By the end of January 2023, the total arrivals in Croatia amounted to 236k, representing an increase of 32% YoY. On the other hand, tourist nights amounted to 708.9k, an increase of 21% YoY.

According to the latest report released by the Croatian Tourist Board, HTZ, in January 2023, the total number of arrivals in Croatia amounted to 236k, representing an increase of 32% YoY. At the same time, the total number of tourist nights increased by 21% YoY.

Breaking the tourist arrivals down first, we can see that of the 236k arrivals, both foreign and domestic arrivals accounted for roughly half, at 118.9k and 117.2k, respectively. This would mean that they recorded an increase of 53%, and 14% YoY, respectively. Even though we are dealing with a lot smaller numbers compared to the millions we can see during the summer, it is encouraging to see the number of arrivals from foreigners increasing compared to January 2022, especially considering the high inflation rates and the macroeconomic situation currently present in Europe. Comparing these numbers to 2019, we can see that the total number of arrivals is 4% higher, and of this, foreign arrivals are still 6% lower, while domestic arrivals more than compensated, with an increase of 17%.

Moving on to the tourist nights, in January 2023 they amounted to 708.9k, representing an increase of 21% YoY. Of this, foreign tourists accounted for 436.4k, with an increase of 36% YoY, while domestic tourists accounted for 272.6k, an increase of 3% YoY. This would mean that like with arrivals, the main contribution to tourist nights came from foreign tourists. Compared to 2019, the total number of tourist nights is 11% higher, while foreign tourist nights are 12% higher, and domestic tourist nights are 10% higher. Furthermore, the average stay per person amounted to 3.00, which is a decrease of 8.4% YoY. However, considering that January is never a month that tourists, especially foreign tourists visit Croatia for longer periods, this isn’t surprising.

Total tourist arrivals and tourist nights in Croatia (January 2019 – January 2022)

Source: HTZ, InterCapital Research

In terms of tourist nights by type of accommodation, we can see that 55% of the total tourists stayed in hotels, 28% in private accommodation, 4% in camps, and 14% in the remaining types of accommodation. The highest percentage of stays in hotels can also be indicative of something else, and that is that the arrivals/nights could be attributed more towards business travel than leisure travel.

In terms of nights by country of origin, 46% of arrivals were domestic tourists, 9% came from Bosnia and Herzegovina and Slovenia, respectively, 7% came from Germany, and finally, 6% came from Austria, Ukraine, and Italy. Of course, due to the situation in Ukraine, arrivals/nights from the country can hardly be attributed to leisure travel and is most likely the result of the migration of citizens.

In terms of counties that were visited the most, Istra recorded the highest amount of tourist nights, at 142.5k, followed by the City of Zagreb at 128.9k, Kvarner at 121.4k, Splitsko-dalmatinska, at 83.4k, and Dubrovačko-neretvanska, at 41.4k.

Even though not a lot can be disseminated from just the data for January, the beginning of this year is quite positive for Croatian tourists, especially considering the macroeconomic situation we are currently facing. With the entry of Croatia into Schengen and the Eurozone now complete, it will be interesting to see how the tourist arrivals/nights will change in the coming period.

At the end of January 2023, SBITOP grew by 7.9% MoM, ending it at 1,128.68 points.

The total equity turnover on the Ljubljana Stock Exchange amounted to EUR 22.7m, representing a decrease of 41.9% YoY, and 19.4% MoM. This would also mean that the average daily turnover in January amounted to EUR 2.26m.

In terms of the block trades, two block transactions were made during the month, this being Krka at EUR 1.3m and NLB at EUR 478.5k. Excluding these transactions, total equity turnover amounted to EUR 20.9m. Including blocks, the largest turnover was recorded by Krka, with a turnover of EUR 6.6m (or 29% of the total equity turnover), followed by NLB, at EUR 6m (or 26.4% of the total), Cinkarna Celje, at EUR 2.3m (or 9.9% of the total), Petrol, at EUR 2.1m (or 9.2% of the total), and Triglav, at EUR 2m (or 9.9% of the total). In fact, this would mean that the top 5 most traded stocks accounted for 83.4% of the total turnover, while the top 10 would account for 98.6%.

In terms of the indices, Slovenia’s main index, SBITOP, increased by as much as 7.9% and ended the month at 1,128.68 points. At the same time, SBITOP TR grew by 8.2%, ending the month at 1,426.98 points.

Taking a look at the SBITOP constituents’ performance during the month, we can see that 9 out of 10 companies recorded growth during January. Three companies recorded a double-digit growth with the largest increase recorded by Cinkarna Celje, with a growth of 12.2%. Cinkarna Celje was followed by Petrol and Krka with 11.5% and 11.4% share price increases, respectively, primarily driving SBITOP’s growth. Further, Slovenian financials also noted a positive price development during January. Sava Re, NLB and Triglav all noted an increase amounting to 6.8%, 4.8% and 1.7%. On the flip side, the only decrease was recorded by Unior, which slightly declined by 2%.

Performance of SBITOP constituents (January 2023, MoM, %)

Source: Bloomberg, InterCapital Research

What this can tell us is that even though the Slovenian equity market managed to somewhat recover during the last 2 months, it is still a lot lower than its levels at the beginning of the year. However, due to the current inflationary and geopolitical situation, as well as the fact that the Slovenian blue chips which make up the majority of the LJSE reached all-time highs in their value at the end of 2021, this decline is to be expected.