Croatia business prospects are largely dependent on the service sector, particularly on tourism. Tourism’s positive effects are felt throughout the economy, in terms of increased retail business volume, in terms of processing industry orders and in summer seasonal employment. The bulk of the tourist industry is concentrated along the Adriatic Sea coast, while inland areas offer mountain ski resorts, agrotourism and health spas. Other major industries include chemical, fertilizer and plastic production, textiles, electronics, food processing, aluminum, iron and rolled steel, timber, wood products, paper, petroleum refining, and shipbuilding. With respect to the agricultural sector, Croatia is a notable producer of organic foods, wines, olive oil and lavender. And while Croatia’s economy seems rather diversified, it actually suffers from an over-reliance on the tourism sector. Other factors to be aware of – those that pose risks to Croatia business ventures – include corruption, inefficient public administration, land ownership issues, uneven regional development, plus a growing trade deficit and national debt that is putting pressure on government budget expenditures.