March 31, 2019 – 5 years ago, it was Croatia and Greece, a Tale of Two Nikki Beach Resorts. Now there are three to discuss as Forbes announces Nikki Beach Resort & Spa Montenegro.
One of my favourite people in Croatia is also one of the happiest. She works in adventure tourism and spends her time dealing with the great Croatian outdoors and like-minded people, and she feeds off the positive energy of both. She never follows the politics and she is much happier for it. She doesn’t follow for two reasons: firstly, Croatian politics only depresses her; and secondly, it is a total waste of energy, as you can ignore everything for six months, then check in and find out that absolutely nothing has changed.
Investing in Croatia is a little like that at times.
It is almost five years since I wrote an article called Croatia and Greece: A Tale of Two Nikki Beach Resorts for a Canadian Google News portal. It was a story which was picked up by the Croatian media the following day, including comment from then Minister of Tourism Darko Lorencin.
It was an interesting story of comparison between two tourism countries not known for their slick bureaucracy. A summary of the timeline:
2006 – the property in Greece, with an old hotel on it, is purchased.
2007 – land in Sucruraj, Hvar purchased
2010 – developers sign agreement with Nikki Beach Resorts for Greek resorts.
2010 – opening date of Nikki Beach Porto Heli in Greece announced – August, 2014
2014 – Nikki Beach Porto Heli opens on schedule on August 1, 2014
2014 – meanwhile in Croatia, ownership issues had still not been resolved, some 7 years after purchase.
(The proposed 270 million euro Nikki Beach Resort on Hvar)
Time passed.
Nikki Beach Porto Heli prospered.
Other big developers came to the region.
Another luxury development, also on Hvar, was announced with great fanfare by Minister of Tourism, Gary Cappelli, who spoke of a one-billion kuna investment on the Four Seasons Brizenica Bay project. The first guests were due to arrive at the 5-star resort in 2019. Or about now.
(Minister of Tourism Gari Cappelli – second from right – at the Four Seasons Brizenica Bay presentation in June 2017)
Back to that timeline – June 14, 2017:
“This extremely important project, almost a billion-kuna investment, will be of great importance to Stari Grad on the island of Hvar as well as for the whole of Croatia. The island of Hvar will be provided with the necessary quality accommodation facilities, which will certainly stimulate further investment in additional facilities, thus enabling the further development of tourism on the island of Hvar. This is also an opportunity for the local tourist community to begin with the complete management of this destination and thus make the island of Hvar a high quality destination. As an islander, I am particularly pleased to see that the potential of our islands has been recognised and I would be delighted if such investments were made on my island as well.” said Tourism Minister Gari Cappelli, adding that this investment would certainly trigger other potential investors to pay deeper attention and look for opportunities for investment on the island of Hvar, in Split-Dalmatia County and in Croatia in general.
Almost two years later, in the year 2019 – the year the first guests were due to arrive – Brizenica Bay still has no building permit. There has been no change of government or minister in that time.
As Minister Cappelli noted, other potential investors are paying deeper attention and looking for opportunities for investment.
But not in Croatia. I have written about this subject before, so no need to repeat – here are a few links for those who are interested – Lessons from Montenegro: Why Lustica Bay Will Never Happen in Croatia, Business Insider: Montenegro Not Croatia the 2019 Billionaire Adriatic Destination, and Lessons from Montenegro: Penthouse Haludovo in 1971, Croatia’s Biggest Foreign Adriatic Investment.
Let’s go back to our Nikki Beach timeline.
2019 – Forbes announces Nikki Beach Resort & Spa Montenegro.
“Under the Nikki Beach Global portfolio and situated on a private peninsula in the bay of Budva, Nikki Beach Resort & Spa Montenegro will be part of a luxury private villa development. The property overlooks a marina and the historical old town of Budva, which was founded by the Romans. As the most lively resort and party destination in Montenegro, Budva attracts sophisticated travelers and the super luxury yachting community. The property will offer up 150 rooms and suites, 20 ultra-luxury villas, 3 individual private beaches, a jetty, 5 restaurants, Nikki Spa and Tone Gym. The brand’s popular beach club concept, Nikki Beach, will also be integrated into the resort.”
2019 – After the unqualified success of Nikki Beach Porto Heli in Greece, Forbes announced Nikki Beach Resort & Spa Santorini.
2019 – Nikki Beach Hvar is still trying to resolve ownership issues, 12 years after the initial purchase.
It would be wrong to say that no progress has been made on Hvar. The ownership issues do not apply to the whole 80,000m2 purchased, and planning is now progressing on part of the development. Quite how involved Nikki Beach still are is unclear to me – Hvar appears on Google Search on the Nikki Beach website, but it takes you to a page which is no longer there.
A tale of 3 countries on luxury tourism investment on the Adriatic. As Minister Cappelli noted, other potential investors are paying deeper attention and looking for opportunities for investment.
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