The city accounts for 26% of national GDP and its citizens are among the wealthiest in the country. Just 64 kilometers (40 miles) from Vienna, Bratislava is now looking to boost trade links with Austria

For centuries, Bratislava has bathed in the waters of two rivers: the Danube and the Morava. Part of a medieval trade route, the city has managed to retain a mercantile ethos. It is normal here for people to work 11-hour days. The region also accounts for 26% of Slovakia’s GDP. But today, it is at a new confluence of interests that pits historic preservation against urban developers.

Luckily, Bratislava (pop. 425,000) is steeped in a central European tradition of common sense. Its citizens, the wealthiest in Slovakia, are sticklers for accountability. They demand efficient facilities, including river hydrofoils that take them on business to Vienna, 64 kilometers away. A new 30-year master plan will allow the city to expand in a sustainable fashion. Its proximity to regional neighbors offers the possibility of developing ‘city break’ tourism, a sector the municipal government is actively promoting.

With the adoption of the euro in 2009, Bratislava is also keen on maximizing its trade relations, especially with Austria. Just ask the mayor, Andrej Durkovsky. “I met with Vienna’s city mayor recently to ensure that we carry out joint projects and make the most out of each country’s competitive advantages,” says Durkovsky. Apart from ferry boat links, Durkovsky runs a twin-city journal that promotes joint business conferences.

“We want to restructure the city’s economy. We’re calling it the ‘white city’, nothing to do with a racial context, but everything to do with education, science and a knowledge-based economy,” says Durkovsky. The formula is to integrate non-polluting industries in the urban grid, while respecting historic landmarks. For Durkovsky, companies with a strong technological base will take to Bratislava’s small city feel, as well as ensure its economic future.

Nowhere is the economic transformation of the city more obvious than in Nivy. The main business district has witnessed the mushrooming of sleek office buildings and skyscrapers. Because 75% of the population is employed in banking, IT and tourism, downtown construction is likely to grow.

For Juraj Siroky, a businessman and president of the Slovak Ice Hockey Federation, real estate is the most promising investment niche. “There’s an amazing boom in real estate. It started here in Bratislava, but it will expand,” says Siroky.

Bratislava is driven by a low baseline in residential and office space. A company like Volkswagen may run several operations domestically but its headquarters will always be in Bratislava. As such, the city sees a promising future in MICE (meetings, incentives, conventions and exhibitions) tourism.

In addition, Bratislava will host the ice hockey world championship In 2011. Siroky is running against the clock to negotiate public-private partnerships that will endow the city with a multifunctional venue, as well as more 5-star hotels. Why Bratislava?

“Because we haven’t ever organized it before. They understood that it was very important for the city’s economy, as well as for our hockey fans,” says Siroky.