Croatia’s Valamar Riviera will start work on the country’s largest resort, an investment of €105mn, this autumn, the company announced on June 27 following a supervisory board meeting. 

The company’s supervisory board has given prior approval for the next annual investment cycle worth €80mn, the company said. 

This represents “the continuation of Valamar’s investment strategy to reposition the hospitality portfolio towards premium products and services,” according to the statement. “The 2020 investment cycle is significant, although smaller than in previous years considering the global slowdown in market demand and growing operating costs.”

“Valamar has successfully completed the investment cycle and business goals for the previous three-year period and is about to start a new development phase. We plan to continue growing Valamar following our formula for success which is based on sustainable and socially responsible investments in employees, products and destinations,” said Željko Kukurin, CEO of Valamar Riviera, in a statement. 

It’s major new project will see the transformation of the two-star Hotel Pical in Porec into a luxury 5-star resort able to accommodate up to 1,700 guests.  Facilities will include seven bars, seven restaurants, swimming pools and a congress centre. 

“The development of this resort represents the largest single investment in Croatian tourism, and is planned for completion in 2021,” according to the company. 

However, Valamar’s CEO warned of the struggles companies in the tourism sector face finding workers — a concern recently raised by Croatian employers’ bodies who urged Prime Minister Andrej Plenkovic to increase quotas for foreign workers. 

“[It] is still necessary to work on the general competitiveness of Croatia’s tourism in relation to other Mediterranean destinations if we want to boost the investment potential of the tourism sector and retain our employees in Croatia,” Kukurin said.