Poreč, February 25, 2021 - According to the audited annual financial report, Valamar Riviera generated operating revenues of HRK 1.6 billion in 2021, or 74% of revenues generated in 2019. Operating profit reached 84% of the pre-crisis 2019. In the third quarter of 2021, Valamar business normalized in almost all destinations, achieving excellent results in northern Adriatic destinations, camps and the premium segment. Only destination Dubrovnik as well as 2* and 3* properties, did not achieve significant business recovery.

In 2021, Valamar initiated a new acquisition and portfolio development phase by expanding its cooperation with investment partners in Croatia and purchasing its second hotel in Obertauern, Austria.  Throughout the pandemic, Valamar continued to develop its products, services and tourism portfolio during the two-year investment cycle 2019/2021 amounting to almost HRK 870 million. At the end of 2021, a new investment cycle in the amount of HRK 525 million was launched across the Valamar managed portfolio with the aim of further upgrading and increasing the quality of resorts and campsites, with emphasis on developing green tourism and digitalization projects. Investments in hotel Dalmacija [PLACES] by Valamar in Makarska are well underway and the hotel is set to open in May this year. Furthermore, the first sustainable property for family holidays, Valamar Amicor Green Resort on the island of Hvar is also under construction.

With the aim of improving working conditions in tourism, Valamar will raise salaries for professional positions in hotels, camps and resorts in 2022, determined to provide an income closer to the level of income in leading European destinations. Valamar's program received full support from social partners.  Wages for professional positions including chefs, waiters, specialist housekeepers and receptionists at Valamar have increased by an average of 14%, and their income this season will be between EUR 1,000 and 1,600 net per month. The Valamar minimum net income guarantee for housekeepers, assistant chefs, assistant waiters, kitchen workers, waiters and many others will increase to a monthly amount of EUR 750 to 1,100 net. In addition to raising basic wages, Valamar will continue its programs awarding excellence. Last year, employees received a "13th and 14th wage" of up to HRK 11,300 net, depending on how long and successfully they worked. This year, Valamar will invest a further EUR 15 million in wage increases and remuneration programs for 7,000 employees. In 2022, Valamar plans to open all its hotels and camps and is in the process of preparing for the start of the season.

However, the positive business results achieved in 2021 do not cover the substantial realized loss from the crisis period during the pandemic. Uncertainty will continue to affect tourism business and the economy in the near future, although business normalization is expected in 2022 and 2023. Croatia has the opportunity to further strengthen its position as a desirable Mediterranean destination, especially if it successfully realizes its entry into the Schengen area during this year.