Why Valamar Riviera is investing big in Croatian hotels

We noted last year that Croatia was attracting significant investment, with branded hotels racing to gain footholds.

But domestic companies are investing heavily. For example, Valamar Riviera CEO Zeljko Kukurin has said that his company is planning to invest approximately 2.2 billion kunas (more than $332 million) into its travel-related portfolio by 2020 as part of a move to become the leader in the Croatian tourism industry. 

Kukurin announced the plans at the opening of two new Valamar resorts—the Valamar Girandella Resort and the Family Life Bellevue Resort in Rabac. They are the largest tourism investments this year, in which the company invested 562 million kunas and brought 764 new accommodation units to Istria. The Family Life Bellevue Resort has already hosted more than 1,000 British guests through a partnership with travel agency TUI.

Virtual Event

Hotel Optimization Part 3 | January 27, 2021

With 2020 behind us and widespread vaccine distribution on the horizon, the second half of the new year is looking up, but for Q1 (and most likely well into Q2) we’re very much still in the thick of what has undeniably been the lowest point of the pandemic. What can you be doing now to power through and set yourself up for a prosperous 2021 and beyond? Join us at Part 3 of Hotel Optimization – A Virtual Event on January 27 from 10am – 1:05pm ET for expert panels focused on getting you back to profitability.

"We are investing heavily because we want to take advantage of very favourable circumstances in the financial markets, primarily low interest rates, although we have adverse effects from the political level due to the abolition of the lower VAT rate for tourism," Kukurin said. "These effects amount to 17 million kunas at the 2016 level."

Kukurin also said that Valamar Riviera will introduce a new brand in late 2017.