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Sarajevo Times > Blog > BH TOURISM > A successful privatization Story from Neum: 33 million BAM invested
BH TOURISM

A successful privatization Story from Neum: 33 million BAM invested

Published April 20, 2015
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hotelThere is a successful privatization story behind the emergence of the Grand Hotel Neum. Everything started two years ago when the Croatian company – BMV Inženjering d.o.o. Zagreb – signed a contract with the Agency for Privatization of HNK, which has committed to invest 22 million BAM in a three-year time-span, with an initial capital payment of four million BAM used to hire 45 new employees and retain all existing ones.

A Leader in BH Tourism

 

‘’In one year – or on the 1st of July, 2014 – the plan was surpassed,’’ said Branimir Butigan, coordinator of the Grand Hotel Neum.

“33 million BAM was invested into the hotel, and we hired new employees and retained the old workers according to plan, resulting in all of the conditions of the privatization contract being fulfilled after only 18 months,” said Butigan.

The hotel was renovated from the ground up. Its capacity was maintained with 380 rooms which have each been extended by eight to nine square meters. New featured rooms have also been introduced: a wellness center, salt rooms, and an indoor swimming pool with heated sea water which is open during the summer.

Butigan says that they still have ambitious plans.

“Neum needs sports activities, and we are planning to build a sports hall and two tennis courts that will complement the offer of the hotel in the future. We will try to realize this project through a public-private partnership in cooperation with the Municipality of Neum. Besides the hotel, we have land that is in our property, which would make us the lead investors, “says Butigan.

The Warm Up Has Started

Warming up for the summer of 2015 has already started at the Grand Hotel Neum. A total of 100,000 overnight stays are projected, and Butigan claims that they are on track to reach their goal.

“We are now the leaders in B&H Tourism this year and coming years. We are pleased with current reservations, and we are currently at 60 percent realization of our plan. The real reservations are yet to come,” says Butigan.

Butigan is proud of the agreement made for the next three years with the largest French tourism operator – FRAM – who chose the Grand Hotel Neum as an official destination – or “Framissima Hotel” – for the French market. “Framissima is a French tourist agency for higher income guests,” explains Butigan, expecting 20,000 overnight stays from France in 2015.

Besides the French, there are high projections of arrivals from Germans, Slovenes, Poles, and Greeks. Negotiations are currently in place with England to bring English tourists for the summer of 2016.

Despite the projections made, the hotel is already set for a successful year in 2016. Reports indicate that hotel reservations for the New Year’s Celebration of 2016 are already sold-out.

Even with all the tourists, there are still areas for improvement. Active business at the hotel only occurs eight months in a year. Part of Butigan’s business plan is to expand business throughout the entire year. Emphasis will be placed on congress tourism; there is no event in the region that cannot be accompanied by this hotel.

“The hotel has already hosted leading events featuring Microsoft, FEB, Revicon, and USAID. These are events with 400 or more participants,” says Butigan, adding that the goal is to bring congresses and group meetings from abroad to Neum.

 

(Source: ekapija.ba)

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