In 2019, Croatia observed 20.69m tourist arrivals (+4.92% YoY) and 108.64m tourist nights (+2.43 % YoY). Meanwhile, in December 2019, Croatia observed 0.37m tourist arrivals (+5.5%) and 0.88m tourist nights (+5.6%).

According to the Croatian Tourist Board, in 2019, Croatia observed 20.69m tourist arrivals, representing an increase of 4.92%. Of that, foreign tourist account for 18.26m (+4.4%). Meanwhile, tourist nights amounted to 108.64m, which is an increase of 2.43% YoY. When observing the tourist structure, foreign tourists account for 94.81m (+1.72%). Meanwhile, in December 2019, Croatia observed 0.37m tourist arrivals (+5.5%) and 0.88m tourist nights (+5.6%).

In 2019, Tourists from Germany recorded the most tourist nights, accounting for 19.5%. Tourists from Slovenia and Austria follow, accounting for 10.1% and 7.5%, respectively. Meanwhile most tourist arrivals were observed by tourist from the same countries: German tourists with 16.45% of all tourist nights, Slovenian tourists with 8.65% and Austrian tourists with 8.1% 

When observing the arrivals and nights realized by the type of accommodation, one can observe that private accommodation leads the list with 6.8m arrivals (+6.12%) and 39.3m tourist nights (+3%). Hotels follow with 7.9m arrivals (+5.77%) and 25.7m tourist nights (+1.68%). Such figures put hotels at 38.2% of total arrivals and 23.7% of total tourist nights.

When observing the arrivals and nights realized by county, Istria witnessed the highest arrivals (22.28%) and tourist nights (26.43%). The county of Split-Dalmatia follows with 19.12% of arrivals and 18.84% of tourist nights.

For the past couple of years Croatian tourism has been benefiting from the unfavorable security conditions seen in competitive Mediterranean countries. As a result, the domestic hospitality industry saw double digit growth in arrivals and overnight stays which pushed prices up significantly. Now Croatian companies will once again have to work in order to attract and retain customers in the country’s most important industry which accounts for roughly 20% of the country’s GDP.

It has become clear that the strong organic growth seen in the past has come to an end, and if Croatian tourists want to secure future growth CAPEX will have to be at the center of their attention. Many companies have already started or published their investment programs, so for example, Adris announced roughly HRK 3bn of investments in the tourism segment. To read more about it click here.

Arena Hospitality Group announced an investment plan of roughly HRK 500m, which they deem to be the driver of growth in the coming period. To read more about it click here. Meanwhile, the total approved investments of the Valamar Group for 2020, including Imperial Riviera, amount to HRK 826.2m and represent a continuation of the investment strategy in repositioning and upgrading the portfolio.

Trading statistics for 2019 show an average daily turnover of EUR 1.47m (+27.8 YoY). Meanwhile, the major index CROBEX ended with an increase of 15.4% ending at 2,017.43 points.

The Zagreb Stock Exchange (ZSE) published their trading statistics for 2019, showing a total equity turnover in 2019 of EUR 364.4m, which translates to an average daily turnover of EUR 1.47m (+27.8% YoY). Such an increase could mainly be attributed to the Kraš takeover, which can be read more about here. 

Average Daily Turnover on ZSE (EUR m)

Of the total value traded in 2019 (excluding block transactions), Kraš generated 22%. Valamar Riviera comes second, accounting for 10.7%. Next come HT and  Adris preferred with 9.9% and 8.6%, respectively. Optima Telekom follows with 5.7%. These 5 shares generated more than half of the turnover recorded by the entire (equity) market, excluding block transactions.

When observing individual CROBEX constituents, 12 out of 15 ended the year in green. Of that, one company recorded a triple-digit increase, while 7 companies witnessed a double-digit increase. Optima Telekom tops the list of gainers, with a share price increase of 370%. On the flip side, Đuro Đaković ended the year with a decrease of 59% YoY.

Share Price Performance of Crobex Constituents in 2019

When observing the total equity market capitalization, it observed an increase of 11.5% YoY, amounting to HRK 147.98bn. Ina’s share is the biggest constituent of the total exchange’s equity market capitalization, accounting for about 21.6% of the total value. Next, come two Croatian banks – Zagrebačka banka and PBZ with 13.8% and 10.9%, respectively. Further, HT holds 9.9% while Adris accounts for 3.7% of the total market capitalization value.

In 2019, CROBEX observed a 15.4% increase, which is the second highest yearly increase in the past decade. It is also worth noting that in October, the index breached 2,000 points, which was the fist time it reached that level since the end of March 2017.

Of the sector indices CROBEXnutris observed recorded the highest increase of 38.18%, which could be attributed to a solid performance of the blue chips coupled with the mentioned Kraš takeover. On the flip side, CROBEXkonstrukt witnessed the highest decrease of 12.93%.

Performance of CROBEX in 2019

Trading statistics for 2019 show an average daily turnover of EUR 1.24m (-7.5% YoY).

The Ljubljana Stock Exchange (LJSE) published their trading statistics for December 2019, showing a total equity turnover of EUR 30.67m. This translates to an average daily turnover of EUR 1.7m (-2.8% YoY).

On a FY basis, total equity turnover amounted to EUR 304.4m, which translates into an average daily turnover over EUR 1.24m (-7.5% YoY).

Average Daily Turnover on LJSE

When observing the SBITOP constituents, 6 of them recorded a share price increase, one remained flat, while 4 recorded a share price decrease. Of those, KD Group observed the highest share price increase of 70%, followed by Krka with 27% and Petrol with 21%.

Share Price Change of SBITOP Constituents

Of the total traded value traded in 2019 (excluding block transactions), Krka generated 36%, followed by NLB with 14%, Triglav with 13%, Petrol with 8%, KD Group with 6%. These 5 shares generated 86% of the turnover recorded by the entire (equity) market, excluding block transactions.

Of the total traded value traded in December (excluding block transactions), Krka generated 32.1%, followed by NLB with 18.3%, Triglav with 9.2%, Petrol with 9%, KD Group with 8.1%. These 5 shares generated 76.7% of the turnover recorded by the entire (equity) market, excluding block transactions.

When observing the total equity market capitalization, it amounts to EUR 7.07bn. Krka’s share is the biggest constituent of the total exchange’s equity market capitalization, accounting for about 34% of the total value. Next, comes NLB with 18%. Further, Petrol holds 11.2% while Triglav accounts for 10.8% of the total market capitalization value.

In December, the main index of LJSE recorded a solid increase of 3.36%, ending the year at 926.10 points. Meanwhile in 2019, the index recorded a solid increase of 15% YoY.

On a more personal note we would also like to add that after being a member at LJSE for 3 years, for the first time in our history InterCapital was awarded as the Member of the Year of Ljubljana Stock Exchange. Such an award comes on the back of leading equity market share, research activities, multiple organized investor conferences and contribution of market making mandates. We would like to state that it is a great honor to receive the Member of the Year award at the Ljubljana Stock Exchange for the first time. For many years InterCapital has been the leading member of the Zagreb Stock Exchange and we are extremely proud that this year our expertise and quality of service were recognized by investors at the Ljubljana Stock Exchange. We take enormous pride in our achievement and will continue providing our clients with top notch services in order to retain our current position in the market.