106
Five Elements of Development concept of Ston A vision without a plan is just a dream. A plan without a vision is just a drudgery. But a vision with a plan can change the world. Old proverb

Five elements of Ston

Embed Size (px)

DESCRIPTION

Development study for municipality of Ston

Citation preview

Page 1: Five elements of Ston

Five Elements of

Development concept of Ston

A vision without a plan is just a dream. A plan without a vision is just a drudgery. But a vision with a plan can change the world.Old proverb

Page 2: Five elements of Ston

Table of Contents

– Foreword.........................................................8– IntroductIon................................................121. FIVeeLeMentSoFSton................................181.1 thewalls............................................................191.2 Vineyards............................................................201.3 Salt......................................................................211.4 oysters.............................................................. 221.5 Sea..................................................................... 23

– PArtI.................................................................241. StontodAY.....................................................261.1 Physicalandnaturalresources........................281.2 Humanresources..............................................311.3 economy............................................................ 331.3.1 Agriculture........................................................ 331.3.2 FisheryandMarineAquaculture........................ 361.3.3 SmallScaleProductionandProcessing............ 361.3.4 construction...................................................... 361.3.5 retail...................................................................371.3.6 tourism...............................................................371.3.7 catering............................................................. 391.3.8 Services............................................................. 391.4 Swotanalysis................................................... 402. deVeLoPMentdIrectIon.............................422.1 developmentMissionandobjectivesSton...... 462.2 developmentofStoneconomy......................... 482.2.1 SeasideFarming................................................ 492.2.2 tourism.............................................................. 582.2.3 retail,Production,Serviceandenergy............. 64

– PArtII................................................................701. oVerVIew–currentSItuAtIon MunIcIPALItYoFSton..................................721.1 evaluationofexistingSpatial Planningdocuments..........................................781.2 SettlementStructure..........................................791.3 natureandLandscape....................................... 841.4 traffic..................................................................871.5 Infrastructure..................................................... 881.5.1 Publicutilities.................................................... 881.5.2 disposalFacilities.............................................. 882. eVALuAtIonInItIALSItuAtIon................... 923. ForMuLAtIngtHe deVeLoPMentgoALS................................... 983.1 ModelforSton................................................... 993.2 generaldevelopmentobjectives....................1003.3 objectivesforSettlements..............................1023.4 objectivesfornatureandLandscape..............1033.5 transportationobjectives.................................1043.6 Infrastructureobjectives..................................1054. MunIcIPALdeVeLoPMentconcePt........1064.1 developmentAreaseastandwest................1104.2 urbandevelopment......................................... 1114.3 natureandLandscapedevelopment............... 1124.4 trafficdevelopment........................................1134.5 Infrastructuredevelopment.............................1145. IdentIFIcAtIonoF deVeLoPMentSegMentS..........................116

– PArtIII.............................................................1261. IntroductIon..............................................1282. deVeLoPMentVISIonSton:......................1303. FroMVISIontoreALIzAtIon:...................1343.1 thedevelopmentMeasures............................1353.2 organizationalandInstitutionalSetup.............1363.3 developmentMeasure: developmentoftourism.................................1423.3.1 destinationdevelopmentandManagement:.1423.3.2 destinationbrandandmarketing.....................1463.3.3 conclusiontourismSectordevelopment........1483.4 developmentMeasure:InvestmentProgram..1493.4.1 StonInvestmentProgram–overview.............1503.4.2 townofStonProjects......................................1513.4.3 MaliStonProjects............................................1633.4.4 PrapratnoBayProjects.....................................1663.4.5 dubaStonskaProjects.....................................1723.4.6 BrijestaProjects................................................1803.4.7 ŽuljanaProjects................................................1853.4.8 SouthregionProjects......................................1933.4.9 centralMunicipalAreaProjects.......................1963.4.10 Projectfeasibilityframe................................... 2023.5 developmentMeasure: Businessdevelopment.................................... 2043.6 Benefitsfromrealization............................... 206

– reSourceS....................................................210– IMPreSSuM....................................................212

Page 3: Five elements of Ston

8 Five elements of Ston - Development Concept of Ston

Municipality of Ston, under the guidance of mayor Vedran Antunica and municipal council, decided to take initiatives in starting a sustainable municipal development process. Inste-ad of letting the development happen, they started to drive it and direct it according the development desires of their inha-bitants and local business.

Main focus of the development is to preserve the authenti-city and resources of Ston today, whilst improving quality of life and life opportunities, thus turning today’s depopulation process into the population growth by increasing tourism, in-vestment, business and urban attractiveness of Ston region.

To realize sustainability, and to manage the development pro-cess professionally, municipality initiated cooperation with mep/mare group of internationally acknowledged regional development experts. Particularly important aspect of the co-operation is that the development program structured under this cooperation umbrella, is not only written and published,

ForeworD

but also initiated in a cooperation partnership between muni-cipality and development experts.

Ston area, as part of Dubrovnik Neretva County, was already subject to different studies, master plans, analysis, articles and opinions, all of which influenced final structure.

Additionally, numerous international development publicati-ons as well as various experts influenced and participated in the final outcome.

The Development Concept Ston, as it is presented in this book is foundation step on the development way of Ston. In the years ahead significant work has to be done, to ensure the realization of the envisioned developments. one of the most significant steps is the foundation and implementation of the municipal development unit, which would be the body carrying out “the development”, under control and direction of the municipality.

Martin Pietsch, Director

Iris Jurčić, Manager Regional Development

Page 4: Five elements of Ston

10 Five elements of Ston - Development Concept of Ston ForeworD 11

Ston covers vast area of nearly 170 km2 of beautiful natu-ral landscape, only occasionally interrupted by rustic settle-ments. Municipal area is mostly green area with simple bu-ildings in traditional style. Tourism development, as well as industrial development, of the 1970’ and 1980’ completely bypassed Ston. Lack of development is evident in current problems we face in Ston area, most significant of which is the depopulation. That is especially visible with our young ge-nerations, which because of lack of life opportunities, after completing higher education find their future away from Ston, in other cities of Croatia.

Ston has great potential, thanks to natural resources, clima-te and position, as it is elaborated in this development con-cept. It is our responsibility to realize the sustainable develo-pment principles portrayed in these pages, and by doing so, to secure better future for Ston, for our people, our heritage and nature. It is our right and obligation to develop, but to do it in a sustainable way, securing development resources also for generations to come.

Vedran AntunicaMayor

Reorganization of existing tourism and new quality orien-ted developments the Adriatic coast are making rapid pro-gress. The DeG support program initiated from 2001 on, has boosted this development. The Tourism Master plan of Cro-atia provided the basis for DeG’s participation in defining the “Strategy for the development of Croatian tourism up to 2010” which laid the foundation for successful implementation of re-gional tourism master plan for the Dubrovnik Neretva County and wildlife Park Lonjsko Polje (Posavina).

I am pleased that the strategy for high quality tourism through the engagement of mep Projekte GmbH and their partners is realized successfully. The “Development Concept of Ston” is an important contribution to proactive development initiated by the public sector. Not only it will have great importance for future of the development of the municipality Ston, but it can show the way to other public administrations.

I am convinced that the defined measures and envisioned investments will make Ston a unique and recognized pla-ce, and push “Dubrovnik - riviera and Islands” even more forward and make as a region even more attractive tourist destination.

Volker HerrmannConsultant Tourism Development (esp. South-East-Europe)

2001-2007: DeG Tourism Development Competence Centre Dubrovnik „restructuring and Development of Tourism Sector in Croatia and Montenegro”

Municipality of Ston covers clearly defined space of untou-ched natural beauty enriched by the hand of man with urban achievements of the renaissance.

Among many settlements most significant place is held by Ston and Mali Ston: planned urban structures from medie-val times. Ston, second town of the Dubrovnik republic, built over centuries it grew into artwork of many generations, pro-duct of cultural will and tradition of the self-conscious com-munity, town of balanced measures, special beauty, surroun-ded by the longest town-protective wall of europe.

Ston area is primarily space where the rural meets urban, where the nature is irrefutable ruler. over the centuries natu-re enabled prosperity of man by giving its treasures: salt, fish, sea shells, olive oil, wine, etc. Treasures, rightly appreciated by the dukes of Italy, royalty of Austrian monarchy and even by the Turkish emperors.

Municipality of Ston, during twentieth century didn’t experien-ce strong development expansion. Vast tourism facilities we-re built closer to Dubrovnik and airport in Čilipi, thus leaving Ston untouched. That is the reason that Ston today, with its preserved space, has comparative advantages in the tourism sense. Ston can offer highly exclusive product to the tourism world, as long as the sensitivity is kept when interventions in the spatial morphology are made.

In the development study diversity and advantages of Ston are taken into consideration. Authenticity of nature is respected,

and the development is planned in such manner that it is in accordance with tradition and that it measures up to urban structures of the renaissance, whilst using authentic details, forms and materials of the ancestors, hence continuing the direction of past centuries. Corresponding to main postulates of space conservation, preserving rudiment ambient and not succumbing to the space usage maximization are main fea-tures of the development projects.

realization of the development projects within Ston munici-pality requires further research, prudent planning, smart de-sign and careful execution. It is also necessary to set and ho-nor realistic deadlines, and to establish institution in charge of organizing and coordinating project realization, from theoretic to technical execution.

Development concept of Ston highlights sustainability as its basic element, based on improvement and fulfillment of all li-fe functions: ecological, residential, social, cultural, business, economical, touristic, which is spatially dispersed to the entire municipal area, from Marčuleti, Zamaslina and Prapratno, via Ston, Mali Ston and Duba Stonska, to Žuljana and Brijesta.

Special attention is paid to traditional products of local populati-on, revitalization of historical heritage, and ensuring highest level of infrastructure, as well as to planning of the new facilities in accor-dance with ambiance and enabling livelihood of local people.

Božo LetunićExpert Advisor

Page 5: Five elements of Ston

12 Five elements of Ston - Development Concept of Ston

ProjeCT BACkGrouNDMunicipality of Ston is a spacious area of 169,51 km2, which occupies almost half of the Pelješac peninsula. It is a well kept secret, which impresses guests with the combination of island experience and mainland landscape. Diversity of lo-cations, interesting places, historical stories and unique pro-ducts is well hidden from the general public.

Municipality offers no appropriate hotel accommodation, shell production is far from optimal, wine producers face many challenges, tourism season is shorter than average in Croatia, tourism products are virtually non-existing, depopu-lation is significantly increasing and infrastructure is limited.

opportunities, built upon historical background, are nowa-days lying in rich vineyards and secluded bays. These op-portunities can bring bright future to the municipality and its inhabitants. Municipal government, led by the mayor Vedran Antunica, has clear guidelines how to develop the region in a sustainable way.

Municipality has assigned an internationally experienced gro-up of experts to prepare “Development Concept of Ston” as a basic document which will initiate the procedure of the de-velopment. Foundation for this cooperation is work prior con-ducted by the German DeG under the cooperation of German and Croatian government in the tourism development sector, and documents created during the cooperation such as Nati-onal tourism strategy and regional tourism master plan.

INTeGrATeD DeVeLoPMeNTexperiences from around the world have shown that it is of vi-tal importance to practice integrated development, especially

in the coastal areas. This kind of process enables balanced development of different segments in a way that they sup-port and strengthen each other, at the same time sustainably utilizing natural resources and ensuring their protection and enhancement.

STruCTure oF THe STuDyStudy is composed of three parts.

Part one gives a picture of Ston today, focusing on resources, qualities and special traits of Ston. Main characteristics of muni-cipality are described and defined through different points. Ston today gives a short, but concise overview of the main aspects of what Ston represents today. Applied principles of integrated coastal development define the major segments of structural progress in a way that all these integrated elements support and strengthen each other.

Part two deals with urbanism, which is intended to function not as a limiting, which often happens, but as a supportive element of the development process. Town planning plays a significant role in this process, since it is the basis for all infrastructural pro-jects. Sustainable development is not possible without a mo-dern and progressive infrastructure.

Part three, the most significant part of the study, deals with three main aspects. It defines and describes the vision of deve-lopment; it provides municipality with necessary management tools and most of all it structures main developmental projects in such manner that the realization probability is highly augmented.

INTroDuCTIoN“The time is always right to do what is right.”Martin Luther King, Jr

(right) Ston - view from walls(first spread) Brijesta Bay

(second spread) Pelješac vineyards

Page 6: Five elements of Ston
Page 7: Five elements of Ston
Page 8: Five elements of Ston

18 Five elements of Ston - Development Concept of Ston FIVe eLeMeNTS oF SToN 19

Ston area has been inhabited since prehistoric times, as it is evident from the findings in the cave Gudnja. Prosperity was brought to region when the republic of Dubrovnik got into a possession of the Pelješac peninsula. Since that time, many matters have changed, yet many have remained the same. Abundance of natural resources is even today remarkable. Among them there are five key elements that make Ston unique and recognizable and which can proudly represent it worldwide.

FIVe eLeMeNTS oF SToN

(left) Walls(middle top) Vineyards(middle) Oysters(right) Sea(bottom) Salt

The wallsThe Story of Time and CultureThe walls of Ston were built after 1333, when Ston became part of the republic of Dubrovnik. The walls supposed to pro-tect the republic and the peninsula Pelješac. with length of 5,5 km we are speaking about the second longest town walls in europe and the longest defensive town walls. Apart from protecting the towns Ston and Mali Ston, the walls were ma-inly built in order to preserve the valuable location of Saline.

The walls protect and frame a rich cultural, architectural, ar-chaeological and historical heritage of Ston. Ston as a town has additional value, as it is an example of planned town, built on the model of Dubrovnik. The area of Ston municipality has an amazing historical background, from prehistorical times until today. The story of time and culture is visible in numerous archaeological findings, architecture, churches and chapels, caves, stone piles and walls, remains of the Napoleon road, monasteries. All these things make the story of time and cul-ture of Ston – the first element.

(top) Ston aerial view(right top) Ston view from sea(middle) Walls - segment(bottom) Ston view from walls(right bottom) View from walls to Mali Ston

Page 9: Five elements of Ston

20 Five elements of Ston - Development Concept of Ston FIVe eLeMeNTS oF SToN 21

VineyardsAgriculture Against all oddson steep, south orientated hills, with the picturesque sight of the streets of Ston, lay the vineyards. Grown in the scarce land thanks to the hard work of the local pioneers the vineyar-ds rise between the rocks. Award winning wines come as result of harsh land, burning sun, scarce water and hard work of people in love with their land.

In the fertile valleys, fruit and vegetables grown by diligent far-mers also find their place under the sun. An olive tree stands as a symbol of resilience, fights against all odds, and result is therefore pure olive oil of the highest quality. Bees, as diligent as the local people, produce extraordinary honey, in a com-pletely natural way and according to the traditional methods. Herbs and plants that grow in the wilderness on top of the hills are mixed in local grappa, which brings to life exquisite liqueurs of unique taste.

waterless land produces abundance, truly against all odds.

Grapes and vineyards

SaltSea, Sun and ManSaline, which initiated the wealth of Dubrovnik hundreds of years ago, still produces salt in a same way as than. The key ingredients – sea, sun and man should be combined in order to produce extraordinary salt. Tradition and values from the times of the republic of Dubrovnik can still be experienced in the authentic setting of the salt-works today.

(top) Old sketch of saline(top right) One of the salt fields(bottom) Harvesting slat(middle) Saline - aerial view

Page 10: Five elements of Ston

22 Five elements of Ston - Development Concept of Ston FIVe eLeMeNTS oF SToN 23

oystersTreasures of the Seaostrea edulis is european oyster, the queen of all oysters. It is a gift of nature to the Mali Ston bay. For years, people have grown oysters in the bay to make a living. Hidden treasure of Ston invites everybody to reveal, taste and experience it.

Sea fruit products are served in numerous restaurants in Ston area.

(top & left) Oysters(bottom) Oyster farms in Mali Ston

SeaSeascapes and LandscapesDivinely dented coastline, hidden secluded beaches, spec-tacular views, deep green immersing into the blue, beautiful landscapes, hills and valleys, enriched by vineyards on steep hillsides, intertwined with lacy stonewalls – this is what makes the experience of Ston so indescribably unique.

(left) Kobaš(middle) Vučina bay(right) Putnikovići fields(bottom) Aireal view of Žuljana region

Page 11: Five elements of Ston

PArT I

Everything in life matters and ultimately has a place, an impact, and a meaning.Laurens van der Post “A Far-Off Place”

Page 12: Five elements of Ston

26 Five elements of Ston - Development Concept of Ston

SToN ToDAy

“Sleeping beauty, hidden by the shrubs, protected by thorns, waiting for the prince to wake her, to allow her to show the be-auty and charm it posseses.” Ston today is a place of excep-tional natural beauties and stunning views, enhanced by scattered villages and with abundance of natural resources, rich vineyards and great wines. It is a place of an amazing historical and cultural richness. Although the sea is full of life, Ston suffers from the lack of inhabitants, stumbling economy, almost empty schools, poor seamen. All these characteristics intertwine and make Ston what it is today, but also what it might become tomorrow!

(left) Natura Dalmatia, local product(top) Ston Centre(right) Example of traditional houses, island Brač

Page 13: Five elements of Ston

28 Five elements of Ston - Development Concept of Ston PArT I: SToN ToDAy 29

Physical and Natural resources

Municipality of Ston has been founded and established by the “Act on county areas, cities and municipalities in the republic of Croatia” published in “Nati-onal Gazette” (90/92, 29/94 and 10/97). The Municipality has its seat in Ston. Prior to this Act the area of Ston was part of the municipality of Dubrovnik.

According to the above mentioned re-gulation the municipality of Ston covers area of 169,51 km² and is located on the south-eastern part of the Pelješac peninsula and is composed of 18 set-tlements (Boljenovići, Brijesta, Broce, Česvinica, Dančanje, Duba Stonska, Dubrava, Hodilje, Luka, Mali Ston, Me-tohija, Putnikovići, Sparagovići, Ston, Tomislavovac, Zabrđe, Zaton Doli and Žuljana).

Municipality of Ston is a part of Dubrovnik Neretva County, and is third largest within the 22 territorial units (municipalities and cities) undertaking 9,57 % of county territory.

Municipality of Ston covers narrow strip of Pelješac and stret-ches 30 km northwest-southeast. The seat of the municipality is in the town that bears the same name as the municipality, which is located 62 km away from the world famous fortified city of Dubrovnik. There is a strong historical, social, economical

and traffic connection between Dubrovnik and the municipality of Ston.

Territory of the municipality is defined as an area of special state and national interest in geostrategic sense.

Municipal area has been inhabited for a very long period of time. From prehistoric times there are visible remains, inclu-ding cave findings at Gudnja. There are also findings from

Map Ston municipality with settlements

roman times. Byzantine occupation followed, leaving its fo-otprints, as well as “Neretva people”. However the most si-gnificant remains originate from the period of the republic of Dubrovnik, when the peninsula (once called Ston Cape) was bought by the republic, after what the development actually began (1333-1808).

During the period of the Austrian Monarchy, municipality of Ston was formed as a part of Dubrovnik kotar and the king-dom of Dalmatia. Ston kept that position also after the 2nd world war when it was a part of Dubrovnik district and Nr Croatia. Ston has a long history of being administrative centre of the surrounding area.

Natural traits of Ston are typical for Dubrovnik region, as well as for Dalmatian region. It is a typical karst Dinaric region, scarce in water and with pockets of fertile soil different in size.

Landscape is dominated by forest areas, partially destroyed by fires, scarce pastures and bare rocks. Those are true and distinctively Croatian Mediterranean traits.

Dented “Dalmatian style” coast with numerous channels (Mali Ston Channel, Mljet Channel, Ston Channel), gulfs, coves, little bays with beaches (Brijesta, Bjejevica, Bistrina, kuta, Žuljana, Vučine, Prapratna, Smokvina, Priježba, Marčuleti, Pržina and many others), smaller islands (Gubavac, Maslinovac, Lovori-kovac, kokošar, Tajan, Pučenjak, Veli Školj, Banja, Govanj, or otok Života, Crkvica, Bisaci, Škrpun, Lirica and largest olip), capes (Blace, Nedelja, Čeljen, ostrog, Prezdra, Vratnik and other), and also steep cliffs and inaccessible coastline.

Tectonic structure of the area is quite unstable, under influen-ce of high seismic activity. Ston area is in earthquake danger zone of intensity level IX according MSC scale, which has to

Spatial plan Dubrovnik Neretva County, Administration division*

* Spatial Plan of Dubrovnik Neretva County, 2006

Old Postcard, Published by Matica Hrvatska, Ston Division

Page 14: Five elements of Ston

30 Five elements of Ston - Development Concept of Ston PArT I: SToN ToDAy 31

be especially considered when planning and constructing buildings.

Lack of water is an important fact for the peninsula, because apart from very few underground sources, it is completely water dependant on mainland.

This area is almost completely surrounded by the sea. Avera-ge summer temperatures are 22-26 °C near the coast and it has beneficial influence on the climate. Salinity is quite high at about 38 %. Dark blue colour occasionally transfers to green blue or turquoise at certain areas. Sea water is very clear with visibility to 5 m depth. Tide is mild here and the difference is rarely more than 50 cm.

Mediterranean climate, with long, hot, dry summers and rat-her short, mild and wet winters, as well as warm, wet springs and autumns, differs slightly from location to location on the peninsula. Microclimate is such that the southern coastal part of the municipality has higher number of sunny days and less clouds and rain. Average yearly temperature is 15,6 °C with 24,9 °C average temperature in july and 7,3 °C in january. Average rainfall is 1414 mm and sun exposure is more than 2500 hours in a year.

Ston has true Mediterranean vegetation (Holm oak, Dalma-tian black pine, macchia, short shrubs, natural healing and aromatic herbs, man grown grapes, olive trees, tobacco, fruits, vegetables and other). Forests have primarily an eco-logical function (protective and anti-erosion effect), but also have tourism-recreational value, and they can be economi-cally exploited.

The advantages from physical and natural resources are so-mething that Ston must further elaborate and realize the po-ssibilities of their positive exploiting. These are numerous, to mention just some of them:

~ Position and traffic connections (isolated, but close to Dubrovnik and with highway connection to Split)

~ Pristine sea ~ Breathtaking landscape ~ Clean environment ~ rich heritage (natural, cultural, historical) ~ Salt production ~ Sea exploiting (shells, oysters, fish) ~ Agriculture ~ Sun and bio energy resources

(sun – 2500 h/year, wind)

Vučina Bay, Ston municipality

Human resources

Municipality of Ston is scar-cely inhabited; with 2605 in-habitants, it is one of the least inhabited municipalities in the County. According to the last census from 2001 Ston popu-lation density was 15,28 inhabitants per km2.

Demographic image of Ston is not good. Different cir-cumstances, such as natural, geographical, economical, political, infrastructural, traffic and some other as well are what made Ston an area of significant depopulation.

Back in the year 1900 Ston had 4.332 inhabitants and in 2001 it reached its lowest number. It shows the drop of more than 1/3 of inhabitants in 90 years.

This was caused by different reasons. Great grape di-sease in the end of the 19th century impacted this area. The consequences of the world war I and the world war II, Homeland war, earthquakes and the lack of strong economy – all these influences contributed to the decline in population.

Most of the employed people are men (62 %). The ma-jority is employed by the third party, but there are also different forms of self-employment that make almost 30 % (38 % of men, but only 22 % of women)*.

* People Census 2001

 km2 Inhabitants 2001Density

inh/ km2 2001.Setlements

Average SizeInhabitants 2001.

Ston 170.44 2605 15,28 18 145

Table 1: Data from DZS, people census 2001, Table 25.

Old Postcard, Published by Matica Hrvatska, Ston Division

Page 15: Five elements of Ston

32 Five elements of Ston - Development Concept of Ston PArT I: SToN ToDAy 33

In the Table 2 we can clearly see the main income sources of the local population.

when we process the information we can conclude that the main income source of the locals is in the agriculture sector, and mostly in the form of self-employment. Second most im-portant source of income is a public sector. when put toge-ther, public authorities, education system, health protection and public supply companies ensure working places for nearly 18 % of the employed. Service industry is the third greatest employer, although currently completely underdeveloped.

In july 2009 Ston had 129 unemployed registered by the Croatian employment Institute, which is a significant number when referred to the total population. This is clearly a sign of a difficult economic situation in the municipality, where there is an urgent request for the development.

In order to achieve prosperity, Ston has to develop. It must provide opportunities for its inhabitants and at the same time attract new inhabitants. Primary focus should be to attract back those that have moved away in search of work and secondary to attract new population from the county as well as from the whole country. To achieve that, municipality must provide:

~ Appropriate infrastructure ~ Affordable housing program / opportunity ~ Financial security (strong economy = attractive jobs)

Agriculture FisheryMining & 

excavationsProcessing 

industrySupply (energy, 

gas, water)Construction

Commerce (retail, wholesale)

Total 183 40 17 35 23 23 55

M 136 37 16 26 22 22 21

W 47 3 1 9 1 1 34

Hotels & restaurants

TransportFinancial Services

Real estate & services

Public Authorities

Education Health Protection

Total 85 45 8 8 50 35 19

M 31 37 5 4 31 4 4

W 54 8 3 4 19 31 15

Other ServicesPrivate household 

with employeesWorking abroad

Unknown Business Activity

Total employed in Ston in 2001 = 710 people.Total 14 6 42 22

M 7 - 30 14

W 7 6 12 8

Table 3: Data from DZS, people census 2001, Table 25*.

* People Census 2001

TotalEmployed 

(anywhere)Self-employed

Individual Farmers

Working under part time contract

Paid household member at farm or personal company

Other

710 454 69 149 8 24 6

M 447 256 56 117 6 8 4

W 263 198 13 32 2 16 2

Table 2: Data from DZS, people census 2001, Table 25.

Graph 1: Employed, according business sector; Source, DZS

economy

Municipality of Ston is defined as the undeveloped area. eco-nomic activities in the area are:

~ Agriculture ~ Fishing and marine aquaculture ~ Small scale production and processing ~ Construction ~ retail ~ Tourism ~ Catering ~ Services

AGrICuLTure Development of agriculture is greatly impacted by the two facts:

~ Lack of fertile soil ~ Lack of water

This mostly resulted with development of vineyards, oli-ve grows, scarce orchards and seldom with of vegetables, crops and tobacco grows.

Seasonally local population has also been collecting aromatic and healing herbs for drying. Vast pastures used to be inha-bited by goats and sheep (almost completely disappeared).

Distincitive fertile areas are:

Brijesta field – is good for tangerine and citrus fruits, stone fruits, vineyards and olives.

Ston field – covers an area of nearly 100 ha. It is very suitable for citrus fruit, stone fruits, apples and similar fruit, vineyards, vegetables, olives.

Žuljana Valley – is a typical area suitable for grape growth. It enables the production of quality red wine, but is also good for citrus fruit.

Valleys Crna Gora and Ponikve – are distinguished by sli-ghtly harsher climate. These areas are very suitable for vi-

One of the inland villages in Ston

Page 16: Five elements of Ston

34 Five elements of Ston - Development Concept of Ston PArT I: SToN ToDAy 35

neyards (grape for quality white wine “mareština”), but also for olives and growth of stone fruits.

According to the last Agricultural Census in Ston there are 478 households involved in the agricultural sector, using to-tal of 3.619 plots, what makes 437,21 ha. when compared to

the agricultural land of 1.558,33 ha, conclusion is that there is enough space for further development of the agriculture in Ston. The biggest part of already used agricultural land is used

for vineyards and orchards. It is also rather significant that the biggest part of the rest of the land that is suitable for agricultu-re is classified as forests.

Impact and importance of agriculture for Ston is even clearer when the number of people directly involved (by being a mem-ber of an agricultural household) in agriculture is examined. 478 households with 1.547 household members benefit from agriculture*.

* Agriculture Census 2003

Number of households

Total available size 

of landha (3 + 7)

Used Agriculture landOther Land, 

ha

Number of plots of used agriculture 

land

Total used(4+5-6)

OwnedTaken 

concessionGiven 

concession

1 2 3 4 5 6 7 8

Dubrovnik Neretva County

9.723 22.625,53 7.119,73 6.144,80 995,37 20,44 15.505,80 59.366

Ston 478 1.558,33 437,21 434,01 4,50 1,30 1.121,12 3.619

Table 4: Agriculture households according total available agriculture land, size of available land, size of used land, size of other land and number of used plots (June 1st 2003.); Source, 2003 Agriculture Census, DZS

Used Agriculture Land Other Land

Total (2 + 3 + 4 +

5 + 6 + 8 + 10)

Tilth and gardens

Kitchen garden 

(used for own needs)

Lawn Pastures

Orchards Vineyards

TotalNon 

cultivatedForest land

TotalPlantation 

typeTotal

Plantation type

1 2 3 4 5 6 7 8 9 11 12 13

Dubrovnik Neretva County

7.119,73 771,63 134,8 400,21 879,39 3.170,00 1.526,45 1.757,60 941,73 15.505,80 3.792,80 10.650,13

Ston 437,21 28,91 6,01 17,16 15,87 136,18 104,55 233,08 92,97 1.121,12 262,43 784,05

Table 5: Size of used agriculture land and other land according categories (June 1st 2003.) ; Source, 2003 Agriculture Census, DZS

Total households

Households members 

total

Number of households members(info for first 8 members only)

Number of household members according age(info for first 8 members only)

Total (4+5) Male Female 0 – 25 25 – 34 35 – 44 45 – 54 55 – 64 64+

1 2 3 4 5 6 7 8 9 10 11

Dubrovnik Neretva County

9.723 34.158 33.834 17.348 16.486 9.586 3.735 4.254 5.088 4.039 7.132

Ston 478 1.547 1.544 773 771 436 122 188 210 188 400

Table 6: Number of agriculture households, household members by sex and age (June 2002 – May 2003); Source, 2003 Agriculture Census, DZS

out of these 478 households, more than half has registered an income from agriculture. Number one income source are fruit and grapes, and second position in income is sale of processed goods such as wine, olive oil, grappa and similar products.

Significant number of agricultural households (1/3) offers other services and agriculture based products. They are also invol-ved in some kind of marine aquaculture or in some other form of non-agricultural activity.

Number of housholds with income from:

Total households with income

VegetablesFruits and 

grapes

Wine, grappa, olive oil, 

and other processed 

goods

Milk and cow meat

Sheep and goat, and sheep and goat milk

Polutry and eggs

Other

4 6 7 8 10 11 12

Dubrovnik Neretva County

3513 480 2.225 308 29 70 29 372

Ston 243 9 136 50 1 3 1 43

Table 7: Number of households according sale of agriculture products in 2002; Source, 2003 Agriculture Census, DZS

Number of households

Total housholds with other activities

Tourism, accomodation and 

other activities related to free time

Proccessing of agriculture products

Fish farming, other sea organisms 

farmingOther

1 3 5 8

Dubrovnik Neretva County 1076 584 288 24 180

Ston 118 53 37 23 5

Table 8: Number of agriculture households with other activities on premises (June 2002 – May 2003); Source, 2003 Agriculture Census, DZS

Prunes Apples Peers CheerySour 

cherryPeach Apricot Figs Citrus Walnut Olives Vineyards Bee

# of trees # of trees # of trees # of trees # of trees # of trees # of trees # of trees # of trees # of trees # of trees size in ha # of vines size in ha # of hives

Dubrovnik 

Neretva 

County

51.917 50.231 3.216 8.423 3.398 66.224 4.757 30.221 1.143.687 2.807 432.415 286,69 12.487.000 1.757,60 4.480

Ston 332 152 189 607 288 2.354 102 1.170 16.952 321 37.046 90,19 1.887.000 233,08 352

 % of 

county0,64 % 0,30 % 5,88 % 7,21 % 8,48 % 3,55 % 2,14 % 3,87 % 1,48 % 11,44 % 8,57 % 31,46 % 15,11 % 13,26 % 7,86 %

Table 9: Numbers of different fruits and other grows in Ston municipal area; Source, 2003 Agriculture Census, DZS

Brijesta

Page 17: Five elements of Ston

36 Five elements of Ston - Development Concept of Ston PArT I: SToN ToDAy 37

when examined which crops are mostly grown in the munici-pality we can conclude that vineyards and olive grows are the most significant agricultural crops.

FISHery AND MArINe AQuACuLTureMali Ston bay, thanks to its natural characteristic, plays a major role in the development of this segment. Sea farmers mostly farm: oysters (ostrea edulis), mussels (Mytilus gallo-provincialis), and lately have started with fish farming. There are more than 20 legal entities registered in Ston area that are active in fishery or marine aquaculture, giving a significant contribution to the local economy. It is interesting though that only 5 % of the employed people is working within this sector,

suggesting that it is still operating as a small activity witho-ut organized market approach and large market presence. It is also interesting that marine aquaculture is side activity of companies from the catering sector.

SMALL SCALe ProDuCTIoN AND ProCeSSINGThanks to agriculture, marine aquaculture, fishery products, herbs collecting and salt farms smaller scale production as well as processing facilities have developed in Ston. Proce-ssing facilities such as saline, wine cellars, oil production de-veloped in the region.

In the area of Ston, within the economy zone Česvinica there are several storage, processing and production facilities: plastic processing factory, metal processing factory, joinery facilities.

CoNSTruCTIoNConstruction sector consists of several smaller companies that offer services from planning and engineering to building raw constructions, fine works, and craft works. This segment is not very developed as there are no major constructions go-ing on in the municipality. upon the completion of the Spatial Plan and when private investors will be able to initiate new building projects, this segment will further develop.

Municipal building, Ston

Oyster farms in Mali Ston Bay

reTAILIn the municipal area there are several retail shops and many different companies that are registered for this activity. Clearly this sector has been developing in more specialized directi-ons, offering more and more local products. In municipality there are no bigger markets or shopping centres.

TourISMMass tourism has never been developed in Ston. From the “old” political system it has inherited only two camps. Most of the accommodation facilities in Ston are private rooms, apartments and houses. There is one working camp “Prapratno” with ca-pacity of nearly 900 beds and some small family type hotels. Initiatives to develop rural tourism do exist, especially in a way that it’s combined with agriculture (vineyards, olive grows, etc). Also ecological and folklore offer has been initiated. In konštari area there is also nautical offer with limited number of berths.

A significant factor to mention is one day-visit tourism, where guests come for a tour or lunch and than leave the municipality.

According to the experts’ study that was used as basis for the changes and additions to the spatial plan of the county, Ston is placed on the 4th position in the county, according to diversity of the resources, upon which the tourist offer is built.

Tourist visits, and overnight stays show steady decrease from 2007 onwards, when compared for the first 8 months period.

It is significant that tourist arrivals in 2009 have fallen even under the level of 2006, for more than 7 %. In comparison between 2009 and 2007, which was the top year, this drop is even more significant, more than 14 %.

overnights have dropped even more. There are 10 % less overnights when compared to 2006, and more than 15 % when compared to the record year of 2007.

Ston Municipality August, 2009 I-VIII, 2009 August 2008 I-VIII, 2008 August 2007 I-VIII, 2007 August 2006 I-VIII, 2006

Arrivals – total 7.778 18.164 7.103 19.424 7.979 21.152 7.806 19.568

Arrivals – domestic 333 1.182 356 1.415 376 1.332 395 1.247

Arrivals – foreign 7.445 16.982 6.747 18.009 7.603 19.820 7.411 18.321

Overnights – total 35.748 80.916 36.145 91.229 39.054 94.691 36.810 89.081

Overnights – domestic 1.616 3.895 2.314 6.186 2.369 5.205 2.230 4.838

Overnights – foreign 34.132 77.021 33.831 85.043 36.685 89.486 34.580 84.243

Ston Municipality August, 2009 I-VIII, 2009 August 2008 I-VIII, 2007 August 2007 I-VIII, 2007 August 2006 I-VIII, 2006

Average lenght 4,60 4,45 5,09 4,70 4,89 4,48 4,72 4,55

Average length – dom 4,85 3,30 6,50 4,37 6,30 3,91 5,65 3,88

Average length – for. 4,58 4,54 5,01 4,72 4,83 4,51 4,67 4,60

Table 11: Source, Announcements, DZS 2006, 2007, 2008, 2009

Graph 3: Tourist Overnights – January to September; Source, DZS

Graph 2: Tourists Arrivals – January to September; Source, DZS

Table 10: Source, Announcements, DZS 2006, 2007, 2008, 2009*

* Announcements, Trgovina, ugostiteljstvo, Turizam, 2006, 2007, 2008, 2009

Page 18: Five elements of Ston

38 Five elements of Ston - Development Concept of Ston PArT I: SToN ToDAy 39

Average length of stay, thanks to the development of new of-fers, was slowly increasing. In 2009, however, mostly beca-use of the influence of the world Financial Crisis, an average length of stay has slightly decreased.

According to the last accommodation list from the August 2008, Ston had total capacity of 2500 beds. Most of these

are in private households (59,60 %), only 29 in hotels and they are mostly located in Ston/Mali Ston area. Ston municipality located on peninsula and with an astonishing coastline has no “beds” officially registered in the nautical ports.

In Ston tourists mostly stay in private households (56,74 %). It is interesting to notice that the length of stays in hotel accom-modation is only 1,5 days, whilst in households it is 7,62 days. This is a significant difference and it is possible to assume that hotel guests are not typical vacation guests, rather tran-

sit ones or business guests. when comparing overnights in households with available accommodation we can conclude that the average occupancy of household accommodation is 5 weeks per year, which is rather low for professional and profitable tourism business.

Among foreign tourists spending their vacation in Ston top 3 nations with most overnight stays are:

1. Czechs (28,24 %) 2. Poles (13,87 %)3. Germans (13,07 %)

Beds in

Total Hotels Camps Households Nautical ports Other facilities

Municipality Ston 2.500 29 960 1.490 0 21

Percentage 1,16 % 38,40 % 59,60 % 0,00 % 0,84 %

Brijesta 0 0 125 0 0 0

Broce 0 0 0 0 0 0

Hodilje 67 0 0 67 0 0

Mali Ston 105 29 0 55 0 21

Metohija 86 0 0 86 0 0

Putnikovići 391 0 0 391 0 0

Ston 1.023 0 960 63 0 0

Žuljana 685 0 0 685 0 0

Table 12: Accommodation capacity, by type of facilities in seaside towns and municipalities (31. August 2008); Source, DZS

StonTurnover of tourists – total Out of total turnover in:

Total Domestic Foreign Hotels Camps Households Nautical ports Other

Arrivals 19.967 1.658 18.309 1.931 10.189 6.884 0 963

Overnights 92.456 6.811 85.645 3.015 35.375 52.457 0 1.609

Percentage participation in total overnights: 3,26 % 38,26 % 56,74 % 0,00 % 1,74 %

Average length 4,63 4,11 4,68 1,56 3,47 7,62 0 1,67

Table 13: Tourists turnover according accommodation type; Source, DZS

Camp Prapratno

Villa Bandur, Mali Ston private accommodation

Restaurant Mali Ston

Ston Austria Czech France Italy Hungary Netherlands Germany Poland Slovakia Slovenia UK Other Total

Arrivals 656 3.076 2.154 1.566 501 630 2.712 1.901 251 786 381 3.695 18.309

Overnights 2.784 24.190 5.673 4.091 2.890 2.853 11.198 11.877 1.834 3.487 932 13.836 85.645

Percentage of overnights

3,25 % 28,24 % 6,62 % 4,78 % 3,37 % 3,33 % 13,07 % 13,87 % 2,14 % 4,07 % 1,09 % 16,16 % 100,00 %

Average length of stay

4,24 7,86 2,63 2,61 5,77 4,53 4,13 6,25 7,31 4,44 2,45 3,74

Table 14: Foreign tourists turnover according country of origin; Source, DZS

Among foreign tourists spending their vacation in Ston lon-gest stays have:

1. Czechs (7,86 days)2. Slovaks (7,31 days)3. Poles (6,21 days)

CATerINGThis is a segment which is quite developed. Ston, Mali Ston and other villages have several cafes, bars, restaurants, and “konobas”. over the time Ston has developed image of an area with excellent gastronomic offer. This especially applies to Mali Ston, where in such a small area there are several excellent restaurants recognized nationwide for seafood deli-cacies (Vila koruna, Bota Šare, kapetanova kuća).

restaurants mostly offer seafood and local products. Howe-ver, it must be noted that the offer is rather similar. It is difficult to find diversity in restaurants’ offer, or in cafes.

SerVICeSAlongside some other segments this sector develops thanks to the companies that do bookkeeping, financial consulting, real estate, tourism services and personal services. There are more than 30 people employed in these segments making it nearly 5 % of totally employed. It is obvious that with further development of the region this sector will surely prosper and be able to carry the significant employment wave as well as to participate in economic development of the whole area.

(top) Local delicacy(below) Cafes in Ston Centre

Page 19: Five elements of Ston

40 Five elements of Ston - Development Concept of Ston PArT I: SToN ToDAy 41

SwoT analysis

SWOT analysis is a strategic planning method used to eva-luate strengths, weaknesses, opportunities and threats invol-ved in project or in a business venture. It deals with specifying the objectives of the business venture or the project and iden-tifying the internal and external factors that are favourable and unfavourable for the achievement of that objective.

This method was used to evaluate Ston as location and its potential for development as destination.

Fountain in StonSton gardens

STreNGHTS – Position and traffic connection – Cultural and historical heritage – Preserved nature and landscape – Abundance in land suitable for new developments – Agriculture and aquaculture resources and tradition – Local entrepreneurial spirit and tradition – Gastronomy tradition – Coherent local authority dedicated to the prosperity of

the region – Public land available – renewable energy resources (sun, wind, biomass, etc.)

weAkNeSSeS – Poor maintenance, management, utilization and promo-

tion of cultural and historical heritage – Lack of promotion of the region – Lack of “brand” – Missing modern tourism offer – No clear strategy, direction and sector strengthening in

agriculture and aquaculture – Non-diverse services and products – Pass-by tourism – Non-diverse gastronomic offer – Lack of qualified workforce and depopulation – Limited public financial sources

oPPorTuNITIeS – New road access from the mainland – the bridge – Sustainable development principles (ICMP) – Sustainable tourism and agriculture development – Public Private Cooperation model for managing the

development process – Developing different but coexistent economic activities – Attracting back the inhabitants by natural quality of life

and different programs (such as housing programs) – out of one hand development with determined story

behind – International investment interest

THreATS – Destruction of cultural and historical heritage – Development “skipping” the municipality – Development of mass tourism, without sustainability

principles – “wasting space” – overdeveloping areas to satisfy

capital interest – unreliable support of private partners to achieve public

interests – No further development of agriculture and aquaculture – Depopulation – Single developments without joint direction and large

market presence, competing with each other – No investments

(top & bottom) Main street Ston

Page 20: Five elements of Ston

42 Five elements of Ston - Development Concept of Ston PArT I: DeVeLoPMeNT DIreCTIoN 43

DeVeLoPMeNT DIreCTIoN

At the 1992 uN Conference on environment and Develo-pment held in rio, governments made a commitment in Agenda 21 to “adopt national strategies for sustainable de-velopment [which should] build upon and harmonize vario-us sector, economic, social and environmental policies and plans that are operating in the country. […] Its goals should be to ensure socially responsible economic development for the benefit of the future generations.” *

Sustainable development is vital part of the european deve-lopment direction, especially since 2001, when the first “eu Sustainable Development Strategy” was created. “Sustaina-ble development means that the needs of the present ge-neration should be met without compromising the ability of future generations to meet their own needs. An overarching objective of the european union is set out in the Treaty, go-verning all the union’s policies and activities.” **

key objectives of the Sustainable Development in europe are:

~ environmental Protection ~ Social equity and Cohesion ~ economic Prosperity ~ Meeting the International responsibility

In 2005, under the guidance of uNeP and Mediterranean Action Plan, “Mediterranean Strategy for Sustainable Deve-lopment” was prepared and accepted by 21 Mediterranean * Agenda 21

** Action for more Sustainable Tourism of europe

countries. The strategy focuses on integrating environment concerns into the key development sectors and at the same time giving appropriate concern to the social and cultural dimension. It has 7 main priority fields of action and 4 main objectives:

Seven Priority Fields:

1. Improving integrated water resources and water demand management

2. ensuring sustainable management of energy and mitigating of and adapting to the effects of climate change

3. ensuring sustainable mobility through the appropriate management of transport

4. Promote sustainable tourism5. Promoting sustainable agricultural and rural

development6. Promoting sustainable urban development7. Promoting sustainable management of the sea and

coastal zones and taking urgent action to put an end to the degradation of coastal zones

Four Main Objectives:

1. economic Development (enhance Mediterranean assets)2. reduce Social Disparities3. Change unsustainable production and consumption

patterns4. Improve governance

realization of the four objectives through the seven priority fields is shown in Table 15***.

on the eu level sustainability has great importance and is an integral part of all development strategies, documents and di-rections in the last couple of years. The republic of Croatia, on its way to the eu accession, and as one of the Mediterra-nean countries has accepted and is applying the sustainability principles through its laws, strategies and projects. Two main documents regarding sustainable development in Croatia are:

~ Strategy of Sustainable Development of Croatia (Na-tional Gazette, 30/09)

~ Mediterranean Strategy for Sustainable Development (2005, the document was approved by the Parlia-ment of the republic of Croatia)

*** Mediterranean Strategy for Sustainable Development

Municipality of Ston, the municipal council and the mayor re-presenting the voices of inhabitants have decided to follow the lead of the eu development strategies. In order to pre-serve the local values and provide the next generations with same or even better resources Ston has decided to apply Sustainable Development.

The idea of sustainable development grew from numerous environmental movements in earlier decades and was defi-ned in 1987 by the world Commission on environment and Development (Brundtland Commission 1987) as:

Sustainable Development is the development that meets the needs of the present without compromising the ability of future generations to meet their own needs****.

It is challenging to come from general definitions to the clear direction in managing sustainable development. In order to make development process sustainable, many different and sometimes contradictory aspects must be taken into consi-deration. Sustainable development must consider all of the following:

~ Land use planning, land development, building approvals, and also monitoring realization of the development projects

~ Strategic planning of development segments through actions such as, Integrated Development Plans (inte-grated coastal development approach)

~ Providing local population and “newcomers” with adequate housing opportunities and appropriate service delivery

~ Providing adequate public and private transport

**** Bruntland report, “our Common Future”

Environment

Social

Economic

Viable

Bearable Equitable

Sustainable

Ston Centre

Graph 4: Level of responsibility

Page 21: Five elements of Ston

44 Five elements of Ston - Development Concept of Ston PArT I: DeVeLoPMeNT DIreCTIoN 45

~ Promotion of tourism ~ Conservation of cultural and historic heritage ~ Natural resource management and protection ~ Catchment and usage management (preventing over-

usage of particular resource) ~ Integrated waste and pollution management ~ Sufficient energy

Development process in Ston will be managed in a way that it strongly supports companies and initiatives which take into account economic, environmental and social responsibili-ties. At the same time significant project developments will be structured in a way that these responsibilities are precal-culated. Level of responsibility of a business activity can be determined according following criteria:

Four main objectives

Seven essential issues Seven essential issues

Implementation

WaterEnergy and climate 

changeTransport Tourism

Agriculture and rural development

Urban development Sea and coastal zones

Economic development, Enhance Mediterranean Assets

increase agricultural added value of cubic meter of water. (2)

Enhance the potential of Med. renewable energies: (7 % of demand by 2015). (7) Reduce energy dependency

Develop more competitive and sustainable Euro Mediterranean transport systems. Reduce growing congestion costs

Promote Sustainable tourism. Enhance value of Mediterranean assets and diversity tourism (13). Increase added value of tourist economy for local communities in developing countries. (14)

Enhance Mediterranean diversity and quality: typical products, organic agriculture, diet, landscapes, etc. (18) Productive and rational agriculture. Diversify rural economy. (15)

Promote sustainable urban economy. Create added value from the cultural, historical and landscape heritage.

Develop activities (tourism, aquaculture, etc.) integrating natural fragilities. Protect and promote the unique value of coasts, sea resources, landscapes

SOLIDARITY. COMMITMEMT AND FINANCING Strengthen reciprocal commitment and financial support for MSSD goals/Med developing countries. • Official Development Aid: (27)• UE net public financial flows (28)

Type 2 initiatives Synergies EMP/MAPSystems to fund productive and innovative activities by SMEs (29)Strengthen capacities of local authorities (30)Reinforce territorial cohesion Financial tools (31)

HUMAN CAPITAL AND PARTICIPATION• Ensure primary education for all (32)• Gender equaIity. Eliminate gender disparities

in education (33)• Education in sustainable development• Increase public/private spending on research

and development (34)• Access to Information. Participatory

approach.

NATIONAL STRATEGIES National and sectoral Sustainable development strategies.Institutional frameworks for sustainable development.

Reduce social disparities Cut in half the population (2015/1990) without access to safe drinking water (4) and sanitation (5).

Cut in half the population without access to electricity (2015/1900)

Reduce the growth of transport costs in household budgets

Develop tourism to help promoting social cohesion and cultural values

Reduce rural poverty and social gaps with urban population. Millennium Development Goals (MDG) Enhance social and territorial cohesion

Reduce social inequalities, integrate informal settlements. Reduce the share of slum housing. (20)

Preserve the social and cultural added value of traditional coastal activities (fishing, salt production, agriculture, etc.)

Change unsustainable production and consumption patterns. Ensure the Sustainable management of natural resources.

Stabilize water demand (reduce losses nad wasteful use (1). Protect water resources (quantity and quality). (3) Prevent natural risks

Rational use of energy (energy efficiency). (6) Control, reduce or stabilize GHG emissions. (8) Reduce vulnerability of sensitive areas to climate change

Stabilize or reduce road traffic share. (11). Transfer traffic from road to rail and sea. Low polluting collective urban transport systems. (12) Decoupling economic growth and motorised traffic increase.

Reduce tourist pressures in environmental hot spots. Better temporal and spatial management of tourist flows.

Reduce desertification, and loss of arable land by erosion, salinisation and artificialisation. (16) Protect biodiversity and landscape. prepare agriculture for climate change.

Promote Mediterranean model of mixed and compact towns. Reduce air pollution (22). Increase share of clean fuels. Reduce growth of municipal waste generation. (21) increase recycling and share of sanitary landfills

Avoid linear coastal urbanization (23). Reduce land-based pollution. (25) Prevent pollution from ships. Eliminate operational pollution. (24) Stop/reduce marine and coastal biodiversity losses. Reduce vulnerability to risks.

Improve governance Water demand policies, global and sectoral targets (agriculture, urban water, industries). Integrated water resource management. Promote local participation and partnerships.

RUE/RE policies. Economic tools. Awareness campaigns. Cooperation/Implementation Kyoto Protocol flexibility mechanisms. (8)

Economic tools. Investment. Euro-Med sustainable transport network.

Regional cooperation, ecotourism framework programme, labelling. Local governance. Economic tools. Tourism pay-back formula. Carrying capacities

Euro-Mediterranean approach. Sustainable agricultural and rural development policies, programmes, regional parks, biosphere reserves (17). Strenghten communities governance, promote women.

Articulate spatial and transport planning. Strengthen capacities of local authorities. Promote Local Agenda 21, urban renewal programmers (19) public-private partnerships. Decentralized cooperation networks.

Enforce and improve regional and sub regional cooperation: (Contention. Strategies. SAP) Set up Protocol, laws and local governance for coastal management. Plans tor islands. Risk plans. Protected areas network (objective 10 %.) (26) Increase international and European support.

Table 15: Synergies between objectives and priority fields of action

Abandoned stone house, municipality of Ston

Economic

~ Investing in the area where business operates (part of the profit going back to the local community to help preserve and protect the area)

~ Contributing to the preservation of resources which company uses

~ Hiring local staff (providing quality training for staff) ~ Sourcing supplies locally to support local community

Environmental

~ Taking responsibility for damage to the environment by the business (e.g. use of water in a dry area, use of energy efficient measures, etc).

~ undertaking conservation/reduction measures for water, waste and energy

~ Benchmarking against other companies

~ offering incentives for staff to carpool or use public transport

~ Providing staff with information, tips and training on how to be more environmentally responsible

~ Applying the 3r’s (reduce, reuse, and recycle) ~ Having an environmental policy

Social

~ Promoting and using local products ~ Applying policies which prohibit purchasing products

made from endangered species ~ Supporting local projects (e.g. donating a percentage

of profits to wildlife protection or social causes) ~ respecting cultural or religious issues ~ Making sure than none of company suppliers exploit

children or have broken human rights conduct

Page 22: Five elements of Ston

46 Five elements of Ston - Development Concept of Ston PArT I: DeVeLoPMeNT DIreCTIoN 47

Development Mission and objectives Ston

Development Mission Statement for Ston“Ston is recognized as Mediterranean destination applying sustainable development principles.It is developed tourism destination with preserved nature, developed agriculture and aquaculture, providing high quality of life for its inhabitants and guests, as well as providing equal opportunities for all, securing environment protection by high level infrastructure”

DeVeLoPMeNT oBjeCTIVeS For SToN

In order to realize defined Development Mission Statement, following development objectives must be reached.

1. Integrated coastal management “ICM can be defined as the process by which multiple use of the coastal and marine environment is managed so that a wide range of needs are catered for, including both biodiver-sity protection and sustainable use, allowing all stakeholders (including government, NGos, different economic sectors, and local communities) to participate and benefit.”* enhanced long-term economic development is the driving force of ICM. Main aims are to:

~ to strengthen sector co-operation ~ to preserve and protect productivity and bio-diversity

of coastal eco-systems

* Integrated Coastal Management, Sheet A5

~ to promote rational development and sustainable utilization of coastal resources

2. Implementation of National StrategiesDevelopment should be structured in a sustainable way, but according to the development strategies of higher level, such as “Mediterranean Strategy of Sustainable Development”, “Millennium Development Strategy of Croatia”, “Sustainable Development Strategy of Croatia”, “Strategy of rural Develo-pment of Croatia”, “Tourism Development Strategy of Croatia until 2010”, “Tourism Development Strategy of Dubrovnik and Neretva County”, “roP of Dubrovnik Neretva County”.

3. Quality of life and experienceDevelopment and prosperity of the region must improve life qu-ality of its inhabitants in a way that new opportunities, services and activities are available to them, transforming Ston into “a pla-ce to live”. The goal is to reverse the process of depopulation by attracting people back, as well as, by attracting new inhabitants.

4. Feasibility & RealizationDevelopment projects must be drafted, prepared and imple-mented in a realizable and feasible way. These projects must have an encouraging effect on the economy whilst generating employment, at the same time protecting and enhancing na-tural resources.

5. Five elements of Ston = strong brandSton region has to develop a strong brand. Brand can be developed around 5 basic elements, and subsequently entire

marketing program can be based on the unique mixture of attributes.

6. Strong SME sectorSton will encourage and support development of small and medium size companies as well as micro companies and self-employment activities. Ston wants to reach strong and stable SMe sector as a security for the stable economy.

7. Attractive for investmentsSton will become an area attractive to local, national and international investors, provi-ding clear planning regulations and inves-tment conditions. It will become attractive for young, dynamic population to live in and invest in.

8. Diverse Business Sector Ston will support and encourage develo-pment of strong and diverse business se-gments, which will evenly utilize the abun-dance of resources.

9. InfrastructureDeveloping and realizing state of the art infrastructure is of crucial importance, as well as securing high quality for clients, protecting nature and using resources sustainably (renewa-ble energy sources, new technologies etc).

objectives enlighten a clear way forward and set principles and milestones that can uphold the development path. How to obtain this and apply to the individual business segments is the topic of the next section.

(top) Vineyards, Olive grows and Sea(bottom) Growing economy

Page 23: Five elements of Ston

48 Five elements of Ston - Development Concept of Ston PArT I: DeVeLoPMeNT DIreCTIoN 49

Development of Ston economy

Advanced and strong world economies base their success on the strong, developed and diverse SMes. when discu-ssing sustainable economic growth, SMes are again founda-tion of it. Therefore we can conclude that encouraging and strengthening SMe sector means a long-term development of successful economy.

In the prior analysis of existing economy in Ston region eight types of economic activities was identified. Putting them all together and combined with the mission and objectives we have set, basically we come to Three Development Segments which will push Ston forward.

These Segments have different busine-ss activities within. Some will be exami-ned in detail, while some will be gene-rally defined as development frame.

Development segments of Ston are:

SEASIDE FARMING – Marine aquaculture – Agriculture

TOURISM – Accommodation – Travel and Services – Catering

RETAIL, PRODUCTION, SERVICE & ENERGY

Production

2002 2003 2004 2005 2006

(million tonns)

Inland

Capture 8,7 9 8,9 9,7 10,1

Aquaculture 24 25,5 27,8 29,6 31,6

Total inland 32,7 34,4 36,7 39,3 41,7

Marine

Capture 84,5 81,5 85,7 84,5 81,9

Aquaculture 16,4 17,2 18,1 18,9 20,1

Total marine 100,9 98,7 103,8 103,4 102

Total capture 93,2 90,5 94,6 94,2 92

Total aquaculture 40,4 42,7 45,9 48,5 51,7

Total world fisheries 133,6 133,2 140,5 142,7 143,6

Utilization

Human consumption 100,7 103,4 104,5 107,1 110,4

Non-food uses 32,9 29,8 36 35,6 33,3

Population (billions) 6,3 6,4 6,4 6,5 6,6

Per capita food fish supply (kg) 16 16,3 16,2 16,4 16,7

Table 16: World fisheries and aquaculture production and utilization (excluding aquating plants); Source: The State of World Fisheries and Acquaculture 2008

SeASIDe FArMINGSeaside farming refers to human activities utilizing natural resources (land, water, sea) in order to produce food and drinks, or other products for consumption. In Ston area this especially refers to:

~ marine aquaculture ~ agriculture

SuSTAINABLe MArINe AQuACuLTure

“Marine aquaculture is farming of aquatic plants and animals in salt water.”* wider term is aquaculture, referring to both fre-shwater and saltwater farming of aquatic plants and animals.

* Mariculture, water encyclopedia

when examining production and consumption figures at the world level, marine aquaculture production is steadily growing. There is also a steady growth in consumption, parti-cularly in human consumption, as shown in table 16.

In the world there are many organizations and associations ena-bling better market penetration of individual producers. In the Table 17 there is a list with description of these organizations.

when checking average yearly growth of the aquacultu-re sector, surprisingly, we witness a constant growth in all continents and countries of the world! especially significant growths have countries with low incomes and food-deficit. Aquaculture is clearly a growing sector at the world level. It is only logical for Ston to capitalize on natural resources it possesses, and to participate as the eu player in this sector.

Oysters and mussels farms Mali Ston Bay

Page 24: Five elements of Ston

50 Five elements of Ston - Development Concept of Ston PArT I: DeVeLoPMeNT DIreCTIoN 51

Scheme typeMain market orientation

Market access issues addressed 

Food safetyAnimal health

EnviromentSocial /ethical

Food quality

Codex Alimentarius S, C, G Global √ – – ? √

World Organisation for Animal Health (OIE)

S, C, G Global √ √ – ? –

GLOBALGAP S, CS Europe √ √ √ – ?

Global Aquaculture Alliance and Aquaculture Certification Council

CS,L USA √ – √ √ –

Naturland CS, L Europe √ – √ √ ?

Soil Association C, G Global √ √ √ √ √

Friend of the Sea C? USA – – √ – –

International Organization for Standardization ISO 234

C, S? Japan ? ? ? ? ?

Seafood watch C, L USA – – √ – –

Alter Trade Japan C, L Japan ? ? √ √ ?

Federation Of European Aquaculture Producers Code of Conduct

? Europe √ √ √ √ √

Bio Issue C, L Global √ √ √ – –

Safe Quality Food S, L Global √ ? ? ? √

British Retail Consortium,International Food Standard, European Food Safety Inspection Service

S, L Global √ ? ? ? √

Quality Certification Services CS, L Global √ ? ? ? √

Fairtrade ? Europe – – ? √ –

International Organization for Standardization ISO 22000

? – √ ? √ ? √

International Organization for Standardization ISO 9001/14001

S Global – – √ ? √

Marine Stewardship Council C, S UK, Europe – – √ – –

Norge Seafood, Norway S, L China – – √ – –

Qualite-Agriculture de France S, L China – – √ – √

Shrimp Seal of Quality, Bangladesh S, L Global √ – √ √ √

China Organic Food S, L China √ √ √ Organic – –

China Green Food S, L China √ √ √ – –

China Safe AgriFoods C, L China √ – – – √

ChinaGAP C, CS Global √ √ – – √

Fishmeal and fish oil Code of Responsible Practice

C, CS Global √ – √ Sustainability – √

The Responsible Fishing Scheme C, CS UK – –√ Responsible

fishing√ Safety of

fishers–

Fair Fish S, L France, Europe – √ √ √ –

International Federation of Organic Agriculture

S, L UK, Europe √ √ √ √ √

International Social and Enviromental Accreditation and Labelling Alliance

S, C, L Global – – √ √ –

Scottish Salmon Producers’ Organization Code of Good Practice

C, L Global √ √ √ – √

Peche responsable Carrefour, France

C, L Global – – √ Sustainability – –

Tartan Quality Mark C, L Global √ √ √ – √

SIGES Salmon Chile CS, L Europe √ √ √ – √

Continued on the next page...

Ston’s highest potential is in oyster farming. when examined, the growth of the world production, by the produced species, molluscs (oysters are part of that species) have tremendous growth in production.

Study conducted by FAo concluded that there are three main constraint categories regarding aquaculture farming development:

1. Microeconomic constraints (or access to capital assets, recurrent inputs and markets)

2. knowledge constraints (management and technical expertise)

3. Social constraints (public policies and externalities)

After an overview of the current situation with the marine aquaculture farming in Ston area, conclusion is that the local aquaculture sector is suffering and not adequately develo-ping because of exactly these constraints. To define it more specifically:

1. Microeconomic constraints – access to capital – access to international market – cluster – lack of coordination within sector

2. knowledge constraints – management (lack of internationally

experienced management) – expertise (lack of marketing and product experts)

3. Social constraints – spatial planning constraints – regulations and subvention programs

(illegal farming)

Scheme typeMain market orientation

Market access issues addressed 

Food safetyAnimal health

EnviromentSocial /ethical

Food quality

Shrimp quality guarantee Brazilian Shrimp, Farmer Association, Brazil

CS, C, L UK, Europe √ √ √ √ √

Thai quality shrimp, GAP, Thailand S, L Europe √ – – – √

Code of Conduct certified Thai Shrimp,Thailand

S, L Europe √ √ √ √ –

Naturland S, L New Zealand √ – √ √ ?

Soil Association S, L Europe √ √ √ √ √

Agriculture Biologique S, L Europe √ √ √ Organic – –

Bioland, Germany CS, L Europe √ √ √ Organic – –

BioGro,New Zealand S, L Global √ √ √ Organic – –

Debio,Norway CS, L UK, Europe √ √ √ Organic – –

KRAV,Sweden C, L Europe √ √ √ Organic – –

Bio Suisse C, L France √ √ √ Organic – –

National Association for Suitainable Agriculture Australia, Australia

C, L Europe √ √ √ Organic – –

Irish Quality Salmon and Trout C, L Europe √ √ √ Organic – √

Label Rouge, France C, L Global √ – √ – √

La Truite, Charte Qualite C, L France, Europe √ – – – √

Norway Royal Salmon S, L China √ √ – – √

Table 17: Standards and certification schemes used in fisheries and aquaculture;

Sources: World Wide Fund for Nature. 2007. Benchmarking study. Certification programmes for aquaculture. Enviromental impacts, social issues and animal welfare. Zurich, Switzerland and Oslo, Norway. FAO. 2008. Ecolabels and marine capture fisheries: current practice and emerging issues. Globefish Research Programme. Volume 91. Rome. World Trade Organization. 1994. Agreement on technical barriers to trade. Geneva

Oysters

S = standardC = code

G = guidelinesL = label

CS = cerfication scheme

Page 25: Five elements of Ston

52 Five elements of Ston - Development Concept of Ston PArT I: DeVeLoPMeNT DIreCTIoN 53

“Mali Ston Bay is made of porous lime-stone substrate with ramified network of underground freshwater springs. It is a naturally eutrophic ecosystem abun-dant with nutrients which constitute excellent living conditions for oysters and other filtrating organisms. Accor-ding to the archaeological findings in ošlje, it is speculated that the Bay of Bistrina was well known for the oyster culture since the roman times. The first archive records indicate that oyster cul-ture in this area was well established in the 16th century and in hands of the representatives of the Dubrovnik repu-blic in Ston. The rector in Ston was an authority over the oyster cultivation and he was giving the concessions to the local oyster growers, they were obliged to give him a substantial amount of their catch in return. Tree branches without leaves were submerged in shallow wa-ter so they would sink when thrown into appropriate areas where they served as larvae receptors. In 18th century the of-ficials in Ston were abusing their power to such an extent that the oyster culture became almost extinct. As a result, in 1787, Dubrovnik republic took oyster culture under its jurisdiction and pro-tected it by law. In the beginning of 20th century, Capt. Stijepo Bjelovučić bro-ught in new technological innovations into existing cultivation method, which was than reflected in greater production and recognition of “Ston”-oyster on the european market. Since ww II, despite technological advancement, oyster pro-duction in Mali Ston Bay did not grow significantly and the market has diminished to become of “local” character. Today, there are approximately 50 legal concessionaires and just as many illegal oyster growers.” *

* Sanja Tomšić, dr. sc. josip Lovrić, Historical overview of oyster culture in Mali

Ston Bay

Selected groups an countries

Production Annual change

1985 1995 2005 1985-1995 1995-2005

(Millions tonnes) (Percentage)

Africa1 0,05 0,11 0,65 7,5 19,4

Sub-Saharan Africa 0,01 0,03 0,1 12,1 11,4

North Africa 0,04 0,08 0,55 5,9 21,9

Latin America and the Caribbean 0,08 0,44 1,4 19,3 12,3

Latin America 0,07 0,41 1,37 19,4 12,8

Caribbean 0,01 0,03 0,03 17 0,5

Near East 0,03 0,06 0,28 8 16,1

Asia and the Pacific 6,21 21,69 43,34 13,3 7,2

South Asia 0,77 2 3,95 10,1 7

East and Southeast Asia 5,42 19,59 39,24 13,7 7,2

China 3,15 15,86 32,42 17,5 7,4

Japan 0,66 0,82 0,75 2,2 -0,9

Other East and Southeast Asia 1,61 2,92 6,08 6,1 7,6

Oceania 0,02 0,09 0,15 15,9 4,7

Australia and New Zealand 0,02 0,09 0,15 15,8 4,7

Other Oceania 0 0 0 20 6,5

Europe (+ Cyprus and Israel) 1,03 1,6 2,17 4,5 3,1

EU(27) 0,97 1,18 1,28 2 0,8

Non – EU countries 0,06 0,42 0,9 21,1 7,9

North America 0,33 0,48 0,65 3,7 3,1

United States of America 0,32 0,41 0,49 2,5 1,8

Canada 0,01 0,07 0,15 22,2 9

Other countries in North America _ _ _ _ _

Other (=USSR until 1991. + others NEI)

0,29 _ _ _ _

World 8,02 24,38 48,49 11,8 7,1

Low-incomefood-deficitcountries 4,66 19,21 39,09 15,2 7,4

Table 18: Avereage yearly growth in aquaculture production by groups of countries; Source: FAO Fisheries and Aquaculture DepartmentNote: NEI= not elsewhere included / 1 Egypt,Libyan Arab Jamahirlya and Sudan are also included in Near East.

Facts on the marine aquaculture production in Ston:

~ Ston location is one of the few in the world producing the most esteemed oyster – ostrea edulis, which is of supreme quality and especially appreciated on the French market (biggest producer and importer of ostrea edulis)

~ Production quantities should be extended. ~ Available area for oyster farming (10 % of Mali Ston

bay) is 6.779 km2

~ used area is about 1,3 % (846.389 m2) ~ Based on IeS, the capacity allowed until 2010 (50 %

of possible) is 8.520 t of shells and 1.280 t of fish. ~ After 2010 possible sustainable quantity of produced

shells per year is estimated at 28.215 t. ~ 2,13 t of oysters and shells produced in Mali Ston

bay, according official sources, is exceptionally small quantity in relation to natural resources

Mali Ston oyster

oyster farming, other shellfish farming (such as mussels) can produce strong economic backbone for this area. It can es-pecially serve as a start up business for families and become a source of SMe sector growth.

Problems which must be solved in order to bring this sector to a strong, yet sustainable position are:

~ illegal farming (estimated 50 %) ~ legal farmers not registering produced quantities

(black economy) ~ dispersed, old-fashioned production practices (no

processing – sales directly from sea) ~ lack of facilities for storing, packaging, distributing

products ~ lack of innovative products (pre-opened packaged

oysters, smoked oysters, smoked mussels, etc.) ~ unorganized producers (lack of cooperation, joint

market strategy and penetration) ~ workforce problems ~ bureaucracy – dealing with administration

Production Annual change

1985 1995 2005 1985-1995 1995-2005

(Million tonnas) (Percentage)

Freshwater fishes 4,35 12,94 26,05 11,5 7,2

Diadromous fishes 0,67 1,52 2,88 8,5 6,6

Marine fishes 0,22 0,53 1,65 9 11,9

Crustaceans 0,26 1,1 4 15,6 13,8

Molluscs 2,49 8,23 13,47 12,7 5,1

Aquatic animals NEI 0,03 0,06 0,44 7,1 22,9

Table 19: Average yearly growth rates in aquaculture production by decade by groups of species; Source: FAO Fisheries and Aquaculture DepartmentNote: NEI= not elsewhere included

How to go forward:

~ strong local government approach to uphold laws and regulation

~ bringing existing oyster farmers together under one roof – clustering! (solving personal issues – by externals)

~ structuring and deciding development direction and pace (with sustainability at mind)

~ creating diverse production (farming other shellfish, growing seaweed, etc.)

~ quality certified oysters and shellfish (reaching better market prices)

~ ecologically produced oysters and shells ~ creating oyster brand – eco grown Ston oyster ~ establishing modern joint venture facility for ma-

nipulation, storage, packaging and distribution of products

~ bringing marine aquaculture to higher professional level

~ organizing marketing strategy and market penetration plan

(top) Oyster and mussel farms Mali Ston Bay; (right) Grilled oysters

Page 26: Five elements of Ston

54 Five elements of Ston - Development Concept of Ston PArT I: DeVeLoPMeNT DIreCTIoN 55

~ cooperation with tourism sector – capita-lizing oyster production from the roman times – oyster museum, oyster farms tours, oyster festival

Sea shellfish farming, such as oyster farming or mu-ssels farming can be profitable investment with a short roI period. Calculation examples for fixed and floating farms used for rearing of oysters and mu-ssels are in tables 20, 21, 22, 23. Although mussels appear to be more profitable, one can argue that future potentials for oyster rearing and sales, especi-ally if accompanied with a strong brand and market penetration strategy, are even greater.

Mussels farming In the republic of Croatia there are on average 2.500 t of mussels grown per year. Mussels are more fertile and less sensitive than oysters, therefo-re naturally reared mussels can be found along the entire Croatian coast of the Adriatic Sea. especially favourable habitats are Novigrad Sea, Šibenik Cha-nnel, Mali Ston Bay and Pula bay.

Fixed Parks – Mussels farming

Investment volume (depending from size) 42.000 kn to 124.000 kn

Calculated price: 6kn/kg

Subvention not included in income 0,80kn/kg

Production – mussels 50.000 kg 225.000 kg 423.000 kg

Needed full time employees: 1-2 3-4 5-6

Income 300.000 kn 1.350.000 kn 2.538.000 kn

Production cost   115.000 kn   285.000 kn   470.000 kn 

Material 15.000 kn 75.000 kn 150.000 kn

Own work/employees 100.000 kn 210.000 kn 320.000 kn

Concession 6.000 kn 15.000 kn 37.000 kn

Amortisation 4.212 kn 7.668 kn 15.300 kn

Maintenance – investment 1.500 kn 23.000 kn 60.000 kn

Other Cost 1.000 kn 20.000 kn 40.000 kn

Total Cost  127.712 kn   350.668 kn   622.300 kn 

PBT 172.288 kn 999.332 kn 1.915.700 kn

Profit tax (20 %) 34.458 kn 199.866 kn 383.140 kn

Profit 137.830 kn 799.466 kn 1.532.560 kn

Table 20: Fixed Parks – Mussels farmingSource data for example calculations: PUR Starigrad – razvojni projekti, EKOFARM

Floating Parks – Mussels farming

Investment volume (depending from size) 20.000 kn to 85.000 kn

Calculated price: 6kn/kg

Subvention not included in income 0,80kn/kg

Production – mussels 50.000 kg 225.000 kg 423.000 kg

Employes: 1-2 3-4 5-6

Income 300.000 kn 1.350.000 kn 2.538.000 kn

Production cost   95.000 kn   265.000 kn   450.000 kn 

Material 15.000 kn 75.000 kn 150.000 kn

Own work/employees 80.000 kn 190.000 kn 300.000 kn

Concession 6.000 kn 15.000 kn 37.000 kn

Amortisation 3.406 kn 6.933 kn 14.105 kn

Maintenance – investment 1.000 kn 23.000 kn 60.000 kn

Other Cost 1.000 kn 20.000 kn 40.000 kn

Total Cost   106.406 kn   329.933 kn   601.105 kn 

PBT 193.594 kn 1.020.067 kn 1.936.895 kn

Tax 38.719 kn 204.013 kn 387.379 kn

Profit 154.875 kn 816.054 kn 1.549.516 kn

Table 21: Floating Parks – Mussels farmingSource data for example calculations: PUR Starigrad – razvojni projekti, EKOFARM

Farming technology is rather simple and well known in the area, resulting in good and stable production at well selected positions. Mussels farming is sim-pler and cheaper than oyster farming (about 50 % cheaper).

Mussel farming is ecologically acceptable activity which does not pollute environment. Financially it is very interesting and can bring substantial returns to the private initiator as well as significant employment and economic stimulus for the entire region (cost of workers was calculated for the full time employees with an average net salary of 4.000 kn).

Calculation examples in table 20 and 21 show pro-fitability, income and cost relations of investments in fixed and floating farms for mussels.

Financial returns are clearly interesting. It is reco-mmended that municipality initiates activities to in-form, motivate and encourage inhabitants to start professional farming business, since it could beco-me a significant income generator in the region.

Mussels

Main conclusions are:

~ business scope is environment friendly and sustainable

~ experiences and natural resources clear-ly confirm that the region is adequate for mussels farming

~ farming business model is socially benefi-cial, because it increases employment and provides extended source of income for the community

~ market launch of high quality natural products

~ entrepreneurs will surely make profit and ac-hieve fast return on their investments (roI)

~ local people are not “strangers” to this activity

~ better organized market approach will ena-ble more people to participate in this activity

Oyster farming

Croatia is one of the rare areas where european oyster (ostrea edulis) survived the great diseases which wiped it out from the rest of europe. ostrea edulis is extremely nutritious food rich in proteins, carbohydrates and vitamins (A, B1, B2, C and D). It tastes best in winter.

Fixed Parks – Oyster farming

Investment volume (depending from size) 45.000 kn to 162.000 kn

Calculated price: 2kn/piece

Subvention not included in income 0,50kn/piece

Production – oyster pieces 130.000 kn 270.000 kn 610.000 kn

Needed full time employees: 1-2 3 5-6

Income 260.000 kn 540.000 kn 1.220.000 kn

Production cost   170.000 kn   295.000 kn   610.000 kn 

Material 20.000 kn 55.000 kn 130.000 kn

Own work/employees 150.000 kn 240.000 kn 480.000 kn

Concession 6.000 kn 15.000 kn 37.500 kn

Amortisation 4.464 kn 8.820 kn 16.200 kn

Maintenance – investment 2.000 kn 5.000 kn 10.000 kn

Other Cost 1.000 kn 3.000 kn 6.000 kn

Total Cost   183.464 kn   326.820 kn   679.700 kn 

PBT 76.536 kn 213.180 kn 540.300 kn

Profit tax (20 %) 15.307 kn 42.636 kn 108.060 kn

Profit 61.229 kn 170.544 kn 432.240 kn

Table 22: Fixed Parks – Oyster farmingSource data for example calculations: PUR Starigrad – razvojni projekti, EKOFARM

Floating Parks – Oyster farming

Investment volume (depending from size) 23.000 kn to 101.000 kn

Calculated price: 2kn/piece

Subvention not included in income 0,50kn/piece

Production – oyster pieces 130.000 kn 270.000 kn 610.000 kn

Employes: 1-2 3-4 5-6

Income 260.000 kn 540.000 kn 1.220.000 kn

Production cost   165.000 kn   285.000 kn   595.000 kn 

Material 15.000 kn 45.000 kn 115.000 kn

Own work/employees 150.000 kn 240.000 kn 480.000 kn

Concession 6.000 kn 15.000 kn 37.500 kn

Amortisation 3.884 kn 8.068 kn 16.733 kn

Maintenance – investment 1.000 kn 2.000 kn 6.000 kn

Other Cost 1.000 kn 2.000 kn 5.000 kn

Total Cost   176.884 kn   312.068 kn   660.233 kn 

PBT 83.116 kn 227.932 kn 559.767 kn

Tax 16.623 kn 45.586 kn 111.953 kn

Profit 66.493 kn 182.346 kn 447.814 kn

Table 23: Floating Parks – Oyster farmingSource data for example calculations: PUR Starigrad – razvojni projekti, EKOFARM

For centuries Mali Ston has been known for the oyster cultivation (ie.ostrea edulis). This shellfish is renowned in the market as a delicacy and is today one of the main sources of income for the local in-habitants. Geographical origin, originality, respect of tradition and the seal are possible means of product protection in the market, which will also enable gre-ater profit for the producers*.

The republic of Croatia and the Dubrovnik-Neretva County have invested great deal of money in the re-search facility Bistrina, located near Ston and en-gaged in oyster and shellfish research. researchers have successfully attained spawning in controlled laboratory conditions, which is the main requirement for the future access to the unlimited quantities of oyster seed. Since the lack of oyster seed is one of the major limiting factors of production, the future

* Possible Means of Protection and Indentification of Mali Ston

Old postcard, Oysters from Bistrina

Page 27: Five elements of Ston

56 Five elements of Ston - Development Concept of Ston PArT I: DeVeLoPMeNT DIreCTIoN 57

of oyster farming in this area looks much brighter. The main advantage of Ston region for further oyster farming develo-pment, besides its natural resources, is also a vicinity of Bi-strina. experts from the university of Dubrovnik have direct access to Bistrina, which enables strong scientific support of the farming process.

In the Tables 22 and 23 there are calculations showing finan-cial benefits of a starting oyster farm. when considered that in Ston area an oyster needs approximately 18 months to reach its consumption size, we can roughly estimate that the initial investment will be 450.000 kn. Full returns of this investment is expected within 10 years.

SuSTAINABLe AGrICuLTure

“Sustainable agriculture is a way of growing food which is healthy for both consumers and animals. It is a procedure which does no harm to the environment, is humane for wor-kers, respects animals, provides fair wages to the farmers, supports and enhances rural communities.”. *

To reach sustainability farmers and agriculture based busine-sses must apply following five principles:

1. know your Markets, Protect your Profits, and Add Value to your Products

2. Build Soil Structure and Fertility3. Protect water Quality on and Beyond the Farm4. Manage Pests ecologically; use Minimal Pesticides5. Maximize Biodiversity on the Farm

Sustainable agriculture, which is a goal rather than a distinct set of practices, is a system of food and fiber production that

~ improves the underlying productivity of natural resour-ces and cropping systems so that farmers can meet increasing levels of demand;

~ produces food that is safe, wholesome, and nutritious and that promotes human well-being;

~ ensures an adequate net farm income to support an acceptable standard of living for farmers while also underwriting the annual investments needed to im-prove progressively the productivity of soil, water, and other resources; and complies with community norms and meets social expectations.

Agricultural crops and products convenient for the commer-cial purposes in Ston area are listed in Table 24.

As previously shown, agricultural production is a significant source of income in Ston municipality. However that could also be improved, with bringing agriculture to a more professi-onal level and by organizing market access for the producers.

* Introduction to sustainability

Agriculture is one of the main “employers” in Ston, but this should be even further developed. In the next pages

Raw produce Products (food)

Grapes Wine, grape seed oil

Olives Olive oil, soaps,

Figs Marmalade, spreads

Garlic …

Tangerines Marmalade

Oranges Marmalade, arancini (sugared orange peel)

Lemons Marmalade, arancini (sugared lemon peel)

Almonds Sugared almonds

Herbs Healing products, grappa’s

Honey …

Vegetables Dried vegetables (sun dried tomatoes, etc.)

Table 24: Agriculture crops to commercially grow

agricultural investments are briefly assessed in order to reach the conclusion about development feasibility in the area.

Olive Tree Plantation

Along the Adriatic coastline olive orchards are recently be-ing reused or re-cultivated. reason for that is a very high nutritious value of olives which primarily ensure oil of great quality. In today’s agriculture olive orchards are evaluated as very profitable. Positive stimulus comes also from the

Initial non bearing years cost kn/ha

Soil Preparation 16.000 kn

Planning 16.500 kn

Work in the crops in I year 21.000 kn

Work in the crops in II year 8.000 kn

Work in the crops in III year 8.500 kn

Work in the crops in IV year 9.000 kn

Total Cost of work   79.000 kn 

IV year concession 4.000 kn

Interest rate 9.600 kn

Amortization for 4 years 6.400 kn

Other Costs for 4 years 4.000 kn

Total Cost 103.000 kn

Extra income (subventions) – 27.000 kn

Real Investment first four years:  76.000 kn 

Table 25: Olive orchard, per h; Source data for example calculations: PUR Starigrad – razvojni projekti, EKOFARM

state which along with good production stimulation also has enabled reasonable concession models for developing olive orchards on public land. First five years from planting is the period where the tree is not producing fruit and this must be taken into consideration prior to the investment in this field. on the other hand the average fruit bearing peri-od for olive is 50 years, where we consider the peak to be between the 7th and the 30th year.

Total investment, until the first harvest comes, is approx. 75.000 kn/ha. Further elaborated costs and incomes are estimated in the Table 26:

Conclusions derived are following: ~ Investment can be repaid in reasonable time ~ Small investment in basic mechanization ~ Lasting crops – harvesting for 50 years and more ~ with appropriate size of crops, it can be very intere-

sting investment opportunity, especially if connecting the activities with tourism offer and maximizing income

Fig Orchardworld production of figs is 1.500.000 t, and more than 80 % is produced in the Mediterranean region. In the Dalmatian area, after olive, fig is the second most spread fruit. Fig fruit has nutritious and dietetic value. It can be consumed raw, dried or processed (marmalade, jam, compote, jelly or juice). Fig is also used to produce exquisite grappa.

Initial non bearing years cost kn/ha

Pre Planting Year 27.652,00 kn

First Year 17.210,00 kn

Second Year 16.610,00 kn

Third Year 3.130,00 kn

Total  64.602,00 kn 

Yearly cost of fig orchard 35.000,00 kn

Income per year 65.000,00 kn

PBT 30.000,00 kn

Taxes 6.000,00 kn

Profit  24.000,00 kn 

Table 27: Fig orchard * Calculation based on 200 trees per hectare on own land; Source data for example calculations: PUR Starigrad – razvojni projekti, EKOFARM

Income Product quantity

Price Amount

Olive oil – vergine (per litre) 1200 60 kn 72.000 kn

Subventions (per tree) 200 35 kn 7.000 kn

Total income  79.000 kn 

Costs

Fertilizers 1.500 kn

Manure 1.500 kn

Plants protection fluids 400 kn

Work (soil, cutting, harvesting) 20.000 kn

Plastic bags 250 kn

Olives processing (in kg, and kn/kg)

7.000 0,90 6.300 kn

Other costs 1.500 kn

Total cost  31.450 kn 

Linear amortization (2 % yearly, crops lasting 50 years.)

1.600 kn

Interest rate (HBOR loans) 3 % 3.090 kn

Total cost   36.140 kn 

Brutto profit  42.860 kn 

Table 26: Olive orchard, per h; Source data for example calculations: PUR Starigrad – razvojni projekti, EKOFARM

Fig bears fruit in the third year. Full bearing capacity of fig orchards appears in the fifth or seventh year. Fig is long li-ving fruit, expected to bear fruits for at least 50 years. A brief calculation showing investment requirements and potential returns is given below. workforce costs are not included in the total costs sum.

Olives

Figs

Page 28: Five elements of Ston

58 Five elements of Ston - Development Concept of Ston PArT I: DeVeLoPMeNT DIreCTIoN 59

TourISMTourism development in coastal areas manifests in positive and negative impacts on the environment. These impacts are result of activities implemented by the tourism participants (both on supply and demand side). Tourism development, wi-thout doubt, changes coastal environment, however, solution is not to avoid this change, but to realize the positive effects of it. As Frank Loyd wright said:

“A good building is not the one that hurts the landscape, but the one which makes the landscape more beautiful than it was before the building was built”

we can similarly state that good tourism development is not the one that hurts and destroys coastal area, but the tourism which makes that coastal area better and more beautiful than it was before.

This approach can be translated to “sustainable tourism”, or even better to “high value-low volume” tourism.

Sustainable tourism is a tourism developed in such manner that it avoids any damage of the environment, economy and cultural heritage of the location where it takes place. The aim of sustainable tourism is to ensure that development is a po-sitive experience for local people, tourist companies and to-urists themselves. *

* Sustainable Tourism, Tim Forsyth

According to the world Tourism organization, sustainable tourism is a tourism that leads to the management of all resources in such a way that economic, social and aesthe-tic needs can be fulfilled while maintaining cultural integrity, essential ecological processes, biological diversity and life support systems.

“We have not inherited the Earth from our parents; we have borrowed it from our children.” **

Sustainable Tourism Development is properly planned, de-veloped and managed tourism, which minimizes impacts on the environment (it even brings benefits to the environment) and reconciles protection of natural resources with economic growth of the region.

This concept was first time introduced at the uN Stockholm conference in 1972. Twenty years later, in 1992 in rio, during the earth Summit all of the uN member countries agreed on “Agenda 21” – global sustainable development plan for the 21st century. In the 21st century sustainability awareness has grown. All sectors started applying sustainability principles. Concern for the environment and our impact on it is growing day after day. New, renewable energy sources are used more and more. All of this has an effect on the tourism, and has influenced the creation of some new tourist products and brands that have been developed by ecologically responsi-ble, environment friendly and socially aware tourist.

** world Conservation Strategy, 1980

Ston – view from the walls

AIMS For SuSTAINABLe TourISM (uNwTo/uNeP) ***

ECONOMIC VIABILITY To ensure the viability and competitiveness of tourist desti-nations and enterprises, so that they are able to continue to prosper and deliver benefits in a long-term.

LOCAL PROSPERITY To maximize contribution of tourism to the prosperity of the host destination, including the proportion of the visitors’ spending that is locally retained.

EMPLOYMENT QUALITY To rise the quantity and quality of local jobs created and sup-ported by tourism, considering the height of salaries, service conditions and availability to all without discrimination by gen-der, race, disability or other.

SOCIAL EQUITY To seek a widespread distribution of economic and social benefits from tourism throughout the recipient community, in-cluding improvement of opportunities, incomes and services available to the poor.

VISITOR FULFILMENTTo provide safe, satisfying and fulfilling experience for the vi-sitors, available to all without discrimination by gender, race, disability or other.

*** Making Tourism More Sustainable,

A guide for policy makers uNwTo/uNeP, 2005

LOCAL CONTROL To engage and empower local communities in planning and decision making connected to the management and future tourist perspectives of their area, consulting also other stake-holders on this topic.

COMMUNITY WELLBEINGTo maintain and strengthen the quality of life in local commu-nities, including social structures and access to resources, amenities and life support systems, avoiding any form of so-cial degradation or exploitation.

CULTURAL RICHNESS To resrespect and enhance the historic heritage, authentic culture, tradition and distinctiveness of host communities.

PHYSICAL INTEGRITY To maintain and enhance the quality of landscapes, both ur-ban and rural, and avoid any physical or visual degradation of the environment.

BIOLOGICAL DIVERSITY To support conservation of natural areas, habitats and wildli-fe, as well as to minimize any possible damage of those.

RESOURCE EFFICIENCY To minimize the use of scarce and non-renewable resour-ces in the development and operation of tourist facilities and services.

ENVIRONMENTAL PURITY To minimize the pollution of air, water and land, as well as the amount of waste generated by touristic enterprises and visitors.

Monterey Bay Shores, Ecoresort, Wellness Spa and Residences – development which restores destroyed dunes habitat, using earth, water, air, light and energy as the main consideration in design elements.

Page 29: Five elements of Ston

60 Five elements of Ston - Development Concept of Ston PArT I: DeVeLoPMeNT DIreCTIoN 61

Sustainable tourism should:

1. Make optimal use of environmental resources that constitute a key element in tourism development, ma-intaining essential ecological processes and helping to conserve natural heritage and biodiversity.

2. respect socio-cultural authenticity of the host com-munities, by preserving their material and non-mate-rial cultural heritage and traditional values, and con-tribute to inter-cultural understanding and tolerance.

3. ensure viable, long-term economic operations, provi-ding socio-economic benefits to all stakeholders that are fairly distributed, including stable employment and income-earning opportunities and social services to the host communities, and contributing to poverty alleviation.

Along the lines of sustainable tourism there is another specific concept developed in certain “destinations” of the world. This concept is called “high value-low volume” tourism. There are examples throughout the world of small destinations (king-dom of Bhutan, tropical island Lakshadweep, Anguilla etc.) practicing this kind of tourism. Very similar is also the “ecoto-urism” which is based on the same way of thinking.

During the development process it is important to keep in mind the following aspects:

(top & right) Post Ranch Inn, Big Sur California, third among top ten greenest accommodations in the world

(left) Hoopoe Yurt Hotel, located in olive groves in Andalucía, Spain. Afghani Yurt, used as authentic accommodation unit; (right) inside view

~ Impacts on the physical environment (ensuring that these impacts are positive)

~ Impacts on ecological environment (ensuring neutral or positive impacts)

~ Impacts on human use values (ensuring that develo-pment does not obstruct usage to local and tourist population)

~ Impacts on life quality (ensuring that life quality improves)

Tourism development in Ston must be sustainable. It must satisfy and fulfil all of the criteria mentioned above, and bear positive effects in terms of all development aspects. To ac-hieve an appropriate speed and rhythm of the development we must ensure that the level, pace and shape of that proce-ss reflect and respect the character, resources and needs of Ston as community and as destination. In order to reach this the following practices must be upheld:

~ Involving all the stakeholders – sustainable approach requires widespread and committed participation in decision making and practical implementation by all those implicated in the outcome (county government, municipal government, inhabitants, local business, in-vestors etc.)

~ Using the best available knowledge – policies and ac-tions should be based on the best latest knowledge available including market trends and impacts, skills and experiences.

~ Minimizing and managing risk – when there is uncerta-inty about the possible outcome, a full evaluation and preventive action should be taken to avoid any dama-ge to the environment or society.

~ Reflecting impacts in costs – prices should reflect the real costs to the society of consumption and produc-tion activities.

~ Setting and respecting limits – carrying capacity of individual sites and wider areas must be recognized, with willingness and ability to limit the amount of touri-stic development and the rate of tourist flows.

~ Undertaking continuous monitoring – sustainability is all about understanding impacts and being constantly alert to them, so that necessary changes and impro-vements can be regulary done.

Key challenges for the sustainability of the tourism:

~ reducing seasonality ~ Impact of the tourism transport ~ Improving quality of tourism jobs ~ Maintaining and enhancing community prosperity

and quality of life ~ Minimizing resource use and production of waste ~ Conserving and giving value to natural and cultural

heritage

Ston – tourism vision statement“Tourism is a sustainable activity, incorporating different str-engths and unique resources of the region. Ston is interna-tionally recognized name representing unique quality desti-nation famous for its oysters and shells, wine, salt, culture, history, events, preserved nature and landscapes, authentic atmosphere, diverse activities, exquisite gastronomy and excellent service.

Ston will extend home feeling hospitality and welcome all the guests.”

(top) Castel Monastero, Italy(right) Tsw Alu Kalahari, South Africa’s largest privately owned luxury game reserve. Sustainable principles applied, all accommodation in traditional style

Page 30: Five elements of Ston

62 Five elements of Ston - Development Concept of Ston PArT I: DeVeLoPMeNT DIreCTIoN 63

Ston – tourism goals and development directions

~ Sustainable development ~ ecological awareness and orientation ~ 12 months season ~ Strong, recognizable brand ~ Smaller, scattered, specialized developments aiming

at specific client groups (market niches) ~ Attracting international investments in pre-develo-

pment concepts according to the local vision and development directions

~ Horizontal and vertical cooperation and integration ~ Strong joint promotion of Ston ~ SToN – “The Destination” ~ unique and authentic products and offers

Tourism development comprises activities and projects which:

~ Improve the quality of life; ~ Conserve and enhance environmental heritage; ~ recover hidden treasures and cultural spaces; ~ Spur tourism demand.

Ston tourism development is focused on developing following segments within the tourism sector:

~ Accommodation ~ Travel and Services ~ Catering

Tourism – AccommodationSton has a goal to develop 3 basic types of accommodation:

~ Private accommodation (rooms, apartments within household)

~ Hotels and other “professional” acommodation ~ rural tourism accommodation (tourist accommodati-

on within agricultural or marine aquacultural farms)

Necessary methods to bring these three accommodation se-gments on the level desired by municipality (in terms of quali-ty, quantity and availability):

~ To organize assistance for existing private accommo-dation in order to upgrade and improve quality

~ To enable (by public planning documents) further de-velopment of high-quality private accommodation (in a sustainable manner)

~ To define (through the experts’ study) Tourism Carrying Capacity for the municipality in general and for the certain locations, or to make TCC requirement for further development of new tourism areas

~ Support and encourage “energy efficiency” program-mes in the municipality, especially in accommodation facilities (cooperation with FZoeu)

~ waste management and recycling programme (on in-dividual and municipal level)

~ Support private “hotel development” initiatives ~ Initiate one “light house” project which will lead the

way and attract interest in the region (such as resort developed around five elements of Ston)

~ organize support and help to the local agriculture/marine aquaculture sector in order to develop acco-mmodation capacities within the farms and to extend their business activity on tourism

Tourism – Travel and Service

Travel and service segment can be divided in two main aspects.

~ Services provided to tourists while spending their time in Ston and bringing them to Ston (receptive)

~ Services provided to the local population (emissive)

economic activities within this segment are today mostly de-veloping regarding to the first point and an income is produ-ced by providing services for tourists who spend their time in Ston, or by bringing guests to Ston. In future however, espe-cially with the growth of population caused by development, second point will also gain economic importance.

The tourist board “Ston” is the main “player” in this segment today and an important link between tourists and accommo-dation providers. with the development of tourism the busi-ness of travel agencies will also develop in Ston municipality. other services being provided exclusively to tourists (diving, tours, biking, etc.) are in the early stage of development, and the diversification of the high-quality tourist offer will definitely be of great importance for the further development of Ston.

Measures to encourage development:

~ educational activities (organizing lectures, presenta-tion, business start-up seminars in cooperation with tourist board, tourism institute, ministry, etc.)

~ Assistance in quality, security and legality improve-ments of the offered itineraries

~ Building the network of local entrepreneurs, so that they can jointly reach out to the outside travel intermediaries

~ Promoting local business as a part of destination promotion (Ston website, brand promotion, destinati-on promotion)

(top left) Forte Village Resort, Sardinia, Italy (top right) Arenas Del Mar Beach and Nature Resort, luxury sustainable beach hotel in Costa Rica(left) Chalalan Ecolodge in Madidi Park, Bolivia. Lodge is owned and operated by local San Jose de Chupiamonds community. Overnight rates for full board start at USD 255 per person per night.

Page 31: Five elements of Ston

64 Five elements of Ston - Development Concept of Ston PArT I: DeVeLoPMeNT DIreCTIoN 65

Tourism – catering

Ston is already nationally recognized as a gastronomy centre. It is appreciated for its oysters and seafood, Pelješac wine and grappas, as well as for the special local sweets. This se-gment is, one could say, the most developed. To improve the existing situation following measures are suggested:

~ Gastronomy branding ~ Further development of the existing restaurants in

order to bring them to a higher international level ~ Support to the alternative style of restaurants ~ Protection and promotion of authentic food ~ Motivate and help restaurant owners to increase di-

versity in their offer, to change menus seasonally and include specials which will change regularly

~ encourage, promote and support the usage of locally produced ingredients in the “kitchen”

reTAIL, ProDuCTIoN, SerVICe AND eNerGyThe second mechanism for delivering more sustainable eco-nomy involves influencing businesses to embrace sustaina-bility in their operations. Some priorities and actions aimed at business will emerge from destination management plans, but policies and actions can be established and applied to businesses at a range of other levels and through a variety of processes. Business associations play particularly important role by influencing the actions of their members.

Sustainability agenda, however, seeks to influence busine-sses further, encouraging them to take a long term view and to deliver wider economic, social and environmental benefits, ensuring viability and competitiveness at the same time.

The key challenges of delivering quality jobs, minimizing the exploitation of resources, supporting communities, promo-ting sustainable transport and improving accessibility are all partly depending on reaction from the business sector.

RetailThis sector in the municipal area is limited to small grocery shops, souvenir shops, bakeries, newspaper stands and

Sea sports

Old fishing sailboat

“Eco-labelling” is a voluntary met-hod of environment-friendly certifi-cation and labelling that is practiced all around the world. An “eco-label” is a label which identifies an overall environment-friendly preference of a product or service within a specific category based on life cycle con-siderations. In contrast to “green” symbols or claim statements deve-loped by manufacturers or service providers, an eco-label is awarded by an impartial third-party, which is completely independent in determining those products or services that meet the crite-ria of environment-friendly excellence.

similar. when the location (accessibility), catchment area, and regional development potential (Pelješac, islands and nearby mainland municipalities) are taken into a consideration it is highly likely that further development of retail sector should be encouraged.

one of the models, which could be the most profitable for the potential investors and for the municipality, is the development of the shopping centre formed around the hypermarket with additional attractive tenants (such as department store clot-hing brands, branded shoe shops, household supply shops etc.) and general entertainment facilities (sports centre, cine-ma, wellness-spa centre, kids oriented facilities, etc).

Development of such centre would impact positively:

~ Local population ~ Neighbourhood population ~ Tourism offer ~ Average daily “tourist spending”

retail is an important segment which supports tourism deve-lopment, since the tourists of today also “need” diverse sho-pping opportunities in addition to the “usual tourist activities”. Apart from the local authentic product range, tourists would also like to have recognizable international brands offered to them in attractive and relaxed Mediterranean atmosphere.

Production

encouraging production and attracting production companies to the area is a goal of many municipalities along the coastli-ne. ecological and sustainable orientation of the municipality of Ston does not mean that production industry is not welcome. It means that Ston welcomes “clean production” as well as all companies willing to apply and uphold sustainability principles in all three areas: environmental, financial and social.

Service

The development of other business sectors, population growth and increase in tourist numbers, will create market for variety of services, to business and private sector. Local pe-ople should be prepared and aware of the new opportunities and ready to realize them.

Today’s market is rather limited in the service segment and there will be enough space for diverse business concepts to be developed. just to mention some of them: bookkeeping, tax advising, real-estate agency, beauty & wellness, sports, health services, maintenance, cleaning, property manage-ment, etc.

EnergyRenewable energy is the energy generated from natural re-sources – such as sunlight, wind, rain, tides, and geothermal heat – which are renewable (naturally replenished). There are several forms of re, such as:

Wind power is the conversion of wind energy into a useful form of energy, such as electricity.

Hydropower is energy of water. There are many different ways of transforming different kinds of water energy into elec-tric energy.

Inside pool – example

Odysseum Shoping Center, Montpellier, France

Page 32: Five elements of Ston

66 Five elements of Ston - Development Concept of Ston PArT I: DeVeLoPMeNT DIreCTIoN 67

 Selected global indicators 2006. 2007. 2008.

Investment in new renewable capacity (annual)

63 104 120 billion USD

Existing renewables power capacity, including large-scale hydro

1,02 1,07 1,140 GWe

Existing renewables power capacity, excluding large hydro

207 240 280 GWe

Wind power capacity (existing) 74 94 121 GWe

Biomass heating -250 GWth

Solar hot water/ Space heating 145 GWth

Geothermal heating -50 GWth

Ethanol production (annual) 39 50 67 billion liters

Countries with policy targetsfor renewable energy use

66 73

Table 28: Growth of renewables: Selected renewable energy indicators

Year Biomass Water energyGeotermal 

EnergyWind Energy Sun Energy Total

Water Energy excl.

1998 3,80 5,87 – – – 9,67 3,80

1999 4,00 6,80 – – – 10,80 4,00

2000 4,59 6,22 – – – 10,81 4,59

2001 3,53 6,83 – – – 10,36 3,53

2002 3,43 5,42 – – – 8,85 3,43

2003 4,46 4,97 – – – 9,43 4,46

2004 4,30 6,88 – – – 11,18 4,30

2005 3,96 6,22 0,03 0,01 – 10,22 4,00

2006 4,08 5,88 0,02 0,02 – 10,00 4,12

2007 3,46 4,06 0,04 0,03 0,01 7,60 3,54

Table 29: Participation of renewable energy resources in total consumed energy 1998 – 2007

Solar energy is energy collected from the sunlight. It can be utilized and applied in numerous ways.

Bio-fuel, bio gas and bio mass are biomaterials used in in-ternal combustion engines to produce energy. This field is actively developed and researched.

Geothermal power is energy obtained by tapping into the heat of the earth itself.

usage and production of renewable energy is growing rapidly in the world. under more and more environment concern of the great world nations (es-pecially with Co2) the field will grow even more. Growth of renewable ener-gies is shown in the Table 28.

Croatia has been following the lead of eu in this field and has undertaken cer-tain obligations in terms of renewable energy. National Strategies imply that re sector in Croatia will reach following targets:

Share of RES in total energy ~ until 2010.

– 5.8 % of the overall electricity consumption from reS (large hydro power plants excluded)

– 5.75 % of biofuel in the overall consumption of motor fuels

~ until 2020. – 20 % of the overall energy consumption from reS – 10 % of biofuel in the overall consumption of

motor fuels – 35 % of the overall electricity consumption from

reS (large hydro power plants included)

In order to reach these goals significant re investments are needed. The share of re in totally consumed ee is shown in the Table 29:

Proximity Hotel - has large sun collector field on roof, produces subtstantial amount of consumed energy on its own.

Windmill

Example sun collectors on roof – hotel

It is clear that the average share of re today is far below 5,85 %,without energy produced by hidro power plants, as figu-res show to be planned for 2010, or 20 % as planned for 2020.

Why Renewable energy in Ston:

~ Public opinion and support – raising concern about climate change, pollution,

sustainability, etc. – overall increase of living standard

~ european experiences and trends – Croatian accession to the eu – examples from Austria, Slovenia, and other

countries ~ Growing level of knowledge, expertise and participa-

tion – people and institutions – From enthusiasm to professionalism

Existing EE and RES legal framework:

~ energy Sector Development Strategy of the republic of Croatia (2002, 2009)

~ National energy Programs (launched in 1997) ~ energy Act and other acts concerning energy activiti-

es (2001-2008) ~ National energy efficiency Program 2008-2016 ~ 1st National energy efficiency Action Plan 2008-2010 ~ Act on efficient end-use of energy (2008) ~ reS and CHP electricity secondary legislation (2007) ~ Bio-fuels Act (2009) ~ Bio-fuels secondary legislation – biodiesel norm,

quality standards, indicative targets for 2010, plans of placing bio-fuels on domestic market (2003-2009)

EE and RES legal framework in preparation:

~ reS heat secondary legislation ~ efficient end-use of energy secondary legislation

Expected Installed Capacity

~ 1,545 Mw new installed power from rS by 2020 (large hydro power plant not included)

~ The goals for individual sectors: – 1,200 Mw in wind farms (2000 Mw by 2030) – 140 Mw in biomass power plants (420 Mw by

2030) – 40 Mw in MSw power plants (60 Mw by 2030) – 20 Mw in geothermal power plants (30 Mw by

2030) – 45 Mw in solar power plants (250 Mw by 2030) – 100 Mw in small-scale hydro power plants

(140 Mw by 2030)*

Financial Sources for RES Projects in Croatia

~ State, regional and local self-government budgets ~ environmental Protection and energy efficiency Fund ~ Feed-in tariff system for reS and CHP electricity

(2007) ~ Incentives – state aid for the reS equipment

producers; ~ Grants and international aid programs (GeF/IBrD,

uN – uNDP, uNIDo, FAo) ~ Croatian Bank for reconstruction and Development

– Loan Program, Bank guarantees program ~ Commercial banks ~ eu programs – FP7, Iee, IPA, etc. ~ other – energy services (eSCo), TPF (third party

financing), PPP (pubic private partnership), etc.

As sustainability is development orientation of municipality of Ston, renewable energy is a logical step. In terms of re, Ston should not only encourage development of larger scale re projects, but also implement the re technologies in private households, public spaces, private business sector, and es-pecially in projects which encourage tourism development.

* MINGorP

Plant type/RES < 1MW >1MW

(Kn/kWh)

Solar PV < 10 kW 3,4 -

Solar PV 10 - 30 kW 3 -

Solar PV > 30 kW 2,1 -

Small Hydro (up to 10MW) 0,42 - 0,69

Wind - 0,65

Biomass from:

Agriculture and Forestry 1,2 1,04

Wood-processing industry 0,95 0,83

Geotermal 1,26 1,26

El. Energy - Biogass

Argicultural and other organic waste

1,2 1,04

Liquid Biofuel 0,95 0,83

Gas from waste and waste water residue

0,36 0,36

Other (sea waves, tidal energy, etc.)

0,6 0,5

Table 30: RES Tarifs in Croatia in 2009

Page 33: Five elements of Ston

68 Five elements of Ston - Development Concept of Ston PArT I: DeVeLoPMeNT DIreCTIoN 69

Making Business More Sustainable

Sustainability is not a term reserved only for the tourism sec-tor. The goal for Ston is that sustainability becomes a lea-ding principle in all business sectors and activities in the mu-nicipality. In order to promote and manage sustainability in the private sector, public sector must reach into the private management and implement sustainability. Following these steps could lead to the successful integration of sustainable practices in the existing and new businesses:

~ Knowledge gathering and research – more informati-on is needed on business perceptions of the sustaina-bility agenda and the barriers they face in adapting to it. At the same time, further research of market trends and perceptions, and of the financial gains that can be made from environmental management, would be helpful in both stimulating and guiding businesses.

~ Rising awareness – excellent communication is nee-ded to encourage businesses to respond. key oppor-tunity is to work through existing associations at all le-vels (national, regional and local) seeking commitment and stimulating peer pressure between businesses in the membership. For example, promoting practical success stories is an excellent approach.

~ Education and capacity building – much can be achi-eved through delivery of targeted advice and training. This could include:

– production and distribution checklists and guides, possibly linked to the self-assessment processes,

– implementation of sustainability issues in all edu-cational curricula, providing specific courses which are short, focused and easily accessible to the exi-sting businesses and employees,

– providing direct professional advice for businesses on sustainability and facilitating business-to-busi-ness contact,

– creating a sustainability-focused knowledge network and website,

– facilitating benchmarking between businesses and promoting good practice,

– communicating and promoting simple initiatives or innovative ideas.

~ Financial incentives and assistance – economic in-struments can be used as incentive ones, whereby all financial support offered should include, where appro-priate, a requirement to meet sustainability criteria.

~ Performance criteria, identification and reward – eu research on CSr has shown that businesses tend to seek recognition for the steps that they have taken to embrace sustainability. Certification of enterprises in accordance with agreed performance criteria can be a valuable tool that is motivating for businesses and informative for consumers.

Business promotionDevelopment of the SMe sector represents an important economic agenda since the viable and dynamic SMe sector is essential for the promotion of domestic-led growth and str-engthening of the economy resilience.

SMes play a major role in the economy field in terms of eco-nomic diversification, the creation of sustainable rural em-ployment, and strong market development.

Public entities that are promoting business and encouraging new SMe initiatives, particularly in production, service and sales sector, have the following objectives and goals:

~ To promote investment opportunities for local and foreign investors.

~ To compile, document and spread information about available investment opportunities and advise the investors on legal, financial and other requirements for investing in the municipality

~ To provide, on request, information on potential joint venture partners for local and foreign investors

~ To provide local producers with advisory and support services in order to enable the export of their goods and services

~ To assist in the establishment and ensure smooth operations of investment projects.

~ To facilitate business development and export of products

~ To promote light-industry and opportunities for the commercial development

~ To connect production, retail and service sectors with agriculture, aquaculture and tourism

~ To carry out activities designed to support and enco-urage investments by local entrepreneurs, including training, and provision for business advisory services

~ To assist local start-ups ~ To provide information and services connected to

finances or applying for grants for SMes

Castel Monastero, Tuscany, Italy

(left & top) Example of diferent outside spaces

Page 34: Five elements of Ston

PArT II

He who loves practice without theory is like the sailor who boards ship without a rudder and compass and never knows where he may castLeonardo da Vinci

Page 35: Five elements of Ston

72 Five elements of Ston - Development Concept of Ston

oVerVIew – CurreNT SITuATIoN MuNICIPALITy oF SToNSton is located in the central Dalmatia, on the coast of Adria-tic Sea. It is connected to the e-road network by the national highway A 1 built to the exit “ravča” south of Split (opened on December 22nd 2008). Further extension, direction south, to Ploče is planned to be completed in 2010 (see Map 1).

Croatian A1 highway is part of several e-road lines, thus connecting Ston region to the eu countries. european highway e 73, when completed, will be 710 km long way to Budapest via Metković, Zenica, and osijek. Highway e 65 is 3800 km long highway line from Malmo, Sweden to Chania, Greece. e71 is 970 km long and it connects košice to Split, via Budapest and Zagreb. Ston is a destination with good car access for national guests, but also for guests from central and south-eastern europe, thanks to good highway and road network.

Municipality of Ston covers eastern part of the peninsula Pe-lješac. It is a part of Dubrovnik-Neretva County (see Maps 2 and 3).

Municipality of Ston is:

~ located 65 km north of Dubrovnik ~ 85 km north of Dubrovnik airport, (1.5 hours by car) ~ connected by coastal road D 8 to Split and Dubrovnik ~ connected by ferry line to the island of Mljet, which

lays 10 km south-western of Ston. The national park on Mljet is an important tourist attraction.

~ on the south-eastern end of the peninsula facing the ar-chipelago of elafiti islands with the main island of Šipan.

~ near to the city of korčula, located on the island of the same name. The island is just opposite of the northern part of the peninsula. korčula is a well-known tourist destination due to its medieval heritage.

Croatian coast, along the corridor D8, direction north-east is interrupted by approx. 10 km wide strip of Bosnia and Her-zegovina territory. Traffic on the road D8 is controlled at two boarder passes.

The Municipality of Ston consists of the following settlements:

(right) Ston wall - section

~ Ston / Mali Ston ~ Brijesta ~ Žuljana ~ Drače ~ Hodilje ~ Metohija ~ Zaton Doli ~ Dubrava

~ Sparagovići ~ Tomislavovac ~ Putnikovići ~ Broce ~ Boljenovići ~ Duba Stonska ~ Zabrđe ~ Ponikve

Page 36: Five elements of Ston

National street

Highway

Highway in planning / Construction stage

Europe street designation

Highway designation

E65

A1

Location in coastal area of Croatia  1

E65

A1

Middle Europe

Croatia

Split

E73

E65

MontenegroAlbaniaGreece

BratislavaBudapestBelgradeSarajevo

Bosnia and Herzegovina

Ston

Dubrovnik

Page 37: Five elements of Ston

Ston municipal area

Regional map  2

Croatia

Ston

Croatia

Bosnia and Herzegovina

Page 38: Five elements of Ston

78 Five elements of Ston - Development Concept of Ston PArT II: oVerVIew – CurreNT SITuATIoN MuNICIPALITy oF SToN 79

evaluation of existing Spatial Planning Documents

peninsula of Pelješac as an extension to new bridge being built between mainland and Pelješac. even though the bridge con-struction has already started, at the time this document was drafted, the final corridor for the street was still unknown, and the realization period was not clearly defined. Since the road represents the most important planning scheme to determine the future development of Pelješac, it carries great importance, especially for the development of the Municipality of Ston.

The planning activities are similar to an urban planning ca-dastre that can be utilized as a basis for further plans; the functional statements of significance for the Municipality of Ston are selectively summarized in an overview.

The activity plan has the character of a spatial cadastre that can serve as a basis for further planning. Therefore, primarily technical statements, together with the significance elements for the area of Ston, are put together as an overview.

Spatial plan of Dubrovnik-Neretva County (Prostorni plan Dubrovačko-neretvanske županije)

The contents of the plan with various texts and maps can be accessed via internet at: http://www.edubrovnik.org/mapa_pp_uvjeta_uredenja_i_zastitex.php.

In 2009, the process of changes and additions to the county spatial plan has been initiated. At the time of computing of these figures, the final version of the plan has not yet been approved. For the purpose of the study some of the graphic and textual parts suggesting certain changes and additions to the county spatial plan have been used.

Spatial plan of Dubovnik-Neretva County is regional plan. It implements Strategy and Program of Spatial Arrangement of Croatia, national laws and development strategies, regional development strategy into the spatial situation in the county, whilst aiming to fulfil development desires of individual munici-palities. It particularly defines restriction areas, heritage protec-tion areas, landscape and nature protection areas, which is all of extreme importance. However, the compliance of realization processes is not clearly defined.

Graphic displays in this document are not final and do not bear liability, as they depend on other documents. See fo-llowing example:

To avoid passing through national territory of Bosnia and Her-zegovina, new stretch of national road D8 is planned across the Žuljana sea

Settlement Structure

The Municipality of Ston (see Map 3) consists of the main town Ston, connected with Mali Ston, and several settlement areas (villages or homesteads) with very low population den-sity. Municipal area stretches 30 km in length and 6 km in width. It is crossed by the national road D 414, as well as by the network of county and municipal roads. View to Vučina Bay

Page 39: Five elements of Ston

National street

Local street

Planned highway

Town

Village / Settlement

Urban structure / Road network  3

Orebić

Korčula

D414

D414

Bosnia and Herzegovina

Dubrovnik

Mali Ston

Ston

MakarskaSplit

Ferr

y M

ljet

A1

D8

D414

D414

Page 40: Five elements of Ston

MountainsRocks

MountainsRocks

Forest

Valuable landscape area

Agriculture priority areas

Erosion threatened areas

Windpark allocated areas

Nature and landscape  4

Bosnia and Herzegovina

Page 41: Five elements of Ston

84 Five elements of Ston - Development Concept of Ston PArT II: oVerVIew – CurreNT SITuATIoN MuNICIPALITy oF SToN 85

Nature and Landscape

The forest is of high-significance for the stabilization of the soil in the carst landscape, especially to protect from soil erosion, water retaining and climate disbalance.

Approx. 1,900 ha of the forest areas of the Municipality of Ston are under increased protection, as defined by the coun-ty PPu. even though the borders of these areas are graphi-cally not clearly displayed, it is undisputable that these areas must be preserved and protected.

NATurAL LANDSCAPe AND CoASTAL wATerS

Blue sea water cuts into the peninsula on the northern (Mali Ston Channel – Malo More) and eastern side (Ston Channel) creating a fjord-like landscape. Sea water quality is of particular importance especially for oyster, shell and fish farming. one of

(see Map 4)

LoCAL IMPreSSIoNS oF SuBSPACe’S VALueS:

ForeSTS There are only few original (old) forests (see Map 4). Current forests occupy a significant area of the peninsula, especially hillsides and steep lee sides of rocky ridges.

The forests are mainly of Aleppo Pine (Pinus Halepensis) and Maritime Pine (Pinus Pinaster), intertwined with Macchia shrubs. The amount of Macchia is noticeable. It can be seen as a degradation form of the original forests, with shrubs re-aching height of two to four meters. Higher trees are seldom.

South Pelješac seaside Aerial view

the reasons why an extremely high level of water protection is required is a very low rate of water exchange in the bays.

The coastal and the seaside areas are very valuable parts of the landscape, worth of high protection. That is why there might be some disagreements on exploiting and protecting these areas.

BeACHeS, CoAST

Sea water and beach areas in the South Dalmatia as well as in Ston area are of high quality. Although it has very high attraction potential, it is only possible to access it at relatively few locations at the moment (lack of roads and paths).

Large parts of untouched landscape in the eastern area of the Municipality and wide northern coastal strip are defined as valuable landscape.

There are also protected underwater areas that are very attractive for diving (e. g. coastal area outside of Žuljana)

HIGH QuALITy AGrICuLTure SoILHighly quality agricultural soil is mainly located in lower valleys and is cultivated with field crops, vegetables, wine, olive trees and other crops.

In the area of Ston agricultural soil takes up approx. 1,300 ha. These areas are used by local people for their own food pro-duction or direct sale activities at the local fresh markets.

Vineyards and olive groves reach partially onto the hillsides, where the soil mixed with stone provides unique growing conditions for distinctive grape sorts.

eroSIoN AND FLooD DANGer AreASThe only marked flood endangered area is the watercourse starting at the source above Česvinica and going downwards into the Ston Channel. Lowland areas have an increased risk of erosion.

GreeN eLeMeNTS wITHIN urBAN AreASGreen areas within urban structures are mostly used as “ve-getable gardens” (for growing fruits and vegetables). There are very few arranged green areas, and even those are mostly planted with high plants and trees, and very seldom with co-lourful flowers. Trees within urban areas are usually old and very high, influencing greatly impression of streets and public spaces.

Sea views

Vineyards

Prapratno Bay

Cemetery

Page 42: Five elements of Ston

86 Five elements of Ston - Development Concept of Ston PArT II: oVerVIew – CurreNT SITuATIoN MuNICIPALITy oF SToN 87

SPeCIAL CoNDITIoNS oF uSe: NATurAL AreAS

Fully working saline is covering area of nearly 50 ha. It inclu-des warehouses, administration buildings and ponds. It sho-uld be protected and preserved for several reasons:

~ High quality salt, with extra bright white crystals, is harvested every year in substantial quantities.

~ Special value lies in the fact that only few traditional Salinas exist and are still working, some even dating from the roman times.

~ Saline is strongly tied to the local community. It is also influenced by factors such as water quality and sun heat, since it is located in natural wetland.

Saline is important habitat for many valuable halophytic species.

LANDSCAPe, MorPHoLoGy

Pelješac landscape is characterized by diverse elevation, with dominant ridges in the northern and southern parts of penin-sula. while driving small local roads that connect the towns, you can see many natural areas which transmit the scenic values of the region divided into many small sections. Middle part of the peninsula is a flat fertile valley, covered with vi-neyards, olive groves and field crops.

Settlement structures, small villages and farmsteads are subor-dinated in scale to high landscape around. road network and connective pathways play significant role in experiencing that.

Marčuleti Bay

Saline and Ston from Air Salt harvest

Traffic

“Traffic” in Ston region means individual traffic (cars) and public transportation (buses). railroad does not exist on the penin-sula of Pelješac. Maritime traffic in Ston municipality is regular ferry connection to the island Mljet (Prapatno – Sobra), and additional unorganized traffic through public ports (Brijesta, Broce, Hodilje, Luka, Praparatno, Ston, Mali Ston, Žuljana).

The road network (see Map 3) follows the peninsula’s rid-ges from the north-west to the south-east and is developed according current traffic load.

roads are divided in 3 hierocratic categories:

~ state road “D 414” connecting peninsula to the ma-inland road “D 8”, and “D 416” connecting Prapratno to “D 414”

~ county roads, Ž-6231 (Luka-Hodilje-Ston), Ž-6226 (Žuljana-Dubrava)

~ local and access roads, (L-69030, L-69038, L-69056, L-69039, L-69066)

Stationary traffic is locally organized in form of public parking areas, parking regulations, and mandatory provision for par-king within private plots.

Access road to ferry port Prapratno New bridge construction site

Page 43: Five elements of Ston

88 Five elements of Ston - Development Concept of Ston

Infrastructure

DISPoSAL FACILITIeSThe Municipality of Ston is responsible for the collection of communal and household waste. waste is collected by the municipal vehicles and currently has a decentred disposal. waste recycling and re-use of potential recyclables is not organized.

In the agreement with the state of Bosnia and Herzegovina, waste water from the mainland (untreated or partially treated) is fed into local pipes and disposed together with the local waste water. Thus, pumping station and feeding pipes in the area of Prapratno and the western municipal area lead the untreated waste water into the sea.

(see Map 5)

PuBLIC uTILITIeS Municipal area is centrally supplied with electric energy pro-vided by the regional electric energy company. High voltage electrical open lines (110 kV) come from the mainland via two routes and connect into a junction (transformer) located nor-th-west of Ston. electricity is than transformed into medium voltage (35 / 20 kV) and via underground cables or overhead lines delivered to the end-user.

Gas network is not developed. Household liquid gas is distri-buted in liquid gas containers via road network.

water supply system is centralized and managed by the re-gional water company. The potable water gained and treated supra-regionally is fed into a set of (underground) water tanks. From there on it reaches the smaller local nets and distribution systems via pumping stations. Currently the water supply with a supply rate of approx. 6 l/s and a demand of approx. 15 l/s is affected by the fact that various portable water reservoirs are unserviceable due to their insufficient constructional condition.

Fire fighting water system is not developed. In case of the large-scale fires the water for this purpose is than extracted from the sea.

Telecommunication and postal network is fully constructed and ensures appropriate service for the inhabitants.

(top) Sewer nozzle into the sea(right) Ston fort

Page 44: Five elements of Ston

Water main

Sewer main

Electricity main

Transformer station

Planned waste landfill

Infrastructure  5

35 kV

100 kV

100 kV

Bosnia and Herzegovina

35 kV

35 k

V

35 kV110 kV

110 kV

110 kV

110

kV

Page 45: Five elements of Ston

92 Five elements of Ston - Development Concept of Ston PArT II: eVALuATIoN INITIAL SITuATIoN 93

eVALuATIoN INITIAL SITuATIoN

~ Almost all villages in Ston municipality have sea access, which is a great opportunity for developing water sports. The basic offer for some of those already exists in certain locations

~ A new dimension of accessing and experiencing Ston via new stretch of the national road D 8

Analysis of Potentials and Challenges

PoTeNTIALS

(see Map 6)

~ Attractive contrasts between the Great Valley and 2 distinctive rocky mountain ranges

~ Scenic vicinity of the island Mljet, separated from the peninsula by a narrow sea belt

~ walking paths that lead into the landscape and to remote beaches with views of ridges and sea

~ rest in the seclusion of idyllic landscape, enhanced by preserved old settlements and sea views

~ Very long coastline, due to the geographical location on the peninsula with many channels and bays, and two very different watersides (southern and northern)

~ wine ~ oysters ~ Medieval town Ston ~ unique city fortifications Ston/Mali Ston ~ Fortress ~ Saline ~ Napoleon Street as a historical heritage ~ The division of the municipality into small urban secti-

ons, which represents high potential for creating local, unique offer and organized sale of authentic products

~ orientation to sustainable and green tourism, as a strategy, better promotion and support of private sector initiatives View west from Žuljana village

CHALLeNGeS(see Map 7)

~ Two mountain ranges separate larger part of munici-pality from the sea

~ Long coastline, but sea access very difficult and scarce ~ Lack of perception of Ston ~ Transit character of the municipality on the way to

orebić and korčula, which influences perception of Ston as a destination

~ In Ston there is a lack of tourist facilities attracting guest to stay. existing facilities are not visible enough or are inadequately presented to the travellers.

~ Insufficient use of potentials such as on site experience of local products, vineyards, authentic accommodati-on, scenic points, prolongation of the tourist season

~ Not preserved forest area, with limited functions, not providing shade and not conserving water and soil

~ waste disposal is problematic, lack of waste mana-gement system

~ Complete lack of biological waste water treatment

CoNCLuSIoN

~ Insufficient tourism promotion and awareness ~ Ston is lagging behind, realizing only the minimum of

its potentials ~ Missing brand ~ Landscape potential is partially degraded by human

impact, and it can be used only partially ~ There is a danger that development opportunities

which should accompany the planned big road could not be utilized for Ston; i.e. there is a risk that the peninsula of Pelješac could be reduced to a mere coulisse for the road

Ston centre

Saline

Ston wall

Page 46: Five elements of Ston

Coast line

Planned national street

“Napoleon Road”

Potentials  6 Distanceview Mljet

Vineyards

Oysters

West Gate

Saline

OystersHistorical

City

Bosnia and Herzegovina

East Gate

Page 47: Five elements of Ston

Mountain ranges

Only sea access areas

Without sea access

Restrictions  7

Bosnia and Herzegovina

Page 48: Five elements of Ston

98 Five elements of Ston - Development Concept of Ston PArT II: ForMuLATING THe DeVeLoPMeNT GoALS 99

ForMuLATING THe DeVeLoPMeNT GoALS

Based on the analysis of potentials and challenges of Ston, it can be stated that tourism development should play the central role in the overall development of Ston. All other goals depend on or are initiated by this. General development stra-tegy, as well as single development goals, can be created as a result of this analysis.

Wall of Ston Hodilje port

Model for Ston

~ economic future of the municipality through tourism development, based on historical, cultural, scenic, agricultural and marine resources.

~ utilization of the potentials of the new road: – The future road will be a defining project regarding

the development of Ston. – Direct development of municipal area from the

east to the west

– Management of the coastal traffic through the municipal area

– Presentation of the qualities of Ston as a location ~ Proper urban development of all sectors, assuring

that conflicts between different use requirements are avoided

Aerial view

Page 49: Five elements of Ston

100 Five elements of Ston - Development Concept of Ston PArT II: ForMuLATING THe DeVeLoPMeNT GoALS 101

General Development objectives

Strengthening the Tourism Development

~ At least one big hotel (resort), concentrated on one tourist area

~ Several small hotels, larger area for soft tourism development

~ Prolongation of the tourist season ~ wellness ~ Culture, concerts ~ walking ~ Hiking ~ excursions to Dubrovnik (by bus/ship) ~ Marinas ~ Promotion & support of private initiatives

Transmitting local values

~ Landscape, vineyards, olive groves ~ Adriatic Sea coast ~ oysters and other seafood ~ water sports ~ Architectural and cultural heritage

Mali Ston Žuljana Vučina bay

Focus on Target Groups

~ Individual guests (car, camping, caravans) ~ Charter guests (4 stars) ~ Day guests ~ Active holiday guests (especially water sport)

Development of Tourist Marketing

~ Local ~ National ~ International ~ Destination marketing – local (such as signs) ~ Printed Materials ~ Digital promotion

Protection of Nature and Landscape

~ Concentration of spatial interventions on limited area ~ Analysis of impact and interaction of different

measures ~ Careful use of Ston valley (Ston, roman name is

Stagnum = wet land)

View to the mainland

Ston Church

Page 50: Five elements of Ston

102 Five elements of Ston - Development Concept of Ston PArT II: ForMuLATING THe DeVeLoPMeNT GoALS 103

objectives for Settlements

~ Priority to locally initiated developments within settle-ments, increasing building density within structures and allowing the extensions of building zones.

~ Maintenance of current landscape influenced by urban structures without extensive building.

~ Dominant, new structures should be restricted to few areas clearly separated from the existing settlements.

~ Limiting large projects locations, and placing them distantly from the traditional settlements.

Ston with Saline from the wall

objectives for Nature and Landscape

~ Preserving existing nature and tourism highlights and developing new ones

~ Conveying the landscape’s values ~ recreation in nature, experiencing the landscape ~ Safeguarding and developing the countryside as well

as architecture and cultural heritage ~ enriching the landscape by developing larger forest

areas ~ Interventions in nature must be compensated by

balancing measures

~ using “compensation measures” to create wide forest and green belts around tourist and other deve-lopment locations, for visual integration and shielding

~ wind energy facilities must be implemented carefully to avoid deterioration of visual identity of the island morphology

~ Limiting the number of floors in the buildings, so that new structures can fit into the landscape

~ Development of comprehensive approach to green buildings

Aerial view

Page 51: Five elements of Ston

104 Five elements of Ston - Development Concept of Ston PArT II: ForMuLATING THe DeVeLoPMeNT GoALS 105

Transportation objectives

Development goal for Ston is to adapt/renew the existing road network, to actualize planned highway connections and to be able to make a profit from the future traffic flows.

~ Concentration of transit traffic on the highway, so that target traffic (Ston guests) can be carefully directed by the network of local roads to different areas of Pelješac.

~ reduction of interventions in landscape and envi-ronmental impacts to the bare minimum necessary for the realization of the highway

~ Development of the rural landscape through network of walking and cycling routs

~ Setting up local bus traffic, according to the seasonal requirements (also to include bicycle transport).

~ Controlled and planned parking area development

Dubrava Bay

Infrastructure objectives

The infrastructural development of the municipal area occurs as a technical prerequisite for development of all sectors.

Infrastructure facilities must develop significantly. Develo-pment of infrastructure must be controlled and carried out in such way that it doesn’t allow overdevelopment, degradation of landscape, or “creative” development of single plots.

Therefore smaller, decentralized infrastructure facilities, which can be tailor-made to fulfil specific characteristics and usage requirements (tourism facilities, business areas, commercial facilities, etc.), are recommended.

The innovative concepts for resource protection should also be applied and integrated in the marketing strategy (“green tourism”).

It is essential to conduct an intensive research in order to de-fine an appropriate location for biological waste-water trea-tment plant. Together with builder’s yards, recycling sites and storage areas, they should be located in remote areas with low visibility but with appropriate access to the general traffic directions.

The summit areas and the plateaus north from Dubrava and Sparagovići are defined in the PPu as priority areas for the utilization of wind energy. In order not to impair the visual qu-ality of the island morphology, careful insertion of equipment is required.

Ston centre

Page 52: Five elements of Ston

106 Five elements of Ston - Development Concept of Ston PArT II: MuNICIPAL DeVeLoPMeNT CoNCePT 107

MuNICIPAL DeVeLoPMeNT CoNCePT

All individual projects and activities will be integrated into a (tourism focused) general concept. The brand of Ston, which will contain its concise characteristics, will be developed.

Brand will be supplemented with a concise logo, in which one can recognize significant Ston features.

Suggestion: The pentagon (= symbol of the city walls) as the basic form for the logo design done by a graphic designer.

The frame for the municipal deve-lopment plan will be based on the existing landscape and small urban structures embedded into the lan-dscape. eastern (= Ston) and we-stern (= Brijesta) development are-as are both connected to the “Big Valley”. These three development areas have the following characteristics and potentials, as shown in the Table 31.

Ston and Saline Ston, aerial view

Brijesta  The Big Valley  Ston 

(development area west) (middle) (development area east)

Sea swimming Wine Medieval

Water sports Olives Culture

Oyster farming Landscape Ramparts

Fish farming Viewpoints Fortress

Islands Napoleon Street Church

Franciscan

Riva

Marina

Small Hotels Largeer Hotels

Gastronomy Gastronomy Gastronomy

Coastal walks Hiking trails Ston and coastal walks

Table 31: Characteristics and potentials of 3 development areas

Ston and saline, aerial view

Page 53: Five elements of Ston

Development areas

Development spots

Planned access streets

~Wine ~

Olives

Development concept  8

~ Hotel ~ Catering ~ Riva ~ Boat tours ~ Marine

aquaculture

Development area West

The West gate 

Brijesta

~ Image of the town ~ Town wall ~ Saline ~ Riva ~ Marina ~ Events ~ Resorts

Bosnia and Herzegovina

~Landscape

~Walking and hiking

Development area East

The East gate 

Ston

Page 54: Five elements of Ston

110 Five elements of Ston - Development Concept of Ston PArT II: MuNICIPAL DeVeLoPMeNT CoNCePT 111

Development Areas east and west

The local points of development will be development area east and west. Ston is the “east Gate”, and Brijesta is the “west Gate”(see Map 8). Between the two development po-les, “Ston” and “Brijesta”, a positive tension (force of attrac-tion) will develop. Ston will develop as tourist centre and will keep central tasks. Brijesta region will develop as quality to-urism destination. Along the way, between these endpoints, there is the “Big Valley”, which will develop independent sce-nic and tourism qualities, attractive for the guests who are either staying or just passing through.

Thus, all areas of the Municipality of Ston will be able to pre-sent themselves, to be part of the tourism concept, and reach their market.

Brijesta Fort Ston

urban Development

reSIDeNTIAL DeVeLoPMeNT It is safe to assume that urban structures will go through self-generated development, and that significant growth is not to be expected. As a consequence of future tourism deve-lopment of Ston and Brijesta areas, there will be higher de-mand for workforce. Municipality must provide appropriate residential locations for new inhabitants. The residential de-velopment initiated in Ston, lying east of the city centre and further south-east along the Ston Channel is estimated to be positive and that it should continue. Maximal extension of the residential zone direction south-east should be determined in the PPu and in DPus.

If there will be an increased demand for residential locations, it will be necessary to extend the existing allocated residential areas, undergoing the procedure of changes and additions to the PPu, and subsequently develop uPus and DPus.

CoMMerCIAL DeVeLoPMeNT

Commercial development in a sense of establishing new bu-sinesses is not expected until the overall development of the area is initiated. Strengthening of the existing industrial struc-tures can take place at the existing locations.

For the future development, areas should be determined and allocated according to the directions defined in the general con-cept of development. Therefore, it is recommended to concen-trate the trade businesses in one area which is well-connected and has an adequate location. Location should be defined in the

eastern part of municipality due to the proximity of D 8, D 414 and a new stretch that goes through Ston. This location would also be easy to connect to the future highway A 1 rijeka – Split – Dubrovnik. The benefit of concentrating businesses on only one site is the protection of nature and landscape.

DeVeLoPMeNT oF LoCAL reTAIL (BASIC SuPPLy)

Small, local shopping facilities, located within existing urban structures, are preferred. Larger site for developing a bit big-ger shopping facility should also be defined in Ston.

DeVeLoPMeNT oF PuBLIC SerVICeS & FACILITIeSrequired public services and facilities should be concentrated in Ston. Good public transportation with good connections to some smaller settlements in the municipality is of great necessity.

Ston centre

Page 55: Five elements of Ston

112 Five elements of Ston - Development Concept of Ston PArT II: MuNICIPAL DeVeLoPMeNT CoNCePT 113

Nature and Landscape Development

~ Nature and landscape preservation must be taken into consideration when defining spatial and structu-ral regulations. Promoting nature and landscape to be used for relaxation and perceived as the amenities of tourism development.

~ Location advantages for development projects ~ resource protection as location factor (coast, water,

biotopes, natural resources, primary production) ~ Development of forest areas in connection with nature

recreation areas, creation of rest points with shade, improvement of the ground water balance

~ Proposals for development of small paths and tracks based on terrain characteristics

~ Protection and development of viewpoints on routes, signs and maps, path expansion (walking, cycling and hiking paths) with tourism significance

~ Integration of existing greenery, newly-planned infra-structure facilities should be permanently hidden from view by planting wide green stripes and trees.

Dubrava Bay

Traffic Development

The concept of traffic development is mostly predetermined by the existing road network planned as well as by the pla-nned highway connection to the mainland. regional and tran-sit traffic should mainly concentrate on this stretch.

regarding the specific route definition and design of the road and installations, it is recommended that the municipality of Ston formulates and vigorously represents its interests to the road building authorities at an early stage.

Number of access roads to the highway must be defined. That has to be based on research and indications shown by “traffic data”. Furthermore, the research should function as a base for defining models on how to initiate driving into the area.

Local public transportation (bus lines) should adapt to the size of settlements (geographical destinations) and, in additi-on, offer express connections to Dubrovnik.

Apart from the road network, a hiking path network for wal-kers and cyclists (mountain bikers) should also be created and stepwise extended.

Integrated area management system indicates need for or-ganized parking concepts with auxiliary facilities (such as re-strooms, information and recreation facilities) and rest areas along the highway.

Ston wall

Page 56: Five elements of Ston

114 Five elements of Ston - Development Concept of Ston

Infrastructure Development

According to the development goals, infrastructure facili-ties should be designed as decentralized and individually optimized. energy saving methods should be used to bring advantages.

Sustainable energy resources, which can be used, are wind energy (wind wheels, wind parks in adequate areas) and sun energy (thermal solar installations, photovoltaic installations), and if applicable waste to energy methods. Additional energy costs, when compared to non-sustainable resources, must be separately evaluated, primarily as a long term benefit for the municipality and as a strategic marketing element.

It is recommended to consider alternative energies in an early stage of planning, so that any additional investments could be reduced to minimum:

~ waste disposal, waste separation, composting and recycling of organic fractions, thermal treatment of

high calorie ingredients (synthetics among others) and usage of produced energy (applies only to cen-tral systems). The PPu has already defined location for such facility lying west of the Prapatno Bay.

~ Complete biological waste water treatment, size-adapted treatment plants, usage of grey water for irrigation, sludge disposal to agricultural areas. Any disposal to the sea should be avoided.

~ Collection and storage of rain water in order to use as service water.

~ Collection and storage of rain water in order to use as service water.

~ Central power supply concept, if possible via under-ground lines, with an option of inserting own produ-ced energy into the grid.

~ explore possibilities of central or decentralized su-pply of natural/liquid gas.

(bottom) Aerial view; (right) Ston centre and walls

Page 57: Five elements of Ston

116 Five elements of Ston - Development Concept of Ston PArT II: IDeNTIFICATIoN oF DeVeLoPMeNT SeGMeNTS 117

IDeNTIFICATIoN oF DeVeLoPMeNT SeGMeNTS

In this chapter we have identified a general planning fra-mework; specific projects and their implementation (see Map 9). They are all part of the Lisbon strategy, which strengthens local perception and conveyance of the “Brand Ston”. In this context, activity fields for development measures without di-rect relation to spatial planning will also be mentioned:

~ Identify values ~ Develop and maintain their values ~ Transmit values = Pr-Concept

– Local information (signs and info boards) – Flyers and brochures – Internet presence – Cooperation with agencies – Cooperation with Dubrovnik = a trip to Ston be-

comes “obligatory” in order to understand the em-bedding of Dubrovnik into the scenic and econo-mic surrounding for which Ston is of extraordinary significance.

Experts exploring municipality

~ Development of tourist services in smaller facilities, respecting sustainable capacity, promotion and sup-port of private initiatives

~ Control and support of already existing and other local initiatives

~ Improvement of sea access and water sports offer ~ Boat trips to the islands and oyster farm viewpoints ~ Creating oyster facilities on the coast (mussel and

fish processing, tasting stations) ~ Connection to the national road ~ Good infrastructure:

– road wide enough and with good connections – Infrastructure (water, eLT, telecommunication) in

the street connected to the nearest hub – waste water treatment directly at the site of accu-

mulation, local usage of grey water (sludge remo-val and utilization according to local conditions)

– waste separation and partial treatment (crushing, compacting, possibly composting) on site, remo-val for treatment and deposit via road

~ estimated size of the development – Site preparation, site of approx. 50,000 m² – 30,000 m² for road construction and road

extension – water supply from the nearest main line, pipes,

adequate water supply provided, L = 3,000 m, diameter 150 mm, one pumping station

– electrical supply from the nearest main line (main stretch form west to east, new construction in connection with the highway construction), l = 8,000 m, 1 transformer

– 2 waste water treatment installations 100 m³/d each

reSorT(S) SToN ............................... 1.1. To 1.4

~ Alternative location for one large resort, 800 to 1,000 beds (in the east Development Area)

~ Location along the coast ~ Not shaded by the hills (west, south-west orientation) ~ Good infrastructure:

– road wide enough and with good connections – Infrastructure (water, eLT, telecommunication) in

the street connected to the nearest hub – waste water treatment directly at the site, local

usage of grey water (sludge removal and utilizati-on according to the local conditions)

– waste separation and partial treatment (crushing, compacting, possibly composting) on site, remo-val for treatment and deposit via road

~ Integration of walking and hiking paths ~ Shuttle connection to Ston: bus and boat ~ wellness offer ~ Prolongation of the season by special offers

(such as wellness, sports, seminars, congresses, competitions)

~ Integration of the season by special offers (such as wellness, sports, seminars, congresses, competitions

~ respecting the principle of “development – use – structured limitation of use”

BrIjeSTA .......................................................... 2

~ urban development of the village by creating proper waterfront and other functional segments

Seaside – potential beach

Page 58: Five elements of Ston

Planned national street

Walking / hiking paths

Boat tours

Napoleon Road

View points

Projects and measures  9

 13  Oyster

 17  D8 route

 18  View points

 11  Boat tours

16  View points

3  Dubrava

4  Žuljana

Brijesta    2

Bosnia and Herzegovina

 13  Oyster

 21  Commercial /        business area

 19  Exit A1 Ston

5Ston

10

  17D8 route

 1.1  Resort location

 1.2  Resort location

 1.3  Resort       location

 18  View points

 11  Boat tours

Walking /  15hiking paths

Wine - Olives    14

15  Walking /       hiking paths

Holiday homes 20 Boat tours  11

 Resort location   1.4

Page 59: Five elements of Ston

120 Five elements of Ston - Development Concept of Ston PArT II: IDeNTIFICATIoN oF DeVeLoPMeNT SeGMeNTS 121

PrAPrATNo ....................................................20 ~ An area for holiday resort above the bay ~ Small hotel ~ Planning suitable connection to the coastline and the

sea, whereas generally the use of sea and access to it represent a big challenge.

~ Good infrastructure: – road wide enough and with good connections – Infrastructure (water, eLT, telecommunication) in

the streets and connected to the nearest hub – waste water treatment directly at the site of accu-

mulation, local usage of grey water (sludge removal and utilization according to the local conditions)

– waste separation and partial treatment (crushing, compacting, possibly composting) on site, remo-val for treatment and deposit via road

~ estimated size of the development – Site preparation, site of approx. 80,000 m² – 10,000 m² for road construction and road

extension – water supply from the main pipe (Ston) providing

sufficient water supply, L = 4,000 m, diameter 150 mm, one pumping station

– electrical supply from the closest main line (Ston), l = 4,000 m, 1 transformer (line already planned up to the pier)

– 2 installations for the waste water treatment, 80 m³/d each

DuBrAVA /LukA .............................................. 3 ~ Soft, small scale tourism development ~ Development of small areas, small family hotels,

small restaurants ~ Development of beach area with limited amount

of camping places connected to the existing olive groves. The target is to offer high quality without ha-ving too much impact on the dimensions of existing settlement structures.

~ Development of high quality tourist attractions ~ Good infrastructure:

– road wide enough, with good connections – Infrastructure (water, eLT, telecommunication) in

the street connected to the nearest hub – waste water treatment directly at the site of accu-

mulation, local use of grey water (sludge removal and utilization according to local conditions)

– waste separation and partial treatment (crushing, compacting, possibly composting) on site, remo-val for treatment and deposit via road

~ estimated size of the development – Site preparation approx. 20,000 m² – 10,000 m² of road construction and road extension – water supply from the closest main pipe, provi-

ding sufficient water supply, L = 2,000 m, diame-ter 100 mm, one pumping station

– electrical supply from the closest main line, l = 2,000 m, 1 transformer

– 2 installations for the waste water treatment 50 m³/d each

Ferry Port Prapratno

ŽuLjANA .......................................................... 4 ~ Careful development of tourist offer, preserving all

existing small scale structures ~ Development concept with smaller facilities – no lar-

ge scale extension to the hinterland; walking distance to the seaside

~ Fundamental rearrangement of the settlement with an emphasis on marginal and traffic areas

~ offer development for diving ~ Complete rearrangement of street system with focus

on “still traffic” ~ Good infrastructure:

– Direct access from the county street to the city centre using wide branching-off road

– Infrastructure (water, eLT, telecommunication) in the street connected to the nearest hub

– waste water treatment directly at the site of accu-mulation, local usage of grey water (sludge remo-val and utilization according to local conditions)

– waste separation and partial treatment (crushing, compacting, possibly composting) on site, remo-val for treatment and deposit via road

~ estimated size of the development – Site preparation approx. 50,000 m² – 25,000 m² of road construction and road extension – water supply from the closest main pipe, provi-

ding sufficient water supply, L = 3,000 m, diame-ter 150 mm, one pumping station

– electrical supply from the closest main line, l = 2,500 m, 1 transformer

– 2 installations for the waste water treatment waste water treatment 80 m³/d each

~ Improving the development ~ Solution for stil traffic (parking)

SToN AND MALI SToN ..................................... 5

~ An offer to experience the city architecture and history ~ To establish info centre with info boards and info

materials ~ To display historical buildings ~ “riva”, the main promenade, is supposed to integrate

the square, the fortification, the Marina, the saline, the church (subsequent use) and the town hall into a complete concept (see Map 10)

MArINA SToN .................................................. 6

~ expansion and development of the existing area ~ Connection to the city of Ston ~ Development of the Marina along the new riva

CITy wALLS ..................................................... 7

~ entrance fee for the purpose of fund maintenance ~ Install cashier office with info boards and info materials ~ Create a booklet about the fortifications that will give

an insight into their historical background, function and development

~ Chairlift to the highest point of the fortifications

View to Mljet

Page 60: Five elements of Ston

Ston central area  10

M. 1 : 2.500

0 50 100 m

Town wall

Monastery Church

Townscape Fortress

Saline Tourist info

MarinaSeaside 

promenade

Fortress

Tourist info

Saline

Grocery shop

Marketplace

Sport harbor 

Residential 

development

Page 61: Five elements of Ston

124 Five elements of Ston - Development Concept of Ston PArT II: IDeNTIFICATIoN oF DeVeLoPMeNT SeGMeNTS 125

ForTreSS ........................................................ 8 ~ Develop the concept for use and different purposes

of the fortress ~ organizing cultural events ~ Develop a restaurant with view of the saline and sea ~ Integration of riva and Marina

TourISM INFo CeNTre .................................. 9

~ In the centre of Ston, on the road, with immediate visibility, e. g. in the fortress

SALINe ............................................................10

~ establish the info centre Saline, with tourist orienta-ted events, guided tours and demonstrations of the traditional crafts

~ Create the booklet about the history and functioning of the saline

~ Put signs for the Salinas

BoAT TrIPS .....................................................11

~ To the south coast and Ston Channel ~ Transfer from the hotels to Ston ~ oyster Farms ~ Speed boat through the elafites and to Dubrovnik

ACCeSS To THe ADrIATIC SeA .....................12 ~ reduce and eliminate the insufficient number of

accesses to beaches/waterfront ~ Improve water access at steep and rocky shores

providing high quality, diversity and children friendly environment

oySTerS .........................................................13

~ Creation of a visitor information centre “oysters” ~ elaboration and distribution of info document “oyster

farming” ~ Design of signage and info system “oysters” ~ organization of boats and sightseeing tours based

on “oysters” and other activities such as swimming, snorkelling or diving; presentations, explanations, tastings, test events

~ Connecting industrial progress, processing and mar-keting with tourism-oriented presentation installations

wINe AND oLIVeS ...........................................14

~ Create “wine and olives” info centre ~ open wine inns and improve offer and promotion of

rural food ~ elaborate the prospect “wine and olives” ~ Signpost the locations with wine and olives offer

Ston, outside the wall

HIkING PATHS .................................................15 ~ Creating hiking paths towards the mountain ran-

ges (“goat paths”) and peaks to experience the landscape

~ Create connective system of bus lines ~ elaborate a booklet “Hiking paths” ~ Signpost the hiking paths ~ Integrate the Napoleon road through Pelješac

VIewPoINTS To MLjeT ..................................16

~ Set up viewpoints to Mljet and the ridge in the moun-tain range of Zagorje

– Gastronomy ~ Target within the network of hiking paths

– Chairlift

New STreTCH oF THe D 8 / D 414 ................17

~ within the framework of the participation procedure, but also prior to that on a political level, it is important to introduce the interests of the Municipality of Ston: Influential traffic route through the Municipal area

~ Good Influential traffic route through the Municipal area ~ Good connections to the Municipality roads at least

in the areas of Brijesta and Ston ~ Determine the height of the bridge across the Ston

Channel to make it possible for the sailing yachts up to min. 20 m height to pass through

VIewPoINTS NATIoNAL roAD .......................18 ~ Set up viewpoints/rest areas along the new section

of national road D 8: ~ with view to Ston ~ with view to Brijesta ~ Construct signs for the viewpoints

CoNSTruCTIoN oF THe HIGHwAy A 1 .........19

~ within the framework of the participation procedure: strong influence to create exit “Ston”, its location and clear signposting

CoMMerCIAL AreA .......................................21

~ Good connection to the current and future D 8 road ~ Location in the development area east ~ Avoid constructional dominance by means of distan-

ce to settlement areas and intensive integration of greenery

View to the wall of Ston

Page 62: Five elements of Ston

PArT III

You see things and you say, ‘Why?’ But I dream things that never were and I say ‘Why not?’George Bernard Shaw

Page 63: Five elements of Ston

128 Five elements of Ston - Development Concept of Ston

“Part I” deals with the key elements of Ston and precisely introduces the current situation in the municipality, defines strengths, weaknesses, opportunities and threats, as well as developmental direction of the region, with strong emphasis on the sustainable development as the main objective.

“Part II” was prepared by urbanism experts, town developers and engineers. Basically they have applied developmental di-rections to the spatial situation in the municipality, compared

INTroDuCTIoN

it with existing planning documentation and defined general areas for specific developments to happen. In order to defi-ne feasible development locations, the main difficulty was to bring together different aspects which had to be considered, such as: physical attributes, requirements for developmental direction (especially sustainability), spatial planning and terri-torial allocations, land ownership (public land as development priority), access, infrastructure, etc.

“Part I” and “Part II” are general, theoreti-cal parts of this study. “Part III”, however will deal more with realization of “develo-pment”. In the beginning the “vision” has to be defined and than split into development projects, which, when realized, will turn the vision into reality. elaborated realization pro-gramme defines the general approach that the public authority should adopt in order to realize the development. (How to start?; How to manage the projects?; How to fi-nance them?; In which timeline?; How fast?; How to involve private sector? etc.)

Graph 5: Study concept(right) Centre of Ston

PA

RT

IIIP

AR

T II

PA

RT

I

Development Potentials of a region

Development Frame and Goals(Municipal Development Plan)

Realization Program

Destination Marketing and Brand

Investment Projects

Organization and Financing

Destination Development and Management

Development Vision

Strengths

Weaknesses

Opportunities

Threats

Page 64: Five elements of Ston

130 Five elements of Ston - Development Concept of Ston Development Concept of Ston 131

DeVeLoPMeNT VISIoN SToN:

The development vision of Ston is created out of:

~ strengths and potentials of the region, ~ defined development goals, ~ local opinions ~ feasible orientation

when formulating the development programme, it is essen-tial to integrate the real market needs (developments which have high realization chances) and combine them with local development goals and desires. These two aspects, “private interest” and “public interest”, can sometimes be completely contradictorily. In order to achieve sustainability objectives it is also necessary to include “environmental interest” into the equation, which is likely to make it even more difficult to reach consensus. That consensus precisely is the foundation of the sustainable development. For the development to be reali-zed, at the same time satisfying public interests, protecting natural resources and bringing returns to the private sector, the municipality must have professional management unit of development experts.

while formulating the vision of development, it is essential to focus on traits which make the region different, more speci-al and unique. The target market (especially market niches) must be clearly defined, while organizing particular develo-pment segments or individual development projects. This is especially important for tourist, service and retail business, but also for the production and sales of local products.

Based on:

~ development potentials and goals defined in Part I & II, ~ unique traits and resources ~ implementing above described approaches, ~ discussion sessions with local authorities, entrepre-

neurs and people,

(top) Figs; (right) Ston walls

“Ston, with its historical and cultural places, stunning Mediterranean scenery, preserved nature and unique lo-cal products and hospitality, will be a destination which inspires to visit, to return to and to live in.”

Page 65: Five elements of Ston

132 Five elements of Ston - Development Concept of Ston

place, offering great variety of local products. Simple style bars, cafes and restaurants will be the place where local pe-ople will intertwine with their guests enjoying together the small town life. Renewed buildings inside the towns, home to boutique hotels and quality private accommodation, will offer authentic comfort to those enchanted by the romantic old town atmosphere.

New development projects, both commercial and residential, will bring the deciding impulse for the local economy, ena-bling local people to pursue diverse new opportunities for work and life in the region, as well as attract back some old and new Ston people.

A new state-street passing through the municipality will bring Ston closer to West and make it just a “stone throw” away from Dubrovnik. Viewpoints along the street will offer those driving through spectacular views of cultural and natural be-auty of Ston, inviting them to stay and explore “5 elements of Ston”.

Development of modern infrastructure, state of the art, waste and water management systems, energy produced from re-newable sources, involvement of local government and eco-nomy, dedication to preservation of environment, care for and involvement of local population, public support to the private sector, social responsibility of the private sector, all that toge-ther will make Ston the destination which lives and breathes sustainability”.

“Europe’s longest city fortification wall, Roman Salinas and the town of Ston, founded by the Republic of Dubrovnik and built on same 1272 defined statutes like Dubrovnik, make the Ston municipality a significant place of culture, which in fu-ture, once again, will be recognized, thanks to the historical importance it bears. Valuable cultural and historical sites will emphasize international reputation of Ston as historical and cultural destination.

Furthermore, Ston will become a destination famous for its valuable and diverse nature, spectacular landscapes and pic-turesque views, wild hills and cliffs emerging from vineyards and olive groves, deep blue sea, hidden secluded bays with spectacular beaches. Nature paths together with the old Na-poleon road are welcoming those in love with experiencing nature, culture and history by foot, bike or horse.

Authentic organic sea and agriculture products, produced at local farms according to ecological principles, with its special taste, which Ston visitors will never forget.

Events, programs and products celebrating “5 elements of Ston” will build international reputation of Ston as an authentic destination, dedicated to the guests with high quality expec-tations and individual approach.

Restructured and renewed villages burst with lively Dalma-tian atmosphere, which motivates guests to explore narrow streets, framed with merchants, leading to central market

(top) View to the Ston walls; (right) View from the other fort

Page 66: Five elements of Ston

134 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 135

As vision is set, one knows where one wants to be. How to get there is the key ingredient of next pages. Clear vision me-ans clear direction, which allows us to pave the way of the development. The start is to define the development measu-res required to realize the vision of Ston. The following step is to define each measures and to structure the development projects within each of them. out of that the action and im-plementation plan is structured, which step by step leads to desired goals.

FroM VISIoN To reALIZATIoN:

(top & right) Mali Ston sights

Ston municipality vision is a backbone in esta-blishing the program which will enable Ston to reach its goals. one can divide required develo-pment process in three main measures. The de-velopment of these measures is a deciding factor in reaching the targets.

Development measures:

A1. Development of tourism as the “engi-ne” of further developmenta. Destination development (brand, mar-

keting, sales, projects, services, etc.)b. Destination management

A2. Initiation of Investment projects:a. “upgrade of existing tourism, service – and infrastruc-

ture facilities” – public – privateb. Supplement urban structures with new facilitiesc. Infrastructure development according to develo-

pment needsd. Partial reorganization of the urban structure of

Ston and other villagese. Development of new zones with new facilities

(commercial, tourist, residential)A3. Development of Private Business Sector (produc-

tion, trade and services) a. Development of new products (agriculture based,

arts, handcraft souvenirs, etc.)b. Development of the supply sector, especially to

meet the needs of upgraded, extended and newly

created tourist facilitiesc. Development of services aimed at the local popu-

lation, local entrepreneurs, and especially at the new demand, as a result of tourism development

Activities denoting measures A1 and A2 are directly connec-ted in certain instances, while the measure A3 can be perce-ived more independently. Production, trade and service acti-vities must be carried out actively and initiated by the private business entities; however it is significantly stimulated and supported by the activities from measures A1 and A2. Increa-sing demand, as a result of tourism development and realized investments, has to be synchronized with simultaneous busi-ness development program in order to accelerate successful municipal development.

The Development Measures

A1

Ston Tourism Ston Investment

Ston Business Development

A2 A3

Graph 6: Ston Development Measures

Page 67: Five elements of Ston

136 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 137

Preparation and management of the publicly initiated deve-lopment and investment program should be responsibility of the central experts’ unit. This unit will be directly connected with municipal authority and the council, which are controlled and influenced by the municipal government. Nevertheless, the development unit should be operationally independent, in order to establish efficient management, fully applying private business principles.

Primarily the actions such as:

~ branding, ~ marketing and ~ coordination of financial programs ~ administrative support

are typical measures of strengthening and promoting local business sector under guidance and management of the mu-nicipal development unit.

organizational and Institutional Set up(Municipal Development unit – MDu)

Private business should keep the initiative in terms of new start-ups and further development within production, trade and service sectors. To encourage private initiatives and im-prove conditions for the private investments, support pro-grams for private sector should become an integral part of public actions, managed by the MDu.

Ston Centre

Workshop during study interim report, Ston, Vila Koruna

This kind of support to the private sector is a significant tool, which will help to reach simultaneous development of all three segments. Succesfull development can happen in two in-stances. Firstly if private sector efficiently capitalizes and de-velops on account of public initiative, and secondly if public sector responds properly to the “private sector development pressure”. Simultaneous development within all three measu-res is optimal; however this can only be achieved as the result of professional development management.

The Ston Municipal Development Unit (“MDU”) has to be established with a clear structure of tasks and with a team of professionals working on the deciding development measures.

MDu is the “driving unit” which prepares and manages fur-ther processes and subsequently realizes them on behalf of municipality and private entities.

Ston Business Development

A3

Ston Investment

A2

Ston Tourism

STON

Municipal Development Unit (MDU)

Financial SupportBusiness Funding

Program

Administrational Support

Branding and Marketing

A1

Ston Tourism

Ston Investment

Ston Business Development

MUNICIPAL DEVELOPMENT UNIT (MDU)

~ develops and realizes tourism development strategy

~ is in charge of the Destination Development

~ develops programs for encouraging and helping private sector to develop tourism

~ cooperates and helps public and private tourism entities

~ prepares, develops, realizes infrastructure

~ coordinates reconstruction, renovation, restructuring of public spaces

~ coordinates public bodies involved in important segments (water, waste, sewage, energy, etc.)

~ cooperates with public and private entities

~ prepares, develops, realizes business promotion, support, subvention programs

~ coordinates and cooperates with regional and national agencies and banks

~ supports the private sector ~ helps private initiative realization ~ provides link to international/national

bodies

Ston Tourism Board

Hotels, private accomodation, campsrural Tourism FacilitiesTravel industry (agencies, organizers, etc.)restaurants, bars, etc.Sport and recreation

HZZZ and other employment agenciesHBor, eu fund management bodies

Foundations, Clusters, Associations,

Business Groups

regional and National

Development Agencies

Ston Communal Company

regional water Company, Hrvatske Vode, County department, Ministryenergy Company (HeP), private energy companies, Fund for energy efficiencycounty, ministries,

Graph 7: MDU - tasks and public sector partners

Graph 8: MDU - segments

Page 68: Five elements of Ston

138 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 139

This organization should be separated from daily public ad-ministration and tasks. It should not depend solely on public budget financing.

MDu is a crucial “tool” needed to initiate dynamic develo-pment and induce investment initiatives. It will create pro-grams, steer realization of public projects, manage the pro-cesses and be in charge of bringing public and private sector to the same speed in the fast lane of development.

MDu will have following objectives and goals:

~ to transform municipal potentials into concrete reali-zable project opportunities

~ destination development and – management, marke-ting, brand

~ to attract investments and ensure financing in order to realize projects and business set-ups

~ to supplement funds and grants ~ implementing experts under guidance and control of

the “MDu”

~ MDu under public control and general guidance ~ municipality has big land assets – this can be used

as security for financing funds

From these rather general objectives, more detailed work program is elaborated. Purpose of the work program is to emphasize and highlight the potentials of the region, and to transform them into investment opportunities. Promotion of the region together with investment opportunities will attract investors and financial support programs, which will enable transformation of these potentials into successfully realized actions, bringing benefits to all stakeholders.

From the first impulses, to the preparation and realization of larger projects, a detailed work program will be formulated as a part of the MDu establishing process. General outline of this program is divided in two parts (short term and long term elements). Based on international experience in similar programs it should resemble propositions in Graph 7.

Ston Brand

~ products ~ services ~ tourism offers

~ region ~ culture / historic values

Organization Modern Tourism

Packages

e.g.“cultural & historicalhiking week

Initiating Events

e.g.“vine & oyster weekend festival”

“5 elements of Stonevent week”

Initiating Initial

Projects

draft horseprojects

~ tourism ~ commercial ~ residential

National and International

Marketing

~ projects ~ tourism ~ packages ~ events

UpgradeSupport

~ planning ~ financing ~ management

ImplementingMissingLocal

Components

according analysis

PublicSupport

~ land development

~ infrastructure ~ EU financing ~ investment management

Investor Support

LocalBusinessSupport

~ promotion ~ financial ~ etc.

SH

OR

T TE

RM

MID

TE

RM

Graph 9: MDU – Long term and Mid term goals

In order to set up MDu and have it as an operational work unit, the first phase budget must be secured (1-2 years). Mu-nicipality of Ston is in a difficult position regarding its public budget resources. Therefore it is strongly recommended for the municipality to try to provide the required finances from the following resources:

~ local and regional private sector ~ interested investors ~ grant programs – county level ~ grant programs – national level ~ grants and donations – international level

Roughly estimated budget for the MDU set-up:

Prior to the actual start up, it is necessary to go through a pilot phase during which the development expert team will work on the basis of cost coverage for a short period of time. This initial phase would have two main goals:

1. organizing and securing start-up budget2. defining MDu content – as per list below

Destination development and management program:(branding, marketing, initial destination development)

100.000 €

Initiating investment projects (see project plan) 100.000 €

Public support to local business 50.000 €

Operational MDU (rent, travel, equipment, etc.) 50.000 €

Start up budget (first 1-2 years) for MDU 300.000 €

Table 32: Estimated budget – detailed calculation is to be derived in cooperation with public authorities in pilot phase of detailed business plan development

Pilot phase to set up business plan (10 %) 30.000 €

Table 33: Estimated cost coverage for the pilot phase

estimated cost coverage for the pilot phase:

Main tasks/contents of MDU pilot phase (3-6 months):

~ Defining MDu office location ~ Defining clear organizational and legal structure ~ Cost estimation to set up business (equipment, ma-

terials, staff, etc.) ~ Forming the team (one to two employees and regio-

nal development manager) ~ Setting detailed program for tourism development

measures ~ Preparing initial investment program – preparati-

on documents for the initial financing (PPP, private investment)

~ Defining the activities for the private business promo-tion (active dialog with local business)

~ Acquisition of appropriate experts for the above mentioned activities

~ Detailed business plan incl. required financial analysis ~ Acquisition of budget from different sources

Required experts for the pilot phase:

~ regional development expert (team leader for the pilot phase)

~ destination development expert (experience, opinion, recommendation)

Grapes Oranges

Page 69: Five elements of Ston

140 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 141

~ local coordination team member ~ financial expert (elaboration business plan) ~ lawyer (legal background and structure of MDu) ~ graphic designer to support and elaborate the pre-

sentation of business plan

Possible sources of financing for MDU activities:

1. municipal budget allocation2. bank loan for MDu business set up (public land as

security)3. raising private fund from investments of the local

entrepreneurs, as a loan to MDu (repaid later with attractive interest out of the project returns)

4. bank loan for the financing line of the project-start up in order to set up one significant PPP project (e.g. municipal port and waterfront zone or Žuljana T-zone, Brijesta commercial zone)

5. public grant / funds

Sources for re-financing of committed MDU budgets:

~ use of the municipal land: sales, rent, concession, op-tion contract fees

~ Communal fees (investment preparation for the zone development will be calculated in public project costs together with infrastructure and also has to be calcu-lated into public communal fee structure)

~ Incorporating investment costs for PPP project as a project cost which will be refunded by the winning PPP-partner

~ Implementation of a tourist investment fee (e.g. related to tourism turnover/nights as a contribution to the mu-nicipal development program)

~ Increase of public tax and fee income (land transfer taxes, income tax, communal fees, tourism tax, etc.) on a similar project, direct financial return from the pu-blic project is approx. 4 % one-off from total project investment amount and annually ca. 20 % from the turnover of new business!

Graph 10: Model for Starting and Financing a Competitive Dialogue for PPP Projects by a PPP Procurement Fund

View from Ston walls

Loan Properties

Shares

Equity

Shares

Compensation

PPP Procurement Agreement

Securities

Initial PPP Procurement Costs

Refunding of PPP Procurement Costs if

Public Side blockades the Competitive Dialogue due

to Political Reasons

Insurance Fee Political Risk to Stop the PPP Procurement

Refunding of Procurement Costs

BankPPP

Procurement Fund

Private Properties

Private Equity

PPP Procurement TeamLocal Authority

Insurance

PPP Procurement

according Master PPP

Plan Business Model

Program  Possible Users  Allocations  Purpose of allocation 

Fund for Regional Development

Municipalities, Counties n/a Realizing communal infrastructure, economy infrastructure, rural development

IPA – CBC – Monte Negro

Non-profit NGO’s, or public entities

1.620.000 € (2009) Environment protection, natural and historical heritage protection, creating tourism products, cooperation between institutions and organizations

IPA – CBC – BiH Non-profit NGO’s, or public entities

3.600.000 € (2009) Creation of joint economic space, improved quality and social cohesion

IPA – CBC – ADRIATIC Non-profit NGO’s, or public entities, or SME’s

25.000.000 € (2009) Priority 1 – economic, social and institutional cooperation

IPA – CBC – ADRIATIC Non-profit NGO’s, or public entities, or SME’s

25.000.000 € (2009) Priority 2 – natural and cultural resources and risk prevention

IPA – CBC – ADRIATIC Non-profit NGO’s, or public entities, or SME’s

25.000.000 € (2009) Priority 3 – accessibility and networks

IPA – IIIB – environment protection

State administration, local and regional government, SME’s, agencies, associations

53.500.000 € (2007 – 2009) Waste management facilities, water supply network and and water treatments facilities, construction or renewal of wastewater network,

IPA – IIIC – regional development

Non-profit NGO’s, or public entities, or SME’s

18.440.000 € (2007-2009) Improvement of investment climate, technical assistance (measure 3.2 – development of sector studies, preparation of programing documents and project ideas)

IPA –V – rural development

Agriculture companies and associations, local and regional government, crafts

76.900.000 € (2007-2009)

Investment and restructuring of agriculture entities, investment in processing agri and mari products, improvement of landscape and environment, improvement and development of rural infrastructure, development and diversification of rural economic activities

CIP – entrepreheurship and innovation

SME’s, institutions, local and regional government, etc.

2.17 billion € (2007-2013)

Easier access to financing for start-ups and new businesses, creating environment suitable for business cooperation, promoting innovations, support to eco-innovations, support to policies encouraging entrepreneurship and innovations

CIP – inteligent energy Europe

SME’s, institutions, local and regional government

Improving market conditions, encourage renovable energy usage

Fund for environment protection and energy efficiency

Public and private entities n/a Programs and activities according national strategy for environment protection

Culture

Research centers, local and regional government, SME’s, universities government administration

400.000.000 € (2007-2013) Multianual projects – 3 to 5 years, cooperation of institutions in culture, analysis and spreading cultural cooperation

EUROSTARS SME’s, big companies, research centers

400.000.000 € (2007-2013) Encouraging and strenghtening research activities of SME’s, development of new product, service, process, etc.

EUREKA Companies, SME’s, research institutes, universities

n/a Improve competitivness of EU companies, developing inovative products, processes and services. Activities from agriculture and sea resources, enironment and people protection

Table 34: Financial sources – EU funds and Programs

Mali Ston

Page 70: Five elements of Ston

142 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 143

board, or if a new entity should be formed. Further in this text, according to the international experience and considering the human resources of the Ston area, most of these tasks will be added to the list of the MDu’s duties, since the access to the full time available experts is quite difficult and unlikely.

The main task of the entity for destination development and management is to awake the potentials of the region!

wHAT IS A “DeSTINATIoN”?

“A destination is a place worth leaving home for – a country, city, museum, theatre, arena, retail centre, restaurant, resort, beauty spot, or a mix of all of these. Those are places that pe-ople want to invest in, to work in, to learn in, to shop in, to play in, to relax in, to be entertained in, to live in or to retire in.” *

Background of destination development in Ston:

~ Ston is unknown in most segments of tourism market ~ Ston is lagging behind its possibilities, using mini-

mum of its potentials ~ Missing brand and marketing ~ Landscape potentials are partially degraded by previ-

ous impacts, so only parts of the landscape’s values can be used.

~ risk, that the possible advantage of the new road, will be not capitalized, while there is a potential threat for Pelješac to simply be reduced to a coulisse for the road.

* Brand Strategy for destination development - Loccum Consulting, united kingdom

Tourism sector, even so undeveloped as it is today, is still the third job provider in the municipality. Tourism should play an important role in the future development of Ston, as it has enough potential to be the driving factor. In order to realize these potentials, a detailed program for tourism development must be constituted with a particular stress on defining the target markets as the basis of development. one of the first and basic actions, as defined by the evolution of tourism de-velopment is the Destination Development and Management.

DeSTINATIoN DeVeLoPMeNT AND MANAGeMeNT: The topic of Destination Development and Management is currently being discussed at top levels of national tourist expert bodies (Ministry of tourism, Tourism Boards Asso-ciation, Institute for tourism). However, the final conclusion which body should undertake the duties of the destination development has not been reached yet. Main discussion is about whether it should become a task of the local tourist

Development Measure: Development of Tourism

Awaking potentials

Key question of destination development:

How does a town or a region recognize its attractiveness as a tourist destination and rally its resources to make the most of its business opportunities? It is a complex question, which involves infrastructure, tourist services and attractions as well as marketing and the development of human capital. Not less important is the issue of the viewpoint from which the “destination development” is undertaken.**

Segments of Destination Development

~ Destination Brand (building effective, recognizable and attractive brand)

~ Destination Marketing (joint, targeted, effective desti-nation marketing)

~ Services and events (assisting and initiating the esta-blishment of new services and events)

~ Investment Program (combining projects and inves-tments into one program, thus making them more attractive for the investors)

Stages of destination development lifecycle:

There are five stages of destination development lifecycle. Currently is Ston at the earliest stage, i.e. at the beginning of the exploration stage.

** N. johns, j. Mattsson / Tourism Management 26 (2005) 605–616

Aerial view

Wildflower

Page 71: Five elements of Ston

144 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 145

~ Exploration: – the earliest stage, characterized by very few tourist

arrivals and very little impact associated with tourism – the natural and social economic environment of

the destination has not experienced any changes due to travel activities

~ Involvement: – second natural and social economic environment

of the destination has not experienced any chan-ges due to travel activities

– the natural and social economic environment of the destination has not experienced significant changes due to travel industry

~ Development: – the third stage, at which a huge tour market has

already been established, drawing great quantities of foreign investment

– the number of tourists continues to soar – transportation conditions, local facilities etc. are

tremendously improved – the advertisement promotes sales – modern and large-scale facilities have already

changed the image of the destination – the travel industry develops quickly and the

destination becomes partially dependent on the foreign labour force and assistance facilities

– in this stage the destination should prevent excessive abuse of the facilities; programming by national or regional entities is of great importance in order to achieve objectivity

~ Consolidation: – the fourth stage is characterized by decline in the

growth rate of visitors and other tourism-related activities, although the actual amount of activity continues to increase

– the local population starts having bad attitude towards tourist arrivals; the facilities of the past decline to the second class facilities, especially if not renovated or rebranded on time

~ Decline, Stagnation or Rejuvenation: which direc-tion the destination will take is strongly influenced by the quality, professionalism and experience of the de-stination management and measures taken by them

Graph 11: The destination life-cycle: Six stages - descriptors and indicators; Source: Butler, R. (1980)

Beach

Number of Visitors

Time

CONSOLIDATION ~ slower visitor growth with new market development

~ seasonality focus

STAGNATION ~ peak visitor numbers ~ limited carrying capacity

~ occupancy declines ~ business turnovers decline

REJUVENATION ~ new/expanded/upgraded attractions and facilities built

~ new resources developed

DECLINE ~ declining visitors ~ rundown infrastructure

ExPLORATION ~ few visitors ~ minimal tourism infrastructure

INVOLVEMENT ~ visitors increase ~ some local tourism investments

DEVELOPMENT ~ rapid visitor growth due to promotion

~ more built attractions ~ some external investments

Destination Development Plan and Realization

Destination development is based on the plan which has to be elaborated according to the local needs and international requests. equally important part of the plan is to evaluate de-stination resources as well as to have the vision and define the target market.

example of contents of the destination development plan:

Source: Destination Development Plan* - Contents

Development planning:

Source: Statement on Destination Development**

* Contents, Destination Development Plan, Southhampten, 2005

** Statement on Destination Development – Loccum Consulting, united

kingdom

“Delivery” or realization

Source: Statement on Destination Development***

Private Sector as initiator of destination development

In most cases, public sector is the “prime-mover” of destina-tion development. In case when organizational and institutio-nal set-up is performed in accordance with market conditions and requirements, the vision of development has good reali-zation chances.

In several cases, private initiative or projects can lead to successful development of a region or at least initiate destina-tion development actions and growth of services and product demand. Private sector can bring necessary dynamic to a de-stination, especially by creating fast realized feasible projects and strong sales organization.

*** Statement on Destination Development – Loccum Consulting, united

kingdom

(top) Anchovies(bottom) Arranged beach - example

Page 72: Five elements of Ston

146 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 147

For Ston, it means that public sector, driven by MDu’s activi-ties, should actively encourage and support private initiative and investment requests or even set a model where private sector can realize business presented by the public side.

~ private tourist/event agency (to “sell” regional tourist products, events and services)

~ missing services in Ston (setting conditions like e.g. funded rent spaces, “tendering” operators)

~ PPP model for realizing the investments (e.g. in-vestment program for sport areas, port and central waterfront in Ston)

~ tendering of public locations according to the pre-developed concept to the private investors

~ transferring know-how about setting up private investment projects (refurbishment, upgrade, new projects) – help by connecting to significant people and institutions – supporting approval process

This kind of approach will bring substantial boost to the eco-nomic life of Ston, and at the same time enable creation of new products and services suitable for the international market.

DeSTINATIoN BrAND AND MArkeTING Destination branding: Creating a lasting impression

Today, destination branding is one of the hottest topics among both, “place” marketing professionals and politicians. Many destinations – from individual cities to entire countries – are adopting branding strategies similar to those of the lea-

ding product brands in order to differentiate and emotionally connect with the potential tourists.

wHAT IS A DeSTINATIoN BrAND?

“A destination brand is more than a logo or a mark or a strap line. It is an expression of the planned offer of value and expe-rience that a place provides to consumers – investors, busi-nesses, institutions, residents, learners and visitors.

A destination brand provides a key to what the place is about, to what its offer is and to the experience it provides. A succe-ssful destination brand is a promise delivered and the uniting bond between the experience on offer in the destination and all of the people, who live, learn, work, operate, invest in or visit there.”*

Main questions when creating the brand and marketing con-cept are:

~ what is the product? ~ where is it located? ~ what is it called?

* Statement on Destination Development – Loccum Consulting, united

kingdom

Sailing

Branding

~ why is it different? ~ who will buy it? ~ what is its pricing? ~ How will it be launched?

Ston brand and marketing – start up actions:

~ Creation of Ston international brand and marketing guide-book and program

– Title suggestion: “The Five elements of Ston” – also reflected in the five corners of the Ston wall

~ Analysis and preparation of organizational set-up for marketing and sales of existing products and services (local products, tourist offers, services)

– Historical and cultural attractions and monuments – Coast / sea / bays – Products (oysters and other sea products, organic

fruits, vegetables, wine etc.) – Villages – existing quality accommodation, tourism and

service offers ~ Production of the first tourist products and start

of the marketing campaign – e.g.: 5 elements of Ston – experience Ston in 5

days (organized program including different activi-ties, accommodation, food etc.)

~ Organization of one main event that will bring Ston in the international and national media! e.g.:

– 5 elements of Ston – 2 days festival – run and climb wall festival (wall to wall triathlon –

Ston to Dubrovnik)

– Culinary event (vine, oysters, music etc.) ~ Elaboration and targeted distribution of mar-

keting materials (website, brochures, professional magazines, press info and others)

– especially highlighting already existing as well as new offers / events, products, values and attractions

– Targeted distribution and preparation of marketing materials

– Building the network of sales partners ~ Travel and event agencies, local and abroad ~ Sales agents for niche markets

– Developing “destination Ston” website, structured in an inviting way and easy to navigate, offering complete information

– Signs – towards and in the destination ~ Improvement and upgrade program

– aimed at the existing facilities, to help bring them to the higher quality level

– to extend to new markets and reach further target groups

~ to create new products, projects and services

Five Elements of Ston

Page 73: Five elements of Ston

148 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 149

CoNCLuSIoN TourISM SeCTor DeVeLoPMeNTThe background mentioned above clearly confirms that the development, branding and structured marketing of a desti-nation such as Ston is activity which is worth the investment and must be executed from beginning with high professiona-lism and based on real market request.

In order to realize tourism development of wider area, which:

~ fits into the region, ~ is sustainable and, ~ improves the general life conditions,

it is necessary to develop it integrally, as a common destina-tion, to market it jointly and to enforce strong sustainability regulation from public side.

Destination development, management and marketing pro-cess must involve external expert(s) to manage MDu’s ac-tivities with proven experience and success. It is vital that the development of tourism is based on the joint story of the destination, and that all components of the tourism are wor-king in the same direction and are based on the same quality principles.

Example, nature paths (National Park Paklenica, Croatia)

(top) Pool – example; (right) Terrace restaurant – example

Development Measure: Investment Program

The only way to realize the envisioned development is by creating concrete projects and investment opportunities, re-alization of which will bring the desired results.

During the process of creating and defining Ston develo-pment projects, the investment program was formulated. In terms of this program there are two kind of project initiatives.

Public and private investment initiatives are clearly distin-guished, but must follow the same direction, especially the public side that must be aware of the importance of the pri-vate initiatives.

PuBLIC INVeSTMeNT INITIATIVeS

Public initiatives are all those dealing with public locations or ha-ving general public benefit. Common determination for most of the public initiatives is that they have following characteristics:

~ complex, ~ involving many different aspects, ~ barely feasible or even non-feasible, ~ bringing intangible benefits, ~ impact profit augmentation of private sector, and

then subsequently benefit from it, ~ improving life quality of the local population ~ improving opportunities for the local people

Public investment initiative in Ston region

Some of defined project initiatives are:

~ reorganization and improvement of urban structures (Ston and villages) – different projects

~ rehabilitation of historical and cultural monuments and attractions

~ development of new zones (residential/commercial/tourist)

~ rehabilitation of old settlements (public initiative and support needed to clear up the ownership structures)

~ infrastructure investment (water, sewage, energy, telecommunication, waste disposal)

~ walk, hike, bike paths and tracks – discovering the region program

~ green zone improvement/development

Coat of Arms Ston

Page 74: Five elements of Ston

150 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 151

PrIVATe INVeSTMeNT INITIATIVeSInvestment initiatives from the private sector push forward the development. while the public “sets the stage” for develo-pment to happen, the private sector is actually realizing it.

Private investment initiatives are mostly:

~ smaller scale investments ~ not too complicated ~ motivated by individual gain and benefit ~ profitable ~ in most cases not too concerned with social and

ecological benefits ~ positively impacting the public budgets ~ increasing employment opportunities of local

inhabitants

Private investment initiatives possible in Ston area (some of defined project opportunities):

~ upgrade of tourist and service facilities (hotels, pri-vate accommodation capacities, restaurants, cafes, shops, etc.)

~ integration of missing facilities into existing urban structures

~ “filling” the new development zones with facilities and internal infrastructure (commercial, residential, tourist)

~ additional investment in attractions, services, products renewable energy projects (wind, solar, biomass, etc.)

For the successful development to happen it is important that the relation between public and private sector is fair and tru-stful. Public sector should initiate the first development steps in order to attract private investments. They should operate in symbiosis, supporting and strengthening each other. For that to happen, both sectors must find a way to overcome the main difference between them:

~ Public sector must accept the profit driven private sector, and enable profit realization

~ Private sector must accept “the public good”, and give up portion of the profit for common good

when that happens, both sides win, and the biggest winner is the region and its people.

SToN INVeSTMeNT ProGrAM – oVerVIewSton Investment Program is structured and prepared accor-ding to the development projects derived from the develo-pment vision of Ston. These projects are balanced between different economic segments. Locations are defined in accor-dance with the thorough research (Part II of the Study).

Defined projects in the frame of Investment Program are divi-ded into following segments:

~ Projects within urban and residential structures ~ Marina/port projects

Accommodation unit terrace – example

~ Commercial projects ~ Tourism projects ~ Agriculture/tourism projects ~ renewable energy projects

Locations of these projects can be seen in the map on pages 150/151.

Projects are further divided into eight groups according to their locations. within each location there are publicly and privately initiated projects; some of the development projects even have segments in which public and private interests overlap. Project groups are:

~ Town of Ston Projects ~ Mali Ston Projects (entrance to Ston) ~ Prapratno Bay Projects ~ Duba Stonska Projects ~ Brijesta Projects ~ Žuljana Projects ~ South region Projects ~ Central Municipal Area Projects

TowN oF SToN ProjeCTSTown of Ston is historical, administrational, cultural, event, to-urist and residential centre of the municipality. It has a huge potential to develop into a destination recognized worldwide. In order to realize that potentials there are at least 8 project groups that need to be initiated and realized, either by public or by private sector.

(top) Church Ston(bottom) Dandelion

Page 75: Five elements of Ston

Investment program focuse– 10 year program –

Page 76: Five elements of Ston

Visualization Ston– Centre –

Page 77: Five elements of Ston

156 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 157

ProjeCT GrouP 1In this group the projects are put together in order to “bring Ston to the sea” and enrich it with vivid and attractive seaside life. Ston is already at the sea, but unfortunately, because of the poor traffic solutions, misplaced soccer field and parking issues the fortress is not clearly visible. The access and visi-bility of Salinas is also not optimal.

Projects within this group deal with new traffic solutions, cre-ating “the riva” – a promenade along the coastline supple-mented with commercial/catering/sports facilities, building communal port with few commercial berths (enabling nauti-cal guests to visit Ston’s historical core directly from their bo-ats), and renewing today’s ruins of the fort located in the very heart of Ston. Most of these are projects which will enable private initiatives to form and give value to tourism business as well as to extend the offer of the area and dramatically improve the life quality of local population.

Salina Ston represents one of the most important cultural and historical treasures of the region. In order to regain the reputa-tion it deserves, there is a program of making the Salina attrac-tive for the visitors and in same time economically functional. The goal of Salina investment program is to preserve the tra-ditional production of pure healthy salt and to organize the vi-sitors’ centre and guided tours. As comparison (“learning from the best”) – Mallorca (Salinas de Levant) has made its sea salt production very famous and economically successful.

(top) Saline(bottom) Fort Ston

ProjeCT GrouP 2Group two are projects concerning further refurbishment of the Ston walls and offer extension connected to it. Particular-ly interesting is the project of “Bartolomeo wall and Mountain Centre” bringing completely different approach to the histo-rical experience of the wall, and for the first time including spectacular view from the old fort Bartolomeo. This project brings new adventurous offer in symbiosis with historical and cultural experience. Climbing, hiking, mountain biking or using a small cable car – those are all the ways for visitors to get to the walls and enjoy the spectacular 360° view of Ston, Mali Ston and the channels. This is an excellent project op-portunity for the public-private cooperation which can bring desired results to both sides.

(top & right) Ston Walls

Page 78: Five elements of Ston

Start / Info / equipment

Cable Car

Top / View / Cafe

Biking Tracks

Climbing

walking / Hiking

Tree Climbing

Ston BartolomeoMountain Center

– Vision –

Page 79: Five elements of Ston

160 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 161

ProjeCT GrouP 3Ston centre projects are combination of public and private initiative. Public authorities must get involved and clearly de-fine the appropriate function of the public ownership. Howe-ver, most of the buildings located in Ston centre are privately owned. Therefore a strong public campaign or subvention program should be developed to motivate people to make the centre of Ston top class destination offering all services and products required by its guests.

(top & bottom) Ston Centre(bottom right) Napoleon road

ProjeCT GrouPS 4,5,6,

These groups consist of individual projects dealing with ove-rall improvement and development of Ston as destination.

These are the projects of refurbishment of historical buildin-gs, further development of the municipal tourist board and tourist facilities, as well as of the network of outdoor paths and tracks for biking and walking. All these are both publicly and privately initiated projects which significantly extend the regional offer and augment business activities.

Particularly interesting is the “Napoleon road Project” initi-ated by the local association called “Pelješac wine roads”. This project envisions the restoration (appropriate for wal-king/biking) of the original, 50 km long “Napoleon road” which would connect vineyards, agricultural tourist facilities, traditional “konobas”, old deserted settlements and chapels, and provide unique experience for the guests. Since it is lo-cated quite high in the hills, it offers the most amazing view of the entire area. This project is not limited only to the muni-cipality of Ston, but as the entrance to Pelješac it should lead the way!

(top) Ston municipal building(bottom) Boutique hotel Vestibul, Split – Example of succesful re-use of historical building

Page 80: Five elements of Ston

162 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 163

No. Project Name Furhter DetailsUrban Planning Background

Project Approach Financing Approach

Conn. proj.

St Ston village

St 1aMarina / Port Ston

Sport port Ston (marina) with further service facilities – appearing like mediteranean marina

Included in county plan as port Ston

Public initiated – private financed and operated

PPP, project financing, concession, etc.

St 1bRiva Ston & waterfront

Several Riva elements (service, leisure, catering, entertainment, etc.)

Within urban structure – county plan changes not necessary

Public initiated – private financed

PPP, project financing, concession, etc.

Improvement and enlargement residential area

Within existing urban structure

Rennovation houses by incentive programm to owners – new buildings by structuring space in a UPU/DPU

Private financed, public financial incentives

St 1c Fortress Ston

Rehabilitation fortress with: info center, music-culture-events, exibitions, shop with local high quality products, quality event restaurant and bar&lounge, club, etc.

Under protection of historical monuments and buildings

Public initiated, public controlled realization, partially private operated

PPP, project financing, concession, rent spaces – integration grants, funds

St 1dRevitalization Salina

Info center, tours, 3-D visualization movie, shop

Under protection of historical monuments and buildings

Private with public support and funding

Project financing in frame with further Ston projects? grants, funds

St 2aFurther refurbishment wall

Further refurbishment, walkway and viewpoints along whole wall

Under protection of historical monuments and buildings

Public projectGrants, funds, partially private funding out of connected projects

St 2b

“Bartolomeo” wall and mountain center

Cable car to the top-point of the wallmountain

Public intiated – private realization and operation?

PPP model, project financing

Infoboards and materials

“Walking / climbing the wall” center and tracks (hiking / biking)

Coffee/viewpoint top of mountain

St 3aReorganization Ston middle center

Replacing hypermarketsWithin urban existing structure

Public initiated – private realized

Private financing for commercial projects

Establishing new nice service buildings and forming center to mediterranean place

Within urban existing structure

Public initiated – private realized

Private financing for commercial projects

St 3b

Ston private service and accomodation projects

Upgrade existing – and implementation new facilities for service and accomodation (e.g. small boutique hotel in Ston center)

Within urban existing strucutre

Private initiated with public support and initial initiatives

Private investment financing

St 4

Refurbishment further historical and culture spots

Under protection of historical monuments and buildings

PublicGrants, funds, partially private funding out of connected projects

St 5Tourism infocenter and infoboards

PublicGrants, funds, partially private funding out of connected projects

St 6aSton walkways and biking paths

Public initiatedPublic financed, grants, funds

St 6bPelješac wine road

Revitalization of “Napoleon Street” as unique attraction connecting past with future, directly influencing to cultural and economical development of Peljašac.

Existing street, already registered in most part as public land, mostly itss located outside urban structures

Public project (coordination between several municipalities)

Public financed (development funds)

Table 35: Detailed list and description of Ston city projects

MALI SToN ProjeCTSMali Ston and especially the area of Zamaslina represent a kind of municipality entrance.

They give the first impression and the last goodbye. In the future new developments (bridge/street) will slightly change the position of this area, but it will not lose its importance.

The settlement of Mali Ston is a historical end point of the Ston wall. This traditional village of fishermen and farmers has developed into an exquisite gastronomy centre of this area. It is located on the shore of the well protected Mali Ston Bay, therefore having certain developmental limits (delicacy of ecological balance in this bay for the purpose of oyster growth). Projects listed for this area deal mostly with recon-struction and improvement of the existing facilities and deve-lopment of additional services.

Zamaslina location is not influenced by the development li-mitations (like Mali Ston) and is selected as the optimal loca-tion for the development of commercial zone. The reason for that is the new road corridor, vicinity to the settlements of Mali Ston, Ston, Prapratno and the entire southern side of the mu-nicipality, as well as the fact that it is close to the neighbouring municipalities of Dubrovnik Coastal region and Mljet. when the 60 km radius is taken into consideration, one can see that it covers the entire peninsula (and further, via orebić, the island korčula), as well as the area of Neum and Dubrovnik

(which still does not have a proper shopping centre). That is adequate catchment area, especially when we consider the tourism influenced augmentation of population during the period of 4 to 6 months in the year. In these terms a smaller shopping centre definitely makes sense. It can also be ar-gued that the shopping centre targets Dubrovnik population, (which is used to driving in order to buy groceries – Neum area phenomena) espetially as it is likely that extremely high land prices in Dubrovnik area and the narrow coastal strip in the closest area will probably discourage shopping centre development.

Development of the shopping centre to fit the region would be a combination of locally and tourist oriented facilities as well as facilities oriented to the wider region.

Mali Ston

Ston catchment area

Page 81: Five elements of Ston

164 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 165

Offering the missing components to improve life quality of the local people and make it more affordable and convenient to live in Ston

Locally Oriented Facilities

~ hypermarket – focus on the hypermarket food prices ~ cafes, bars – new centre for the winter/bad weather

times ~ multifunctional movie theatre – suitable for concerts,

lectures, etc. ~ gym – supplemented with basic sauna/spa offer ~ retail brand stores – offering middle class brands at

affordable prices ~ services – beauty services, travel agency, post, bank

Offering the missing components to improve the experience, attraction on its own – enabling prolonged stay and out of season activities and bringing “neighbour staying guests” to spend their time and money in Ston

Tourist oriented facilities

~ hypermarket – offering international shopping style and brands

~ cafes, bars – indoor centre for “rainy days”, internet cafe

~ movie theatre – with tourist oriented programs in addition to movies

~ gym – opportunity for daily workout, sauna/spa usage, etc.

~ retail brand stores – also offering local brands and authentic products

~ services – beauty services, travel services (short trips), post, bank

Possible placement of shopping centre

(bottom & right) Examples of shopping centre developments

Offering missing components, attracting them to “drive to” Ston; additional benefits through catering business and one-day visit activities as a supplementation to the shopping experience

Region Oriented Facilities

~ hypermarket – focus on hypermarket food prices, affordability!

~ cafes, bars – shopping break! ~ movie theatre – Dubrovnik still doesn’t have a mo-

dern movie theatre ~ gym – experts and programs to attract ~ retail brand stores – affordable prices, mid class

brands that lack in the area ~ services – beauty services, travel agency, post, bank

The project, located on the public land, would enable attracti-ve “land investment model” for potential investors, awakening their interest for its realization in the municipality of Ston.

Project name Furhter detailsUrban planning background

Project approach Financing approach

Mali Ston

Revitalization urban structure village

Small port Public Public

Center Public Public

Upgrade and supplementation tourism and service facilities

Private Private

Boat start point oyster farm tours

Private with public initiative Private

Table 36: Mali Ston projects

Stonecreek village Shopping Centre – example

(top) Mali Ston inner streets(bottom) Exterior arrangement – example

Page 82: Five elements of Ston

166 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 167

PrAPrATNo BAy ProjeCTSPrapratno bay is an exceptional, natural bay, with a sandy beach in the bottom of the bay and rocky coastline on both sides. Development in the past has left the bay more or less preserved, meaning that there are only scarce private houses on both sides, a camp in the heart of the bay and a ferry port on the left side.

The bay has a potential for further development, however there are several limiting factors which must be taken into consideration:

~ Privately owned campsite (difficult cooperation) ~ Public street (access to the right side of the bay is

passing over the beach!) ~ Steep bay banks (difficult for construction – immedia-

tely next to the see line) ~ Private land – unclear ownership (unclear titles, mul-

tiple owners)

In this area there is a combination of publicly and privately initiated projects. The most significant project would be the residential Development Zone, which is highly relevant for the further development of Ston.

The reasons for placing an organized residential zone, inclu-ding also a small hotel (80 beds) and the central area, at this location are:

~ Vicinity to Ston ~ Non-steep location, facing west, with a spectacular

view ~ Public Land ~ easy access to infrastructure (street, water, sewage,

etc.) ~ Already included in spatial documentation as a resi-

dential zone ~ High potential for realization of pilot project

Project name Furhter detailsUrban planning background

Project approach Financing approach

Prapratno bay

Changing bay to attractive quality tourism spot

Upgrade camping or changing to small T2 zone

T2 and T3 zone included in proposal county plan 03/2009

Public initative – private realization

Private investment financing

Changing bay to attractive quality tourism spot

Upgrade existing buildingsPublic incentives to house owners to refurbish

Private – public funding

Residential zone Prapratno

Mixed residential zone with small hotel, central place and key service facilities

Plot development as investor model – municipality tendering best solution

Investor – financing model: option contract for 2 years to realize landbuy and start realization – based on small investor competition / or PPP model?

Table 37: Projects in the Prapratno bay

Prapratno Bay – view from above

with all this in mind and considering the new street corridor passing by, the experts have determined and sketched the possible solution of this development project.

New street corridor will not have a lot of influence on defined location; thanks to distance and elevation difference (howe-ver it is recommended that noise influence study is made at later stage).

envisioned solution is an integral solution for the left bank, and should be the basis for further uPu/DPu elaboration. However in the further calculations, estimates are based on the size of the public land only (area above the existing street).

View to location of the Prapratno Residential Zone

(above left) Prapratno plot ownership analysis; (above right) graphic excerpt from PPUO Ston; final draft, Prapratno Bay

Residential belt – street corridor influence Visual example of possible residential zone development

Page 83: Five elements of Ston

168 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 169

residential zone Prapratno should consist of:

~ villas/apartments (for local and residential market) ~ small hotel (boutique hotel up to 80 beds) ~ restaurant, cafe, bar ~ central square “plaza” (where meetings and events

could take place) ~ small commercial spaces (daily shop, bakery, aut-

hentic products, etc.) ~ wellness/spa/sport (depending on the interest of

investors/private sector/ inhabitants)

Since the larger part of the project, here presented, is publicly owned (land registered as the Ston municipality ownership) it is strongly recommended for this to be the starting project for Ston development. This can be realized through several mo-dels, and it was already mentioned that it should be a job for the municipal development company to structure and further develop such project.

(left) Example of hotel exterior; (right) Infrastructure access lines

View to Prapratno Bay

a) Calculation municipality First stage development:

External development of the plot:(only municipal part in first phase)

30.000 sqm (only municipal part)

Land sales income municipality: 50 €/sqm 1.500.000 €

External plot development:

Street access to the zone 100 m -40.000 €

External infrastructure access to the zone 400 m -80.000 €

Connection to sewage system 250 m -25.000 €

Costs for compensation land owners (infrastructure access) -50.000 €

Planning, UPU, DPU -180.000 €

Concept, marketing, management, investor competition -150.000 €

Beach and seaboard improvement -300.000 €

Remaining “income” municipality 675.000 €

+ Landbuy taxes (sale of plot + sale of realestate to end buyers)

+ Change of land purpose tax

+ Annual tax and fees to municipality

b) Calculation investor:

Landbuy price incl. land buy tax and extra costs: 7 % 1.605.000 €

Internal infrastructure and zone development, incl. green spaces 50 €/sqm 1.500.000 €

Extra costs (planning, management, marketing, contingencies): 500.000 €

Total costs (first rough estimation) 3.605.000 €

Use of spaces

Gross zone size: (gross built land) 30.000 sqm

Netto use of spaces for residential purposes: 70 % (net built land) 21.000 sqm

Small hotel and service area 5.000 sqm

Remaining size for residential buildings (villas) 16.000 sqm

Average plot size: 400 sqm

> No of residential plots: about: 40

residential building plots

Zone development costs on total zone size: 30.000 sqm 120 €/sqm

Zone development costs on netto use zone size: 21.000 sqm 172 €/sqm

Minimum risk/profit margine investor: 30 %

End sales prices building plots: 21.000 sqm 223 €/sqm

Table 38: Prapratno – Residential zone (example calculation – all figures are first assumptions, details must be elaborated out of first project analysis)

The initial project calculation is given below and is based on the municipal land ownership. It is initial assumption calcula-tion showing what kind of income municipality could expect from such development, but also roughly showing roI for the investor. The model that lies behind enables all sides to pro-fit and excludes land speculation and overdevelopment.

Page 84: Five elements of Ston

Prapratno Bay Village – Residential Zone

Page 85: Five elements of Ston

172 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 173

DuBA SToNSkA ProjeCTS

“Bay of Bjejevica” as part of the “Mali Ston Channel” is valu-able and ecologically sensitive area. “Closed” sea and coa-stal area of Mali Ston Channel is specific natural environment having large economic value because of being suitable and used for marine aquaculture, especially for oysters and mu-ssels farming.

For this reason, the area was originally protected by the Act on nature protection as a strict reservation and is today dec-lared as area with high protection as a special reservation – Mali Ston Bay (the sea area).

eMAC Capital group (with its managed investment funds) in-vested in larger scale land acquisition with intention to deve-lop high quality tourism project focused to nature and rural tourism, supplementing the traditional sea farming and Medi-terranean agriculture of the Duba Stonska region with much needed professional accommodation.

The tourism and recreation zones development is planned stepwise, starting with an initial T1 (hotel) and r- (recreatio-nal) zone project, than later extended with further tourism and recreation developments. Investment objective declared by eMAC Capital group is based on “Study of spatial possibilities for tourism development” for Duba Stonska area and coastal area of uvala Bjejevica, carried out by IGH in 2007.

Project name Furhter details Urban planning background Project approach Financing approach

Duba Stonska Tourism Development

T1 Zone and R-Zone (Rusan / Zjat North)

Initial Ston tourism “lighthouse project” - T1 zone (hotel resort with 4-5 stars) on up to 10 ha with up to 400 beds - Recreational zone accompanying T1 zone on up to 15ha - T-/R zone project is essential project for Ston to create a development push for the region (Ston destination development)

Integration T-/ R- zones - application for current process of county spatial plan amendments

Private initiated (EMAC group) - public supported locally (required public support from higher level authorities)

Financed by EMAC capital managed funds

supplementing T and R-zones (stepwise after Rusan / Zjat North)

Duba Stonska, Uvala Bjejevica, Zjat West and Zjat East - additional T- and R-zone locations - up to further 1.600 “beds” capacity - thorougly integrated by a comprehensive urban development concept of Duba Stonska bay and surrounding area, based on realization of initial project and market request

Integration T-/ R- zones - application for current process of county spatial plan amendments - stepwise integration of the zones then in municipal PPU/UPU when project location Rusan/Zjat North is in successful development phase and accepted/supported by local, regional and state authorities

Private initiated (EMAC group) - public supported locally (required public support from higher level authorities)

Financed by EMAC capital managed funds

Table 39: Duba Stonska Tourism Development

Visualization Sea access – environment friendly solution

Tourism and recreation zones Development plan for Duba Stonska and Bjejevica can be summarized to following gene-ral components:

~ T1 zone development as initial key project with short term planning and realization focus (rusan / Zjat-Nor-th). Hotel resort (up to 400 beds) is envisaged to have special focus on tourism with vocational- and spa-re-time educational background as well as nature-, adventure- and rural tourism offers. (culture of living and working in extensive agriculture, fishing and sea farming)

~ Additional, second stage T2 type zone developments in form of traditional villages in Hinterland (up to 1.600 beds in mid-, and long term development frame) with additional activation of agriculture activities (traditio-nal Mediterranean agriculture to produce healthy food with consequent ecological agriculture methods). Morphological village structure is planned to be based on traditional spatial-functional construction patterns (etno-village) and use of agriculture (rural tourism) as a specific form of tourist activities.

~ r-zones recreational areas as “day-time centers” in coastal area.

Ston municipality needs initial, “start-up” project in the tourism sense in the “east gate” area. urban experts have defined several possible locations for that in their analysis in the second part of this document. However, among sugge-sted locations, only this one has potential to be fast realized.

on other locations it is not possible to realize development fast because of different reasons (army/navy interest indu-cing planning constraints, unresolved ownership, lack of inte-rest from owners to develop their land, etc.)

eMAC capital investment initiative and development need of the municipality of Ston are compatible and eMAC initiative represents very positive impulse for Ston which can bring the development to the fast lane. Land acquisition strategy of eMAC shows that concept is not focused on “buy – change land purpose– sell”, as only a small part of the area bought by

Duba Stonska/Bjejevica – possible development locations (phase one and two)

Rusan/Zjat – visualization of possible solution

Page 86: Five elements of Ston

Rusan/Zjat – possible solution

Page 87: Five elements of Ston

Rusan/Zjat – hotel visualization– example how to fit in landscape 

Page 88: Five elements of Ston

178 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 179

eMAC Capital is planned to be transferred in T- and r-zone areas. Thus, only projects realized in an appropriate timeline and “working”, can bring required financial benefit for the in-vestors and in doing so bringing Ston economy and public administration forward. Development direction is to develop the Duba Stonska / Bjejevica region out of one concept, with the advantage to keep region under one development frame. By doing so, misleading developments can be avoided within this area, and development of high quality nature/rural touri-sm in symbiosis with existing urbanisations, agriculture and marine aquaculture can be assured.

Development in Duba Stonska should be considered as ge-neral development of the wider area, even though it will be stepwise realized. Ston municipality should enable further, comprehensive development of Duba Stonska / Bjejevica Projects by the appropriate planning procedures. when the development is managed in that way following is possible:

~ to elaborate detailed sustainable development con-cept for the entire area;

~ to prepare comprehensive impact to the environment study for entire development in relation to natu-

re protection and influences to traditional marine aquaculture business,

~ to plan, finance, realize and refinance the required infrastructure for the development of the entire Duba Stonska region

~ to create and integrate resort with wide range of accommodation types, attractions and offer recre-ation and leisure activities in order to make project recognizable at target markets

~ to create a “light house” project, which is required to realize Ston destination development push

Special regards must be given to environment protection and for the development of high quality, reliable infrastructure. Fo-llowing must be achieved:

~ complete prevention of sewage infiltration into Bje-jevica and Mali Ston Channel (closed water cycles, quality sewage pre-treatment and partially recycling, safe transport of remaining sewage and sludge out of bay area, no waste water into the sea),

~ consequent modern waste recycling and manage-ment system,

Bjejevica layout possible solution

~ very careful and partially restricted “use” of the coastline and sea for recreational purposes (to define in further development concept stages and impact to the environment study),

~ extensive use of natural building and operation materials,

~ appropriate architecture designs to achieve authen-tic, non disturbing appearance of the projects, gently embedded in area topography and morphology,

~ noise and dust emission reducing measures during construction phase,

~ project concept, realization and operation according Ston municipality commitment for sustainable development.

Tourism zone rusan developement should be typical T1 zone development, with majority of accomodation in hotel facility, supplemented with additio-nal (maximum 30%) broken structure, smaller villa type units, managed by the central hotel. entire development in this area must be structured, master-planned, planned, realized upholding sustainability principles. Location of the potential hotel plot is south-west oriented allowing for optimal sun ex-posure, especially in the late autumn/winter times. Location is wind protec-ted and that aditionaly is aspect to be taken into account in later stages and further planning. Buildings should be in-tegrated in the environment, especially

in landscape sense, and view from sea and existing village Duba Stonska to the area should be improved by the deve-lopment. In the design stages usage of traditional materials should be accom-panied by modern elements and mo-dern materials, making fusion of the past and future. In the planning stage special emphasis must be put on: ener-gy efficiency, integration of renewable energy sources, waste water treatment, water usage/re-usage management, environment friendly business appro-ach, green area preservation and en-hancement, coastal line protection and enhancement, integration and usage of authentic plants and wildlife, etc.

Displayed idea designs are just first, non-binding drafts, visually showing how prior described development could be materialized in defined space.

Municipal Development unit (MDu) should be the binding link between Ston council / administration and project initiators / investors by supporting municipal administration with the required urban and infrastructure development measures as well as assisting project initiators in developing and realizing project according public defined direction.

All measures carried out for the project development and re-alization will have to be based on municipal council decisions, and public administration control and guidance.

Rusan/Zjat – layout concept

Rusan/Zjat – view from pool terrace – visualization

Page 89: Five elements of Ston

180 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 181

BrIjeSTA ProjeCTSBrijesta today is a small, sleepy village, which enjoys its tra-nquillity and comes to life in the summer time. People of Bri-jesta live from marine aquaculture, agriculture and tourism.

Thanks to the “new bridge” entering Pelješac exactly above Brijesta, this village will come “to life”, and it would be wise that the people and municipality take advantage of that.

The main development in Brijesta should happen in the following sectors:

~ Tourism development (development of new tourist projects and refurbishment/extension of private sec-tor accommodation)

~ retail development (viewpoint located near the “new street”, with retail centre for guests and local people)

~ Marine Culture (development of storage/distribution centre on the coast for sea farms)

New tourism project is envisioned on the left bank of the bay and it covers approximately 5 ha.

~ T1 = 70 % hotel accommodation, 30 % villa accom-modation (max. 500 beds)

~ resort hotel village with oysters/wine theme ~ external resort areas should be arranged in the aut-

hentic style (vineyards, olive trees etc.) ~ Semi-detached villas & apartments as accommoda-

tion option

Project name Furhter detailsUrban planning background

Project approach Financing approach

Brijesta

Retail Zone

1,5 ha retail, commercial – access from new main road – viewpoint to Brijesta, zone for shopping, resting, maybe even small accomodation facility for travellers

Still to integrate in county plan – request made

Public initative – private investment modell

Private investment financing

Tourism ZonePublic land – 5ha – max. 500 beds –

Included in county plan proposal from 03-2009

Public initiated – private realized or in PPPmodel

Private investment financing

Changing and improving urban structure

Implementing services and small village center – improving “picture” of village

Within existing urban structure

Public initiated – service private realized

Public and private financing components

Table 40: Brijesta projects

Brijesta bay

Brijesta bay at sunset

Brijesta Bay

~ All buildings should fit into the environment an by vegetation shielded from direct view from sea

~ Central facilities such as sports, entertainment, leisu-re, service, etc.

~ eco-friendly beach solution ~ Connected to the existing village by a walking path

along the sea (street access by existing street)

retail Development is planned on the right side of village, on peninsula where the bridge enters the peninsula. It is envisio-ned as a combination of view point, shopping and rest place.

Simple shopping centre with: restaurant, open air café with view to Brijesta, retail, small hypermarket, entertainment, local products specialized market. Target clients are: local population from Brijesta and southern part of Pelješac, inha-bitants of Neum, passing through population, tourists from Brijesta and southern region of Pelješac.

Page 90: Five elements of Ston

Central facilities: ~ pool, bars, restaurants, shops ~ main building and reception area ~ boutique hotel and wellness

Beach, sports, entertainment, F&B: ~ managed beach with eco solutions ~ entertainment, bars, restaurants ~ promenade along sea and beach ~ sport areas

Villa accommodation: ~ small individual buildings ~ preserved natural green ~ fitting to the area and local style

Brijesta - Tourism Development

Page 91: Five elements of Ston

184 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 185

Additional commercial project is to be located in Brijesta re-gion near the coastline (and also in Duba Stonska). exact location will depend on desires of local entrepreneurs and municipal opinion. Since the region of Ston already has a si-gnificant production of sea products (although natural resour-ces enable even greater) it is necessary to take a step forward in terms of development of this branch (especially in order to follow the accomplishments of the research centre Bistrina with oyster seed production). Necessary infrastructure in the

Project name Furhter detailsUrban planning background

Project approach Financing approach

Marine Aquaculture Centers

Marine Aquaculture Center Duba Stonska

Packing, logistic, transport, etc.

Included in county plan proposal 03/2009

Pivrate initiated with public initative and support

Private financed

Marine Aquaculture Center Brijesta

Packing, logistic, transport, etc.

Included in county plan proposal 03/2009

Pivrate initiated with public initative and support

Pivrate organized with public support

Table 41: Marine Aquaculture Centers Projects

further development of marine culture as well as modern faci-lities for harvesting, processing, packaging and distribution of sea products (especially oysters) are of great importance. As a part of this facility, municipality should plan to develop oy-ster museum (as it is a fact that oysters have been harvested in Ston region since the roman times). Additional activities such as visits to the farms, harvest your own oysters, educa-tional tours about oyster farming and similar projects should be developed in coordination with the tourism sector.

(left & above) Commercial zone examples

(top) Possible location commercial zone Brijesta

ŽuLjANA ProjeCTSŽuljana development projects focus mostly on the tourism development. According to the last version of the Additions and Changes of the County Plan the development of nautical marina and tourist zone is planned on this location. This area

Project name Further detailsUrban planning background

Project approach Financing approach

Žuljana

Marina Žuljana Up to 200 berths

Included in county plan proposal from 03-2009, also existing in current valid county plan

Public initiated-private realized and operated as concession model or PPP project with public risk and profit involvement – to combine with tourism zone development Žuljana

Private financed or PPP

Tourism Zone

10 ha T2 zone – (250 beds) maybe extending to 500? Small boutique hotel and small target group quality village resort

Included in county plan proposal from 03-2009

Public initiated – private realized, either in PPP or tendering land in investor competition. Solution for infrastructure deciding

Private financed or PPP

Changing and improving urban structure of Žuljana

Solution village street (dead-end street behind Žuljana to T-zone) – implementing services and small center – improving “picture” of village – implementation of a small village pension/hotel

Within existing urban structure (street behind Žuljana, extending existing paths)

Public initiated – private realized

Public and private financing components

Table 42: Žuljana Projects

has an exceptional beauty, so in the development process a special attention must be given to the preservation and en-hancement of natural beauties.

Žuljana

Page 92: Five elements of Ston

Žuljana - Tourism Development

Page 93: Five elements of Ston

188 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 189

Marina development should take place in the bay where the village already exists, and the structures of the marina must ensure:

~ enhanced (not disrupted) view from the village ~ Protection of sea water quality ~ Constriction that does not interfere with natural sea

currents ~ ecological practices (highest level) ~ Attractiveness for the guests ~ yearly round visits

Development of T zone in Vučina bay beside Žuljana village should be a special project. Land planned as a T zone is the municipal land. Therefore the municipality has a full responsi-bility to describe the development that occurs there worldwi-de as an example of sustainable tourist development. T zone in Žuljana should be developed in following manner:

~ Clear infrastructure concept, (this should be clearly defined and planned before the tourism development can start, especially traffic access must be redefined)

~ 10 ha zone with maximum capacity of 250 beds (should be extended to 500)

~ “Virgin Nature resort”, central boutique hotel, resort villas

~ “Central Plaza” with commercial/retail/entertainment/dining/activities

~ Sports and activity centre (biking, hiking, kayaking, diving etc.)

~ Network of walking/biking paths leading to Žuljana and into the nature (along the vineyards and olive groves)

(top & botom) Four Seasons Hotel, Seychelles

(top & botom) Marina examples

(top) Possible development T-zone Žuljana (below) Examples of development; (below) Sea and sailing

Page 94: Five elements of Ston

Žuljana - Tourism Development

Page 95: Five elements of Ston

192 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 193

As the zone is planned on municipal land, this project is very suitable for public-private cooperation and development. The calculation of expected costs and income from this project is given below. It would be wise to assign MDu unit to further develop, structure and define the project.

a) Municipality First stage development:

External development of the plot: 100.000 sqm

Land sales income municipality: 50 €/sqm 5.000.000 €

(Recommended minimum price for a tender)

External plot development:

Street access to the zone 1.000 m -400.000 €

External infrastructure access to the zone 1.000 m -200.000 €

Connection to sewage plant in Žuljana 1.000 m -100.000 €

Costs for compensation land owners (infrastructure access) -300.000 €

Planning, UPU, DPU -300.000 €

Concept, marketing, management, investor competition -300.000 €

Beach and seaboard improvement, green planning and development, landscaping, walking tracks, etc.

-1.200.000 €

Remaining “income” municipality 2.200.000 €

+ Landbuy taxes (sale of plot)

+ Change of land purpose tax

+ Annual tax and fees to municipality

b) Investor:

Landbuy price incl. Land buy tax and extra costs: 7 % 5.350.000 €

Internal infrastructure and zone development, incl. Green spaces 50 €/sqm 5.000.000 €

Extra costs (planning, management, marketing, contingencies): 1.500.000 €

Total costs (first rough extimation) 11.850.000 €

Use of spaces

Gross zone size: (gross built land) 100.000 sqm

Built up coeficient: 0,2 (built up land) 20.000 sqm

Zone development costs on total zone size: 100.000 sqm 119 €/sqm

Minium risk and marging profit investor: 30 %

Total land costs related on total zone size 154 €/sqm

Table 43: Žuljana T-Zone Development (example calculation – all figures are first assumptions, details must be elaborated out of first project analysis)

SouTH reGIoN ProjeCTSSouthern region of the municipality refers to development lo-cations of kobaš and Smokvina bay.

kobaš is a small place with several houses, few restaurants and some berths. It’s the pristine seawater and the exquisite gastronomy of the restaurants that make this place “a secret” among the nautical tourists of the Mediterranean.

Project name Furhter details Urban planning background Project approach Financing approach

Kobas / Tourism zone Smokvina / Rukavac cape

Small Marina Kobas Marina max. 50 berthIncluded in county plan proposal from 03-2009

Private – public concession

Private financed

Small T-zone KobasSmall boutique hotel on 5.000sqm (0,5ha) with up to 50 beds

Included in county plan proposal from 03-2009

Private – public support Private financed

Tourism zone / Resort Smokvina/Rukavac

Longterm tourism development project - T-zone development about 15ha

Starting process when Ston has alreday reached a name on international tourism market and further development potential of the region is recognized and requested from municipality and Ston citizens

Public initiated – private realized

Private investment modell or PPP model

if possible realized on public land

Table 44: South region projects

Planning directions for the development of kobaš:

~ Planning of small exclusive marina with approx. 50 berths (max. 100 – legally possible)

~ Small, “romantic” sailors’ hotel within the marina ~ The street access should be carefully planned and

constructed (in order to avoid the overpopulation of the area)

~ Planning for water/sewage/electricity

kobaš must keep its special atmosphere it has today. This must be the basis for a small, but smart development. (high value – low volume approach)

(top) Aerial view of south region(bottom) Old steering wheel

Page 96: Five elements of Ston

194 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 195

The tourism development in Smokvina would have absolutely superb location, with breathtaking view.

The location of Smokvina has a potential to become the touri-sm “lighthouse project” of Ston and in that way play an impor-tant role for the regional development. (A lighthouse project is the leading project in a region, pushing forward the entire region and “jump-starting” further development)

Tourist project within this tourist zone must be developed by taking into consideration the following:

~ Street access via Broce following the existing fire road (not over kobaš, to prevent exposing a small bay to too much traffic)

~ water supply, sewage, electricity solution (sustainable – applying renewable energy, energy saving, re-use, etc.)

Light green marked is municipal land

Location analysis for T-zone development

~ The land where development is suggested is public owned land.

~ 15 ha zone ~ 4 to 5 stars resort, with central hotel facilities (T2 zone) ~ Combination of hotel accommodation and high quality

villas managed by the hotel (private residence concept) ~ Ca. 150-200 bedroom hotel + 100 villas ~ “Central plaza” with entertainment, dining, retail,

services, etc.

~ Large wellness and spa area as a part of the resort, but open to outside guests as well (especially to kobaš marina, hotel and private accommodation guests)

~ Sport facilities (gym, tennis courts, running paths, walking paths, biking, hiking, water sports)

~ Zone “communicating” and “supplementing” the development of kobaš

Kobaš berths Kobaš restaurant

View to Marculeti bay

Page 97: Five elements of Ston

196 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 197

CeNTrAL MuNICIPAL AreA ProjeCTS

TourISM AND VINeyArDS

Central belt of the municipality is suitable for different aspects of development. It is naturally predetermined for the growth of exquisite grapes, while winds blowing among the high peaks produce wind energy. Additionally, within small settlements and near vineyards it is possible to develop authentic type of tourism associated with agriculture.

There are worldwide examples that this sector is growing strongly. Tuscany region in Italy, Mosel in Germany, South France, California, all these areas are strongly developing “wine tourism”. Ston area is also rich in olive-groves and oy-ster farms and therefore can offer a unique experience for this market segment (usually affluent, older people, spending significant number of days and money on vacation).

Project name Furhter detailsUrban planning background

Project approach Financing approach

Tourism vinery projects

Several locations esp. In main vinegrowing areas

Combining vinery and tourism – small wine-hotels in authentic style, with quality offers (wellness, culinaric, activities), good expamles in Toscana, France, Germany

Depending from location

Private organized – public support and initiating programm to implement new facilities

Private financed – public support

Table 45: Tourism vinery projects

(top) Example of wine tourism development (bottom) Vineyards along the main road Ston – Orebić

Project name Furhter details Urban planning background Project approach Financing approach

Re-activation and rehabilitation old villages

Several locationsMain obstacle is ownership structure and to bring s.th. attractive to the village

Counting as existing urban structures – partially maybe under protection

Public initiative needed to solve ownership structure – elaboration of concepts to attract investors – early stage agreements with owners needed to be successful

Private investment model – public initiated

Table 46: Re-activation and rehabilitation old villages

reHABILITATIoN oF oLD VILLAGeS

In this region there are many small abandoned settlements which should be brought back to life, either as living area, tourist accommodation area, or cultural and activity centres.

Complex ownership issues, strict conservation regulations, neighbour disagreements are just some of the difficulties whi-ch stop the spontaneous development. one of the tasks of the MDu should be to find smart solutions on how to achieve the revitalization of old villages.

(top) Old house(bottom) Small places with natural peace

Page 98: Five elements of Ston

198 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 199

wALkING, HIkING, BIkINGSton municipality has spectacular landscape: Many hills, pe-aks and unique ridges along the coastline (from Prapratno to Žuljana, and further towards south, with some of the most spectacular views). These amazing locations must be intro-duced to guests, but at the same time protected and preser-ved. The project of Pelješac wine roads along the Napoleon road is an excellent approach to bring the wine region closer to people. Also other areas should be further explored and marked with paths (mountaineer style paths, following natural terrain and conditions). Cooperation with Croatian Mounta-ineering Association or with the local mountaineering clubs can assure the realization of such project with acceptable costs, immediately enriching the tourist offer and experience.

Project name Furhter detailsUrban planning background

Project approach Financing approach

Ston walking, hiking, biking paths

Paths Along best view points, better access to sea and bays, access to historical and cultural heritages

Concept for walking, hiking paths must be carried out

Public – grants, funds, co-financed by other projects

Pelješac wine road

Revitalization of “Napoleon Street” as unique attraction connecting past with future, directly influencing cultural and economical development of Peljašac.

Existing street, already registered in most part as public land, mostly its located outside urban structures

Public project (coordination between several municipalities)

Public financed (development funds)

Table 47: Ston walking, hiking, biking paths

(top) Hiking(bottom) Wild flower

Project name Furhter detailsUrban planning background

Project approach Financing approach

Renewable energy projects

Several possible locations

– Wind energy parkDepending from energy form

Public initial initative, private organized and realized – finding professional parterns for renewable energies

Private investment financing – based on law and regulations for refunding energy from renewable sources

– Solar energy park

– Biomass powerplantsUsing bio-waste from agriculture, esp. olives

Table 48: Renewable energy projects

reNewABLe eNerGyThe municipality of Ston, with its defined sustainable develo-pment approach, should put special focus on energy efficiency (avoid and reduce) and clean energy production to meet future energy demands, especially regarding the realization of seve-ral new zone developments and accompanying growth of local economy and subsequently the growth of energy consumption.

Additionally as a contribution to the protection of natural re-sources, renewable energy projects can significantly deliver further positive aspects to Ston:

~ concession fees for the land use (preferable on public land)

~ regional investment (tax income sources) ~ positive “image” of Ston as a destination “sustainable

in practice” (Pr and marketing aspects)

~ income source for local economy (e.g. use of locally produced bio waste, service and installation work for the local companies)

~ direct and indirect employment effects

Further described investments in renewable energy are ba-sed on the Croatian laws and tariff system for the electricity produced from renewable energy sources and cogeneration. (see current tariffs in Part I tables).

Graph 12: System of incentives for eligible producers; source www.hrote.hr

CA

SH

FLO

W

INCENTIVE PRICE

Eligible producer HROTE Suppliers Customers

Price for consumed electricity including incentive fee and all other fees regulated

by lawPrice for purchased RESCO electricity including incentive

fee

Page 99: Five elements of Ston

200 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 201

eXAMPLe 1: BIo eNerGy ProjeCTPerformance (output) size between 50 kw and 1 Mw of pro-duced electrical power.

The concept of “combined power-heat plants” must be de-veloped in order to produce electrical power and heat. Heat can be further converted to the cooling supply, depending from the local demand. Heat is usually priced in a range of 3-4 ct/kwh.

An optimal source of biomass in Ston area can be remaining material from the olive oil production. The average energy va-lue of the olive pressing residue is about 18 Mj, which can be compared with the energy value of wood pellets and is so far about twice as high as that of lignite.

The biomass plants are housed and thus do not produce a di-sturbing noise emission. The plants can be realized in vicinity of buildings with the advantage to supply buildings with hea-ting or cooling system, parallel to the electrical power supply.

Space demand for the plant is between 100 and 1.000 m2, de-pending on the required storage capacity of the input material.

Main condition for realization of bio-power plant is a long term procurement contract with biomass suppliers (olive oil produ-cers).Plants should be placed near electrical power grid lines and locations where heat/cool is needed.

eXAMPLe 2: SoLAr eNerGy (PHoToVoLTAIC) ProjeCTBeside private and commercial use of photovoltaic energy (with e.g. south oriented roof installations) smaller photovoltaic parks could be suitable projects for the reduction of conventi-onal energy consumption. “Mediterranean Solar Plan” defines that the region will produce 20 Gw of new renewable capaci-ties by 2020. Phase I lasting from 2009 to 2010 is reserved for the pilot phases, whereas from 2011 a real large-scale deve-lopment should happen. with appropriate planning measures Ston could take advantage of financial support which will be provided through Med union and Med Solar Plan.

Required plot size (example): 

ca. 15.000 m2 flat plot, or slightly sloped southern orientation plot

Required grid insert point:

Minimum a 20 kV power supply line

Possible plot concession fee: 

ca. 20.000 € p.a.

Table 49: Solar energy project example conditions

Further analysis will show if suitable plots are available with fo-cus to public land (physical planning, landscape protection).

Portfolio of possible locations could be compiled in a small investment brochure for the national and international stake-holders in the solar energy market.

Preparations:Definitions of the objectives and organisation of the MSP process

Pilots:Development of economic and technological pilots.elaborate mainstream procedures for the MSP

Large Scale Development:MSP large scale development based on the experience of Phase 1

Phase 0 Phase 1 Phase 2

Graph 13:Phases of the MSP

(top) Olives(bottom) Sun collectors

eXAMPLe 3: wIND eNerGy PArkwind Park with e.g. 10 to 20 wind turbines needs a minimum 110 kV power supply line as energetic insertion point.

e.g. installation of 25 Mewl with 2,5 Mw wind turbines requi-res an area of about 100 ha (10 turbines * 10 ha).

Depending from wind energy potential on selected area, an annual plot concession/lease is usually in a range between 3 to 5 % of the produced energy income (turnover).

In county spatial plan, an area is already pre-defined where wind energy plants can be installed after thorough investiga-tions. The influence on natural and topographic appearance will have to be especially considered.

(top) Wind turbines(bottom) RES wind energy location in Ston

Page 100: Five elements of Ston

202 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 203

ProjeCT FeASIBILITy FrAMeAll projects described before, are roughly evaluated concer-ning the realization points such as:

~ project location topography and morphology ~ general access to infrastructure ~ land ownership conditions (areas with public land

– priority) ~ physical planning background ~ project integration in surrounding area (landscape,

nature, urban structures) ~ market needs (does the project approach generally

meet market request) ~ general financial feasibility

All projects should be investigated in more detail, especially in the first planning phase with focus on the following:

~ legal aspects (ownership conditions, rights, claims) ~ physical planning frame regarding limiting conditions ~ feasibility related to landscape and nature preservati-

on and protection ~ pre-assessment of infrastructure connections ~ market needs – before offering project to investors/

operators – project should be structured as highly interesting for the market (market research and pre-negotiations with market participants should be carried out in this phase)

~ administrational investigation and concept (how to set up project organization)

~ financial feasibility (create a model with financial key frames which make project financially interesting for all project-stakeholders)

– public sector – local private business – integration in project,

added value chain – investors – operators

That means especially that land prices and communal fees should be structured from the beginning in such manner that the investment is financially feasible (top-down calculation).

example calculation for the development of new residential area had to form an acceptable market price:

~ market price which an end-buyer of a residential plot is willing to pay for building a residential house/villa

– reduction factor for land that can not be sold (street, public places, green areas)

– costs for zone-preparation (terrain, clearing plots, etc.) – costs for internal infrastructure installation, green

areas and joint facilities

– project development, planning and marketing costs – margin for risk and profit = maximum sales price of land which can be offe-

red to the public or private land seller

Mosa Trajectum, Spain, Ecological golf course within UNESCO protected area. The development of the golfcourse and accompanying residential, commercial and public areas was possible because of low price asked by municipality for land (1 €/m2, in addition to realize sewage for entire nearby municipal central city). Mosa Trajectum today has one of the most modern biological treatment stations, elaborated water re-use and water protection concepts and municipality with its development has prospered significantly

Examples – open spaces

Only the process, in which market prices for land and plots are set and calculated according to the “earning rates”, will create a market which is attractive for deve-lopers to start “sustainable” initiatives. Financial interest

must be stimulated in order to start with the investments. Market prices created by personal “desires” of sellers encourage overdevelopment, diminish quality and stifle serious development.

Page 101: Five elements of Ston

204 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 205

Development Measure: Business Development

Business development in region can happen on its own, or it can be “stirred” and “spurred” by the public side. with support from the county and the responsible ministries, the municipality can develop a business program which should make it easier to start a business. Very important tool is a public unit which can professionally support private sector in specific aspects such as grant applications, product development and investment planning. This would also be the task of MDu, which would be in charge of shaping and realizing Business Support Programs.

It would be wise that public authority applies the same prin-ciples in business development that private companies apply when increasing their activities. Business development invol-ves evaluating business and then realizing its full potential by using tools such as:

~ Marketing ~ Information management ~ Customer service

Municipal goal is to have strong and vibrant SMe sector. However, local people from the region lack business deve-lopment skills. Therefore, in order to strengthen this sector (which is very important for strong and stable economy) pu-blic must provide appropriate support services which will enable an access to knowledge for entrepreneurs and small business start ups. By doing so, chances for successful busi-ness development will increase, and local people will be more willing to start business knowing that they have experts avai-lable to assist them in building their business up. Wild flowers

when analyzed, even just briefly, it is clear that there are many missing components in Ston region, in terms of products and services. The “checklist” of missing components in the Ston municipality and components which need improvement is drafted below:

~ Improvement and extension of local economy – Supply (shopping, retail, delivery, etc.) – own production of building material – oyster products!

~ within residential zones – upgrade of quality (planning, supply of materials,

furniture, construction work, etc.) – New offer within villages (small specialized shops,

galleries, etc.) – New build up projects

~ Sport and leisure – wellness and spa – Sport and recreation facilities – Sport shop

– entertainment events ~ Missing services

– Health center – Vine bar – rental service (cars, motors, bikes, etc.) – oyster bar – Beauty salon (hair dresser, massage and other

treatments) – Diving/sailing schools – Library – Clothes shop – Shoe shop

~ Culture and History – Guide books – Guided tours – Admission payment in certain places

Active public management can significantly speed up business development, especially if the public administration has an ava-ilable access to the international knowledge and experience.

Snow in Ston

Page 102: Five elements of Ston

206 Five elements of Ston - Development Concept of Ston PArT III: FroM VISIoN To reALIZATIoN 207

Benefits from realization

when development happens and investments get realized, the positive impacts on both public administration and people are significant. In order to emphasize the importance of fast, but responsible development process, in terms of projects here presented, there are some public sector benefits which appear on account of private sector investments:

~ Strengthening and growth of local economy ~ New business opportunities ~ Creation of new jobs ~ Growth of economic power of local population ~ Development of the community (further infrastructure

development, both soft and hard infrastructure) ~ Better positioning of Ston within the Mediterranean

region (increased recognition) ~ Increase of public budget by tax and other dues

– one-off taxes (real-estate tax, land purpose chan-ge tax, infrastructure fees)

– Monthly, quarterly, yearly dues (taxes, salary fees and contributions, non fiscal dues, concessions, etc.)

~ export increase ~ Improvement of the investment image ~ Clear guideline and example for future “sustainable”

development in the region ~ example for environment protection and preservation

From project calculations and past experience, usual rates of direct financial benefits from tourism development is roughly 5 % of the total investment as one-off taxes, and 20 % of turnover on yearly basis. Terrace with view

using the project Žuljana as an example to do the calculation, a public sector return as one-off fees would be slightly higher because of the selling price for the land and would come to approximately 9.000.000 €. regular yearly tax and other pu-blic dues, (not only to municipality) when calculated for touri-sm project with 250 beds, 80 € as an average room rate, 50 employees and occupancy of 60 %, would be approximately 3.000.000 €.

Initial project in Duba Stonska region can bring huge benefits to municipality, its inhabitants and local economy by:

~ direct and indirect income sources by one-off and regular taxes, fees and contributions to public sector

III. Financial returns public sector: Estimation public financial benefits – only direct from the project!

A) One off:

Land sales income: 5.000.000 €

A – Realestate tax: 250.000 € 1.825.000 kn

B – Land purpose transfer tax: 1.000.000 € 7.300.000 kn

C – Infrastructure connection fees: 3.000.000 € 21.900.000 kn

Total – one off taxes: 4.250.000 € 31.025.000 kn

Total – one off income: 9.250.000 € 52.925.000 kn

B) Annual financial benefits:

VAT & Operation Taxes:

VAT – from accomodation: 438.000 € 3.197.400 kn

VAT – from Marina and other turnover 1.656.390 € 12.091.644 kn

Consumption tax: 16.425 € 119.903 kn

Company Profit Tax: 547.043 € 3.993.416 kn

Total VAT & Operation Taxes: 2.657.858 € 19.402.363 kn

Taxes and contributions on salaries: local tax 2.881 € 21.033 kn

tax 28.812 € 210.326 kn

contributions 134.745 € 983.642 kn

Total taxes and contributions on salaries: 166.438 € 1.215.000 kn

Fees, contribution and memberships:

Communal Fees: 32.877 € 240.000 kn

Forest fees: 9.573 € 69.885 kn

Chamber of commerce membership (category III/monthly) 9.041 € 66.000 kn

Chamber of commerce contribution: ( % on turnover) 1.026 € 7.488 kn

Tourism Board Membership: 34.190 € 249.589 kn

Tourist Taxes: 45.000 € 328.500 kn

Total fees, contribution and membership: 131.707 € 961.461 kn

Concession fees taxes:

Marina Concession Fees: 250.000 € 1.825.000 kn

Public area usage tax (10 % of concession fees) 25.000 € 182.500 kn

Total concession fees and taxes: 275.000 € 2.007.500 kn

Total annual taxes and fees: 3.231.003 € 23.586.324 kn

Table 50: Financial returns public sector

~ creation of attractive work places (household income, education, stabilization and growth of population)

~ boost the local economy (huge potential for extensi-on and foundation of supply, service and production business)

~ infrastructure development ~ positioning Ston with a “light house” project on inter-

national tourism market ~ participation of the project initiators in general Ston

destination development and management process (financial and non-financial support)

Ston municipality with its great development potentials is fa-ced with vast challenges to realize the development vision respecting its citizens, environment and market.

Page 103: Five elements of Ston

208 Five elements of Ston - Development Concept of Ston

Slim and efficient organization – outsourced to a Municipal Development unit, with creative and professional working staff (employees and external experts) will have to develop and manage projects under guidance and control of muni-cipal council to realize a stepwise program in tourist, inves-tment and business sector.

Immediately after the set up, financing, and development phase is over (approx. 2-3 years), the municipality will signi-ficantly benefit from the tangible and intangible returns as a result of the development process. Incorporation of Ston

inhabitants, local businesses and public authorities in all steps of development will lead to the high acceptance of all development phases, which will be attractive to the “private investment capital”. Since the projects in coastal Croatia ge-nerally have quite negative Pr, the structure of these projects should be focused on all three sustainability fields from the very beginning: financial feasibility, environment sensibility and social awareness. This will bring necessary impulses to the region as well as reputation and respect to a development tailored to the region and to its inhabitants.

Graph 14: Summary – starting the development process

Foundation local development fund – public loan – regional development grants – PPP-start up financing fund – public budget

~ 30 T €

Development study

Business planMunicipal

Development Unit

FoundationMDU

~ 300 T €

~ 2 months~ 6 months ~ 1-2 years

TOURISM ~ brand ~ marketing & sales ~ development ~ management

INVESTMENT ~ preparation ~ financing ~ management

RE

FIN

AN

CIN

G &

PR

OFI

T

PRIVATE SECTOR ~ support ~ marketing

Pool example

The voyage of discovery is not in seeking new landscapes but in having new eyes.” Marcel Proust

Page 104: Five elements of Ston

210 Five elements of Ston - Development Concept of Ston reSourCeS 211

1. Final Draft Spatial Plan of Ston Arhing Trade d.o.o., December 2007

2. Spatial Plan of Dubrovnik Neretva County, Institute for Spatial Planning Dubrovnik, 2006

3. Changes and Additions to the Spatial Plan of Dubrovnik Neretva County, Obligatory Addition, Expert basis for Spatial Solutions, Institute for Spatial Planning Dubrovnik, 2009

4. Strategy of Spatial Arrangement of Croatia Ministry for Spatial Planning, Construction and Habitation, Institute for Spatial Planning, 1997

5. Program for Spatial Arrangement of Croatia Ministry for Spatial Planning, Construction and Habitation, Institute for Spatial Planning, 1999

6. Employment Statistic, According Municipalities Croatian employment Institute – official statistics, August 2009

7. People Census 2001, DZS, 20018. ROP Dubrovnik Neretva County 2007 - 2013

Hrvatski farmer d.d., Nesek d.o.o., reiffeisen Consulting d.o.o.

9. Announcements, Trgovina, Ugostiteljstvo, Turizam, DZS, 2006,2007,2008,2009

10. Statistical Reports, 1381/2009, DZS, 200911. Agrliculture Cenzus 2003, DZS, 200312. PUR Starigrad – Razvojni projekti

općina Starigrad, ekoFArM13. Strategy of Sustainable Development of Croatia

Validated by Parliament 20.02.2009

14. Bruntland Report (Our Common Future) united Nations world Commission on world and Development, 1987

15. Action for more Sustainable Tourism of Europe report of the Tourism Sustainability Group (established by the eu Commission), February 2007

16. Making Tourism More Sustainable, A guide to Policy makers, uNwTo/uNeP, 2005

17. Possible Means of Protection and Identification of Mali Ston Oyster in the Market Mia jug-Dujaković, Ana Gavrilović, jurica jug-Dujaković, Professional Paper, Naše More 55, (5-6)/2008

18. Historical Overview of Oyster Culture in Mali Ston Bay Sanja Tomšić, josip Lovrić, „Naše More“ 51, (1-2)/2004

19. Mali Ston Bay – Adriatic Pearl Ante Šimunović, Naše More, 51, (1-2)/2004

20. SOS for Ston Oyster Antun Pavlović, Naše More, 51, (1-2)/2004

21. Croatian and European Market for Oysters esme Marčelja, Beti Bigunac, Branko Glamuzina, uDk 594, Conference Paper

22. Main Olives Varieties in the area of Dubrovnik Neretva County, with special reference to autochtonous species of the Pelješac Peninsula P. Bakarić, PoMoLoGIA CroATICA Vol.11, 2005, br. 1-2, Conference Paper

reSourCeS 23. Knowing the Ston Saline Additionally Šime Peričić, Anali Dubrovnik 43 (2005) 139-163

24. 2009 Review of the EU Strategy for Sustainable Development Commission of the european Communities, Brussels, 24.07.2009

25. Review of the EU Sustainable Development Strategy – Renewed Strategy Council of the eu, General Secretariat, Brussels, 09.06.2006

26. Mediterranean Strategy for Sustainable Development, A Framework for Environmental Sustainability and Shared Prosperity united Nations environment Programme, june 27th 2005

27. Strategies for Sustainable Development, oeCD, Head of Publication Services, 2001

28. Integrated Coastal Management, Sheet A5 Managing Marine Protected Areas, Toolkit

29. Enhancing the Success of Integrated Coastal Management The International workshop on Integrated Coastal Management, 1996

30. Mariculture, Water Encyclopedia www.waterencyclopedia.com/La-Mi/Mariculture.html

31. The State of World Fisheries and Acquaculture 2008 FAo, Fisheries and Acquaculture Department, rome 2009, www.fao.org

32. IES Marine Aquaculture Area of Mali Ston oceanographic and Fish Institute, Laboratory Dubrovnik, May 2004

33. Introduction to Sustainability, What is Sustainable Agriculture? www.sustainabletable.org/intro/whatis/

34. Sustinable Agriculture: An Introduction ATTrA, richard earles, NCAT, www.attra.ncat.org

35. Guide to Good Practice in Tourism Carrying Capacity uNeP, MAP, PAP & rAC, (c) 2003 Priority Actions Programme regional Activity Centre, Split

36. Sustainable Tourism Tim Forsyth, Session 1, LSe

37. The Significance of Environmental Sustainability in Tourism Destination Development

38. Marinela krstinić Nižić, Tea Golja, review uDk 338.48:504.06, Pula 2009

39. Environmental Impacts of Tourism in Developing Countries Doggart V., Doggart N., Travel and Tourism Analyst, (2), 1996

40. Coastal Tourism - A Manual for Sustainable Development Portfolio Marine Group, environment Australia, 1997

41. Action for More Sustainable European Tourism report of the Tourism Sustainability Group, February 2007

42. Incentives and Barriers for the development of the Renewable Energy Sources, Croatia: Country Analisys Daniel rodik, December 2006

43. Brand Strategy for destination development Loccum Consulting, united kingdom

44. The concept of a tourism area cycle of evolution: Implications for the management of resources. Butler r.w. (1980), Canadian Geographer, 24

45. Destination Development Plan Southampton Loccum Consulting, united kingdom, 2005

46. Tourism Management 26 N. johns, j. Mattsson, (2005) 605–616

weB SITeS: – www.sustainabletourismcriteria.org – www.cream-europe.eu – www.mzopu.hr – www.mrrsvg.hr – www.mmpi.hr – www.mint.hr – www.mps.hr – www.min-kulture.hr – www.mingorp.hr – www.apiu.hr – www.izvoz.hr – www.croatia.hr – www.hamag.hr – www.hera.hr – www.hrote.hr – www.fzoeu.hr – www.strategija.hr – www.hgk.hr – www.hok.hr – www.zadruge.hr – www.developmentgoals.org – www.europa.eu – www.world-tourism.org – www.unwto.org – www.sustainabletourismcriteria.org

Page 105: Five elements of Ston

212 Five elements of Ston - Development Concept of Ston

The development concept was prepared by:

mep Projekte GmbH Straße der Nationen 5 30659 Hannover, Germany

mare Projekti d.o.o., Marmontova 5/III, 21 000 Split, Croatia

Proofread by: katja Grcić

with expertise, experience and work of:

IreCoN – InfraregioConsult, königsstraße 52, 30173 Hannover, Germany

Storch and ehlers, Adelheidstraße 18, 30171 Hannover, Germany

Ingenieurgesellschaft Nordwest mbH, Frieslandstraße 2, 26125 oldenburg, Germany

Graphic design by:

lukavidoš

“Development Concept of Ston” presents vision and develo-pment directions set by the mayor, the municipal council of Ston and the local people. According to the international de-velopment practice the experts have transformed the vision into a document which will be an underlying element for the further development of the region.

Martin Pietsch was responsible for the general concept and practical application as well as the realization of development projects in part III. Iris jurčić was in charge of research and analysis of current situation in part I as well as overall text editing and co-writing. Michael koch, Bernt kramer and jorg Dominich prepared an overview of urban development in part II, including graphics and spatial analysis. walther ehlers and reinhard w. klaus enabled visual presentation of deve-lopment vision for tourism development in Žuljana, southern area of Smokvina, Duba Stonska – Bjejevica, as well as vision of the future development in Prapratno.

Božo Letunić made it possible for all the aspects to come together, enabling access to the required documents and ge-nerously giving his opinion and recommendations. That way he significantly improved the quality of prepared materials. His experience and remarks provided a key direction in seve-ral important development issues.

Many thanks to Volker Herrmann, who together with the DeG expert team, laid foundation for this development concept. Their work on Tourism Master Plan of Dubrovnik Neretva Co-unty had a great influence.

Special recognition and thanks to Luka Vidoš. Thanks to his dedication, long hours and perfectionism, this study is clearly visualizing the development ideas for the future of Ston.

Finally, very important inputs and key directions came from the local people, who are all very committed to bring better future for Ston. Great thanks to: Vedran Antunica, Ivica Baro-vić, Fani Slade, Frano Miloš, Sveto Pejić, Darko Dražeta, Al-berto Žile, Ante Pinčević, Berislav Glavor, Nikša roko, Zdrav-ko Miloš, Veseljko Mrčavić, Slobodan Vukotić, Dragan Lopin, Dragan Herceg, Đani Matić, romano Vukas, Slobodan Vuko-tić. Photographs are courtesy of Sveto Pejić, Frano Miloš, TZ Ston, Michael koch, Martin Pietsch and Iris jurčić.

IMPreSSuM

Page 106: Five elements of Ston