Valamar expects business recovery and challenging circumstances

Published 29. April 2022.

According to today's published first quarter business report, Valamar Riviera achieved results comparable to 2019, which is persistent to the driving trend of tourism's recovery to pre-pandemic levels. Valamar reached EUR 8 million in operating revenues and 147 thousand overnights. Operating profit is not comparable to last year as labor costs were mitigated through significant government job protection subsidiaries.

Investments for the 2022 season aimed at hotels, resorts and camps managed by Valamar are worth about EUR 71 million and will drive growth and a positive outlook. One of the largest investment projects is Imperial Riviera's repositioning of Dalmacija [PLACESHOTEL] by Valamar in Makarska worth EUR 9 million, opening mid-May. Helios Faros' investments worth EUR 29 million are intended for the construction of the Valamar Amicor Green Resort and the Aquamar swimming pool complex on the island of Hvar. Valamar Amicor Green Resort is a new concept of a fully sustainable resort, following the highest green building standards, utilizing renewable energy sources and a high level of energy efficiency that Valamar plans to open in July this year.

Investments for this season also include the renovation of hotel Corinthia in Baška on Krk island which will become Valamar's Sunny Plus, upgrading Valamar Bellevue Hotel in Rabac and the construction of Padova beach with its facilities on Rab island. Furthermore, investments will continue in Istra Premium Camping Resort and Lanterna Premium Camping Resort. The company has also opened Valamar House for seasonal employees in Dubrovnik, the fifth in Valamar's destinations.

The Valamar employment campaign for 2022 runs under the umbrella program "No. 1 for a reason" with the aim of increasing the appeal of key occupations in tourism by investing EUR 15 million in salary increases and reward programs in 2022. 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 EUR 1,500 net, depending on how long and successfully they worked. Additional programs have been created for this season, which aim to improve employee satisfaction and attitude towards work.

"The results achieved in the first quarter and current booking trends are encouraging and announce a high demand for Croatia this tourist season. They also indicate a return to occupancy rates from 2019. However, the significant increase in energy, labor and procurement prices point to a risk of inflation which contributes to uncertainty and challenging business conditions that will jeopardize future development and investments that Croatian tourism is in great need of"- said Željko Kukurin, President of the Management Board of Valamar Riviera.