In today’s global market environment, it is visible that the primary three sectors that are currently able to generate extra profit are information technology, energy and tourism.
As long time boat and sea enthusiasts, we have recognized that tourism, undergoing fundamental transformation, and the supporting sector of real estate development offer the most creative opportunities for us.
At the turn of the millennium we could already predict that international tourism was about to undergo a tremendous development through the introduction of the single European currency, the increase in life expectancy of the European population, longer leisure time, the development of transportation and declining travel costs. This is accompanied by the continuous appreciation of the Mediterranean region, as evidenced by the large scale presence of North European consumers in Southern Europe. As a result people’s demand for new experiences and their accessibility have substantially changed.
We can become key, active participants of perhaps the largest expansion in tourism in the Central and Eastern European region.
Croatia is a touristic paradise offering spectacular natural characteristics. The war led to market depreciation, insufficient capital, destroyed infrastructure and low standard of services in the country. Everyone only saw risks under these conditions. We, on the contrary, saw opportunities.
In a capital scarce post-war country, your money is worth twice as much. We were first to gain a foothold as foreign investor and provider of jobs. We had faith in the rebirth of Croatia’s exceptional touristic potentials and were aware that if we succeeded, we could become the largest beneficiaries. We saw in advance what we had to do to assume a determining role in the reconstruction of the Adriatic region after the war and before EU accession. We continue believing we made the right decision.
We were the first and want to remain as such. We want to be the first to introduce Croatian tourism to the international stock exchange markets. Our investments in Croatia will mature with the accession to the European Union, the economic restructuring caused by the global crisis, the inflow of capital from the Far East as well as the expansion of tourism sector.
We have built our business model on two pillars:
- Acquisition of real estates at the internationally best rated seaside destinations.
- Establishment of strategic social capital necessary for real estate development.
The stable background is provided by traditional tourism investments constituting the first pillar. These are long term reliable hotel, camping and marina service investments that yield predictable returns. They also recognize and support new demands well in advance, ensuring our good reputation and local acceptance.
These are substantial cash flow generating projects which exploit the stability, social capital, know-how and information advantage obtained through the market leading position ensured by the first pillar.
The second pillar differs from the first one by virtue of that the implemented projects target high yields within a few years. Thus, the first pillar serves the sustainability of the tourism portfolio taken over in the course of privatization, while the second pillar includes the marketing of existing or newly created, immediately sellable facilities. The seaside needs to prepare for the population growth following Croatia’s EU accession.
When selecting the projects of the second pillar, we are seeking opportunities in the area of coastal real estate and infrastructure development that also add value to our existing investments.
Thus, our business model stands on two pillars and neither of the two pillars can be successful without the other.
The first pillar, representing longer term investments, constitute the guarantee for the second pillar - investments producing faster returns.