Chinese Investment in Croatia: Croats hope for more investment as medical tourism boosted

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Croatia's hopes of being a major medical tourism destination have been boosted by news of Chinese investment worth 36 million US dollars in a northern spa town. But many officials also want to see Chinese investment spread beyond the tourism industry. Our Aljosa Milenkovic reports from Krapinske Toplice.

It is a brisk 2 degrees Celcius outside, but inside it seems like nobody cares.

On an ordinary day in February, dozens of tourists were enjoying the natural hot springs and artificial waves in one of the swimming pools at the Krapinske Toplice spa.

Water emerges from the depths of the earth right here at a temperature of forty-one degrees Celcius. Locals are counting on that natural wonder to help attract Chinese tourism investment to their small community.

ERNEST SVAZIC HEAD OF KRAPINSKE TOPLICE MUNICIPALITY "I expect this investment to begin this year. By the end of 2018, actual work will start on the site. The Business Association for collaboration between China and East Europe announced that, by mid-2018, all legal proceedings will be resolved. In the second half of the year, we will see an investment of over 36 million USD in the health tourism hotel."

This is the hotel in question. It is now in poor condition. So Chinese investors plan to demolish it and build an entirely new 4 star hotel in its place.

The goal is to bring Chinese medical tourists here for the spa and adjacent world-class heart surgery clinic. Officials hope it will be the beginning of stronger tourism cooperation with China.

FRANO MATUSIC CROATIA'S STATE SECRETARY OF TOURISM "We expect even more involvement by the Chinese in this region, with significant investment in the tourism industry. In the first place, I'm referring to the hotel industry, and then partly to the entertainment industry. Croatia is open to having casinos and that type of entertainment, which is for sure attractive to the Chinese."

But Croats don't want their collaboration with China to stop at tourism. After Chinese investment in the electric supercar producer, Rimac Automobili, another Chinese CRBC company won a major tender worth 435 million US dollars for construction of the Peljesac bridge - a major infrastructure project to link the southern districts to the mainland.

The deal has raised some eyebrows in the EU. An appeal against the decision to award the tender to a Chinese company has been submitted by other EU-based competitors, and is currently under consideration by the Croatian authorities.

MATE GRANIC SPECIAL ADVISER TO PRESIDENT OF CROATIA "Definitely in Brussels, there is some fury concerning investments from China, but concerning Peljesac bridge, the European Union supported it and the European Union would finance the majority, 85% of the bridge. Additionally, the atmosphere in Croatia is very good concerning Chinese investment."

ALJOSA MILENKOVIC ZAGREB "Croatian politicians say they do welcome Chinese investment, but they also admit that Croatia is lagging behind in economic collaboration with China, particularly compared to its neighbors. Now, they see tourism as Croatia's major chance to catch up with the rest of the region."

Back in Krapinske Toplice, all the hotels are booked out for the next two months. Locals are now eagerly awaiting Chinese investment, which should help skyrocket the economy of this small Croatian village. Aljosa Milenkovic, CGTN, Krapinske Toplice.