Croatia - Hotel & Restaurant Equipment

Summary

Capitalizing on Croatia’s geographic advantages and tradition of hospitality to create a strong and attractive tourist industry has long been a priority of the Croatian government and business leaders. As a result, tourism is the largest contributor to the Croatian economy and equipping and supplying the nation’s wide range of hotels and restaurants offers outstanding opportunities for U.S. firms. Despite the recent global economic conditions, construction of new hotels and restaurants, modernization of existing facilities and the promotion of Croatia as a holiday and gastronomy destination are ongoing and receive significant development assistance from the local and national governments. Consumer spending on tourism and holiday travel is expected to rise and more companies are looking to invest in technologically advanced and green energy-efficient equipment to meet industry demand. Since domestic production in this market is very low, equipping of hotels and restaurants heavily depends on imports. European manufacturers lead the market.

Market Demand

In an effort to meet the Croatian Government’s strategic economic goals, accelerated infrastructure development is underway. This requires renovation of old and construction of new four and five-star hotels, family hotels, and restaurant facilities. In 2009, eight new hotels were opened throughout Croatia and about 20 were renovated and over USD100 million were invested in hotel and restaurant furniture and equipment alone. The largest demand for imports is in laundry equipment, electrical and telephony equipment and sanitary appliances.

Most of the imported hotel and restaurant furniture and equipment are European brands produced in China and Taiwan. The most popular U.S. brands represented on the local market are Candy, GE, Whirlpool and Westinghouse. The largest domestic manufacturer is Koncar Household Appliances Inc.

Best Prospects

According to projections of the national association of small and family-run hotels, nearly 300 new hotels in that category are expected to be constructed in the near term supported by over USD1 billion. Most of the new construction will be four star hotels, with the long-term goal being the operation of approximately 1000 such facilities in Croatia. Accordingly, the demand for Hotel and Restaurant equipment is expected to grow at a steady pace.

Prospective Buyers

In accordance with established privatization models, the privatization of hotel and tourism companies currently under state ownership will continue, whereby the leading policies will have the aim of giving priority to brands or those owners that will allow known brands to operate or manage their companies.

Investments in high quality facilities that provide new jobs are a priority. Current statistics on end users (hotels and restaurants) demonstrate the high density of tourism and hospitality related businesses in a country with a population of just 14 million.

Croatian Ministry of Tourism reported: 559 hotels, 15 apartment hotels, 40 tourist villages and 50 tourist apartments in Croatia.
Central Bureau of Statistics reported 9,892 restaurants; 11,558 crafts hotels and restaurants; 17,104 business units of hotels and restaurants

Market Entry

For most exporters, using an agent or distributor is the most effective method for entering the Croatian market. Ideally, this should be a Croatian agent or distributor, or if not, then one with a substantial presence in the country. Usual delivery for items is 10-15 days from the date of purchase. Standard payment is 30-60 days after shipment of ordered goods using bill of lading date for overseas transport.