognised the opportunity, designed the product, and we opened the international door for it.

You say that there has been great response from Croatian enterprises when it comes to using HGK Go Global - Go Virtual. How many of them participate in the meetings?

Most of them were interested in meetings with the countries which make up the Visegrad Group, 171 registered Croatian companies and 144 companies from the Visegrad Group, and more than 500 virtual meetings were held. Regarding online meetings with Russia, there were more than 250 registered companies and more than 400 meetings held, while more than 90 companies participated in B2B meetings with Slovenia.

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Friday, 30 October 2020

Croats Increase Savings by HRK 11 Bn in Past Year

ZAGREB, October 30, 2020 - Over the past year, Croatian citizens increased their savings by HRK 11 billion despite the pandemic and a weaker tourism season, with saving deposits across Croatia totalling HRK 52,784 per capita, the Chamber of Commerce (HGK) said on Friday ahead of World Savings Day.

Citing central bank data, the HGK said household deposits reached HRK 214.9 billion in August, up 5.4% on the year.

Across Croatia, deposits per capita amount to HRK 52,874, above last year's average of HRK 48,626, ranging from HRK 23,443 in Vukovar-Srijem County to HRK 78,681 in Istria County.

People on the coast, and partly in Zagreb, save based on tourism, which is why this year's disappointing season has changed some trends. 

Year on year, deposits increased in every county bar Osijek-Baranja, but those in continental Croatia increased by 7.5% and those along the coast by 2.5%. This, the HGK said, shows that the weaker tourist season resulted in weaker deposits in the coastal counties.

Interestingly, deposits along the coast increased less than in 2019, whereas in continental Croatia the growth rate was above the national average, the opposite of last year.

Central bank economist Vedran Sosic said there were no household saving estimates in Croatia, i.e. estimates of the part of one's income that is not spent, so they are based on trends in the value of financial assets and bank deposits as their biggest component.

(€1 = HRK 7.5)

Monday, 28 September 2020

HGK Head Calls for More Flexible Labour Legislation

ZAGREB, Sept 28, 2020 - Croatian Chamber of Commerce (HGK) head Luka Burilovic said on Monday that Croatia needed more flexible labour legislation that would put emphasis on teleworking and the possibility to lay off workers more easily than was now the case.

Organising remote work in a better manner and flexibilities employment contracts are to be regulated by the new law, on which Labour Minister Josip Aladrovic and 35 Croatian business people presented their views at a meeting organised by the HGK in Zagreb.

The business people and the minister said they also expected issues to be raised such as government support for the business sector during the coronavirus epidemic, a non-working Sunday, and the minimum wage for next year, which should be determined by the end of October.

"The new law should put emphasis on remote work and the possibility to lay off workers more easily. I do not think that good worker should be laid off, but there must be greater fluctuation," Burilovic said before the meeting.

Croatia lost only 18,000 jobs due to pandemic

Burilovic said that owing to the measures taken, Croatia had lost only 18,000 jobs to the coronavirus pandemic but that the manufacturing and textile industries would need additional help.

Minister Alandrovic recalled the government's aid for a shorter working week, measures for small business owners, and those for job retention, noting that the government was not against well-substantiated proposals and would continue supporting the business sector.

The head of the KTC retail chain, Ivan Katavic, called on the government to regulate the issue of non-working Sunday, dismissing speculation that a ban on Sunday trading would result in the dismissal of 23,000 workers and a drop in GDP.

Katavic said that 97% of domestic retailers were in favour of a non-working Sunday but that foreign-owned retailer was against it and called for a consensus on the matter.

Dario Vukadinovic, president of the association of road and cargo transporters at the HGK, called for making the labour market more flexible while retaining "a certain level of social security."

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Sunday, 30 August 2020

HGK: New Measures Final Nail in Coffin for Croatian Congress Tourism

As Morski writes on the 29th of August, 2020, the unexpectedly good results of the tourist season in July and August unfortunately don't apply to Croatian congress tourism. Congress organisers and travel agencies have fared terribly during the coronavirus crisis. 

The Croatian congress tourism industry realises its income almost exclusively in the pre- and post-season, which means that in the most intensive period for this industry, the spring months, operations were entirely prohibited, and given the latest measures, the same will happen in once again in autumn.

''Yesterday's decision of the National Civil Protection Headquarters, which was sent to all health institutions and which postpones the holding of congresses, symposia, workshops, lectures and other forms of professional training for health workers, is actually the final nail in the coffin for Croatian congress tourism,'' warned Jasmina Kanas, president of the Croatian Business Tourism Association of the Croatian Chamber of Commerce (HGK).

She claims that gatherings of the medical community make up the majority of all such gatherings in Croatia. "In our organisation, health protocols can be fully respected, and the participants are those who are used to applying much stricter anti-epidemiological measures because their jobs depend on doing so. They can't be compared to similar public gatherings because this is education with a special emphasis placed on professional development and knowledge exchange where there is no place for entertainment. This is especially true for medical gatherings which, according to a strict codes of ethics, aren't allowed to engage in entertainment or have it in a very limited scope,'' she explained.

However, the HGK Association points out that they aren't blaming anyone and that everyone understands the current difficult epidemiological situation and the implementation of measures.

''We're aware that various events are the first target when measures are taken. But we hope that there will be equal understanding on the part of the government, given that our revenues this year are zero kuna as a direct result of these anti-epidemiological measures. So, this year we're not allowed to earn money on our own and get away from the burden of the state, and we aren't used to living on help,'' continued Kanas, adding that she believes that they cannot be treated in the same manner as others.

"We'll feel all this for years to come because employee education, team building programmes, incentives and business travel are the first cuts companies make in a recession even without there being a health risk. After the recession back in 2008, the recovery of Croatian congress tourism took almost five years,'' added Kanas.

In addition to the measures for jobs that they expect in the same amount of 4,000 kuna, which have so far "kept their heads above water", this community from the Croatian Chamber of Commerce is proposing additional grants in the amount of, for example, 10 percent of the turnover in 2019 compensated to congress organisers, given the fact that a similar move was made in Denmark. The uncertainty posed by the impossibility of determining when the pandemic will end is greater with the fact that measures to support job preservation are defined from month to month, making it impossible to plan a long-term strategy to overcome this unprecedented crisis. Therefore, they hope that the next decisions made by the Croatian Government will go in the direction of adopting CES measures until April 2021.

The Croatian congress tourism industry and all business travel in general are an extremely important segment of the country's tourism, but also of the overall Croatian economy because its consumption and long-term stability is a significant generator of inflows to domestic hotels, congress centres, restaurants and transport companies, all of which are among the most affected by this pandemic. The average delegate spends significantly more on professional training than typical tourists do, sometimes up to 5 times more, so the loss of income from this type of tourism is all the more damaging.

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Wednesday, 19 August 2020

HGK Warns Of Difficult Situation In Meat Industry

ZAGREB, Aug 19, 2020 - The slaughter and red meat processing group in the Croatian Chamber of Commerce (HGK) on Wednesday warned of the difficult situation in that sector and called for the continued support from the state, noting that it was high time for the industry to be declared a strategic priority for the country.

"The pressure of cheap imports has for years been suffocating Croatia's slaughterhouse and meat processing industry and the coronavirus crisis has added to the pressure on local companies in that sector, the majority of which, closed their slaughterhouses even before these turbulent times," the HGK said in a press release.

The president of the group of companies in this sector, Mario Ravlic, underlined that Croatian producers had found themselves in a difficult situation after Croatia joined the EU and fully opened its market to large European systems capable of production with significantly better conditions and that the most recent situation had additionally worsened that.

"The impact of the coronavirus crisis, loss of revenue from the sale of hides, and increased costs of managing by-products has brought the domestic meat processing industry to the very edge. And other challenges that await us could mean the end. In other words, it is high time for this industry to become a strategic state priority," said Ravlic.

HGK supported its arguments about the poor situation in this industry with foreign trade figures. Prior to joining the EU (2012), Croatia imported around 80,000 tones of various meat and around 10,000 tones of meat products whereas last year it imported 150,000 tonnes of meat and 24,000 tonnes of meat products.

Ravlic called for the state to urgently secure the continuation of state support for this sector.

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Monday, 27 July 2020

Bookings for Family Accommodation Down Despite Price Cuts - Survey

ZAGREB, July 27, 2020 - Despite lower prices, tourist accommodation for families in Croatia is seeing a steep decline in bookings and most providers of such accommodation are facing financial losses of up to HRK 50,000, a survey on the coronacrisis impact on the business operations of family accommodation providers shows.

The survey, conducted by the Croatian Chamber of Commerce (HGK) on a sample of 2,100 people, revealed that as many as 95 percent of respondents reported a decline in the number of bookings compared with last year, despite the fact that three-quarters of them had cut prices, mostly by up to 30 percent.

Nearly a third of those interviewed, or 31 percent, recorded a drop in bookings of more than 80 percent, while 90 percent also reported cancellations of bookings. The share of cancelled bookings for July and August was mostly up to 60 percent.

"The financial damage suffered by most of the accommodation providers, 77 percent, reached up to HRK 50,000 in the first six months of the year, while the estimate for the next three months climbs to HRK 100,000," the HGK said on Monday, noting that only six percent of the respondents said they did not have any significant financial losses.

A third of those interviewed were pensioners, with 75 percent of them saying that their livelihood would be threatened without this income.

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