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Croatia sails for tourist boom

DUBROVNIK, Croatia (CNN) -- Sailing tourism is helping to rebuild Croatia -- once a former part of Yugoslavia that suffered terrible damage during its war for independence.

Dubrovnik once prospered from its position on the maritime route between the East and West making it one of the most important European seafaring centres in the 16th century, earning it the name "The Pearl of the Adriatic."

But in 1991, the sea nearly led to its downfall when federal Yugoslavia naval ships shelled the city during Croatia's fight to leave the republic.

The Mayor of Dubrovnik, Dubravka Suica, told CNN: "We were shot from all sides -- from the mountains, the sea and the air. Thank God we had the fortresses our ancestors built or we would not have survived."

Before the war, the 1700 kilometres of Croatian coastline attracted sailors from Italy, Germany and Austria, who would hire boats and sail around the thousands of islands that lie scattered along the coast.

The war not only destroyed the boats but also the tourism industry that helped sustain the region's economy.

Dubrovnik Marina Manager Drazen Caleta told CNN: "We were almost completely destroyed. Two hundred boats were badly damaged, stolen or sunk.

"After the war we started from nothing but succeeded in renovating the marina in just two years. We had to start with lower prices and have now increased to the normal level."

Yachtsmen began to return around five years ago, and business is almost back to pre-war levels. For the first time since the conflict, Sunsail -- the world's largest charter company -- is back in Dubrovnik.

Demand for sailing holidays has taken off in Croatia in the past few years, partly because it was cut off for so long. Sunsail now has more yachts in the area than it did before the war.

"It is interesting to come and see what progress has been made. They have re-established sailing here. It is one of their greatest assets to have this coastline," charter tourist Colin Davidson said.

Tourism accounts for 16 percent of Croatia's Gross Domestic Product (GDP), but the government wants to see that number grow.

Economy Minister Hrvoje Vojkovic said: "The government is determined to have a privatisation project . With private investors we will get a more efficient and stronger tourist sector and whole economy in Croatia."

There is already investor interest in Dubrovnik, where they are planning a new marina.

"Everyday I have someone coming from Europe and America trying to talk to me because they want to invest here. We are on the way to building a new marina," Suica said.

Civil war has, so far, prevented Croatia from developing into one of Europe's most popular sailing destinations, but a return of political stability, combined with the arrival of international investors could soon turn the country into a location to rival the Cote d'Azur and the islands of the Aegean.