Lower turnover – higher earnings?Lately, we often have the opportunity to hear the slogan “fewer nights, more income”. This does not sound bad when it comes “from the mouth” of entrepreneurs, accommodation owners, people who have well calculated the ratio of invested funds, achievable price levels and the number of days of occupancy at the desired price.Without going deeper into the “mathematics” of calculating the rate of return on investment in “solid” facilities in Croatian tourism, which averages between 6 and 6,5% per year, it is clear that reducing costs (fewer nights) and increasing prices achieves better profitability. This is true for private investments.However, when the same statement is made by a person from the public sector in the style of “let’s stop counting nights, counting earnings”, then it sounds a little different. The national economy is not equal to the private economy. The national economy takes into account the consumption of Croatian goods and services on the employment of the population, the impact of tourism on the development of other sectors and the development of the quality of life of the total population. That is why employees and public sector officials must be careful not to take on the role of “lawyers of private companies” in their statements, but to represent the general, public interest of the Republic of Croatia.The ratio of the number of nights and consumptionWhat is true for the private sector is not true for the national economy when it comes to the volume of tourist traffic. According to the data of the prestigious GFK Institute, the average daily consumption of passengers-tourists is 155 euros. This includes all travel expenses, from leaving the house to returning. On average, passengers spend 30% of that amount per day on accommodation, and the rest on all other services.This means an average of 46 euros per night, and 40 euros per day for all types of transport. For all other offers, 69 euros per day remains available. The spending of this money depends on the attractiveness of the offer. When we talk about the average, then we are talking about a survey conducted on a sample of 500.000 people on all continents and among representatives of all major groups of travelers-tourists. A part of the stated consumption on his trip is realized by the tourist outside the destination to which he is traveling. This applies in particular to the costs of transport, food, beverages, shopping.The most visible part of consumption in the destination is related to accommodation. However, when we count tourists per night, in addition to the basis for calculating the consumption of accommodation, we also have the basis for estimating the daily average consumption of other facilities. That’s why nights are important to us. For example, on 4.815.740 overnight stays on the island of Krk in the period from 1.1. to 30.9. In 2018, we can get an estimated consumption excluding transportation costs of 524.915.660 euros. Each night raises consumption per day by an additional 109 euros.Tourist traffic, purchasing power and consumptionAccording to the Croatian Chamber of Commerce, the purchasing power of tourists is 2,5 times higher than that of Croatian citizens. This means that in the period of the main tourist season, Croatia has the potential for consumption as a country with 10 million inhabitants. The island of Krk has a daily potential for consumption as if 50.000 people live on Krk.However, the consumption of tourists is even higher because they spend more and more on vacation than in everyday life. The minimum daily consumption according to the so-called “union basket” for a four-member household is about 230,00 kn. If we doubled that consumption, we would get a daily consumption of 112,06 kn per person, which is 15,34 euros. If we compare the daily consumption of passengers-tourists from 109 euros to 15,34 euros of Croatian citizens, then we come to a ratio of 1 to 7,5. This means that the daily consumption realized in Croatia in the season is at the level of the country of 28 million inhabitants!The impact of tourist spending on the standard of living of citizensThe most noticeable difference between purchasing power and daily consumption is visible in the month that begins – November. Now tourist trends are fading, and after All Saints’ Day, there is no longer an increased need for travel within the country and additional spending by Croatian citizens. November, January and February are the months of facing the real state of purchasing power and consumption of Croatian citizens. It is also an indicator of what tourism means for Croatia.From March to summer, the situation is slowly improving and getting better with the increase in the number of arrivals and tourist nights. When a place reaches the daily number of overnight stays of 10.000 then the effect of spending is significantly felt throughout the community. Money is simply “spilled” according to various forms of supply. If we exclude the cost of overnight stays and calculate the daily average consumption of 69 euros for “other facilities”, we come to an impressive 690.000 euros that are spent daily by these 10.000 travelers – tourists in one tourist place.Is it clearer to you now why super and hyper markets are sprouting like “mushrooms after rain” next to our small tourist places? Why do we have an ever-growing supply of anything and everything? Everyone feels this “consumer fever” and everyone “wants a piece of the pie” from the “cake of 28 million inhabitants”. The impact of tourist spending on the standard of citizens of the whole country is great. It is more significant in places with more tourist traffic. So there is no doubt that the “amount of tourists”, the number of nights is extremely important for the national economy.Volume economy and downward pressure on pricesThe current situation in the global economy is such that there is still a tendency to offer the cheapest possible product or service. Only innovative products that strongly affect the emotions of customers achieve a higher price. As a rule, these are sophisticated “smartphones”, laptops, electric cars and the like. But even with these products, the new series lowers the price of the old series, and novelties are released at an annual pace.Tourist travel is also influenced by this global trend. Low cost air and bus lines, car sharing, blabla car, Uber, Airbnb, Booking.com, Ryan Air, FlixBus… are modern icons of low prices with a large offer and a large volume of traffic. And the store is rapidly moving to web platforms, sales spaces are closing. Savings in storage, lease of business premises, jobs, compliance with complicated regulations… spill over to the benefit of the customer. On the other hand stronger logistics, door-to-door delivery, container ships have regular supply routes from China to the rest of the world… Volume economy lowers prices. The opposite happens only in a small percentage of special products. Tourism is no exception.And as Boduli would say – “a couple of jokes for the end”The global economy dictates the downward movement of prices. A higher price can only be achieved with an innovative offer “charged with emotions”. It is important for Croatian tourism to keep the existing volume of traffic in the main season and concentrate all efforts to increase the volume of traffic in the rest of the year and to all parts of the country.Public tourism authorities must know general trends and pursue smart policies in favor of national interests, in favor of the national economy. Everyone aiming for a higher price level must show something new every year, fun according to the interest of potential buyers. In other words, don’t be fooled by statements about the higher category as the key to success. Without innovation and a higher category of service, such investments will soon prove unprofitable.We already have an “intrusion” of five-star hotels into the three-star price range as soon as the volume of traffic drops drastically… And that overnight stays are not important ?!Author: Nedo Pinezić, www.nedopinezic.com* The views and recommendations expressed in the author’s columns, advice and comments are exclusively the views of the authors and do not necessarily reflect the views of the editorial staff of the HrTurizam.hr portal
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Topics : LOG INDon’t have an account? Register here Forgot Password ? Linkedin Log in with your social account Facebook Google The Jakarta administration is falling short of its responsibility to disclose detailed emissions data of factories that contribute to air pollution, environmental advocacy groups have said.The Indonesian Center for Environmental Law (ICEL) is calling for more details in the administration’s periodic report on the private sector’s emissions.Prevailing regulations require all local administrations, including Jakarta, to collect emissions data from businesses that might harm air quality and that the businesses report the results of their pollution control assessments. The 1999 government regulation on air pollution control orders local administrations to perform an assessment on air pollution control at least once a year, while the 2012 government regulation on environmental permits says that businesses have to file their reports once every six months.The 2009 Environmen… emission #airpollution #Jakarta Jakarta-air-pollution air-pollution #emission environment
“We think foreign investors would continue to book a net sell on Indonesian equity in May,” he said.The global meltdown began to hit the local stock market following the announcement of the country’s first COVID-19 case on March 2. By March 23, the JCI had plunged to 3,900 points – the lowest seen since October 2015 – due to COVID-19-driven market panic.The index began to show signs of recovery in the following days, after the exchange introduced a new measure to protect the index from falling further. Between March 23 and April 29, the index climbed 14.48 percent.On Thursday, last week, the JCI gained 3.26 percent, in line with the increase in most regional price indeces. The recent meltdown of share prices on the Indonesian stock exchange is not over despite signs of recovery in the past two weeks, stock analysts have said.Mirae Asset Sekuritas Indonesia said in its monthly strategy report published on April 6, “there are more reasons to think that the volatility is not over yet”. The securities company estimates that manufacturing activities “will even get worse” in April and May.When asked about the outlook for the month ahead, Mirae Asset head of research Hariyanto Wijaya told The Jakarta Post on Monday that the Jakarta Composite Index (JCI), the main gauge of Indonesia Stock Exchange (IDX), was likely to undergo a correction in May due to weak economic data and an outflow of capital. However, share prices on the local exchange reversed the upward trend on Monday amid selling pressure from both local and foreign investors. The index lost 2.5 percent to end the morning session on Monday at 4,595 points, marking a 27 percent decrease so far this year.Artha Sekuritas Indonesia vice president Frederik Rasali shared the cautious view. He told the Post on April 30 that “as long as the economic sentiment is not good, the increase in the JCI is still very risky”.He explained that the relatively calm market was a result of the exchange’s newly introduced 7 percent limit-down policy, which protected the index against free-fall.Frederik went on to say that he believed foreign investors would continue their selling spree and opt for cash for higher liquidity.Over the past five weeks, share sales by foreign investors exceeded buys by Rp 7.3 trillion (US$472 million). The average net foreign sell volume per week between March 23 to April 24 reached Rp 1.46 trillion. According to IDX statistics from April 30, foreign net sales have reached Rp 19.13 trillion this year.“On the outlook, if we look at the global conditions with regard to the spread of the coronavirus, [on the chart], it has started to plateau. Hence, there is a possibility that the market, too, will recover,” Jasa Utama Capital analyst Chris Apriliony told the Post on April 30.He suggested that the increase in the number of countries that have loosened their lockdowns following the flattening of their COVID-19 curve should provide positive sentiment for investors.Recently, a number of European Union countries have announced an easing of restrictions, including France, Italy and Spain. South Korea has also decided to lift several movement restrictions, as has Vietnam. Several sectors have been performing well on the local bourse amid the health crisis. Chris observed that telecommunications and consumer goods were among the best performers, yet the retail sector had not been performing well as the pandemic hit the sector quite hard.Meanwhile, Asian stock markets fell sharply on Monday as risk sentiment turned sour after US officials tried to pin blame for the coronavirus pandemic on China, stoking worries of fresh tensions between the world’s top two economies, Reuters reported.Singapore shares tumbled as much as 3.3 percent, their sharpest intraday drop since March 30, while Malaysian shares shed as much as 2.3 percent, their worst in six weeks, ahead of March trade data.Topics :
Wolf Administration Announces Health Reform Plan that Focuses on Affordability, Access, Equity and Value for All Health Needs
Wolf Administration Announces Health Reform Plan that Focuses on Affordability, Access, Equity and Value for All Health Needs Healthcare, Press Release Amid the pandemic, rising health care costs and magnified health inequities, Governor Tom Wolf today unveiled a plan that addresses comprehensive health reforms focusing on both physical and behavioral health and promoting affordability, accessibility and value in health care.“I am proposing a health reform package that will make health care more affordable, hold health care corporations accountable and tackle the health inequities resulting from systemic racism,” Gov. Wolf said. “True reform means focusing on every aspect of a person that contributes to their health. Even before the pandemic, there were warning signs that Pennsylvania’s health care system wasn’t working for everyone. Many Pennsylvanians found it hard to pay their medical bills due to rising health care costs, including families who have health care coverage and often have to pay higher premiums and more out-of-pocket costs every year.”Health care access has historically been more difficult for many, and because of the pandemic, affordability is expected to become a crisis, with more than 1.5 million Pennsylvanians expected to become uninsured.COVID-19 has also worsened the pre-existing inequities that some disadvantaged neighborhoods face, disproportionately hurting Pennsylvanians of color.Chief Innovation Officer at the Department of Human Services, Dr. Doug Jacobs, outlined the components of the health reform plan and how they will address these issues.“As a board-certified and practicing internal medicine physician, I see first-hand how affordability and a whole-person approach to care is so crucial to helping Pennsylvanians access the health care they deserve,” Dr. Jacobs said. “Governor Wolf is proposing a whole-person health reform package that will make comprehensive, quality health care more affordable and accessible.”The three main components of the plan include:Interagency Health Reform Council (IHRC), established with an executive order the governor signed at the press conference today. The council will be composed of commonwealth agencies involved in health and the governor’s office. The initial goal will be to develop recommendations by December 30 to find efficiencies in the health care system by thinking about how to align programs where feasible, including the joint purchasing of medications, aligning value-based purchasing models, and using data across state agencies to promote evidence-based decisions.Regional Accountable Health Councils (RAHCs). The Department of Human Services will add requirements to form five RAHCs across the state into the managed care agreements. RAHCs will be required to collectively develop regional transformation plans – built on community needs assessments – to reduce disparities, address social determinants of health, and align value-based purchasing arrangements.Health Value Commission. The governor will work with the legislature to establish the Health Value Commission, charged with keeping all payors and providers accountable for health care cost growth, to provide the long-term affordability and sustainability of our health care system, and to promote whole-person care. As proposed, the newly created entity would be led by up to 15 commissioners appointed by the governor and the General Assembly who have an expertise in the health care marketplace, including five state agency heads.Gov. Wolf and Dr. Jacobs were joined at the announcement by Pennsylvania Health Access Network director Antoinette Kraus, home health care aide Hillary Rothrock, and Little Amps owner Peter Leonard.“Far too many Pennsylvanians put off care or skip tests and treatment because of what’s in their wallets rather than what’s best for their health,” Antoinette Kraus said. “Without reforms that directly address high and rising healthcare costs, families will continue to struggle with getting the care they need without facing financial ruin, and health disparities will also widen. We applaud Governor Wolf for addressing these issues by introducing reforms that will increase transparency, improve health equity, and lower costs.”“Little Amps has long been striving to find a way to provide high quality health care coverage to our team – my peers in the small business community know just how difficult this can be despite how essential it is to our collective wellbeing,” Peter Leonard said. “It simply is not affordable, and that is unacceptable. We support Governor Wolf’s Whole-Person Health Reform proposal because of its ability to decrease costs and make healthcare more affordable for small businesses like ours.”“I’m grateful to Governor Wolf for introducing the Whole-Person Health Reform initiative,” Hillary Rothrock said. “So many of us in health care want desperately to provide everything we can for our consumers, but we aren’t given the resources we need. Finding cost savings that can be redirected toward direct care is critically needed.”“The COVID-19 pandemic has exacerbated many of the challenges that our commonwealth faced prior to this year,” Gov. Wolf said. “We are more aware now of how precarious many systems we all took for granted are, and how the inequities that exist in those systems harm some of our most vulnerable Pennsylvanians. We need to take these actions now to make sure that health care is affordable and accessible for every Pennsylvanian, and to guarantee that the care Pennsylvanians receive is valuable and of high quality.” October 02, 2020 SHARE Email Facebook Twitter
US manufacturer Analog is to close its €190m Irish defined benefit (DB) scheme, buying out pensioners and transferring the remaining members to an existing defined contribution (DC) arrangement.The firm announced its plan despite the DB scheme reporting a funding level of 125% under Ireland’s minimum funding standard (MFS).Trustees have used €40m of the DB fund’s assets to complete a buyout for retired members using an unnamed Irish insurer. It is understood the individual annuities bought for members are regular annuities, rather than Irish sovereign annuities.The remaining assets will be transferred to a pre-existing DC fund currently used to accrue additional voluntary contributions. In addition to the transfer of the remaining €150m DB assets, the company has agreed to pay €190m into the DC pots of active and deferred members. The sum was calculated based on what Mercer’s Irish head of retirement consulting Roz Briggs said were “prudent” assumptions to ensure members did not suffer any loss of retirement income as a result of the shift to DC.Briggs said that the assumptions underlying the MFS were regarded as too optimistic by Analog, and it therefore calculated the €190m as the sum needed to reach replacement ratio targets based on lower return expectations.“It’s closer to market-related investment return assumptions,” she told IPE.As part of the transfer, the DC fund’s trustees have agreed to launch a new, lower-risk default fund, Briggs added, while maintaining a choice of investment options for members opting out of the default.Denis Doyle, vice president of manufacturing at Analog noted that the DB scheme’s funding was “secure” at 125% of the MFS.“We’ve designed this transaction so that all benefits accrued for past service and a substantial portion of prospective future service will be paid to members of the DB scheme now,” he said.“Reducing the volatility and uncertainty is important to everyone and we expect this will become a model of best practice.”The company explained that it hoped the agreement would help with staff retention. It currently employs around 1,100 staff across two factories in Limerick and Cork.Analog added that it hoped to have completed a staff consultation and transferred the DB fund’s assets to the DC scheme by the end of its financial year in October, boosting the DC fund’s assets under management by €340m.
Poland’s state-owned gas company PGNiG saw imported LNG volumes rise 31 percent during the first quarter of 2018 from the volumes imported during Q1 in 2017. PGNiG said in its statement on Wednesday the volumes of regasified LNG reached 0.51 billion cubic meters.During the first three months of 2018, PGNiG received four LNG cargoes at the President Lech Kaczyński Terminal in Świnoujście as the supplemental deal for the supply of liquefied gas signed with Qatargas in 2017 came into force, doubling the volumes of gas received by the group from that source.Overall, the company’s natural gas imports rose 19 percent to 3.84 billion cubic meters on the back of the strong sales.The first-quarter natural gas sales rose by 13 percent up to 1.13 billion cubic meters with the company reaching a daily supply record achieving 80.4 million cubic meters. On average, the daily supply during the quarter was at 62.5 million cubic meters.The group achieved further geographical diversification of its supply sources. While in Q1 2017 gas sourced east of Poland represented 84 percent of total gas imports, its share fell to 78 percent in Q1 2018.
The Nemo Link subsea interconnector between Belgium and Great Britain has become operational.The energy exchange started on Thursday, 31 January at midnight. An average of 773MW will be exchangedand a total amount of 18,559MWh will be transported for the whole day via the Nemo Link cable.The interconnector allows up to 1,000MW of electricity to flow in either direction between the two countries.The Nemo Link is a collaborative effort by the Belgian and British transmission system operators, Elia and National Grid, which set up a joint venture for this purpose, comprising a mixed Belgian-British team.The transmission cables are 140 kilometres long, including a 130-kilometre stretch in the North Sea, and connect converter stations in Richborough, Great Britain and Bruges, Belgium, each of which is integrated into its respective national grid.Interconnectors are vital, among other things, for the large-scale integration of renewable energies, where excess generated power can be traded at favourable prices at the European level, Elia said.Chris Peeters, Chief Executive Officer of Elia, said: ”In energy terms, the interconnector will offer a better future forconsumers in both countries and facilitate the transition towards a sustainable and affordable electricity system. It will also give us more ways of guaranteeing security of supply. The commissioning of the Nemo Link, combined with that of the ALEGrO connection, scheduled for next year, will significantly boost our energy exchange capacity and position our infrastructure at the heart of Europe’s future electricity system.”
Offshore drilling firm Stena Drilling has found more work for its Stena IceMax drillship.Stena IceMax; Image by Rab Lawrence/FlickrAs shared by Bassoe Offshore on Tuesday, the driller has signed a deal with an undisclosed operator which should see the 6th generation rig deployed on an approximately three-month long contract starting in the first quarter of 2020.Bassoe Analytics shows the contract might start mid-January 2020, and end in the last week of April.Worth noting, Bassoe is not the only one reporting of the deal happening.Maritime and offshore data website VesselsValue also shows the deal has been signed with an unnamed client but they place the start of the contract to January 1, 2020, ending on March 31, 2020.Neither Bassoe nor VesselsValue have provided an estimate on the dayrate.Offshore Energy Today has reached out to Stena Drilling, seeking more info on the reported rig deal.Stena Drilling confirmed for Offshore Energy Today the contract had been signed, however, it did not provide further information, citing a confidentiality agreement with the client.The Stena IceMAX is currently on a contract with CNOOC. The Chinese oil company is using the drillship for exploration offshore Ireland.Prior to joining CNOOC this month, the drillship in February brought joy to ExxonMobil in Cyprus.Namely, the U.S. oil and gas giant used the Stena IceMax drillship when it discovered the giant gas discovery at the Glaucus-1 well in the Mediterranean Sea.Exxon, which owns a 60 percent stake in the Block 10, said that based on preliminary interpretation of the well data, the discovery could represent an in-place natural gas resource of approximately 5 trillion to 8 trillion cubic feet (142 billion to 227 billion cubic meters).Offshore Energy Today StaffSpotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email. Offshore Energy Today, established in 2010, is read by over 10,000 industry professionals daily. We had nearly 9 million page views in 2018, with 2.4 million new users. This makes us one of the world’s most attractive online platforms in the space of offshore oil and gas and allows our partners to get maximum exposure for their online campaigns. If you’re interested in showcasing your company, product or technology on Offshore Energy Today contact our marketing manager Mirza Duran for advertising options.
Impression of how the Gyda jacket ready for transport in a near-vertical positonRepsol Norge has awarded Allseas an EPRD contract for the removal, transfer, load-in to shore and disposal of its Gyda platform in the Norwegian North Sea. The contract covers both the 18,000t topsides and 11,200t jacket, and includes an option for reinstallation on another field, which would be an unprecedented step for a fixed installation off Norway.Also included is an option for the removal, transfer, load-in and disposal of the jacket’s 32 conductors, weighing a total 3,100t.Gyda is a field in the southern part of the Norwegian sector in the North Sea, between the Ula and Ekofisk fields. The field has been developed with a combined drilling, accommodation and processing facility with a steel jacket standing in 66 meters water depth.The platform started producing in 1990, a decommissioning plan was submitted in 2016 and Gyda is now producing in parallel with plugging of the Gyda wells.As the jacket was vertically fabricated and installed back in the nineties, the structure cannot sustain loading in the horizontal position during transport.Allseas and Repsol said they spent more than a year studying ways to move the platform from its current location and bring it to shore for disposal.The solution of transporting the jacket in a near-vertical positon (60 degrees) with Pioneering Spirit’s jacket lift system unlocked the possibility for Repsol to award the full scope, both the topsides and jacket, to Allseas.Removal is planned for between late 2020 and 2023.Allseas has selected Kvaerner to dismantle and recycle the platform at its Stord disposal facility on the west coast of Norway.