Business
Based on the official data provided by the Department of Statistics, as of 1 January 2003, 640 economic entities were active in Palanga Town, namely 45,2 percent of the total registered number of business entities. Economic entities operating in Palanga Town accounted for 7,4 percent of Klaipëda County and 0,94 percent of Lithuanian business entities. There are 36,3 active business entities per 1000 population of the town. According to the latest statistical data, number of active business entities in Palanga Town has been on decline for the past years. Ðventoji Seniûnija (District Neighbourhood) accounted for 20 percent of all active Palanga business entities. Analysis of the number of newly registered enterprises within the municipality area according to the economic activities type (EVRK) shows that the highest numbers include hotels and restaurants, companies engaged in retail trade, real estate, vehicle and installation without operator and individual and household appliances rent and leasing, and other mainly service rendering companies. According to the type of newly registered enterprises, in 2002 the largest number included close joint stock companies (36,7 percent of the total newly registered companies) and individual (personal) companies (35 percent). The largest numbers of liquidated companies include individual (personal) and close joint stock companies.
Based on the data of Palanga Town Department of the State Social Insurance Fund Office, in 2002 small companies employing less than 9 personnel made up the largest number of companies (as many as 80 percent of the total number), whereas medium-size companies with personnel between 10 and 49 comprised 16 percent.
According to the data provided by Palanga Department of the State Tax Inspectorate, annual numbers of issued patents (licenses; as of 1 January 2003 - business certificates) to natural entities has been increasing (in 1998 - 1418 patents issued, 2000 - 1783, 2002 - 1875). Number of patents to engage in businesses and services has been growing, while those for trading and other activities have been declining.
Service and trade sectors oriented towards tourism and recreational realms are the most developed sectors in Palanga. 35 percent of business entities operate in catering and accommodation businesses. According to the data of the Department of Statistics, currently 158 enterprises provide catering services. At the beginning of 2003, 25 hotels, one holiday camp and two camping sites, 100 rest houses and 7 health centers operated in Palanga Town Municipality.
Turnover of retail trade and catering businesses in Palanga, including trade in market places, reached total LTL 85,1 million at the beginning of 2002. In comparison with the beginning of 2000, the turnover had increased by total LTL 22,3 million or 35,51 percent. In 2002 in Palanga there were 3 markets, 178 shops (7,5 percent of the total in the county). Currently 9 shopping centers operate in Palanga.
The volume of the industrial production sold in the industry sector at the beginning of 2002 amounted to LTL 10 million (i.e., 66,67 percent higher than at the beginning of 2000). The national scale industrial object operates within the area of the resort town, namely, division of piping and terminal operations of AB "Maþeikiø nafta", UAB "Pavilka" bakery "Kimba" and fish cannery UAB "Baltijos delikatesai", which recently launched operation in Palanga.
The volume of works fulfilled by Palanga construction companies and enterprises in the construction sector at the beginning of 2002 amounted to LTL 16515 thousand, i.e., 7,29 percent more than at the beginning of 2000. According to the data of the Department of Statistics, at the beginning of 2002 there were 27 companies engaged in the construction sector in Palanga. The major ones include UAB "Palangos plienas", UAB "Palangos statyba", UAB "Parama".
While drafting the strategic development plan for Palanga Town until 2015 and analyzing key issues and demands of the businesses, a questionnaire survey of the business entities was conducted. Large number of entities surveyed stated that their business required innovation in order not to fall behind the competitors, wile the profit gained is too low. Palanga business community point out that the major problems of companies' expansion include shortfall of current assets, red tape of the state authorities and low spending capacity of the consumers. The most expedient and necessary business support lines include training and consultation of businessmen, soft loans and credits, arrangement of business meetings and conferences, grant of guarantees to banks upon extension of loans, partial cover of expenses for participation at exhibitions.
Business development and support infrastructure in Palanga Town. Underlying business development and support directions include development of tourism infrastructure, fish processing and production of other foods, development of services.
Upon resolution of Palanga Town Municipality Council the Fund for small and medium business development and promotion for creation of new jobs has been established. The main objectives and tasks of the Fund include promotion and support of small and medium businesses, development of business infrastructure, reduction of unemployment, provision of instrumental knowledge to the business community, presentation of Palanga as an attractive town for business development by participating at various events. Under the programmes approved by the Municipality Council and decisions adopted by the Fund's Board, the Fund's finance are used for implementation of the following activities and measures supported by the Fund: improvement of business environment, financial assistance for expansion of small and medium business entities, implementation of the EU programmes and international projects, information distribution in the business community, development of consulting (training) services and other technical means designated for implementation of enterprise promotion, development of business infrastructure, collection of publications on business development and provision of information.
With the view to promote tourism development, create and advertise the resort image in order to enhance attractiveness of Palanga in the eyes of visitors and seeking to develop incoming tourism, the Palanga Town Municipality Tourism Development Fund has been established. The Fund supports short-term and long-term programmes of Palanga Town Municipality designed for promotion of tourism industry development, participation at tourism fairs by Palanga Municipality enterprises engaged in travel services, release of various publications, making of films and other video and sound productions presenting information on the town and things promoting tourism development.
Palanga Town Council by its resolution No. 42 Re reduction of taxation in respect of companies rendering camping services dated 28 March 2002 approved the procedure for granting exemption on taxation for companies rendering camping services. This procedure aims at improving camping infrastructure. The reduced tax amount may not exceed total of LTL 100 000 for one company rendering camping services in one year and may not amount to over 50 percent of actual expenses incurred on tasks fulfilled under investment project.
Based upon the resolutions of the Palanga Town Municipality Council, registered legal and natural entities taxed in the procedure envisaged by legislation may be eligible for reduction of or exemption from land tax, rent for the state-owned land lease, real estate tax at the expense of the Municipality budget.
The following are in charge of the development of business and tourism in Palanga Municipality:
Department of Economic Development
Phone./fax. +370 460 48 125, - 48 713
e-mail pletra@palanga.lt
Business Department
Phone./fax. +370 460 48 729, - 40 225
Fund for the Development of Small and Average-Scale Business and the Creation of New Work Places
Chief specialist Virginija Liebiene
Phone/fax: +370 460 48 125
E-mail: svv@palanga.lt
Fund for Tourism Development
Phone+370 460 48 811; fax: +370 460 48 822
E-mail: palangaturinfo@is.lt
Palanga town municipality fund for the development of small-and-average-scale business and the promotion of employment
This fund was established by the Board of Palanga town municipality to promote small-and-average-scale business.
The Fund Board is the governing organ of the fund. Its formation is based on the decision of the Council.
Aims and objectives of the fund are the following:
1. to promote small-and-average-scale business;
2. to develop business infrastructure;
3. to decrease unemployment;
4. to provide beginners with all necessary information to start and further develop their business;
5. to present Palanga as an attractive town for business, to participate in various national and international events.
Income sources of the fund are the following:
1. a part of the Municipality Privatization Fund;
2. State or Municipality budget assignations for special purposes;
3. means from businesspeople organizations;
4. means from private enterprises;
5. means from various national and foreign funds;
6. bank interest for the Fund's means stored in banks;
7. other legally acquired means.
Means of the Fund are disposed and managed by the Palanga Town Council, following the decisions made by the Fund Board to fund (subsidize) the promotion of small-and-average-scale business:
1. to educate and consult businesspeople according to the small-and-average-scale business development program, approved by the Municipality Council;
2. to raise qualification (or change it) of staff in small-and-average-scale enterprises, according to business promotion programs;
3. to participate in national and international exhibitions, fairs and business missions;
4. to create and implement special business promotion programs;
5. to organize conferences and seminars;
6. to pay for the researches of business development and services of hired experts and consultants;
7. to pay a part of interests for loans, which are taken by people with disabilities and beginners (up to 3 years of activity) to implement business development projects;
8. to establish business incubators and centers;
9. to publish business information and other publications to form Palanga image;
10. to store and provide information on business development.
Finances (subsidies) are provided following the decision No. 441 of LR Government 1999-04-20 "For the List of Unpromotive Small-and-Average-Scale Business Subjects", which confirms a list of those small-and-average-scale business activities which may not be promoted:
" hunting and related activities;
" production and retail trade of alcoholic beverages and tobacco products;
" retail trade of automobile fuel;
" wholesale;
" financial mediation and secondary financial mediation;
" collection of insurance and pensions funds;
" operations with real estate;
" juridical activity;
" organization of gambling and bet.
More information:
Palanga Town Municipality Administration
Economic development division
Chief specialist Virginija Liebiene
Phone/fax: +370 (460) 48 125
e-mail: pletra@palanga.lt
