Routes Tourism Mediterranean 2011 Croatia Ministry Briefing Croatia as it once was! Antalya, February 13th, 2011

Contents Main aspects of tourism development in Croatia until 1990 (Dichotomical aspects) Conceptual redesign of tourism in Croatia starting from 1995 (Development projects in Croatia) Actual figures of Croatian tourism Antalya, February 13th, 2011

Main aspects of tourism development in Croatia until 1990 – coastal area Mass tourism destination Coastal development, abandoned hinterland Concentration in just three months Overnights as a measure of success The offer – cheep packages Quality of services – modest Minimal ROI Limited new investments Antalya, February 13th, 2011

Main aspects of tourism development in Croatia until 1990 – coastal area Overloaded infrastructure/ in tourist season (water, roads, parking) Intensive urbanization along the seaside, and unattractive urban aestetics Big hotels, campsite and tourist villages from 2 - 3 stars Uncompetitive tourist product Market presence at risk Antalya, February 13th, 2011

Main aspects of tourism development in Croatia until 1990 – hinterland area Lack of infrastructure (electricity, water supply, roads, telephone) Limited employment (depopulation) Village decay, traditional and cultural heritage Agricultural properties; (uncultivated), Assets/properties value; (unattractive) Faith in the future; (unclear) Predominantly elderly population Antalya, February 13th, 2011

The existing development model was not sustainable on long term The result: The existing development model was not sustainable on long term and was not able to deliver key economical answers needed to provide the general prosperity. Antalya, February 13th, 2011

What next? Antalya, February 13th, 2011

Conceptual redesign of tourism in Croatia starting from 1995 1. Croatian ministry of tourism (creation of new development projects) 2. Croatian national Tourism board + local tourism offices (e-marketing, PR, study trips, media, social networks) 3. Local municipalities (development of local municipalities, urban aestetics….) 4. Private sector – largest hotel companies (new investments) Antalya, February 13th, 2011

Comparative assessment New development model Growth strategy Positioning Cluster Vision and mission General objectives Model 1 Model 2 Model 3 Chosen Model Model impacts Comparative assessment Antalya, February 13th, 2011

3 different models were considered Maximising accommodation capacity Restructuring and repositioning Continuity Criteria in 2020: Accommodation Low growth + 4,5% (910.000) Maximum growth + 66% (1.300.000) Qulaitative growth + 18,7% (950.000) Product development Traditional Real state oriented Added value oriented Specialisation Sun and beach passive Sun and beach active Istra experiences system Guest structure Mass low-medium Mass medium Target oriented medium-high Seasonality 3-4 months 5-6 months 7-8 months Antalya, February 13th, 2011

Integrated growth in Croatia until 2020 2008 (in nº of beds) 2020 Inventory Difference 2020/2008 Hotels 114.000 240.000 + 126.000 Apartments & villas 52.000 90.000 + 38.000 Camp sites 213.000 150.000 - 63.000 Sub total 1 379.000 480.000 + 101.000 Private accommodation 432.000 360.000 - 72.000 Nautical 15.000 30.000 + 15.000 Others 71.000 80.000 + 9.000 Sub total 2 518.000 470.000 - 48.000 Grand total 897.000 950.000 + 53.000 Antalya, February 13th, 2011

Expected growth in Croatia until 2020 2008 Annual growth: 2020 Arrivals 11.300.000 17.600.000 Overnights 57.200.000 2,8 % 80.000.000 Average stay 5,1 4,4 2008 2020 Growth % Revenue / overnight € 124 € 221 + 78 % Total revenue € 7,1 bil. € 19,8 bil. + 179 % Antalya, February 13th, 2011

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About Croatia The land of thousand Islands Magnifical nature and rich heritage Land of vivid diversities Treasure of impresive history Charm of the true Mediterranean Antalya, February 13th, 2011

Croatian accommodation capacities Camp sites 213.000 24% Private accommodation 432.000 48% Holliday resorts 52.000 6% Hotels 114.000 13% Marinas 15.000 2% Other 71.000 8% TOTAL: 897.000 100% Antalya, February 13th, 2011

Croatian aviation traffic in 2010 Zagreb 2.070.000 psg. Dubrovnik 1.270.000 Split 1.220.000 Pula 335.000 Zadar 275.000 Rijeka 65.000 Osijek 20.000 Antalya, February 13th, 2011

Transportation 90 % of all tourists arriving by car Ministry of Tourism “Croatian wings” programme Programme goal: bring additional 650.000 guests by air carriers in 2011 94 joint promotion contracts signed with airline companies Croatia will continue to significantly increase air traffic until 2020 Antalya, February 13th, 2011

Reasons why: To open completely new markets and new client targets To prolong the touristic season Tourists arriving by plane produce multiple effets in the destination New development projects are under preparation (congresses and MICE, golf, wellness, thermal, sports and recreation) Antalya, February 13th, 2011

Antalya, February 13th, 2011