TIMING IS EVERYTHING
The opening in March of Mama Shelter Belgrade , developed by Israeli owner Ashtrom , triggered a rethink of Serbia ’ s hospitality industry . “ We fill a gap in the market because ... people want to have fun at the kinds of places they see in Paris ,” says Mama Shelter President Serge Trigano .
It ’ s a challenge to find employees willing to work weekends and evenings . But “ young Serbian people are very proud of their country and eager to show it ’ s changed . It ’ s no more what happened in the last 20 years .” Trigano adds , “ It ’ s definitely for us a good time to start working in that part of the world . There is huge potential in this country and in other countries like Romania and Bulgaria .”
A Mama Shelter Belgrade guest room
The Valamar Collection Imperial Hotel in Rab , Croatia serious with regulations and help these hosts convert to small hotels .”
Developed with the World Bank , Albania ’ s integrated coastal management plan aims to attract investment to its pristine , 280-mile “ riviera .” The country wants to encourage investment in “ high-class branded hotels ” to attract European tourists who stay longer and spend more , says Blendi Kosi , Albania ’ s new minister of tourism and environment . “ Improving quality in all accommodation structures has been a big challenge .”
Government sweeteners for investors constructing 4- and 5-star hotels and luxury resorts include 10-year corporate income tax exemption , 6 % VAT on services and subsidies of 40 % to 60 % for some categories of historical restoration .
POSITIVE ATTITUDE According to Petra Stušek , managing director of the Ljubljana Tourism Board , 11.9 % of Slovenia ’ s GDP comes from the travel industry , and overnight stays increased 12.6 % in 2017 . The InterContinental Ljubljana , the city ’ s first 5-star hotel , opened in August 2017 . Slovenia ’ s 2017-2021 Strategy for Sustainable Growth and recognition as the European Green Capital of 2016 strengthened a reputation for eco-tourism . Also drawing attention is BTC , a new IT and startup hub . “ If the government eases business regulations , it will be more attractive for investors ,” she says . “ They need to show a positive business attitude .” Labor is an issue , says Nikola Avram , CEO of Serbia ’ s MK Hotels . “ The fiercest challenge for international brands is about successfully managing local people , and consistently guaranteeing the highest level of service ,” he says . Since launching in
2009 , MK helped adapt the domestic business mindset to international standards , operating Kempinski properties in Croatia and Slovenia and working with Marriott International to open the Sheraton Novi Sad in March . So far , Serbia ’ s EU candidacy has not elevated prices , according to Avram , who says property and construction costs in Belgrade and Kopaonik are US $ 230 to US $ 465 per square foot .
Despite investor skepticism , potential returns “ are very difficult , almost impossible , to find in Western European countries ,” says Anna Ivanovic , VP of JLL Hotels & Hospitality Group . “ The capitals of former Yugoslavia are currently where key CEE cities like Budapest , Prague and Warsaw were five to 10 years ago .”
She adds , “ Once one big player … opens their flagship in a destination , its competitors will be looking to do the same .”
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