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Horwath Consulting ZagrebA member of Horwath HTL

Company Profile

December 2008

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About us - Horwath International

Horwath International is a worldwide network of 380 registered independent management consulting and auditing offices located across 87 countries on all continents, with more than 20,000 partners and consultants. Horwath International was established in 1915 in New York. Member firms of Horwath International provide innovative business solutions in the areas of Assurance, Business Services, Consulting, Corporate Finance, Risk Management, Tax and Technology.

Horwath International member firms are recognized as premier hospitality and accounting consultant firms.

Horwath & Horwath Consulting Zagreb is the leading consulting firm in tourism, hotel and leisure industry of South East Europe region, founded in Zagreb in 1993.

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About us - Horwath HTL

Cooperation of offices of Horwath Consulting specialized in hotel, tourism and leisure industries has been realized through the Horwath Hotel, Tourism & Leisure Group (HTL) , the largest global network of consultancies specialized for HTL industries, consisting of 50 offices in 30 major tourist countries worldwide.

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About us - Horwath Consulting Zagreb

Profound Knowledge of Regional Hotel & Tourism Market • Experience in more than 300 development projects in HTL industries in

the Region• In-depth knowledge of the HTL markets in the Region• Experience of restructuring hotel sector in transitional economies• Advisors to Governments and private clients

Application of International Expertise in Local/Re gional HTL Markets• Best use concepts and market studies for HTL projects• Hotel and tourism projects feasibility studies• Hotel and Company valuations• Search for hotel operators and investors• Involvement in management contract negotiations• Advisory services in hotel companies sales process• Application of internationally recognized hotel industry standards in

hotel companies• Creation of hotel joint-venture companies• Restructuring of hotel companies• National, regional and local level tourism master plans

Strong Specialist Team• International experience and education of team of experts• Individual approach to each client• Pragmatical in problem-solving• Long tradition and experience at the SEE market• Strong worldwide network

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Our Services and Sectors we serve

Industry Sectors We Serve• Hotels• Resorts• Mixed-use Complexes• Conference Centres• Golf Courses• Spas• Tourism• Amusement Parks

Our Services in Project Development

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GOVERNMENTS AND PUBLIC SECTOR• Governments of the SEE countries, Russia, Georgia, USA• Regional public authorities in SEE countries• National tourism boards in SEE countries

HOTEL COMPANIES• The leading hotel and tourism companies in SEE• Corinthia, InterContinental, Starwood (Sheraton, Westin,

Le Meridien), Rezidor SAS (The Regent, Radisson SAS), Sol Melia, Rixos, Designhotels

INVESTORS / INVESTMENT FUNDS, BANKS AND FINANCIAL INSTITUTIONS

• EBRD London, Renaissance Capital Moscow, MENA Investment Egypt, IFC Zagreb, Zagrebačka bank Zagreb, Bosnia Bank International Sarajevo, ORCO, Epic Invest, Delta Real Estate, Pliva, Alpine Mayreder Bau, Holleis Hotels, etc.

Our Clients

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DESCRIPTION OF SELECTED PROJECTS

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PROJECT DEVELOPMENT

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CROATIA & MONTENEGRO

AMANRESORT Cavtat (Croatia)

AMANRESORTS St. Stephan and Queensbeach (Montnegro)

Market and Financial Feasibility Studies

Client: Urban Asset Management Co., Tokyo, Japan

Execution Date: 2008 - current

Project Description Urban Asset Management Co., an investor and project developer from Tokyo, Japan, is developing three Amanresorts at Adriatic coast: one in Cavtat (Croatia), and two on Budva Riviera (Montenegro). Horwath Consulting Zagreb was appointed to prepare Market and Financial Feasibility Studies for all three Amanresorts, intended for investors and creditors of the project. On the basis of an extensive market analysis outlining market trends as well as benchmark and competition analyses, Horwath has estimated demand and expected performances for such high-end luxury resort project, and evaluated the feasibility of the three above mentioned projects.

Specific Activities Developed• Market analysis, benchmark and competition analysis• Brand positioning• Business model• Marketing strategy • Market projections• Financial projections• Feasibility evaluation

BenefitsBased upon a completed report, investor obtained a realistic outlook of market potential and a feasibility evaluation of the three Amanresort projects. The reports were also used as a base for obtaining project financing.

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MONTENEGRO

Two Mixed-use resorts on Budva Riviera

Market and Financial Feasibility Studies

Client: MENA Investment, Egypt (through its SPVs in Montenegro)

Execution Date: 2008

Project Description MENA Investment, an investor and project developer from Egypt, is developing two luxury mixed-use resorts on Budva Riviera (Montenegro).Horwath HTL was appointed to prepare Market and Financial Feasibility Studies for both resorts. The reports are intended for investors and creditors of the project. On the basis of an extensive market analysis outlining market trends as well as benchmark and competition analyses, Horwath has estimated demand and expected performances for luxury mixed-use resort projects on Budva riviera, and evaluated the feasibility of both projects.

Specific Activities Developed• Tourism market analysis and competition analysis• Residential market analysis• Market positioning• Sale-leaseback model• Marketing strategy • Market projections• Financial projections• Feasibility evaluation

BenefitsBased upon a completed report, investor obtained a realistic outlook of market potential and a feasibility evaluation of both projects. The reportswere also used as a base for obtaining project financing.

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MONTENEGRO

Sasko Lake Resort & Residences

Market and Financial Feasibility Study

Client: Homac Ltd

Execution Date: 2008

Project Description It is the aim of a group of Russian businessmen around Denis Fokin to build and operate a first class international Resort Hotel & Private Villas complex at the Sasko Jezero, Briska Gora area in the Ulcinj District/Montenegro. The project will be branded by first class international brand, and consists of an upscale hotel (156 keys), 89 villas, shopping and entertainment centre, and F&B and other commercial facilities. HorwathHTL was appointed to prepare Market and Financial Feasibility Study for this resort project. The report is intended for investors and creditors of the project. On the basis of an extensive market analysis outlining market trends as well as benchmark and competition analyses, Horwath HTL has estimated demand and expected performances for luxury mixed-use resort projects on Ulcinj district, and evaluated the feasibility of subject project.

Specific Activities Developed• Tourism market analysis and competition analysis• Residential market analysis• Market positioning• Sale-leaseback model• Marketing and branding strategy• Market projections• Financial projections• Feasibility evaluation

BenefitsBased upon a completed report, investor obtained a realistic outlook of market potential and a feasibility evaluation of subject project. The reporthas been used as a base for project financing.

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MONTENEGRO

Beach Hotel Tower & Residences in Bečići, Montenegro

Best-use concept Market and Financial Feasibility Study

Client: Capital Estate Ltd

Execution Date: 2008

Project Description Russian investor through its SPV Capital Estate d.o.o. is the owner of the site of 68,500 sq.m. located in Bečići, Montenegro. The investor aims to develop the international luxury mixed-use resort consisting of hotel and villas, which will be branded by an international first class brand. HorwathHTL was appointed to prepare Best-use concept as well as Market and financial feasibility study for this resort project. The report is intended for investors of the project. On the basis of an extensive market analysis outlining market trends as well as benchmark and competition analyses, Horwath HTL has proposed best-use concept of the project and estimated its performances based on proposal of a market and branding strategy. The feasibility of the project has been evaluated.

Specific Activities Developed• Tourism market analysis and competition analysis• Residential market analysis• Benchmark analysis• Market positioning• Best-use concept• Sale-leaseback model• Marketing and branding strategy• Market projections• Financial projections• Feasibility evaluation

BenefitsBased upon a completed report, investor obtained a realistic outlook of market potential and best-use concept of a project, as well as recommendation for the branding strategy of the project.

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MONTENEGRO

KEMPINSKI Smokvice mixed-used resort, Budva Riviera

Market Study and Business Plan

Client: Renaissance Capital Moscow(through its SPV - V.A.S. Invest d.o.o.)

Execution Date: 2007

Project Description Renaissance Capital, the largest investment bank in Russia, is an investor of a luxury mixed-use resort located on Budva Riviera (Montenegro). Horwath was appointed to prepare Market study and Business plan, intended for investors and creditors of the project.On the basis of an extensive market analysis outlining market trends and competition analyses, Horwath has estimated demand and expected performances for luxury mixed-use resort project on Montenegro coast, and evaluated the operational results of the project.

Specific Activities Developed• Tourism and hotel market analysis and competition analysis• Residential market analysis• Market positioning• Sale-leaseback model• Marketing strategy • Market projections• Financial projections of operation

BenefitsBased upon a completed report, investor obtained a realisticoutlook of market potential, sale-leaseback model proposal and a feasibility evaluation of the project. The report was also used as a tool for negotiating a Management contract with Kempinski hotels & resort, which has been closed in December 2007.

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CROATIA

BRIJUNI RIVIJERA PROJECT

Support in Project Development

Client: "Brijuni Riviera" d.o.o.

Execution Date: 2005 - 2008

Project Description "Brijuni Rivijera" Company was founded by Republic of Croatia and Istrian County with the purpose to develop luxury and upscale tourism greenfield projects in six sites (zones) on thewestern coast of Istria. The plan is to attract the first tier hotel and resort operators and international investors to be involved in this project on a concession basis. Horwath supports the Clientwith the consulting services in project development, preparesthe best-use concept for seven sites and management strategyas well as the business plan for the whole project.

Specific Activities Developed•Support to developer in project development•Market analysis, benchmark and competition analysis•Development strategy for the Brijuni Rivijera project•Vision and market positioning•Best use concept and product development•Facilities program•Management model proposal•Market projections•Financial projections•Financial and economic evaluation of the project•Preparation of the tender for investors as per BOT model

BenefitsOn the basis of the services of Horwath, the Client is getting thefull support in the process of project development for Brijuni Rivijera project. On the basis of best use concept and businessplan, the tender is open for the attraction of investors and operators as per BOT model.

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CROATIA

NATIONAL PARK BRIJUNITourism Revitalization Concept;Market and FinancialPre-feasibility Study

Client: National Park "Brijuni"Execution Dates: 2003

Project Description Archipelago Brijuni, as one of most attractive areas in Mediterranean is owned by Croatian government. Purpose of the study with its proposal of revitalisation concept for Brijuni islands was to serve as appropriate basis for activation of tourism potentials of National Park Brijuni in accordance withAreal plan of islands which was introduced by CroatianParliament in 2001. Horwath focus was on revitalisation conceptof hotel capacities and belonging facilities (congress center, wellness center, villas, golf and other commercial facilities) in central zone of Veliki Brijun island, and has also proposedconcept of activation of other for tourism specified areas and locations which would be activated by worldwide knowninternational clients. Finally, document proposed basicmanagement model which enables not only begining of realisation of central zone but also long term and sustainabletourism development of National Park. Purpose of pre-feasibilitystudy was to assess market foundation and financial profitabilityof tourism revitalisation project for central zone of Veliki Brijunisland in accordance with standard international methodology of evaluation of investment projects.

Specific Activities Developed•Market analysis, benchmark and competition analysis•Development strategy for the Brijuni islands•Vision and market positioning•Best use concept and product development•Facilities program•Market projections•Financial projections•Financial and economic evaluation of the project

BenefitsProposed concept for tourism revitalisation and pre-feasibilitystudy for Brijuni islands was a basis for agreement of theGovernment of Republic of Croatia with Istrian County aboutresponsibility division for start of tourism development project forBrijuni islands .

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CROATIA

"SUN GARDENS" Dubrovnik RivieraMarket and Financial Feasibility Study

Client: Sun Gardens d.o.o.Execution Date: 2006

Project Description The Investor intends to develop new branded hotel project at the attractive site of the existing apartment village SunGardens, in Orasac, on the Dubrovnik Riviera. The new project will consist of luxury The Regent hotel and first classRadisson SAS hotel and residences. Horwath role in theproject was to support the Client with the proposals of positioning and marketing strategy of the project, theassessment of its development concept as well as theevaluation of project viability.

Specific Activities Developed•Market analysis, benchmark and competition analysis•Vision, branding and market positioning•Business mix and marketing strategy•Assessment of development concept of the project•Market projections•Financial projections•Financial and economic evaluation of the project

BenefitsBased upon a completed study, Investor obtained realisticoutlook of market potential and financial feasibility of theProject. In the same time, the proposals of marketing strategywere used for further negotiations with chosen hotel operator.

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Project DescriptionBasic purpose of this project is to define the market-based tourismdevelopment concept for the area of Palic, situated around the lake Palic in Vojvodina (northern part of Serbia). The goals are to assessthe market attractiveness and the business potential for the tourismdevelopment of this area, and to evaluate the viability of the tourismdevelopment project.

SERBIA

Tourism Development Plan forPalic Area

Client: Public institution "Palic- Ludas"Execution Date: 2006

Specific Activities Developed

•Situational analysis with market and benchmark analysis•Market positioning and product development plan•Best use concept (master plan) for the Palic area•Management strategy•Initial business plan•Pre-feasibility calculation•Assessment of the project potentials

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Project DescriptionVlasina lake is the only relevant and realistic tourism resource in far south Serbia. The aim of this project was to realistically assess and plan needed tourism infrastructure on the lake Vlasina. Goals were to define what would be the best concept as well as tourism positioning and products in terms of business potential, to define viability of the project, and to resolve development and management issue for thewhole project.

SERBIA

Master Plan with Business plan fortourism development in Vlasina lake

Client: Ministry of economy & regional development of Republic of SerbiaExecution Date: 2007

Specific Activities Developed

•Situational analysis with market and benchmark analysis•Market positioning and product development plan•Best use concept (master plan) for the Vlasina lake area•Conceptual design of the proposed best use•Management strategy and business plan•Pre-feasibility calculation•Assessment of the project’s potentials

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SERBIA

“PROPOSED INTERCONTINENTAL HOTEL" Belgrade

Market and financial pre-feasibilitystudy

Client: DELTA Real-Estate d.o.o.Execution Date: 2007

Project DescriptionIn order to address the increasing demand for upscale hotel category in Belgrade, the investor Delta Real Estate plans to develop a mixed use complex on an attractive location incorporating an upscale hotel. The investor invited Horwath to analyze supply and demand factors and determine the feasibility of the project. Horwath has defined, based on the location possibilities, positioning of the future hotel, and analyzed market and financial calculations of the project as a result of the proposed positioning and business / management model.

Specific Activities Developed• Market Analysis• Competition Analysis• Site Analysis• Business Mix and Best Use Concept• Marketing Strategy• Space Allocation• Market Projections• Financial Projections• Project Feasibility • Support in Management Agreement Negotiations

BenefitsBased on our study, the investor received an insight in the market and financial feasibility of this hotel project. Furthermore this study was used as a basis for negotiations with the hotel company Intercontinental. In the end our study was also used as a basis for financing of the hotel project.

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CROATIA

"BIZOVAČKE THERME" Bizovac

Market and financial development study

Client: Bizova čke toplice d.d.Date of Execution: 2007

Project DescriptionMain task of this study was to recommend a market based and sustainable development of Bizovačke toplice d.d. (Bizovačke therme). The recommendations were done in an independent way, using all the applicable international standards in conceptualizing the development of tourist projects and standards in evaluating the investments. The proposed development concept of Bizovačke toplicehas to increase the market attractiveness of this thermal complex and in this way also positively affect the community. Furthermore the proposed development concept has to assure the profitability for the investor.

Specific Activities Developed• Market Analysis• Competition Analysis• Benchmark Analysis• Location Analysis• Marketing Strategy• Business Mix and Best Use Concept• Space Allocation• Market Projections• Financial Projections• Feasibility evaluation

BenefitsWith regards to its task, this development study serves to the Management Board and Supervisory Board of the Company as well as to potential investors, for evaluating the most appropriate development concept and business potential as well as market value of the Company.

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CROATIA

"CENTER KAPTOL" ZagrebMarket and financial feasibility study

Client: ZANE, ZagrebDate of Execution: 1996

Project DescriptionZagrebačka banka d.d., as an investor in the construction of this mixed-usecomplex through this project planned to offer more variety in the business and retail segment offering new and modern spaces in the center of Zagreb. Aim of the investor was to incorporate international standards in this project and thus rise the quality of the offer of business complexes on the real estate market in Zagreb. Horwath Consulting was approached in order to give an independent opinion about the project in order to help the in determining the project feasibility.

Specific Activities Developed• Market Analysis • Benchmark Analysis • Competition Analysis• Marketing Strategy and Market Positioning of the Complex• Best Use• Market Projections• Financial Projections• Project Feasibility

BenefitsThis project gave an overview of the market suitability of the future development and served to the investor and the creditor to evaluate the feasibility. The investors have successfully realized the project and today the market suitability is evident.

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BOSNIA AND HERZEGOVINA

"BBI SHOPPING CENTER" SarajevoMarket and financial feasibility study

Client: BBI LEASING & REAL ESTATE d.o.o.Execution Dates: 2004-2005

Project DescriptionBBI Leasing & Real estate d.o.o. as an investor in BBI Centar is planning to develop a multipurpose complex of 45 thousand sq.m. in the srict center of Sarajevo. Aim of the investor is to develop a market based project and therefore has invited Horwath Consulting Zagreb in order to evaluate the factors of supply and demand which could impact the real estate development projects, and to evaluate the development potential of the project on market and management basis.

Specific Activities Developed• Market and Benchmark Analysis and the Competition Analysis• Analysis of the proposed Best Use Concept from the market point of view • Marketing Strategy• Proposed Management Model• Market Projections• Financial Projections• Project Feasibility

BenefitThe study served to the investors and creditors to get an insight in the market potential and suitability of the project and the feasibility of the whole project. After the study was completed the investors assured the finances and started with the construction of the complex.

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MARKET APPRAISALS, VALUATIONSAND PRIVATIZATION PROJECTS

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Project Description

Basic purpose of the Valuation Report for hotels in the portfolio of ADRIATIC LUXURY HOTELS Group is to determine the market value ofeach hotel in an objective and realistic way, by using the standard Discounted Cash Flow methodology. The scope of performed work inccluded:

�- Analysis of hotels in the portfolio

�- Analysis and diagnosis of current market and competitivenessframework

�- Market and positioning strategy for the hotels in Client's portfolio

�- Existing investment plans and schedules

�- Projection of expected market and financial performance of the hotels�- Market value assessment for each of the hotels.

BenefitsThe owner has obtained realistic overview of value of its' portfolio which has helped him in the porocess of equity partner search. The evaluation report has been used as a negotiating tool pointing out future development possibilities and requirements for the company.

CROATIA

Valuation of Adriatic Luxury Hotels

Client: Adriatic Luxury Hotels d.o.o.Execution Date: 2006

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Project DescriptionThe goal of the project was to evaluate future business potential of selected Montenegrin hotels, and to set forth its marketable value. Business potential was estibaeted based on in-debth market analyses of Montenegro tourism market and its future potential. Valuation was performed using DFCF methodology. Performed valuation was used as a tool for hotel sale process.

BenefitsThe performed evaluation was used for negotiation with hotel buyers, and the hotels were sucessfully sold during the procedure of Montenegrin hotel industry privatisation.

MONTENEGRO

Valuation of 11 state-owned hotels in Montenegro

Client: Agency of Montenegro for Economic Restructuring and Foreign InvestmentExecution Date: 2003

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Project DescriptionThe goal of the project is to process and execute privatization of, what used to be, the biggest company in ex-Yugoslavia region. The task was set from specific milestones such as: Operational Due Diligence,Privatization Strategy Report, Market Assessment, participation in Restructuring Program and Sales Documentation, up to managing Public Tendering and sales procedure, evaluation of bids and similar.

BenefitsThe performed tasks enabled the process to be brought to an end.Submitted deliverables stipulated within our tasks should enable to privatized business units, upon its successful privatization, to start with an more progressive development.

SERBIA, GENEX / ICG

Advisors in the process of Privatization of Genex / ICG

Client: Privatization Agency of Republic of Serbia

Execution Date: Ongoing (Public Tendering process is under way)

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NATIONAL TOURISM MASTER PLANS AND STRATEGIES

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Project descriptionFollowing previous Strategic Marketing Plan, along side with main marketing strategy and operational tactics, was to give Strategic framework for development of Croatian tourism. Plan has stimulated cooperation between public and private sector in tourism, and their direct involvement and creation of national marketing strategy, as well as regional marketing recommendations.

CROATIA

Strategic Marketing Plan for Croatia 2008 - 2012

Client: Croatian National Tourism Board

In cooperation : THR, Barcelona

Project realized : 2008

Special activities developmentFocus on 6 tourism sectors (products) through which Croatia willperform step forward in tourism, and by this strengthen its position among five European destinations specialized in tourism experiences. Additional development push will come through transformation of marketing tools and communication into electronical media (Internet) as well as into social web such as blogs and different social web platforms. With these two levers implementation of marketing strategy and operational actions will result with outstanding results.

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Project DescriptionObjective of this project was to define strategic and operational marketing plan for Croatian tourism. Key problem was to achieve agreement on plan structure between Croatian regions and tourismexperts. Additional objective was to create cooperation framework for plan implementation, taking into consideration differencies between regions and tourism products in Croatia.The project was done in cooperation with THR.

CROATIA

Tourism Strategic Marketing Plan forCroatia 2001-2005

Client: Croatian National Tourist Organization

In cooperation with: THR, Barcelona

Execution Dates: 2001-2002

Specific Activities DevelopedDefining of strategic and operational marketing plan in tourism by which Croatia would position itself as leading international tourism destinations having differentiated supply of vacation activities with traditional sun & beach arrangements. Slogan that was launched in accordance with Plan "Croatia – Mediterranean as it once was" has shown significant success in communication with market. This slogan is succesfully implemented by Croatian Tourism Organization for over a year, and currently in process of implementation is overall marketing strategy proposed by this Plan.

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Project DescriptionDefining the strategy of tourism development of Republic of Serbia, which will enable Serbia to increase the employment rate in tourism sector and well being of it's population. Structuring a positive image of Serbia on a global market meanwhile preserving its natural and cultural resources. Increasing competitiveness of Serbian tourism industry on the global and domestic market with the identification of areas (clusters / or products) in which Serbia has largest potential for tourismdevelopment.

Specific Activities Developed•Situational analysis and Diagnosis•Development scenarios and Economic models•Cluster vision, positioning and marketing strategy•Competitiveness plans for clusters•Product development plan•Investment plan•Marketing plan•Organizational building up of tourism institutions•Activity plan

Benefits•Opened a vast spectrum of tourism development projects•Repositioning of Serbia as a tourist destination on a global market in next ten years•Developing sustainable tourism programs

SERBIA

Strategy of Tourism Development for Republic of Serbia

Client: Ministry of Trade, Tourism and Servicesof Republic of Serbia

Execution Date: 2006

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REGIONAL TOURISM MASTER PLANS AND STRATEGIES

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CROATIA

Master Plan of Tourism Development of Istria Region for 2002-2010

Client: County of Istria and Regional TouristOrganization of Istria

In cooperation with: T.H.R. BarcelonaExecution Dates: 2003

Project DescriptionDefining the strategy and direction of Istrian tourism development for 8 years period. Establish a model of increase incompetitiveness of Istrian tourism industry on a global market with the identification of areas (clusters and / or products) inwhich Istria has largest potential for development. Defining themarketing strategy and operational marketing plan as well as an action plan with highlighted activities, performance time schedules, responsible entities and organizational model of implementation.The project was carried out with THR.

Specific Activities Developed•Situational analysis and Diagnosis•Building up a future•Cluster vision, positioning and marketing strategy•Competitiveness plans for clusters•Product development plan•Investment plan for clusters•Marketing plan for clusters•Organizational building up of tourism institutions•Implementation plan for clusters

Benefits•Significant organizational change in tourism sector in Istria•Basis for competitiveness increase as region in global tourism market•Agency for tourism development and different implementation bodies are created•Transparent procedures of possible investment opportunities thus facilitating communication with potential investors

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CROATIA

Master Plan of Tourism Development of Split-Dalmatia Countyfor 2005-2015

Client: County of Split-Dalmatia and Regional Tourist Organization of Split-Dalmatia County

Execution Date: 2006

Project Description Project is defining the whole future tourist development of the region, including all areas (clusters) with potential within it.Master plan provides a plan of regional tourist development in asustainable way. It is building up the competitiveness of clusters and the whole region on the international tourist market. Develops the tourist product that will satisfy the contemporary needs of the tourist demand at the international market. Definesand implements effective marketing strategy of the regional tourism.

Specific Activities Developed•Situational analysis•Vision and Development scenarios for the clusters and the whole region •Competitiveness plan•Key projects definition and development of investment plan•Strategic Marketing plan•Action plan for each cluster and for the whole region•Setting up of monitoring and organizational model

Benefits•Synergies that will result from the public-private partnership establishment in the region•Stronger market position of this region at the international tourism market•Higher attractiveness of the region for the investors in tourism

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CROATIA

Development of Rural Tourism in Zagreb County

Client: County of ZagrebExecution Dates: 2004-2005

Project DescriptionThe goal of the project was to create the pragmatic platform forthe development of rural tourism in the Zagreb county. Theproject was aimed to identify the key competitive developmentprograms of rural tourism in the County, with framework forbusiness plan and to propose the incentive schemes for ruraltourism in the County.

Specific Activities Developed•Situational analysis and diagnosis•Goals for rural tourism development•Development strategy•Institutional framework for the development of rural tourismin the County

•Management model for rural tourism development•Market and benchmark analysis for rural tourism•Economic effects of rural tourism development in the County•Marketing plan•Activity plan

Benefits•Significant organizational improvement in rural tourism management in Zagreb County•Basis for competitiveness increase of rural tourism in theCounty•Incentive scheme defined for the rural tourism development•Activity plan defined for rural tourism development

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Project DescriptionBaikal Region is situated partly within the Irkutsk region and partlywithin the Buryat republic. The Russian government intends to developthe tourism in this attractive region. Leontief institute, Deloitte Corporate Finance Advisory GmbH, Austria with Horwath Consulting have been selected to define the plan od development of tourism industry of the Baikal Region. In order to make the Baikal Region an attractive and internationally recognized tourism destination, acomprehensive strategic development plan has been elaborated.Based on the natural resources and overall attractiveness of the Baikal Lake, this plan takes into consideration the trends in international tourism demand, the need for ecologically sustainable development, as well as the achievement of long-run economic prosperity of the Region.

RUSSIA

Tourism Development Plan for theBaikal Region

Client: Baikal regional governmentIn cooperation with: Leontief Institute and Deloitte

Corporate Finance Advisory, ViennaExecution Dates: 2006

Specific Activities Developed•Situational analysis•Analysis of market trends•Benchmark analysis•Identification of potential tourism demand•Elaboration of the market concept and program for tourismdevelopment of the Region :•Vision, positioning and strategy of tourism development•Development scenarios•Product development•Model of attraction of investors•Marketing plan•Evaluation of socio-economic and budgetary impacts

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Project DescriptionRussian Federation formed the concept of Special Economic Zones (SEZ), to develop its different regions which are currently not developed. Task for the consortium Horwath, Leontief, Deloitte was to plan development of the two SEZ surrounding Baikal Lake Region -Irkutsky Oblast and Republic of Buryatia. Each of the region hasproposed two sites in which standard procedure of master planning was conducted As end result Federal Ministry for SEZ received not only the tourism plans for SEZ, but also an overall tourism plan for the whole Lake Baikal area.

RUSSIA

Tourism Development in Special Economic Zones in Irkutsky Oblast and Republic of Buryatia

Client: Russian Federal Ministry for Special Economic Zones

In cooperation with: Leontief Institute St. Petersburg andDeloitte Corporate Finance Advisory, Vienna

Execution Dates: 2007

Specific Activities Developed•Analysis of status quo•Positioning of each of TRZ•Comparative analysis of sites •Tourism Products •Tourism development concept•Architectural planning•Investment estimation•Marketing strategy•Implementation process and action plan

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Project DescriptionThe main goal of the plan was to define a strategy of tourismdevelopment for the mountain Tara and it's surroundings, which assistsin shaping the clear vision for a sustainable development of this area, and clear goals as well as the strategy oriented towards generation of economic prosperity. By defining the development od a bettercompetitive position and an effective marketing plan, this project alsodefined an investment strategy.

Furthermore, an innovative model of cooperation between the publicand the private sector was proposed in this plan.

SERBIA

Master Plan of Tourism Developmentwith a Business Plan for Mountain Tara and its Surroundings

Client: Ministry of Tourism, Trade and Servicesof Republic of Serbia

Execution Dates: 2006

Specific Activities Developed•Situational analysis•Market analysis•Benchmark analysis•Vision, positioning and strategy of tourism development•Product development•Competitveness plan•Marketing plan•Investment plan

BenefitsMaster plan of tourism development on Tara stimulates organisationalchanges within the tourism sector of the destination. Tara has startedthe implementation of Master plan proposals relating to increasing thecompetitiveness levels and marketing activities.

This Master plan also creates a clear picture relating to the investmentopportunities, and eases the communication with potential investors as well as it provides answers to their questions relating to the future developments of Tara.

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Project DescriptionThe main purpose of this project, based on the professional development master plan and business plan, is to define general and tourism infrastructure investment requirements on Stara Planina and to design resorts related to localities surrounding Stara Planina. Thismega project represents a driver of international tourism in South-eastern Serbia, which protects and revitalises the area, as well as itstimulates the economic prosperity through the investment and employment opportunities.

SERBIA

Master plan of Tourism Development on Stara planina with a Prefeasibility Study

Client: Ministry of economy and regional developmentof Republic of Serbia

In cooperation with: Ecosign Mountain ResortPlanners

Execution Dates: 2007

Specific Activities Developed•Situational analysis•Market study•Benchmark analysis•Product development and Marketing strategy•Model of attraction of investors•Marketing plan•Prefeasibility study•Phisical Master plan

BenefitsThis project provides answers to a significant interest of potentialinvestors in terms of a clear picture of the future development of Stara planina and its investment possibilities. This Master plan is now a framework for the second stage of the Stara planina development.

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Project DescriptionIn order to implement a competitive and long term sustainable tourismdevelopment on Golija, this project developed basic scenarios of Golija's tourism future. Based on the exact capacity calculations for thephysical development of the ski area and other tourism infrastructure, te scenario that contributes the most to the development of localwellbeing has been chosen.

Operationalising the optimal development model in terms of structuringthe new developments, competitive development moel, marketinfmodel as well as the investment strategy provides the proposal forcreating the healthy climate for future tourism investments..

SERBIA

Master plan of Tourism Development on Golija

Client: Ministry of economy and regionaldevelopment of Republic of Serbia

In cooperation with: Ecosign Mountain ResortPlanners

Execution Dates: 2007

Specific Activities Developed•Situational analysis•Market analysis•Benchmark analysis•Vision, positioning and strategy of tourism development•Product development•Business Plan•Physical Master plan concept for Golija

BenefitsThis project provides answers to a significant interest of potentialinvestors in terms of a clear picture of the future development of Golijaand its investment possibilities.

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Project DescriptionThe Coastal Tourism Development Plan for Adjara Region representsnot only a conceptual but also a pragmatic framework for an efficientmanagement of the development process in the times to come.

Using the standard international procedure of regional and destinationtourism planning, THR and Horwath Consulting Zagreb haveobjectified the development potential and established a developmentconcept, which is inline with the international praxis in similar projects.

GEORGIA

Adjara Coastal Area TourismDevelopment Master plan

Client: Development Solutions Real Estate and Project management CompanyIn cooperation with: T.H.R. BarcelonaExecution Dates: 2007

Specific Activities Developed•Situational analysis•Market analysis•SWOT analysis•Vision, positioning and strategy of tourism development•Tourism sreucturing•Product development•Competitiveness plan•Marketing plan•Investment plan•Action plan

Benefits•Restructuring and rehabilitation of selected of properties within the region managed by Development Solutions,•Launching Adjara region on regional and international tourism market based on an competitive product and marketing strategy , and•Formulation of the efficient regional/national tourism policy framework which influences regional development initiatives and entrepreneurship.

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CITY TOURISM MASTER PLANS AND STRATEGIES

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Project DescriptionBasic purpose of this project is to define the market-based tourismdevelopment strategy for the City of Budapest, in order to strenghtenthe market position of the City on the international market. Horwath Consulting has cooperated in this assignment with Horwath Hungary.

HUNGARY

Strategic Plan of Tourism Developmentof City of Budapest

Client: City of BudapestIn cooperation with: Horwath Hungary

(the project leader)Execution Dates: 2004

Specific Activities Developed by Horwath Consulting Z agreb

•Market trends in European urban tourism•Benchmark analyses of selected European cities•Survey of travel agencies•Survey of economy leaders•Survey of tour operators•Survey of city tourism organizations

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CROATIA

Competitivness Plan, Strategic and Operational Marketing Plan of Tourismin the city of Zagreb

Client: Zagreb City Government and Zagreb CityTourist Organization

Execution Dates: 2003

Project Description Project objective is to popularize Zagreb as a tourist destination. Set up of future strategic development of the city with tourism as an important role. Finding main generators of tourist business in Zagreb. Usage of the strengths and opportunities at the market and decreasing the influence of the weaknesses and potential threats at the international tourist market. Adapting the Zagreb city product to the contemporary trends in European urban tourism. Finding the most effective development model for city tourism in Zagreb. Developing the most effective marketing strategy and model of communication with the market.

Specific Activities DevelopedWithin this project, we provided proposals of the development and marketing strategy, and the organizational and monitoring model to the Tourist organization of the City of Zagreb, as well as technicalassistance in building up the institutional frame and effective organizational model to implement the activity plan that was proposed in the study.

Benefits�Base for implementation of the product development and marketing strategy�City government accepted the study and proposed action plan is already in process of implementation

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OTHER PROJECTS

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CROATIA

HORWATH HOTEL INDUSTRY SURVEY1998 - 2007

Client: Ministry of the Sea, Tourism, Transport and Development of Republic of Croatia;Croatian National Tourism Organization

Execution Dates: 1998-2008

Project Description Horwath Hotel Industry Survey is the annual survey conductedon the sample of approx. 100 best hotels in Croatia. This is theonly international benchmark survey which has been carried outin Croatia for the nine years in a row, thus enabling to monitor the performance trends of Croatian hotel industry. The surveyresults are classified according to the size, category and geographical location of the hotels in sample.

Specific Segments Surveyed•Ten years trends of key performance indicators•Croatian highlights by region, category and property size•Nationality of guests•Source of advanced reservations•Employment per hotel departments•Hotel facilities•Use of technology systems•Financial results (P&L - ratio to revenues and figures peravailable room)•Planned investments

BenefitsHorwath Hotel Industry Survey for Croatia today represents thebenchmark of success and a framework for local, regional and international comparison of Croatian hotels in term of marketand financial performances.

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MONTENEGRO

HORWATH HOTEL INDUSTRY SURVEY2005 - 2007

Client: Ministry of Tourism and Environmentof Montenegro

In cooperation with: Faculty for Tourism,Hospitality and TradeManagement, Bar,Montenegro

Execution Dates: 2006-2008

Project Description Following the tradition of Croatian Horwath Hotel IndustrySurvey, the annual survey for Montenegrin hotels was conducted on a sample of 40 best Montenegrin hotels. It indicates the annual achieved level of hotel business performances and provides the basis for monitoring of development trends of Montenegrin hotel industry. The surveyresults are classified according to the geographical location,category, size and price level of the hotels in sample.

Specific Segments Surveyed• Three years trends of key performance indicators• Montenegrin highlights by region, category, property size andprice level

• Nationality of guests• Source of advanced reservations• Employment per hotel departments• Hotel facilities• Use of technology systems• Financial results (P&L - ratio to revenues and figures peravailable room)

• Planned investments

BenefitsThe annual results of the Horwath Hotel Industry Survey Montenegro demonstrate the trend of hotel industry growth and its development which is continuing each year. Horwath Hotel Industry Survey for Montenegro enables competitiveness assessment of Montenegrin hotel industry on a local and international level.

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Horwath Consulting Zagreb

A member ofHorwath HTL

Petra Hektorovića 2Grand Center10000 Zagreb

Tel +385 1 48 77 200Fax +385 1 48 77 205

www.horwath.hrwww.horwathhtl.com