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TRANSCRIPT
Embassy of belgium – economic and commercial sectION
The Wellness Industry in Croatia
Made by Yiming Zhang, Ariana Kostic and Tena Radovic, interns
12/1/2018
Table of Contents1. Croatia’s overview2
2. General introduction to wellness industry 3
2.1. Categories of wellness industry 3
3. Wellness tourism 4
3.1. Wellness tourism in Croatia 4
3.2. Challenges faced by wellness tourism in Croatia 6
3.3. National strategy targeting wellness industry 6
4. Spas in Croatia 7
4.1. Developments in the Croatian spa industry 7
4.2. Organizational support to Croatian spa industry 8
4.3. Challenges faced by the spa industry in Croatia 8
4.4. Policy support 9
5. Healthy eating and nutrition 9
5.1. Fibre-rich food 9
5.2. Eating out and fast food 10
5.3. Policies, programmes and actions relating to food and nutrition10
5.3.1. Policies 10
5.3.2. Programmes and actions 11
6. References 11
7. Contacts 13
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1. CROATIA’S OVERVIEW
Croatia is a Central Eastern European country with 4.2 million inhabitants. Its major cities are Zagreb, Split, Rijeka and Osijek. The country has borders with Slovenia and Hungary to the North, Bosnia and Herzegovina to the Southeast, Serbia and Montenegro to the East. It was part of the Socialist Federal Republic of Yugoslavia until 1991, when the country became independent and adopted parliamentary democracy. Croatia has significant natural endowments and a long business tradition in a wide range of sectors.
Since that time, Croatia has enjoyed a decent growth with a sustained increase of GDP from 4% to 5% per year (until the Great recession) and stable macroeconomic factors like low inflation rate, low Croatian kuna/euro rate (7.41) and Croatian kuna/USD rate (6.53) found in November 2018. However, the Great Recession left severe consequences on Croatian economy. As a result of the global economic recession, the GDP decreased in 2009 to (-6%), the unemployment rate increased and
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many sectors were left affected by this global turndown. The country still has some challenges to face in the future, including high unemployment, heavy dependence on hospitality and tourism, a growing trade deficit and growing external debt. However, predictions for 2019 remain more positive: GDP is expected to be around 2.9% and the inflation around 1.5%.
Economic IndexPopulation 4,154,200 (2017
estimate)1
Human Development Index (IDH), 2018 0.831 2
GDP growth rate as of second quarter of 2018 2.9%GDP, 2018GDP (per capita), 2018
$ 59.971 Billions$14,6373
GDP (Composition by sector), 2017 estimateAgricultureIndustryServices
4%26.5%69,5%4
Inflation Rate (2017) 1,1 % 5
Average Monthly Salary (gross), 2018Average Monthly Salary (NET), 2018
$ 1288.68$ 951.976
Unemployment Rate (as of September 2018) 8.4% 7
Export USD ; Import USD, 2018 $16.45 billion ; 21.2 billion8
Global Competitiveness Index, 2018 60.119
Gross external debt, mln EUR, midpoint exchange rate (2016)
€38.4 billion10
Main Commercial Partners Italy, Bosnia and Herzegovina, Germany, Slovenia, Austria11
1 http://www.dzs.hr/Hrv_Eng/publication/2012/SI-1469.pdf2 http://hdr.undp.org/sites/all/themes/hdr_theme/country-notes/HRV.pdf3 http://www.hnb.hr/statistika/h_ekonomski_indikatori.pdf4 http://www.indexmundi.com/croatia/gdp_composition_by_sector.html http://www.hnb.hr/statistika/h_ekonomski_indikatori.pdf36 http://www.dzs.hr/Hrv/system/first_results.htm47 http://www.hnb.hr/statistika/h_ekonomski_indikatori.pdf8 http://www.dzs.hr/Hrv_Eng/CroInFig/croinfig_2014.pdf59 http://reports.weforum.org/global-competitiveness-report-2014-2015/economies/#economy=HRV610 http://www.hnb.hr/statistika/h_ekonomski_indikatori.pdf711 http://europa.eu/about-eu/countries/member-countries/croatia/index_en.htm812 http://www.hnb.hr/tecajn/htecajn.htm9
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Currency kuna (HRK)Average Exchange Rate/Euro, 2018Average Exchange Rate/Dollar, 2018
7.41 HRK6.53 HRK12
2. GENERAL INTRODUCTION TO WELLNESS INDUSTRY
2.1 Categories of wellness industry
According to the classification of wellness industry from Global Wellness Institute, the wellness industry is classified into 10 categories:
Beauty, and Anti-Aging ($999 billion), Healthy Eating, Nutrition and Weight Loss ($648 billion), Wellness Tourism ($563 billion), Fitness and Mind-Body ($542 billion), Preventive and Personalized Medicine and Public Health ($534
billion), Complementary and Alternative Medicine ($199 billion), Wellness Lifestyle Real Estate ($119 billion), Spa Industry ($99 billion), Thermal/ Mineral Springs ($51 billion), Workplace Wellness ($43 billion) (Global Wellness Institute, Global
Wellness Economy Monitor, January 2017)
3. WELLNESS TOURISM
Nowadays, the wellness tourism is becoming a more important and more profitable aspect of tourism. World trends in tourism markets forecast further growth of wellness tourism, mainly due to changes in lifestyle (globalization, less free time, more stress, etc.). According to the research from Global Wellness Institute, the global wellness industry grew 12.8% from 2015-2017, from a $3.7 trillion to a $4.2 trillion market. To put that in economic context, from 2015-2017, the wellness economy grew 6.4%
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annually, nearly twice as fast as global economic growth (3.6%). Wellness expenditures ($4.2 trillion) are now more than half as large as total global health expenditures ($7.3 trillion). And the wellness industry represents 5.3% of global economic output. Europe is the leading region of the world when it comes to wellness tourism, according to the following numbers: 291.8 million Europeans travelling per year with total spending about 210.8 billion US dollars. (Insight, 2018)
3.1 Wellness tourism in Croatia
Wellness tourism in Croatia is mostly based on natural healing factors that combine different kinds of wellness programs adapted to the needs of specific tourist groups. In Croatia, the trend in tourism demand for wellness services in Croatia resulted in an increase of their offer. According to the records of the Chamber of Commerce, at the end of 2006 there were 30 wellness centres operating in Croatia. Now, there are 68 wellness centres in hotels in Croatia.
In Croatia, health tourism (wellness tourism included) is, for the first time, clearly defined in national strategic documents. More and more legal documents are introduced, and institutes are set up to help the development of wellness tourism during recent years. In the Development Strategy of the Croatian Tourism for the period until 2020, wellness tourism is positioned as one of the tourism products that will be the bearer of tourist activities in the Republic of Croatia by 2020. Wellness tourism would then have a leading role in prolonging the season and dispersion of tourist activities, which are now the key disadvantages of the overall perception of tourism development and the competitiveness of the Croatian tourist destinations.
The Croatia’s offer of wellness tourism is characterized by skilled workforce, good reputation of quality of medical and health services, price competitiveness, proximity to major emitting markets, safety of country to travel to, favourable climate and natural wealth with a number
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of healing factors, as well as a long tradition in wellness tourism. On March 3rd 2017, Croatia was (together with Greece) declared the most promising destinations for health tourism in Europe.
Wellness is a relatively new trend on the domestic market in Croatia. It is increasing each year by 30-40% and is expected to grow by even bigger rate. Wellness offer in spas and other objects in Croatia can be summarized as:
• The Spa sector in Croatia is still lagging behind neighbouring countries (Slovenia, Hungary, and Austria) in offer and quality although the product is quite known and there is a substantial demand present around Croatia.
• There are several forerunners of the modern thermal bath concept ranging from holiday and fun to wellness. For example, Terme Tuhelj and Toplice Sveti Martin as well as recently opened Aquae Vivae in Krapinske Toplice.
• Wellness hotels are relatively new to the Croatian market. There is a growing number of four-star hotels offering bathing, sauna and fitness facilities, as well as health and beauty treatments of different types and quality. These services do not require the employment of medical staff.
• Medically supervised wellness offer includes dermatological, detox and rheumatic programs, physical therapy, and nutritional programs with weight regulation.
• Wellness hotels on the beach are usually five-star hotels with significant investments and modern design. Their competitiveness lies on the coastal positioning with beaches as an integral part of the offer but are still characterized by seasonality. There are total of 68 objects located in the coastal zone (Institute for Tourism, 2014).
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• Wellness hotels on the continent are rare and limited to three or maximum four stars. Generally, they are smaller and with a more modest offer. There are 13 objects situated in the central part of Croatia and Zagreb (Institute for Tourism, 2014).
3.2 Challenges faced by wellness tourism in Croatia
One of the most important challenges for the wellness tourism in Croatia is the problem of registration and evidence of service providers in the health tourism. There is a lack of adequate normative acts regulating health services in tourism, which would allow conducting health, tourism and hospitality industry under one roof respectively. Other challenges include defining the conditions for the organization of wellness tourism offer and conditions for entities providing services in the wellness tourism (certificates, licenses) as well as the implementation of international standards of quality and medical certificates following the example of foreign practices.
3.3 National strategy targeting wellness industry
In the report of “Tourism Development Strategy of the Republic of Croatia until 2020”, the position of Croatian wellness tourism is defined as:
“Croatia is recognized as a renowned destination for health tourism. Efforts in developing new tourism offers and continuous increase in quality have resulted in competitive wellness offers, mostly within tourist accommodation, but also in the repositioned tourist market aimed at offering thermal and water therapy centres. Croatia's advantage lies in the combination of accessibility, excellent medical services, competitive prices and a pleasant stay in a tourist country. Croatia is particularly recognized as the new destination for water therapy services.”
Development activities are scheduled as well. The priority product development activities mainly focus on:
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1. Creating an Action Plan for the development of health tourism together with the Ministry of Health and the Ministry of Tourism;
2. Establishing minimum standards for wellness centres, health centres, health tourism centres, including standards for facilities, equipment, safety, service quality and environmentally sound "green" trading;
3. Croatian health destinations will, where appropriate, strategically link and network with internationally recognized and established service providers in health tourism in the countries of our competitive circle (Austria, Italy, Germany, Hungary and Slovenia).
While other product development activities include:
1. Croatian health centres are specified in their activities and market specialization (specific qualities of natural remedies, quality of medical programs, holistic approach to health, etc.) in order to reduce their dependency on the national health service, and to attract the demand of a large number of affluent tourist customers, including users from the national health service systems in other countries;
2. Creation of destination cooperation that focuses on health (e.g. accommodation, catering, infrastructure, specialized health services);
3. Introducing a wellness offer into selected campsites;
4. Professional leadership of a national health tourism association with the aim of market research, information, education, lobbying, and membership.
4. SPAS IN CROATIA
4.1 Developments in the Croatian spa industry
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Though spa industry in Croatia is still not completely up to date with the world trends, there is a great potential in Croatian spa industry. In recent years, there was a significant development in the Spa industry, especially after the Great Recession in 2009. The testimony to increased spa awareness in Croatia can be found in the increase of competition in the spa and wellness industry, introduction of trendy spa services and products, increased television and print media promoting beauty, health and wellness, as well as the expansion of the health food industry, by way of increased organic produce and restaurants. According to the data from the Ministry of Tourism in 2016, the bed number of spas is 2071.
4.2 Organizational support to Croatian spa industry
Croatian spas have allied through an organization called “Croatian Wellness” which aims to present Croatia as a spa and wellness destination, with the support of the Croatian Chamber of Economy and the Ministry of Tourism. The need for qualified and educated workforce in the spa industry has become apparent through the emergence of four significant and respectable academies with qualified programs in spa services and administration: NOVI SPA Academy, Vimal, Aromara, and Lovran Academy.
4.3 Challenges faced by the spa industry in Croatia
In Croatia, the providers of health spa tourism, primarily spas and other health tourism resorts offering thalassotherapy and thermal baths, are informally considered bearers of health tourism. As the service providers of health spa tourism are mainly county owned and are not included in the Master Plan of the Croatian Ministry of Health, they cannot apply for EU funds tenders, which could cofinance necessary improvements to upgrade their offers, as well as the construction of new buildings and facilities.
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This ownership hinders the possibility of new capital due to its non-profit orientation and no clear position concerning the interest of their possible privatization. In such conditions, other than bank loans, which carry a significant business risk, neither recapitalization from the public budget nor investments of private entrepreneurs can be considered as an option. In neighbouring countries, the majority of health resorts are in private ownership and have a strong market orientation.
In addition to the existing restrictive ownership structure and outdated and inadequate properties according to the requirements of tourism demand, excessive dependence on CHIF and on domestic guests, weaknesses of health spa tourism in Croatia are also: the lack of “big picture“ development vision at all levels, mismatching of relevant acts in the field of tourism and health, lack of market orientation, poor offer of a destination chain value that could affect additional spending, weak national promotion of this tourism segment, concession policy for thermal springs, lack of certification and accreditation, etc.
On the other hand, the increasing expectations of international tourists, particularly the rapid development or already developed and positioned health tourism in neighbouring countries and rapid development of technology, impose a pace that requires fast market orientation and adjustment of the offer, which requires significant investments and time.
4.4 Policy support
A special attention should be given to investments in the construction and rehabilitation of natural health resorts, spas and specialized hospitals. According to the conclusions of the Round Table "Croatia, a year-round Riviera of Europe - strategic and legal framework for development of health tourism", held in Zagreb in 2013, the Action Plan for the Development of Health Tourism in Croatia is one of the key incentives for the "transformation" of existing health resorts and spas and their emergence in health tourism destination, with new services and new
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hotel capacities, and especially accommodation facilities for the elderly tourists, which can extend the off season.
5. HEALTHY EATING, NUTRITION
5.1 Fibre-rich food
According to a research in 2017, it shows that the consumption of dietary fibre is insufficient in Croatia. Encouragingly, however, the ratio of samples reporting never consuming fruit and vegetables is very small.
Compared between genders, on a weekly basis, women are reported to eat more fruit, vegetables, and whole grains than men. The authors suggested that such behaviour reflected a lower level of dietary understanding among men. The significantly lower vegetable consumption by men is in stark contrast to the recommendations issued by the Institute of Medicine of the National Academies that men should eat more fibre than women.
This consumption was also higher among urban than rural residents, which may reflect the greater accessibility of fibre-rich food in urban areas. Ironically, fibre rich food such as fruit, vegetables, and whole grains are produced in rural areas, yet stores in such areas might not offer these products at affordable prices, and rural residents might not be willing or able to travel long distances to find stores where healthy food is more accessible.
Education also has an effect on healthy eating. It was found that respondents holding an university degree were eating healthier compared to respondents with secondary or primary education.
5.2 Eating out and Fast food
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The research also shows the largest proportion of respondents reported never eating out (26.8 %), followed by those who ate out 5-6 times a week (17.9 %), and those who ate out once a week (17.3 %). A slightly smaller proportion ate out twice a week (13.3 %), and the smallest proportion ate out nearly every day (5.5 %). Nearly half the respondents (48.1 %) reported never consuming fast food, while a little more than a quarter (27.7 %) reported consuming it once a week. A handful of respondents (0.9 %) reported consuming it once a day.
Men ate out significantly more often than women and also ate fast food significantly more often. This may reflect women's higher regard of healthy diet, aesthetic concerns, healthier lifestyle, and, presumably, higher proportion of those who can cook.
Urban residents showed a slightly higher tendency towards eating out and fast food than rural, which may reflect greater availability of restaurants and fast food facilities and/or higher income and/or different lifestyle in towns.
Higher education correlated with eating out/eating fast food as well as with higher consumption of healthy food.
Respondents below the age of 25 ate out and consumed fast food significantly more often than other age groups
In conclusion, there are deficits in the consumption of fruit, vegetables, and whole grains in the Croatian population. These results are not substantially different from those in many parts of the world. At the same time, it is encouraging that, nearly half of the Croatian population does not consume fast food, and one quarter does not eat out.
5.3 Policies, Programmes and Actions Relating to Food and Nutrition
5.3.1 Policies
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Regulation on Food for Infants and Toddlers and Processed Cereal Based Food for Infants and Toddlers
Food and Nutrition Action Plan
National Action Plan for Overweight Prevention and Treatment
National Strategy and Action Plan against Obesity
National Action Plan for Children and Youth
Plan and Program of Health Protection Measures, OG 126/2006
Strategy of Agriculture and Fisheries
National Programme for Prevention of CVD
Croatian Food and Nutrition Policy
National program for health protection of diabetic persons with special aim for prevention
5.3.2 Programmes and actions
Dietary guidelines - Dietary goals and food-based dietary guidelines
Maternal, infant and young child nutrition programmes
Vitamin and mineral nutrition programmes
Obesity and diet-related NCDs programmes
School-based nutrition programmes
Vitamin and mineral nutrition programmes
Food-based dietary guidelines (FBDG)
National Action Plan for Overweight and Obesity Prevention and Control 2010 -2012
CRASH initiative - Food distribution/supplementation for prevention of acute malnutrition
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6. REFERENCES
https://globalwellnessinstitute.org/press-room/statistics-and-facts/
https://www.welltodoglobal.com/wp-content/uploads/2018/01/WelltodoTrend-Report.pdf
https://bib.irb.hr/datoteka/820621.The_Possibilities_of_Health_Tourism_Development.pdf
https://mint.gov.hr/UserDocsImages//arhiva//Tourism_development_strategy_2020.pdf
https://hrcak.srce.hr/file/270218
http://apps.who.int/nutrition/landscape/report.aspx?iso=hrv
https://mint.gov.hr/UserDocsImages/dokumenti/170605_TUB-ENG_016.pdf
https://insights.ehotelier.com/global-news/2018/11/13/wellness-tourism-to-reach-919-billion-by-2022/
https://www.hgk.hr/english
https://mint.gov.hr/en
https://novi.hr/en/spa
https://www.aromara.hr/page/transformara-academy
https://akademija.wellness.hr/
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7. CONTACTS
Adria Hotel Service
E-mail: [email protected], [email protected]
Web page: www.adriahotelservice.com
Neoma
Address: Gupceva zvijezda 1, 10 000 Zagreb
Phone: +385 91 4854 722, +385 91 4854 723
E-mail: [email protected]
Web page: www.neoma.hr
Skansi
Address: Radnička ulica 80 (Zagreb Tower), 10 000 Zagreb
Phone: +385 95 777 55 66
E-mail: [email protected]
Web page: www.skansi.hr
SpaS Studio
Address: Radnička cesta 48, 10 000 Zagreb
Phone: +385 1 3363 006
E-mail: [email protected]
Web page: www.spa-studio.hr
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Aquachem
Address: Industrijska cesta 12, 10 310 Ivanic Grad
Phone: +385 1 2888 580
E-mail: [email protected]
Web page: www.aquachem.hr
Dimitto
Address: Cvijete Zuzoric 3, 10 000 Zagreb
Phone: +385 1 7774 746, +385 98 212 115
E-mail: [email protected]
Web page: www.moja-kozmetika.com
Svijet Sauna
Address: Brezina 3, 10 436 Rakov Potok
Phone: '385 1 6589 032
E-mail: [email protected]
www.svijet-sauna.hr
Bazeni Radic
Address: Ivana Pavla II, 318 Kastel Novi
Phone: +385 21 645 620, +385 91 4222 210 (Head of Sales)
E-mail: [email protected] , [email protected]
Web page: www.wellness-radic.hr
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Fluidra Adriatic
Address: Kovinska 4a, 10 000 Zagreb
Phone: +385 1 7988 790
E-mail: [email protected]
Web page: www.fluidra.hr
Top Stil LMS
Address: Lanista 1h, 10 020 Zagreb
Phone: +385 1 6554 640
E-mail: [email protected]
Web page: www.topstil.com.hr
VBR Water Art
Address: Velimira Skorpika 23, 22 000 Sibenik
Phone: +385 22 550 550
Web page: www.vbr-82.hr
Fokus Medical
Address: Rimski put 31B, 10 360 Sesvete-Zagreb
Phone: +385 1 5550 570
E-mail: info@fokus
Web page: www.kozmeticarka.hr
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Best Wellness
Address: Perkovceva 48, 10 430 samobor
Phone: +385 91 7866 438
E-mail: [email protected]
Web page: www.wellness.best93.hr
NIVETO
Address: Šuškovićeva 76, 10 040 Zagreb
Phone: +385 1 29 86 460
E-mail: [email protected]
Web page: www.niveto.hr
Bent bazeni
Address: Vinogradska 39, 21 000 Split
Phone: +385 21 316 816
E-mail: [email protected]
Web page: www.bentbazeni.hr
Credo centar
Address: Ul. grada Vukovara 269/d, 10 000 Zagreb
Phone: +385 1 60 65 145
E-mail: [email protected]
Web page: www.credo-centar.hr
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KIMI COMMERCE
Address: Mavri 1, 51 216 Viškovo
Phone: +385 51 547 180
E-mail: [email protected], [email protected]
Web page: www.kimicommerce.hr
NOVA OPREMA
Address: Dragutina Golika 101, 10 110 Zagreb
Phone: +385 1 364 99 50
E-mail: [email protected]
Web page: www.nova-oprema.hr
Ambienta Petrušić
Address: Bubnjarački Brod 35, Žakanje
Phone: +385 47 757 748, +385 95 957 8733
E-mail: [email protected], [email protected]
Web page: www.ambienta-petrusic.hr
Bazenska tehnika
Address: Labinci 35, 52 464 Kaštelir
Phone: +385 52 463 136
E-mail: [email protected], [email protected]
Web page: www.bazenska-trgovina.hr
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Istra Relax
Address: Poreč, Gornji Špadići 7
Phone: +385 99 230 0409, +385 95 522 4435
E-mail: [email protected]
Web page: www.istra-relax.hr
GiM Med
Address: Kneza Višeslava 3, 10 000 Zagreb
Phone: +385 1 56 21 400
E-mail: [email protected]
Web page: www.gimmed.com
MIKRO
Address: Klanjčić 47a, 10000 Zagreb
Phone: +385 1 231 3097
E-mail: [email protected]
Web page: www.mikro.hr
Bazeni i saune
Address: Vranešina 20, Kuče Velika Gorica
Phone: +385 1 62 36 302
E-mail: [email protected]
Web page: www.bazeni-i-saune.hr
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Calidum oprema
Address: Selec 11, 10 291 Brdovec
Phone: +385 (0) 98 / 1330-532, +385 (0) 1 / 3397-808
E-mail: [email protected]
Web page: www.calidum-oprema.hr
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