2013-02-28 15:13:28 - New Consumer Goods market report from Business Monitor International: "Croatia Tourism Report Q2 2013"
BMI's Q2 2013 Croatia Tourism Report discusses the impact of ongoing economic uncertainty in Europe on Croatia's domestic tourism industry, together with analysis of the effects of this on inbound tourism and outbound tourism. The report also examines the investment potential which Croatia offers to large tourist industries - particularly global hotel groups, and evaluates the impact of rising incomes across Russia and the wider CEE region on Croatia's tourism sector.
Croatia's tourist industry performed strongly in 2012, with a November 2012 article in 'Travel Weekly' stating that arrivals were up by 5% on 2011 and overall overnight stays were up by 6.3%. For the full-year, BMI currently has a forecast of a 2.8% annual increase in arrivals, as we only
take into account tourist arrivals and exclude business travel and returning nationals. Moving forward, the government has reportedly announced plans to cut the VAT rate on accommodation and food to 10% in 2013, which should boost tourist flows. The country also has a long-term goal of adding some 60,000 new hotel beds to the national supply by 2020. BMI supports this ambitious goal, with our own forecasts showing an additional 23,000 beds being added to the national supply between now and end-2017.
Full Report Details at
An overview of Croatia's top 10 tourism markets highlights the fact that Europe is Croatia's main source of tourism. The top 10 markets are all European, with half from Western Europe (Germany, Italy, Austria, France and The Netherlands) and the other half from Central and Eastern Europe (Slovenia, Czech Republic, Poland, Hungary and Slovakia). This reflects Croatia's central location within Europe, with good airports and other transport links to both east and west.
Much of the CEE is booming and various tourist industries, particularly the large global hotel chains, are looking towards the region which they view as a potentially lucrative market. A large part of this growth will be seen in intra-CEE tourism, and Croatia's tourism arrivals figures reflect this. Higher disposable incomes from within the former states of the Soviet Union should also lead to increased outbound tourism demand for countries such as Croatia. Global hotel groups ranked in the top 10 currently present in Croatia include Carlson-Rezidor, Hilton, Starwood Hotels & Resorts and Best Western International.
BMI believes that the number of hotels and other accommodation establishments in Croatia will continue to increase across our newly-extended forecast period to 2017. The CEE region is currently perceived as offering extremely attractive investment opportunities for hotels groups and other tourist-related industries - largely due to rising domestic tourism and regional tourism, supported by an increase in higher disposable incomes. Croatia will benefit benefiting from this regional upswing, especially once it accedes to the EU in July 2013.
* One major project currently being promoted by the Croatia National Tourist Board is the EUR800mn development of new tourism resorts on the islands of Pasman and Ugljan, where construction is expected to begin later in 2013. At the present time, the authorities are seeking a lead investor for the development, which envisages the construction of a new tourism resort offering some 5,000 beds on Pasman over the coming five to seven years. At the same time, the Association of Croatian Travel Agencies has reported that 2013 will also see the start of construction on a new 500-bed four-star hotel on the western side of Ugljan, alongside the building of villas offering a further 1,700 beds, with total investment in the project estimated at some EUR140mn.
* Other than the major Pasman/Ugljan tourism infrastructure investment, the Croatian National Tourist Board has previously identified other ongoing development projects, including plans by Dubai-based investment fund Arqaam Capital to construct a five-star hotel, with 150-200 rooms and a hundred luxury villas, at a cost of EUR100mn, near Stari Grad on the island of Hvar. The 800-bed complex in the old harbour is reportedly to be managed by South African company Kerzner International Resorts.
* Outbound air traffic has remained fairly static over recent years, at around the 1.7mn mark. BMI sees this trend continuing over the forecast period.
* This quarter, BMI has given Croatia an overall Tourism Industry Risk/Reward rating of 55.4, putting it in sixth position within the CEE region, behind Latvia and ahead of Cyprus.
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