DEVELOPMENT OF THE TOURIST MARINA NETWORK ON CROATIAN ISLANDS

1. Ministarstvo za javne radove, obnovu i graditeljstvo DEVELOPMENT OF THE TOURIST MARINA NETWORK ON CROATIAN ISLANDS Project Presentation April 2002.

2. PURPOSE OF THE PROJECT • valorizirati market potential of Croatian islands, revive and encourage their economic growth • Advance nautical tourism and meet its growing needs • Help environmet protection i održivom razvoju otoka • Activate ecological consciousness of modern tourism

3. PROJECT GOALS • Quality survaillance over natural island bays using high ecological standards • Activation of island, regional and national economic resources • Development of complementary djelatnosti to nautical tourism • Increase in employment of island population • Stopping emigration of island population • Contribution to sustainable economic growth of Croatian islands

4. STEPS FOR REACHING GOLAS • Organization of marinas according to environmental plans for building island općina, towns and counties • Creating the conditions for development of island entrepreneurship • Employment of unemployed island population • Insuring important role of Croatia in division of international tourist potrošnja • Organizing government administration by the standards of developed countries of western Europe

5. PROJECT’S BASIC ELEMENTS • Small investments – large profits • Elimination of “Black Anchoring” • Agreement with local and regional bodies • Synergy with other nautical and tourist projects • Government supervision of the Project

6. NAUTICAL TOURISM OF CROATIA 131.455 vessel anchored for free Black anchoring Croatia has 62 ports of nautical tourism • 40 marinas • 7 odlagališta of vessels ashore • 15 anchorages • Capacity of 12.863 vessels • 22.000 vessels in transit • 9.516 vessels with permanent anchorage 129.905 foreign + 14.413 domestic vessels = 144.413 vessels in the Adriatic in Croatia Today’s capacities estimate to 550.000 vessel/days. In 2000 there was 200.000 vessel/days Approximately 350.000 vessel/days (not) recorded on anchorages in uncontrolled bays 350.000 vessel/days, 25€ a dan = 8,75 mil. EUR a year

7. TECHNICAL CONCEPT/ASPECT IN ORGANIZING TOURIST MARINAS • Complete fitting into natural environment • Maximum environment protection • Using existing natural island bays and marinas with existing infrastructure • Capacity according possibilities and needs of each location • No permanent building  economical temporary montažno-demontažna solutions • Anchorages on pontoons or anchorages by fours on plutača-shore • Protection of marina with floating wharfs against waves; as needed • Alternativ – recyclable energy sources (wind, solar energy, desalinators) • Organized everyday transport to selectioned garbage place

8. LOCATIONS DEFINED BY ENVIRONMENTAL PLANS • Number of potential tourist marinas defined in environmental plans of island općina/towns and counties. It will be suggested, determined and defined by local government in accordance with its priorities, needs and growth plans

9. GOVERNING ENVIRONMENTAL PROTECTION • Introducing system of governing environment ISO 14001:2000 • Cooperation with Port Authority and local authorities for gethering of data about locations • Comprehensive research when choosing a location (Hydrographic, Oceanographic, and Meteorological) • Valorizacija of locations by simulating possible changes in ecosystem • Investing in ecological infrastructure (used oils tanks, sanitary sewage and garbage) • ECO vessels for emergency interventions in case of possible pollutions • Permanent supervision of quality of sea water and the shore through cooperation with local ECO patrols

10. Goverment-owned Trgovačko društvo 1. D.o.o. 100 % gov. owned 2. D.o.o. 100 % gov. owned 3. D.o.o. 100 % gov. owned n D.o.o. 100 % gov. owned Phase I • Base government-owned firm starts other government owned firms for building a marina on chosen location • Introducing System for management of quality ISO 9001:2000 • Introducing System for management of environment ISO 14001:2000 • Documentation preparation for project realization • Izrada Izvedbenog projekta and pribavljanje koncesije for use of maritime good for a period of 15 years

11. Goverment-owned Trgovačko društvo 1. D.o.o. 74,9 % private 25,1% govmt. 2. D.o.o. 74,9 % private 25,1% govmt. 3. D.o.o. 74,9 % private 25,1% govmt. nD.o.o. 74,9 % private 25,1% govmt. Phase II • International natječaj with encouragement of domestic applications – Local governments, island entrepreneurs • Public natječaj – strategic partner for 74,9% share in ownership • State retains 25,1% for a period of 5 years (strategic partner builds the marina according to Izvedbenom project and awarded koncesiji) • Upon 5 year period state sells its share with giving first right to strategic partner Phase II period: 6 years • Phase I: 1 year: Project start • 5 yrs.: Joined ownership of state and strategic partner • I yr.: State sells its share

12. Goverment-owned Trgovačko društvo Supervision over meeting technical and ecological demands • Duration approximately 8 years until the expiration of koncesije (15 yrs) • After koncesija ends, trgovačko društvo becomes governent-owned • Possibility of davanja koncesije na upravljanje društvom 1. D.o.o. 100 % private 2. D.o.o. 100% private 3. D.o.o. 100% private n D.o.o. 100 % private

13. INSURING THE NECESSARY FUNDS • For first 9 marinas: • Državni proračun • Regional growth Fund • Development and employment Fund • Bank loan • Selling the share to strategic investors • For continuation of the Project: • Selling the shares in newly-founded firms – marinas-strategic investors

14. PREDICTABLE COSTS UNTIL THE START OF BUILIDING EACH SEPARATE MARINA • otkup zemljišta, geodetic work, environmental work 40.000  • project documentation 50.000  • Other expenses (operational work, employees of mother-firm, concession work, organization of applications, etc...) 35.000 

15. COST OF BUILDING A MARINA • around 300.000  •  for completition of first nine marinas: 2.700.000 

16. DRUŠTVENO-SOCIJALNI ASPECT • Employment of native island population  4 - 6 employees per marina  400 - 600 employed people withing this Project + 400 additional in novih u tertiary services • Development of small and medium entrepreneurship • Development of otočnih uslužnih djelatnosti

17. SUMMARY • adekvatno valorizirati komparativne prednosti hrvatskog morskog prostora • Create leading role of Croatia in European nautical tourism • Nautical tourism – flagship of Croatian tourism in the world • Ecologically protect and preserve the sea and the shore • Organize approach to nautical tourism • Increase the capacity of marinas and ports withing acceptable limits • Stop in advance unlawful building of marinas

18. OVERVIEW OF POTENTIAL LOCATIONS • Potential locations of tourist marinas are defined in environmental plans of općina/towns and counties. The choice will be of local govorenment to suggest, determine and define those in accorddance with their priorities, needs and development plans.