Valamar Riviera Achieved 33% of Last Year's Figures, Preserved All Jobs

By 31 October 2020
Valamar Riviera Achieved 33% of Last Year's Figures, Preserved All Jobs

October 31, 2020 - Croatia's largest tourism company Valamar Riviera achieved 33% of last year's figures and still managed to preserve all jobs. 

HRTurizam reports that despite the COVID-19 crisis, Valamar Riviera generated 2.2 million overnight stays in the first three quarters of 2020 and total revenues of HRK 673 million, or 33% of last year's revenues. While Valamar Riviera expects to realize a net loss, they also will have positive cash flow with an operating profit in the range of HRK 100 to 115 million.

"With the support of stakeholders, we have been actively managing the crisis and the tourist season since the beginning of the pandemic," Valamar points out, adding that the decision to pay dividends for 2019 was revoked in March. 

Also, a program for preserving jobs titled "Pause, Restart" has been agreed with the social partners, which pays non-working employees compensation of 60% of the salary, i.e., a minimum of HRK 4,250 per month. The Government supported the job preservation program through subsidy measures.

"The crisis has shown that systems that have previously strived for excellence and cared for all stakeholders will do so even more during the crisis to maintain the confidence of their stakeholders and be ready for a period of recovery. Valamar actively managed the crisis in 2020 and secured a strong position to continue development during 2021 and 2022, when business normalization is expected. We thank all stakeholders for their support, especially employees, shareholders, suppliers, builders, banks, and the Government who, together with Valamar, worked together on this demanding business year," said Željko Kukurin, President of the Management Board of Valamar Riviera.

Thus, operating costs were reduced by 59% compared to the same period last year, and the completion of the started investments was postponed for 2021. Additional medium-term liquidity has been provided through loan rescheduling sufficient to amortize the crisis in the coming period.

In parallel with austerity measures and increasing liquidity, Valamar has been actively preparing for the season and modifying its products and services to welcome guests safely and securely. This season, 24 hotels and resorts were opened, and all 15 camping resorts in eight Adriatic destinations with more than 4,400 employees.

Although the tourist season started well at the end of June and during July, travel restrictions to Croatia caused a sharp decline in the second part of August and the post-season. However, since the beginning of the pandemic, Valamar has had almost 300,000 guests. No coronavirus cases have been recorded in Valamar's hotels and resorts, all jobs have been preserved, and Valamar has been recognized as the best employer in tourism this year.

The planned investment projects for 2020 in the total amount of HRK 800 million have been partially reallocated for implementation for two years, according to Valamar. During the autumn and winter, only the started projects will be completed, primarily the investment in the reconstruction of the Valamar Parentino Hotel in Poreč and the Valamar Meteor Hotel in Makarska.

In the next 12 to 24 months, all other major investments will be paused, including works on the construction of the Valamar Pinea Hotel in Poreč, the largest tourism project in Croatia, worth a total of HRK 790 million.

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