1. 8 th MEETING OF THE HUNGARIAN- CROATIAN WORKING GROUP ON TOURISM Budapest, June 18, 2013

2. Governance of tourism Republic of Croatia - Tourist traffic 2010-2013 Top 5 Markets Hungarian tourists visiting Croatia 2010-2013 Croatian Tourism Development Strategy until 2020 Multilateral cooperation Croatia-Hungary Overview:

3. Republic of Croatia - Basic Facts Overall area: 87,661 km² (land: 56,594 km², sea: 31,067 km²) Population: 4.28 million Total length of the coastline: 6,278 km Number of islands: 1,244 (inhabited: 48) Protected regions: 19 (8 national parks, 11 nature parks) 7 UNESCO heritage sites (6 cultural, 1 natural) 12 cultural phenomena on the UNESCO Intangible Heritage List Blue Flag Programme: 106 beaches and 18 marinas

4. Organisational chart of tourism bodies MINISTRY OF TOURISM TOURISM COMMITTEE OF CROATIAN PARLAIMENT CROATIAN NATIONAL TOURIST BORD COUNTY AND LOCAL TOURIST BOARDS TOURISM ASSOCIATIONS (private sector) Chambers of Economy- national and regional levels DEPARTMENTS OF ECONOMY /TOURISM IN REGIONAL AND LOCAL ADMINISTRATION

5. Minister Mr Darko Lorencinministar@mint.hr Vice minister Mr Ratomir Ivičićzamjenik@mint.hr Assistant Ministers Mr Želimir Kramarićtrziste@mint.hr Mr Robert Penderazvoj@mint.hr Ms Božica Lapićpravni@mint.hr Mr Davor Ižakovićtzutd@mint.hr Ministry of Tourism

6. 2011 - 11.4 million arrivals (increase of 8% compared to 2010) - 60 million overnights (increase of 7% compared to 2010) Republic of Croatia - Tourist traffic 2010/2011 -arrivals and overnights- 2012 -11.8 million arrivals (increase of 3% compared to 2011) -62.7 million overnights (increase of 4% compared to 2011) ARRIVALSINDEX OVERNIGHTSINDEX 2011201212/11 2011201212/11 TOTALCROATIA11,455,67711,834.975103,31 60,354,27562.743,057103,96 DOMESTIC1,529,0031,465,75695,86 5,602,9705,220,93193,18 FOREIGN9,926,67410,369,219104,46 54,751,30557,522,126105,06

7. Croatian tourism nowadays represents a strategic branch of Croatian economy. It records the constant growth in the number of tourists, in the number of newly-opened workplaces in the tourism sector and in total revenue. 2012 INDEX 12/11 6.8110 2012 INDEX 12/11 11.8103 Number of tourists (million) Tourism revenue (billion €)

8. Top 5 Markets No.Country ARRIVALS OVERNIGHTS 2012 Index 12/11 2012 Index 12/11 TOP 5 MARKETS 1.GERMANY1,852,73111.5213,946,703111.7 2.SLOVENIA1,053,55395.786,239,49397.6 3.AUSTRIA945,578105.955,103,762105.5 4.ITALY1,050,50791.34,534,55390.8 5.CZECH REPUBLIC647,211101.44,519,489103

9. Characteristics of Hungarian tourists - average stay 5.4 days - preferred accommodation: private rooms, hotels and camps Hungarian tourists visiting Croatia 2011/2012 -preferred counties: Kvarner and Istria counties - share of Hungarian tourists in Croatian tourism traffic: 3% on average - January-March 2013: -2% in arrivals; +15.4% in overnights ARRIVALSINDEX OVERNIGHTSINDEX 20102011201212/11 20102011201212/11 HUNGARIAN TOURISTS 297,667328,106307,91293.85 1,604,7531,746,1381,629,55293.32

10. The Strategy covers the period from 2013 to 2020 and among other things: gives a new vision of development of Croatian tourism is the precondition for the withdrawal of funds from the EU funds clearly defines the measures and activities to raise the competitiveness of the sector Croatian Tourism Strategy

11. state of affairs, competitive status 10 key directions for Croatian tourism development until 2020 vision for Croatian tourism until 2020 main goal of development operational strategies action plan expected effects Croatian Tourism Development Strategy until 2020, content

12. Over 852,000 registered beds: 13% in hotels, 25% in camps, 49% in private households and 13% in other accommodation facilities 40% of hotel capacity of 4* and 5* Over 62.7 mn overnights in registered commercial accommodation Over 95,000 employed in catering and tourism sector (close to 7% of total employment) Pronounced seasonality – 87% of all overnights take place from June to September Predominant tourism product: sun and sea Product and services not diversified enough Inherited orientation towards seasonal operation However, in times of crisis still achieving better results than many of its Mediterranean competitors Market opportunities for Croatia: attracting new consumers, creating higher value-added products, implementing the ‘green’ concept, clusters, DMO, direct marketing State of affairs, competitive status

13. 10 key directions in Croatian tourism development till 2020 Deregulation Success through partnership Culture of quality The ‘green’ as an operational concept Beyond the sun and sea Tourism embracing the entire national territory Hotel trade – key initiator of the investment cycle Innovation of the market image Authenticity and creativity Croatian products for Croatian tourism

14. Vision for Croatian tourism by 2020 By 2020 Croatia will be a globally recognised tourist destination, competitive and attractive to investments. It creates jobs and manages in a sustainable way the development on its entire territory, nurtures the culture of quality, and offers its guests hospitality, safety an authentic attractions and experiences all year round.

15. Main goal of development Getting ranked among top 20 tourist destinations in the world in terms of competitiveness.

16. Objective of the tourism development till 2020 € 7 bn new investment Increase in hotels’ share from 13% to 18% Upgrade accommodation in household facilities and campsites Create new employment: 20 thousand direct and 10 thousand indirect jobs Increase tourist consumption to € 14.3 bn (€ 12.5 bn by foreigners)

17. Operational strategies Marketing – Restructure NTO, strengthen DMOs, switch to online communication Tourism offer development – Diversify products, accelerate privatisation, upgrade accommodation, upgrade other elements of tourism offer Investments – Greenfield and brownfield (hotels, campsites, nautical tourism, convention centres) Human resources development – Strong regional centres of education, curricula aligned with economy requirements, setting up of LLL system Processes Management – State, county and local level

18. Effects expected by 2020 955,000 beds in commercial accommodation 86 million overnights in commercial accommodation (43% increase compared to 2011) € 14.3 bn worth total tourist consumption (an increase of € 6 bn) Total occupancy rate 24.7% Effects expected by 2025 Further growth in number of accommodation in commercial and in overnights Growth of tourist expenditure doubling the number of employed (in tourism and induced in other activities) € 13 bn total investment

19. Encourage investment and privatization Investment catalogue:www.mint.hrwww.mint.hr Rapid privatization of state-owned hotels -Sale of state-owned shares in 13 tourism companies - the Government Asset Management Agency (AUDIO)

20. Investment opportunities in Croatia tourism * Total nominal value of state owned portfolio available for privatization amounts to 1,9 bln kunas (approx. € 180 mil) Present Status of State Owned Portfolio

21. THANK YOU FOR YOUR ATTENTION Ministry of Tourism of the Republic of Croatia Prisavlje 14 10000 Zagreb CROATIA www.mint.hr