Gordana Tomičić, Management President of Sunčani Hvar talks of business and season expectations.
After a ten year investment break, Sunčani Hvar has renovated and reconstructed hotel Pharos. After a restructuring and financial stabilisation a new period is obviously coming to this hotel company, Jutarnji List writes on June 21, 2016.
Sunčani Hvar is near to gaining control of the state share in the company. Recently the Slovakian Prime Tourist Resorts (PTR) gave an offer to stock holders approved by Hanfa. Previously PTR took over Orco’s share. Gordana Tomičić, Management President of Sunčani Hvar, talks of the upcoming tourist season, business plans and cooperation with the destination.
What kind of a season do you expect?
“We’ve had the best preseason ever. May was marked by record demand, mostly the result of groups and large business events. I am satisfied that Hvar has been profiled also as a unique destination in the conference or business tourism segment. During the first five months of this year, we’ve made 8.6% more overnight stays, the average number of days guests stay has lengthened which is an excellent trend, while business income has risen by 11%.
The current state of reservations and results in the first six months signal not only the achievement of ambitious goals, but more than that. Today our achieved profitability level is a textbook example of international hotel industry standards. Our goal is to keep it that way.”
What is your guest structure?
“Sunčani Hvar is dominated by the United Kingdom and United States markets, including Brazil, Australia, Korea, Taiwan and Scandinavian countries. Although UK guests have the highest numbers, the largest growth of almost 25% in the past year was made from the US market which together with the UK makes up for a total of 32% of all overnights.”
What are the trends and what are your actions in that regard?
“Sunčani Hvar is in a developed phase of destination management and its offer. The market niches and segments towards which the hotel and destination offer is created are recognised. This offer is targeted for the international tourism market with the goal of intensifying tourism circulation outside of the main season. Significant means are placed towards sales activities, marketing and destination promotion to build up the image of Hvar and create additional motives of guests to arrive. Besides Asian nations, focus has been shifted to South American nations, South Africa and India where we are using specialized channels to target a narrow segment of guests with higher financial means.”
What did profitability bring in terms of activities?
“The successful ending of the pre-bankruptcy settlement marked the final phase of a complete restructuring of the company, securing long term financial stability. The gross operative income of almost 68 million Kuna at the end of 2015 confirms a stronger market position and entrance into the phase of profitable business, but also a new investment cycle after almost ten years. The renovation of hotel Pharos was completely funded from our own income.”
Can you say more about the recently finished investment in hotel Pharos? What does it mean for the company?
“The recently reopened hotel Pharos, defined as a completely new tourist product, is fully geared towards the needs of the modern adventurer and as such is the first lifestyle hotel in the area conceptually adapted to the millennial generation. According to indicators of tourism movements at a global scale, millennial will generate more than 50% of total tourism spending in the next ten years and dominate all tourism circulation. Sunčani Hvar has a 60% share of the group on total overnight stays. Modelling upon the leaders of the world hotel industry, we are adding to our portfolio of luxury and lifestyle hotels a millennial brand, but not in the terms of a market orientation at society level, but as an added value to our internationally recognised and positioned existing portfolio, which will have a positive effect on the very destination image.”
After a completed main part of restructuring of Sunčani Hvar, you mentioned a new financial plan has been prepared. What is it made of and are you satisfied with its implementation in this period?
“The fundamental factors of the accepted financial plan were the recapitalisation of stock holders using the pro rata model and reducing base capital from the 40 Kuna per share to a nominal share price of 20 Kuna so we could cover the transferred losses. We respected that and achieved financial stability and secured the legal requirement of capital adequacy. Likewise, the profit made in 2015 completely covered the transferred losses, according to plan. Sunčani Hvar regularly pays its creditors, confirming it is a healthy, consolidated and organised company.”
What did the entrance of Prime Tourist Resorts into ownership bring and do you expect the state to succeed in selling its share in Sunčani Hvar? What kind of buyer are you hoping for?
“The goal of any management at any time is to satisfy the expectations of its owners and manage business in a way to secure long term and stable growth and development of Sunčani Hvar. We are successful in that mission.
PTR has been present in the ownership structure since 2014, when in the phase of the most dramatic development of financial restructuring and pre-bankruptcy deal, it bought off bank debts and significantly contributed its successful ending. This did not only enable a quality ending of the entire consolidation, but the start of a new and necessary investment cycle.”
Is Sunčani Hvar ready for a business ascent that a leading hotel company in a destination such as Hvar should have?
“Sunčani Hvar in this phase of profitability is already experiencing a business ascent. Hvar is an elite and unique destination made up of natural beauty, rich culture and history in a very small and confined space. I don’t see it as a destination for mass tourism as this doesn not lead to sustainable development of the town, limited on its own. I see Hvar as a new and better St. Tropez or Mykonos: an exclusive destination for world trend leaders, offering a unique experience in every way, unique outlets, restaurants, shops by leading world designers with unique product lines exclusive to Hvar, cultural music events by world’ best musicians.”
How do you rate cooperation with the destination?
“Upon exiting the recovery and restructuring phase and entering a profitable phase of further development and new investment cycle there was a clear shift in the cooperation ad perception of Sunčani Hvar as the bearer of tourism development of the destination, giving us a responsibility towards the local community. Our role in the destination is defined by the fact that we manage 85% of hotel accommodation, invest significant means in advancing sales and marketing and open new markets, and to be more successful, a more intense cooperation with locals is paramount, together with a more active participation in the co-creation of the tourism offer.”
What is Hvar missing, from the perspective of the head of a hotel company, to be a more successful tourism destination?
“Hvar needs a new and quality urbanism plan to regulate construction in town and around it. Construction should be limited and conditioned by strict rules and goals. Hvar must become a destination where world celebrities will give millions for several thousand square metres, where residential villas and architectural creations worth admiration will be built.”
As an experienced tourism worker, can you rate the quality of Croatia’s tourism offer? Where is the potential and what are we doing wrong?
“It seems like the Croatian tourism sector hasn’t completely recognised the necessity of swapping mass tourism for smaller market niches. Family tourism is still dominant. But, this segment, considering the changes in global social and cultural awareness, is experiencing further segmentation and specialised niches demanding excellence. From millennial couples travelling with their first child, single women taking their nephews travelling, to grandparents who fund the entire trip for their children and grandchildren as a family gathering. These are all different audiences demanding adventures and experiences specific to their needs and preferences.”
What distinguishes the company you lead?
“I consider Sunčani Hvar different in, seen from our demographic and geographic guest structure and averages prices, being brave and turning towards trends just being developed in Croatia. Private pontoons, luxury clubs, gastronomy offer, removing an all-inclusive service and half board service, private transfers with superior speed boats down to developing our own team which creates personalised itineraries and manages destination services, are just some of the specifics of our company. Our goal is to continue in that direction, developing our own potential and comparative advantage, combining them with niche groups and interest groups which can fully valorise this type of offer. This is the key difference in our approach to creating a product above the prevailing on in Croatian tourism.”
