- CREN - Croatian Real Estate Newsletter

Which countries are our greatest competitors?Actually, when it comes to tourism, one chooses one’s competition, because it is upto us to decide the league in which we will play. If we want to become a lifestyledestination with high value for our guests, then our competition is Tuscany,Provence, Côte d’Azur, the Amalfi coast and Styria, but certainly not Turkey, Egypt,Tunisia or even Monte Negro.We should use the crisis as an impetus for changeIn view of the economic crisis, what do you believe this tourism season will belike and when could the market recover?I believe that there is too much talk about the crisis. I believe that Croatian tourism isin a crisis irrespective of the global crisis, because it has been developing randomlyover the past 15 years. It is important to realize that the market will recover, but it willnever be the same. Today, people travel for the product and the experience, and thiscan only be achieved through hard work and creativity in the tourism industry. If thisis what you are relying on, then it is easier to manage the crisis. However, if you arerelying on three months of sun and sea without your own direct marketing andwithout important alliances with global distribution, then you are very dependant onluck. And this is precisely where we are now. So, it can only be luck or a set ofcircumstances that can save us to some extent this year, and I anticipate about a 15percent drop in revenues. However, we should use the crisis as an incentive tochange our tourism business model, as soon as possible.As far as you know, how many projects are currently ‘on hold’ due to theeconomic crisis?At least 50 large and more than a 100 small projects are currently on hold. Thepotential of these projects is much larger if one considers the changes necessary inour tourism industry. It is, therefore, time for Croatia to think thoroughly about how toencourage smart and high-value oriented investments in tourism. This is no longerjust an issue of tourism; it is an issue of the response of this country to questions ofeconomic growth in the years to come. Croatia has to decide whether it wants astrong tourism industry supported by global management, technological andmarketing standards, or if it wants to go on utilizing its natural resources in a cheapway.CREN - Croatian Real Estate Newsletter / March 2009. 21 / 30