Valamar expects to generate about 30% of revenues in 2020 compared to 2019 and a positive EBITDA.
Valamar Riviera published the decisions of the General Assembly which was held yesterday. The company noted that they expect to generate about 30% of revenues in 2020 compared to 2019 and a positive level of operating profit. Valamar adds that the summer tourism season was off to a good start, but travel warnings issued by several countries during August restricted travel to Croatia which caused a major drop in arrivals in late August and the post-season.
The company expects that the tourism sector will continue to be affected by the crisis in 2021, while business normalization is expected in 2022 and 2023. Despite challenging circumstances, they add that Croatia has reaffirmed itself as a stable and desirable tourist destination and has the opportunity to quickly restore tourism activities next year even though business will still be affected by the crisis. Valamar has thus far invested HRK 6bn in tourism. In the following period Valamar will be focused on maintaining liquidity, protecting employment, adjusting to conditions caused by the crisis and preparing projects for future growth and development.
Valamar further states that they have actively managed the crisis during 2020 to achieve long-term business sustainability with the support of key stakeholders. The “Pause, Restart” program ensured job protection facilitated by government measures and supported by social partners. By adjusting business operations and with the support of shareholders, banks and other investors, Valamar has secured liquidity to weather the crisis over the next three years. The “Pause, Restart” Program will continue with the aim of protecting employment until the start of next season and the interim period will be used to intensify preparations for future development projects, digitalization and transformation for the next period of growth.
In response to the crisis caused by the Covid-19 pandemic Valamar postponed HRK 125m worth investments in 2020, the completion of which is mainly planned for the 2021 season. Due to the uncertainty of future business operations, Valamar delayed the construction of Valamar Pinea Collection Resort in Poreč and postponed other investment projects for 12 to 24 months.
