Chris Togneri - author - page 14 - The Slovak Spectator

Import certificates and restrictions scare off investors

Foreign businessmen, diplomats and economists say that the certification process required to import goods into Slovakia is so complex and time-consuming that it is actually discouraging foreign companies from entering the Slovak market. What is more, they say that the certificates are only part of an overall anti-import policy that is sending the wrong signals abroad."These import restrictions are a form of economic nationalism and they are not productive," said Mark Bocchetti, the Economic Commercial Officer at the US embassy in Bratislava. "In a global economy, an anti-foreigner attitude is not a good attitude to have."Under current Slovak law, almost every import requires a certificate to be issued by a Slovak inspection office guaranteeing its safety and quality.

Chris Togneri

Economic programme 'dangerous'

"It is the same, practically, as it was before under the previous government, which means they have not changed the system, only the faces."Peter Mihók, President of the Slovak Chamber of Commerce and IndustryPeter Mihók is the president of the Slovak Chamber of Commerce and Industry. Born in 1948, he has held advisory positions in state trade bodies for the better part of 20 years. The Slovak Spectator sat down on December 9 to talk with him about the new government's economic package and business philosophy.The Slovak Chamber of Commerce was established by an act of parliament in 1992, and represents Slovak companies and banks in their dealings with the state. In Mihók's words, the chamber is "the real voice of business in this country."

Chris Togneri

Exhibitors praise virtues, question costs of trade fairs

Slovakia will stage 176 trade shows and exhibitions in 1999, which makes next year's exhibition calendar one of the busiest in the nation's history. Both world famous companies such as Mercedes-Benz and smaller local firms agree that trade fairs are an excellent way to meet possible future clients."We get to meet the customers, to tell them what is new with our cars and get feedback on new lines," said Mercedes-Benz Bratislava director Július Šabo. "It is a satisfying and stress-free atmosphere. It is fun to talk to people who come to auto shows because they are car fans. The exhibitions may not be a very effective way to sell cars and they may be very expensive, but they offer an excellent opportunity to present our products, and they are fun."

Chris Togneri

Tatra Air appeals for state aid

Slovakia's airline sector has been in turmoil since the Slovak government decided to suspend the license of the largest domestic carrier, Slovenské Aerolínie, as of November 16. The suspension, which was enforced by the ministry for "long-term problems" regarding the airline, has not been explained by either the ministry or the airline, both of whom claimed they had come to a "gentleman's agreement" to keep the matter secret.But Slovenské Aerolínie's problems have opened a door to the domestic carrier market for competitor Tatra Air. Jean Charles Bemberg, President of Tatra Air, told The Slovak Spectator he had submitted a proposal for state support of his airline to the Ministry of Transport, Post and Telecommunications on November 18. In return for state aid, Bemberg said, Tatra Air pledged to open new destinations and assist in the rehabilitation of Slovenské Aerolínie.

Chris Togneri

Major domestic air carrier loses license

Slovenske Aerolinie, the main natinal carrier, had its operating license temporarily revoked by the Civil Aviation Department of the Ministry of Transportation, Post and Telecommunications on November 16.Department director Juraj Dudík said the firm's unclear ownership structure and other lasting problems that have been mounting since 1995, were behind the government move.Slovenske Aerolinie (SA) first applied for a license in 1996. Although the company failed to meet elementary criteria for air carriers and did not have a single aircraft, the ministry granted SA a one-year conditional license on December 19, 1996. Dudík explained that the company did little to improve its position as an air carrier and instead pressured the ministry into renewing its license when it expired in September 1997.

Chris Togneri

DHL Director slams import regulations

DHL International Slovakia currently receives around 600 shipments a day for distribution throughout the country. But in spite of the fact that they are the biggest shipping company in Slovakia, none of their air shipments arrive directly to Bratislava Airport. Instead, DHL opts for the much larger and more frequented Schwechat International Airport in Vienna.According to Robert Paterson, General Manager of DHL, Slovakia's tangled customs bureaucracy negates the advantages of flying intoBratislava airport. "Customs clearance in Bratislava takes hours, not minutes, so the time difference between flying to Vienna and then trucking the goods for an hour and a half [to Bratislava], or flying directly into Bratislava is neither here nor there," he said.

Chris Togneri

Travel companies defend higher prices

The practice of charging foreigners twice as much for hotel accommodation has infuriated many visitors to Slovakia who expected to find lower prices here than in other western countries. But hotels are not the only culprits in the price-fixing game - travel companies also regularly charge foreigners more than Slovaks for tickets.Tatjana Barta, a Canadian citizen of Slovak heritage, was furious when she was forced to pay a rate 172% higher than her Slovak companion for a bus ticket to Vienna. "I didn't understand. It had never happened to me before in all my life. Even though I speak Slovak, I couldn't grasp the idea of what they were telling me. The concept that I had to pay more because of my nationality had never occurred to me in my life. That's why I was shocked," she said.

Chris Togneri

Slovak hotels re-think higher rates for tourists

Nathan Wood, an American tourist visiting Slovakia, was shocked to find that a few days in Bratislava cost him almost as much as he was used to paying in western European cities. "Everything was more expensive than I thought. Because I was a foreigner, I had to pay around twice as much for a hotel room, and over three times as much for travel tickets. I was very angry. It's discrimination," he said.Hotels and travel companies quoting two prices - a modest sum for locals and a higher fee for foreign visitors - have long been a feature of the tourist landscape in Slovakia. But now that the country is gearing up for possible entry into western structures like the European Union, voices are being raised in criticism of the discriminatory practice.

Chris Togneri

Volkswagen to complete $160 mil. Martin plant by spring '99

A new Volkswagen automotive factory in the northern Slovak town of Martin will begin production in the spring or early summer of 1999, according to an official from the Slovak company building the new plant.Ján Minár, a spokesman for machinery firm Martinske Strojarne, said that the factory would be built in Martin's industrial park and would produce car parts and components. "It has not yet been decided whether the factory will produce parts exclusively for Volkswagen," Minár said. "The possibility of producing car parts for other car companies still exists."According to the press agency SITA, the total investment in the Martin project will amount to 5.75 billion Sk ($160 million), of which Slovakia will provide 281 million Sk ($7.8 million). Production volume is predicted to be 12.26 billion Sk ($340 million) annually.

Chris Togneri

Škoda maintains auto sales lead

Škoda Auto Slovakia, the country's largest auto seller, is still cruising along smoothly in top market gear. The only cloud on the horizon, say Škoda officials, is the possible reintroduction of import restructions, mooted by the new Finance Minister on October 19.Brigita Schmögnerová, the new minister and a deputy for the reformed communist SDĽ party, said that Slovakia's soaring trade balance deficit would require the adoption of "short term measures focusing unfortunately on certain import restrictions.""The possible implementation of an import duty is unacceptable," said Škoda marketing manager Ilja Majda. "If it is implemented, however, Škoda will maintain its current prices for consumers."

Chris Togneri

New mobile network tender cancelled by ministry

A walk down the streets of most Slovak cities gives a clear indication that the mobile phone market is a healthy and thriving business. Nowadays, seemingly everyone, from company executives to secondary school students, can be seen toting and talking on their portable telephones.This is great news for EuroTel and Globtel, the two companies that currently constitute the entire mobile phone market in Slovakia and which obtained licenses to operate on the Globale Service Mobile (GSM) 900 frequency in January, 1997. Over half a million Slovaks today own mobile phones, over eight percent of the country's total population.

Chris Togneri

Battle over Tatras begins to heat up

Tempers flared in The Hague at the United Nations conference on climate change in mid-November as the European Union and the US failed to reach a compromise on the latter's role in reducing greenhouse effect gas emissions.While the international community focused on The Netherlands, an environmental battle was also being waged in Slovakia, a fight which has gone on for years now. The battle concerns the country's favourite mountains, the High Tatras (Vysoké Tatry).

Chris Togneri

List of author's articles, page 14