DESTINATION REPORT BY PAUL REVEL
To attract inward
investment, a range of tax incentives are on offer, including a corporate tax holiday for up to ten years
path to EU [European Union] accession – but not yet EU members. We have free- trade agreements with Russia, Belarus, Kazakhstan, Turkey, the EU and the US. No other country has that. That’s why you’re seeing all these investors coming – because they can export to all these markets. And with political stability since the new gov- ernment was formed last year with an absolute majority, we have an important opportunity, and we must not miss it.” To attract inward investment, a range of tax incentives are on offer, including, for large companies, a corporate tax holiday for up to ten years, subject to various criteria. Among international companies investing in Serbia, Microsoft has a devel- opment centre here, and Fiat is expanding the car plant it opened in 2010. Mali’s not afraid to share unvarnished truths about the city’s challenges: “We still lack mains sewerage parts of city, believe it or not,” he says. A Ð250 million waste management project starts this year, a public-private partnership deal that will
BUYINGBUSINESSTRAVEL.COM
include waste-to-energy technology. A somewhat more glamorous project is the Belgrade Waterfront Development, a Ð3.5 billion, 1.8 million sqm develop- ment along the Sava riverbank, featuring hotel, residential and commercial space. The multi-phase scheme in partnership with Abu Dhabi firm Eagle Hills will feature the region’s largest shopping mall, performance venues, restaurants, green spaces and a 180m hotel-residential tower with rooftop winter garden. Other projects include a new metro system, a city ring road and a second runway at the airport. Mali also highlights the success of Air Serbia (formerly Jat Airways), in which Etihad bought a 49 per cent stake in 2013. The recent launch of Etihad’s global advertising campaign was a glamorous affair, with Hollywood star Nicole Kidman onstage at the uber-glitzy Emirates Palace hotel in Abu Dhabi. But Etihad’s CEO James Hogan was all business when he talked about the airline’s partnership strat- egy. He said investment in other airlines
was about “stretching the network, and reducing costs collectively – and ensur- ing all those airlines move to profitability” –citing Air Serbia’s impressive turnaround. In March this year Air Serbia reported a net profit of Ð2.7 million for 2014, an eye-catching reversal of its Ð73 million loss for 2013. Revenue is up 87 per cent to Ð262 million, passenger numbers up 68 per cent and capacity up 74 per cent.
GLOBALLY CONNECTED Air Serbia CEO Dane Kondic says: “We had to re-fleet, rebrand, retrain and re-invest. Etihad also gave Air Serbia scale and allowed it to access its training facilities, avoiding a double-up on invest- ment and reducing costs.” He also cites improved aircraft utilisation and being able to connect with Etihad’s global network. Kondic says business travel has been
a “key driver” of his airline’s growth, and adds: “An interesting trend is the growth in investments between the regional countries, particularly among the former countries of Yugoslavia. This process places Belgrade and Serbia at the centre of the region and, as a result, business travellers are increasingly taking advantage of our strong regional network.” Alongside the headline infrastructure and corporate projects, a more street-level layer of regeneration is taking place. The Savamala district was until recently a bleak post-industrial zone; now, it’s undergoing a renaissance as a creative hub. At the heart of this movement is Mikser House, a former warehouse and now multifunc- tional design, performance, exhibition and meeting space. Founder Ivan Lalic said the area was previously “sin city, known
Artist's rendering of the Eagle Hills-partnered Belgrade Waterfront Development
BBT MAY/JUNE 2015 111
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128