Valamar Riviera also has the largest salary average and plans to grow strongly by 2020
As the largest tourism company in Croatia, Valamar Riviera held its first investors day on Thursday, gathering around 50 stock holders, bank representatives and potential investors. The new corporate strategy until 2020 was presented by Željko Kukurin, Valamar Management President, reports Jutarnji.hr on June 9, 2016.
With over 21,000 stock holders, the need to communicate with investors is always present, to be more transparent and understood. The first integral report of Valamar Riviera for 2015 will be published, with not only financial results, but also sustainable and responsible business.
Clear goals for 202 have been set in their corporate strategy. The ambition is to reach double figures in operational profit through investments in portfolio, acquisitions and strategic partnerships aiming to lengthen the season and diversify emissive markets. Also, to foster sustainable development, socially responsible activity and human resources management.
So far, over 340 million Euro has been invested in the portfolio, making them one of the largest investors in Croatian tourism. Next year will see a 26 million Euro investment in Family Life Bellevue Resort, together with TUI. With a total of 62 million Euro investment in Rabac, including the development of Girandella resort, that destination will be upgraded from 2 and 3 stars to 4 and 5, making it a leading vacation destination.
Two trends are visible in the market – one is a demand by serious tourism systems and the other is the presence of investors with significant funds for tourism development. Fifty percent of Croatian tourism is still private accommodation, which is a good model for raising the living standard of citizens, but is nowhere the generator of tourism growth.
Valamar has bid on buying the Imperial and Maestral hotels and believes its synergy of professional management and financial strength with the value of those destinations will make for a good partner to the state and local communities.
The security situation is currently benefiting Croatia, but that can change quickly. Last year was their most successful year, with significant results in high season. High quality accommodation is in demand.
Around 38% of income is direct booking, with a goal to reach 50%. Around 25% are loyal returning customers, which they hope to raise to 30%.
Human resources are an important long term topics in Croatian tourism. The first challenge will be finding people who can and want to work and the second finding people who have the knowledge and skills for high class tourism. Valamar is the largest tourism employer, with 4,100 employed in high season. It’s not a question of finding seasonal workers, but creating a strategy and conditions for them to work year-round. Average gross salary amounts to 1,051 Euro and is 13% above industry average.
