Croatian Privatization Fund to Privatize Portfolio of Hotels and Tourism Assets
Zagreb, Croatia -- The Government of Croatia approved the privatization tender schedule for assets in the state portfolio. Croatian Privatization Fund President Kresimir Starcevic announced, " During the next several months we will put the entire state portfolio on the market, including some of the most valuable assets in the tourist sector. We expect considerable investor interest in these unique opportunities".
The tourism enterprises are located in various coastal locations such as Dubrovnik, Split and the island of Hvar. Hotels include Hotel Kompas, Grand Hotel Park, Apartmani Medena, Jelsa, and Hoteli Mlini. The Government of Croatia is seeking strategic investors who will bring much needed capital to upgrade, refurbish and develop these hotel operations.
Croatia's share of Europe's international tourism market has more than doubled since 1995 as this important industry recovers post-war. In 2001 Croatia hosted 6.5 million international tourists who spent a total of $3.3 billion; representing a 20% increase from 2000. Despite the downturn in global tourism this year, Croatia recorded a 6% increase in foreign tourism in the first nine months of 2002 and the Minister of Tourism projects an inflow of $4 billion by year-end. In the 1980's, before the war, the tourist industry represented an annual US$4-5 billion.
Tourism represents one of the most competitive sectors of the Croatian economy. Croatia's major attraction is its Adriatic coastline that boasts a warm Mediterranean climate, numerous islands, state parks and well-developed tourism infrastructure. The government is committed to developing the tourist sector and as a result there are frequent connecting flights to international destinations from modern airports integrated with modern roads, trains and ferry lines.
The rapid re-emergence of tourism provides investors in the tourism industry the unique opportunity of investing in a dynamic and growing sector. The recovering Croatian tourism industry is expected to expand beyond historical statistics in view of the economic recovery and development of country.
The CPF has recently tendered several hotel complexes including Suncani Hvar, Hoteli Srebreno and Hoteli Makarska.
The Government of Croatia is committed to the privatization of the state portfolio and has mandated the Croatian Privatization Fund to divest of its remaining assets and enterprises in a timely fashion. The completion of the privatization process in Croatia will represent a significant step towards the country's economic and social development goals. The current state portfolio includes 1,400 individual objects and real estate for industry and tourism and 10 major coastal real estate properties.