The Impact of the Coronavirus on the Croatian Holiday Home Market.

The Impact of the Coronavirus on the Croatian Holiday Home Market.

March 15, 2020

The detailed statement from the Crovillas team.

Background

Things are moving quickly at the moment. There is a lot of uncertainty in society, and above all, one question looms large: Is my vacation in Croatia at risk? Before we delve into all the possible questions you might have, we want to signal one thing in this special situation:

You are not alone, we are here for you!

In these unprecedented days, nothing is more important to us than everyone's safety, maintaining a respectful and open dialogue with you, and last but not least: the safety of the country of Croatia.

Special situations require special measures. We immediately traveled to Croatia to get a sufficient impression on-site, observe the border crossings, and relay the safety measures to you. This is our understanding of duty, which we have developed over the years for our guests!

Even though there are far more questions than answers these days: You have a partner in us who stands by you even in this seemingly dark time, works hard and intensively, and continuously engages with you and the situation on the ground. Because we will be just as friendly and exemplary a partner in difficult times as we were when we first met.

Why you have luck in misfortune.

Even if it is not recognized or currently not wanted to be heard: You have unconsciously made the best possible choice with one of our villas, rest assured. Croatia is a safe country and we also know that in just a few weeks the world will look completely different again. By choosing Crovillas, you automatically have a villa in Croatia for exclusive use and avoid crowded hotels. You can simply travel by car and avoid crowded airports. There are many other reasons why Croatia is indeed currently in a better position.

All villas on www.crovillas.com are available for exclusive use.

All villas on www.crovillas.com are available for exclusive use.

We have taken a few hours to dedicate these important words to you. Please be so kind and read them to the end, take them to heart.

Why we decided on a comprehensive analysis.

There are many answers, even to questions you probably haven't asked yourselves yet. I only use well-founded sources with source references and always refer to the Croatian Ministry of Internal Security for formulated decisions, as well as to the Robert Koch Institute for recommendations and current case numbers.

Due to the urgency, I will go into the topic in great detail. On the one hand, to give you an overall impression of what is currently happening here on the ground in Croatia, and on the other hand, to raise your awareness:

because the situation in Croatia must be assessed differently compared to the rest of Europe! I will also address the consequences if your trip cannot be undertaken.

1. General Situation:

Croatia is handling the Corona issue very exemplarily, there is clear leadership and the measures taken are quite sustainable and aimed at protecting the country.

The virus is a much bigger issue than just a vacation in the end.

The motto should be one above all: not to fall into PANIC, no matter where you are currently located, and to adhere to the guidelines for containment. Panic and selfish behavior can indeed cause more harm than the virus itself.

The fact is: The virus has already broken out, infection rates are rising exponentially (rapid, avalanche-like increase) in known countries like Italy and Germany. We must now work with all humanly possible means to slow the spread and relieve our healthcare facilities, everything else is secondary for now!

The fact that the disease presents an absolutely harmless course for most people and is processed like the flu is certainly one thing. Nevertheless, we must pay special attention to the people we can significantly endanger by infecting them: older people, immunocompromised individuals, and vulnerable risk groups with pre-existing conditions. Currently, it only requires one task from everyone:

to take all measures that result in a slowdown of the spread. Right now, we need to think about US, anyone who behaves negligently endangers the collective! A challenge that we have probably not experienced in this way before and presents us with unfamiliar tasks. However, this is important to survive this phase, we can no longer stop the virus, it is about dealing with it in the best possible way!

We have no comparative values for a situation of this kind. However, we must use our common sense in the current situation and properly interpret the governments' directives! There is no reason to fall into mass hysteria because restrictions on freedom are being made or various events where crowds of people gather are being canceled. These are merely preventive measures to slow the spread of the virus! It is unnecessary to make panic purchases, it is even reckless: everyone will have access to food, "hoarding" only leads to others being influenced by it. Focus on the essentials and think about your fellow human beings. Practice a bit of restraint in this special situation, we are all doing very well. Appreciate that we are healthy.

I am giving you a factual assessment of what may come our way - and that should ideally be a great stay in one of our villas in the summer. The product "Crovillas", your villa, is certainly the best you could book given the current situation. I also address possible cancellation costs, what alternatives there are, and what this means for your booking, which is ultimately what you care about.

We are obligated to you and are forced to deal intensively with the issue. We report factually and accurately on the current status.

2. What is the current situation in Croatia and what is the country doing?

On-site, there is a very responsible awareness with a clear line: Large events, fairs, and celebrations are canceled, schools and kindergartens are temporarily closed.

It is very important to correctly interpret the actions of the government here!

Because these reactions, contrary to all interpretations, are the only reasonable and rational actions to enable a holiday season in 2020. As of March 13, the following applies to travelers:

Croatia has introduced additional containment measures here: (Translation of the Croatian Institution for Internal Security, Source: https://civilna-zastita.gov.hr/)

Travelers (including from Germany and Austria) must undergo

  • a 14-day self-isolation (home quarantine) when crossing the border or:
  • a 14-day hospital quarantine if they are entering from high-risk regions such as Italy, Iran, or specific areas like Tyrol in Austria or the Heinsberg district in Germany)
All border crossings are strictly controlled.

It is expected that Croatia will temporarily close the borders (and this would also be desirable!!) to protect the country & people, to prevent a just beginning spread. Damage has already occurred, but now it is important to keep the damage as small as possible! A closure of the borders is being considered and in our opinion, it would also be the only correct measure to protect tourism. Only in this way do we look forward to a season from May/June in Croatia.

It is very important to visualize the dimensions:

Laboratory-confirmed COVID-19 cases by country:

Spain: 218,011

Italy: 211,938

Germany: 163,860

France: 130,242

Croatia: 2,101!

(Source WHO, accessed on 06.05.2020, 12:00 PM)

These numbers will also increase, but the conditions and extent here in Croatia are a speck of dust compared to the countries mentioned above. And this is very, very important for all of us to know, the situation here is significantly different, the measures taken will dampen the spread! This has many factors, which I will go into more detail below in "what speaks for Croatia."

3. What speaks for Croatia?

As already mentioned above, the situation here on site is different from most EU member states and especially holiday countries. Why? A big, big plus for Croatia is the border policy! Croatia is one of the few EU accession member countries NOT in the Schengen Agreement, meaning: Croatia has border control! Every entrant is required to undergo a personal check at the border. After the first cases became known in Italy and Germany, immediate measures were taken to ensure containment from the outset. This was also not a problem due to the external border and was installed without much effort (and completely legitimate for the protection of the country). Entrants with abnormalities such as elevated fever temperature (fever measurements in the border area) or obviously sick people were turned away at the border regardless of origin.

Croatia is currently handling everything very exemplary, not only for the nearly 4 million inhabitants but also especially for the 20 million people who were expected to visit this country in 2020. Careful action is being taken for all parties, national security comes first and will have a positive impact on tourism, which is usually expected in the summer months.

As a travel company and an important link between you and the country, we would like to encourage some reflection:

Croatia lives from tourism! There are no raw materials, goods, or other exports, almost everything is geared towards you guests, so the situation must be assessed accordingly. It was recognized from the outset that damage limitation is the only sensible means, no matter how high short-term losses have to be accepted. Sensitive action was taken, but it was exactly right, swift, and purposeful.

Croatia is a small country with a large land area, there is ultimately only one big city: the city of Zagreb with nearly 800,000 inhabitants, which is also located inland and has little confrontation with tourism.

Most coastal cities are quite small compared to European metropolises, almost tiny (the 2nd largest city is Split with 190,000 inhabitants, followed by the coastal cities of Rijeka with 144,000, Zadar 70,000, and Pula 60,000).

In the strong outbreak months of the Corona virus since the end of February and early March, Croatia recorded the lowest entry rates (all demonstrably due to border controls in connection with the Schengen area!). There is no unregistered immigration. Since the outbreak became known, border controls with fever measuring devices have been carried out and suspicious persons are immediately sent for medical examination or expelled.

In the main destination Istria, there is hardly any large population, around 200,000 people live on 3,500 square kilometers. That is 57 inhabitants per square kilometer. For comparison: in Germany, we are at four times the value, at 232. In Austria, we are at 106 inhabitants per square kilometer, still twice as many as in Croatia. Thus, the basic setup here is certainly much better positioned and will also be very well positioned in terms of the spread development. It must also be noted: you have not booked a hotel holiday with constant confrontation with others, on the contrary. All villas with us are for exclusive use, you have made the best choice with one of our villas!

A section of the Croatian coast.

4. What scenarios are conceivable for me as a Crovillas customer?

We can understand your concern, no one feels comfortable in this situation! It is important to keep a cool head and here we also appeal to your common sense. We need to clearly understand, assess the situation, and act responsibly towards all parties. Above all, we must also assess it based on the current legal situation. The following scenarios apply:

Scenario A: Rebooking

We strongly assume that nothing will stand in the way of summer arrivals. The most pleasant option for guests arriving at short notice, until the end of May, is to rebook to a later date or to the year 2021. This would also postpone the final payment, which according to the conditions is to be made to us 5 weeks before the start of the trip. However, this must be precisely coordinated with us and the owner. If this is an option for you, we ask you to think about it and come to us with specific rebooking dates. We are of course happy to assist you with this.

Scenario B: EARLY CANCELLATION ACCORDING TO CANCELLATION TABLE

Currently, there is a worldwide travel warning for any tourist travel until June 14, 2020. It should first be noted that this does not constitute a travel ban: it merely clearly indicates that the return journey may be impaired and the German government refrains from repatriation attempts. It sounds worse than it is.

I urgently ask you to read the statement of the Foreign Office on travel cancellation:

https://www.auswaertiges-amt.de/de/service/fragenkatalog-node/05-reiseruecktritt/606072

A travel warning alone does give the right to free cancellation of a package tour, but not of an individual trip, as in your case! Please watch the following short video, which explains the situation quite accurately! Especially from minute 2:17:

https://www.welt.de/wirtschaft/video207599163/Stornierungen-in-Zeiten-von-Corona-Innerhalb-von-14-Tagen-muss-der-Veranstalter-den-Betrag-erstatten.html?cid=onsite.onsitesearch

The legal basis for free cancellation is only given if Croatia prohibits entry, but this is most likely not going to happen due to the positive course of the pandemic!

Therefore, even if our company would like to grant it to you, we cannot cancel the trip free of charge contrary to the conditions! The payments are thus due and must (and here I ask for your understanding) be made to us. Not because we want to gain a financial advantage, but because we have to fulfill our contractual obligations to the owners in Croatia. We have long since forwarded your deposit amount to the owner to confirm your travel period.

The cancellation conditions from the concluded brokerage contract apply as follows:

Excerpt from the Crovillas brokerage conditions©

Please note that in the event of a cancellation request, the situation prevailing at the time is always decisive. "FEAR" is, for example, not a reason that can lead to a free cancellation.

Scenario C: Travel Cancellation Insurance

Here too, as in Scenario B), the payment is still due to us, but the travel cancellation insurance will cover the expenses depending on the terms and conditions if there is an insured reason. Please find out to what extent and whether insured reasons apply to your case and understand that we are not allowed to advise you on insurance matters!

Scenario D: Entry and Exit Ban

The situation is that a cancellation must be assessed individually depending on the country of departure and entry. It is crucial whether an entry ban has been imposed for the destination country at the time of your trip or whether it is an exit ban from the country of origin.

In plain language: if Germany/Austria is officially classified as a crisis area with an exit ban and it is not possible for you to start your trip, the normal cancellation conditions from our brokerage contract apply. (see Scenario B)

If you are denied entry to the country of Croatia, the original basis of the contract is no longer fulfillable (the booked service can no longer be provided) You will thus receive the entire booking price back.

Hygiene is more important now than ever.

5. What can I do?

Regardless of where you are right now: Please do not panic! For healthy people, the virus generally does not pose a major threat, but it does for older people, risk groups (people with certain pre-existing conditions), and immunocompromised people. Take care of yourselves, also to protect others:

  • Avoid large crowds
  • Wash your hands often and thoroughly
  • Disinfect when possible
  • Avoid physical contact with people
  • Eat healthily, strengthen your immune system!

We would also like to refer to the hygiene guidelines of the Robert Koch Institute. You can find them here.

In conclusion, one thing must be emphasized, and I would like to repeat myself here:

We are here for you and will do everything we can to resolve everything to your satisfaction. We are committed to your booking and proper handling to the best of our ability.

If you feel like it, contact us, we are guaranteed to be available to you at any time.

With best regards and a heartfelt "Take Care,"

Valentino and the entire Crovillas team.