According to the business report for the first nine months of 2022, Valamar Riviera has achieved results that confirm the recovery of operations after two years of pandemic crisis, but also indicate a significant impact of the new crisis on operating costs.
As stated in the announcement, 2.32 billion kuna in business revenue was achieved, which grew by 14 percent compared to 2019, primarily as a result of a 19.5 percent increase in average prices. Operating profit (EBITDA) in the first 9 months reached 943 million kuna, representing a growth of 7.7 percent.
The highest growth was achieved by premium hotels and camps, confirming the justification of Valamar’s previous investments in high value-added tourism. Northern destinations are experiencing higher demand and a faster recovery than southern Croatia, although hotels in Dubrovnik also reached the traffic level of 2019 during the main season.
Operating costs for the first nine months of 2022 increased by 19 percent compared to 2019 due to a significant rise in energy costs and an increase in other operating costs influenced by inflation. Electricity costs rose by 89 million kuna, while other costs increased by a total of 126 million kuna compared to 2019. The greatest impact on the increase in costs is due to the tripling of electricity prices to 230 euros per MWh, which has led to a reduction in the operation of accommodation facilities in the off-season.
– With a revenue growth of 14 percent compared to 2019, Valamar Riviera has achieved a full recovery from the pandemic crisis. Through the increase in service prices, primarily accommodation prices in the premium segment, we managed to offset the enormous increase in energy costs and the rise in other operating costs – emphasized Željko Kukurin, CEO of Valamar Riviera.
