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Croatia Market Bulletin, 2009, Q3

  Europe has a growing involvement in Croatia, which provides it with increasing resilience, choice and competitiveness of its private sector and bringing it more in line with Western European business practices and requirements from businesses and visitors to Croatia. This complements the gradual economic development that the country has experienced over the last ten years. However, the real estate market is now entering a period ofcaution, with visible signs of this since the end of 2008, which we expect to continue into the first half of 2010

Similarly, the tourist sector, a major contributor to Croatia’s economy over the last forty years, has seen stabilisation over the last 12 months with expectations that 2009 will see a reduction in visitor levels and decreased revenues from the tourist sector. However, the moderate development of the tourist sector over the last ten years, the restriction on development levels and the prominence of private accommodation/auto camps and vehicle borne arrivals will partly shield Croatia from severe downturns seen in other European visitor destinations more geared towards the hotel and luxury sectors.

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