Horwath HTL Hotel Market Sentiment Survey: Croatia
Horwath HTL Croatia conducted a sentiment survey to monitor and assess the impact of the COVID-19 pandemic on the Croatian hotel industry.
According to the results of a survey, expectations on business performance for 2020 are very pessimistic. Revenues are expected to decrease by more than 55% compared to the previous year, mainly due to the very low occupancy levels. Hoteliers expect that crisis will last for at least 6-12 months, while full recovery is expected in mid-term.
As time is passing and the number of COVID-19 cases is increasing, expectations are becoming even more pessimistic, encouraged by constant travel regulation changes and negative media coverage on key source markets.
Key findings:
- Soon after COVID-19 appeared in Croatia, hoteliers promptly introduced strict cost control, primarily through reducing the cost of employees, closing the hotels and/or postponing the capital investments.
- The government also acted promptly and supported the industry by offering number of incentives with the main goal of ensuring liquidity and saving jobs. Therefore, use of the government support was a key risk mitigation measure during the past few months.
- As a result of pandemic, hoteliers expect significant drop in overall performance. In 2020 hotel revenues are expected to decrease by almost 60% on average, mainly due to the very low occupancy (average decrease of -55.7%).
- As a highly affected industry, hoteliers consider government should further support business through tax rebates (77% of respondents), wage support (74%), loan moratoriums (66%) and lower interest rates (53%).
- Full business recovery is expected in a mid-term period.
About Horwath HTL
Horwath HTL is focused one hundred percent on hospitality, tourism, and leisure consulting. Our services cover every aspect of hotel real estate investment, tourism, and leisure development. Our clients choose Horwath HTL because we have earned a reputation for impartial advice that will often mean the difference between failure and success. Each client project is unique, and they rely on us to utilize the experience we have gained throughout our 100-year history to assist them in achieving their goals. Being a global firm with 52 offices in 40 countries, we have successfully carried out over 40,000 assignments for both public and private clients. As part of the Crowe Global network, a top-ten accounting, and financial services network, Horwath HTL is the number one choice for companies and financial institutions looking to invest and develop in the industry.
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