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Dubrovnik
Map
Overview
The city of Dubrovnik is located in Southern Croatia, along the coast of the Adriatic Sea, in the county of Dubrovnik-Neretva. It is a relatively small city, which spans 21km2 and has an estimated population of 43,770 (2009). Dubrovnik is known as one of the major tourist hot-spots in Eastern Europe, and the old city area in Dubrovnik has been classed as a world heritage site by UNESCO since 1979.
The Dubrovnik-Neretva county is sub-divided into 17 municipalities, each of which have a separate self-operating governing council for administration purposes. Issues of national importance are dealt with by the prime minister and the universal assembly, which consists of 153 members.
Croatia put in a bid to join the European Union in 2004, but despite being made an official candidate one year later, they are still not full members. The currency used is the Croatian kuna, but if Croatia gains entry into the European Union it plans to adopt the euro (EUR) as the main currency.
Economy
The service sector accounts for most of the revenue generated by the city of Dubrovnik. The increase in low cost airlines such as Easyjet and BMI Baby offering frequent flights to the Dubrovnik International Airport (DBV), along with the city's historical architecture have helped attract a wealth of visitors. The tourist season is at its busiest from the months of June to August. Most of the tourists come from Europe, and arrive in the country via the Dubrovnik International Airport, a further 600,000 passengers arrive on passenger cruise ships via Dubrovnik Gruz Port.
Several companies are headquartered in the city, including the charter airline company Dubrovnik Airline Limited. Office hours are shorter then that of the United Kingdom, with the average business opening from 8.00am - 4:00pm, although tourist facilities such as restaurants and clubs are open late into the night. Although it does not have a dedicated conference facility, Dubrovnik is considered a conference location in Croatia, along with Zagreb and Split - with all trade fairs being held in hotels.
Infrastructure
Dubrovnik International Airport (DBV) is located approximately 20km away from the city centre, and has several transport links offering frequent services from downtown Dubrovnik to the airport. The airport is currently under construction with existing terminals under expansion to deal with the increasing passenger demand. The airport offers flights to many European destinations and currently handles 1.1 million passengers annually, however there is no separate cargo terminal.
Most commuters travel around using the public bus service, which operates frequent buses along the cities major routes. Taxi fares are extremely economical, and it is quick and easy to book in advance. There are no train services or metro stations in Dubrovnik, but the majority of the city centre is located around a compact area, and most tourists find it easy to travel by foot. There are minor roads which run through the city centre, however most of these are narrow and can lead to congestion problems especially around rush hour.
Dubrovnik Port is located in the city centre on the shores of the Adriatic Sea, it allows for all weather berthing and the cruise port accommodates passenger vessels and cruise ships.
Workforce
Approximately 88% of all residents in the city of Dubrovnik are classed as official Croat residents, the remaining population mostly originate from Easter European countries, there is also a growing expatriate population particularly originating from the United Kingdom. The official national language is Croatian, while many nationals are fluent in several other languages (usually German, Italian and English) as languages are taught in school from an early age.
Despite Dubrovnik's relatively small population size there are a number of higher education facilities, the largest being the University of Dubrovnik, which has 7 faculties offers several degree programmes. The American College of Management and Technology is located in the city, and all classes are taught in English. It is also the only university to offer degrees which are officially accredited both in America and Croatia. A 2001 census showed that Croatia had a national literacy rate of 98.1%, but due to English being taught as a second language in most secondary schools this figure has probably increased over the years.
Business Costs
Rental costs for offices are low throughout the country of Croatia, the capital of Zagreb has the highest rates in the country, yet they still only stand at a low $27.14 per square foot per annum. So prices in Dubrovnik are favourable for the business owner, however due to the boom in tourism property prices - particularly those located on the sea front - have increased dramatically over the past few years.
Labour is cheap, the minimum wage is set at 2814 kunas a month, which is the equivalent of €387. General costs associated with living are considered to be much lower than cities in Western Europe such as Paris and London, but prices are inflated in tourist areas.
Taxes are extremely low; corporate rates are set at a fixed 20% (reduced from 35%), on all profits. Personal taxes for residents working in Zagreb range form 15% to 45% per annum, depending on the amount of income earned and the municipality they reside in. There are also 12 Free Trade Zones (FTZ) located in Croatia, where companies are liable to a lower tax rate of 10%, or even 0% if the amount invested in more than 1million kunas. Along with this, special care zones are located on the outskirts of the city in undeveloped towns and also offer discounted tax rates.
There is a fixed value added tax rate of 22% on most goods and services, however a 10% rate applies for tourist services, and some products such as milk, bread and medical items are exempt from paying any VAT.
