The walled city of old Dubrovnik, with its well-preserved historic buildings, charming narrow streets and stunning location on the Dalmatian coast of the Adriatic sea, has depended heavily on tourism as its primary economic base for centuries.  The tourism season generally spans the late spring - early autumn months; during the off-season, many businesses in the city are shuttered or operate reduced hours. Dubrovnik officials seek to create year-round tourism (and employment) opportunities and to draw new visitors through conference/'business' tourism, alternative recreational opportunities and special cultural and sporting events.  City leaders also hope to identify strategies to diversify Dubrovnik's economy and lessen its reliance on the tourism industry.

The City of Monterey, California has much in common with Dubrovnik, including a spectacular coast line and natural beauty and rich (by U.S. standards!) history, and reputation as a well-known tourism destination.  Monterey has worked hard with a range of public and private partners to diversify its economy and ensure that it is not dependent on the tourism for its economic vitality, and the lessons learned from Monterey's experience have much to offer Dubrovnik. In March 2005, a partnership between Dubrovnik, and Monterey was thus initiated as part of the second phase of U.S. Agency for International Development/Croatia's Local Government Reform Program (LGRP II). 

During their first exchange in Dubrovnik, representatives from both cities identified three primary areas of focus for the partnership: sustainable year-round tourism, partnership opportunities between public and private entities as well as city/county and private institutions, and public finance. In creating sustainable, long-term tourism, the partners will work to organize year-round opportunities for events focusing on business conferences, sports and cultural activities, so as to attract a broader audience beyond those focused on antiquities.  Such events could include corporate retreats, educational symposia, golf tournaments and other sporting events such as marathons.

Dubrovnik currently lacks a transparent development process, making it difficult for potential investors to initiate new businesses or secure approval for building construction.  Monterey officials will help their partners diagram the current development permitting process in Dubrovnik so as to document it and calibrate expectations and business decisions accordingly.  In addition, the Monterey partners will demonstrate how profitable partnership opportunities can be created through cooperative agreements between the city and area hotels, linkages with educational institutions, co-sponsorships with county government, and joint investments with other public and private partners as allowed under Croatian law. 

Monterey officials and their Dubrovnik partners will also compare and contrast public finances as a means of highlighting revenue and expenditure steams. This step will help the partners explore opportunities for greater leverage, investigate infrastructure financing and funding methods, gain exposure to redevelopment packaging and funding, and review cost sharing relationships among service providers and recipients. 

During the second exchange to Monterey in September 2005, the cities will finalize the terms of their partnership work plan.  The Dubrovnik delegation will have the opportunity to learn first hand how the City of Monterey is organized and managed and how it delivers and finances high quality public services.  They will also be exposed to the variety of mechanisms Monterey uses to engage citizens and community stakeholders in the governance process, and how municipal officials work with their public and private sector partners to foster sustainable economic development.