PROJECT “DESTINATION WELLNESS ON THE KOLPA RIVER”
PROJECT “DESTINATION WELLNESS ON THE KOLPA RIVER”
The Municipality of Metlika is located in south-eastern Slovenia, in the eastern Bela krajina between Gorjanci mountain range and the Kolpa River. The wooded and sparsely settled foothills are surrounded by a lowland area bordered in the south by the Kolpa River.
PLANED LOCATION OF THE PROJECT
The “Destination Wellness on the Kolpa River” tourist complex will be located on a natural promontory formed by a meander of the Kolpa River and a smaller tributary near the village of Božakovo in the Municipality of Metlika. Its construction is planned at a very accessible location; close to the Ljubljana-Zagreb and Zagreb-Split expressway, the closest routes to the Adriatic Sea, near Metlika international border crossing, and the proximity of Zagreb, the capital of Croatia.
Area has an agreeable climate and pleasant temperatures. Geographical characteristics of the location offer a good starting point for the development of tourism since its karst phenomena (dolines, uvalas, and caves) have always attracted visitors.
Development project is envisaged as a spa and apartment colony, an innovative and outstanding business-financial development project. At planned location a geothermal bore has already been drilled 841meters deep, with 13,6 l/s capacity of water which is 20,6 oC warm. The water from the bore could be exploited as thermal mineral water as the water is very high quality and clean.
The overall design of the spa is based on a close relationship with nature and ethnological elements of the region in a sophisticated form that will allow quests to enjoy perfect comfort along with a romantic and relaxed experience of tradition.
In the framework of the project, the construction of a tourist settlement is planned on a 15- hectare building site that will include hotel with 108 rooms and 40 apartments in a apartment colony. The total accommodation capacity is therefore 148 four-star accommodation units with 380 beds. The planned program content is based on wellness activities with a heavy emphasis on the area’s natural assets, the traditions of the area, and the source healthy natural thermal water. The overall wellness offer will have a theme concept based primarily on the winegrowing tradition of the area with programs focused on the beneficial effects of grapes and wine in combination with thermal water.
The project has been designed by company HOSTING d.o.o. of Ljubljana and has been cofinanced within grant scheme programme Phare 2003.
Investors may change or modify the program envisaged in the concept and feasibility study, including the spatial planning and architectural concept, based on their own vision of the realization of the program. However, they must respect the basic starting-points that the Municipality of Metlika established while developing the project.
ESTIMATED INVESTMENT VALUE
The total estimated investment value of the project amounts to 21,51 mio EUR (June 2006) and includes: construction and installation work, furnishings and interior decoration and landscaping; purchase of the land; project engineering and supervision; legal fees, taxes, consultation costs; start up costs of marketing and staffing prior to opening; necessary operating funds for start up of operation.
FINANCIAL INDICATORS OF THE PROJECT
In the framework of the envisaged program offer of the complex and on the basis of a completed market analysis, we anticipate the following physical and value realization from the project for a typical year of operations in the operation phase, which represents the period from the fourth year of operation to the end of the economic period of the project:
The following static and dynamic indicators are anticipated:
Static indicators of investment efficiency (typical – 4th year)
Dynamic indicators of investment efficiency
PLANED LOCATION OF THE PROJECT
The “Destination Wellness on the Kolpa River” tourist complex will be located on a natural promontory formed by a meander of the Kolpa River and a smaller tributary near the village of Božakovo in the Municipality of Metlika. Its construction is planned at a very accessible location; close to the Ljubljana-Zagreb and Zagreb-Split expressway, the closest routes to the Adriatic Sea, near Metlika international border crossing, and the proximity of Zagreb, the capital of Croatia.
Area has an agreeable climate and pleasant temperatures. Geographical characteristics of the location offer a good starting point for the development of tourism since its karst phenomena (dolines, uvalas, and caves) have always attracted visitors.
Development project is envisaged as a spa and apartment colony, an innovative and outstanding business-financial development project. At planned location a geothermal bore has already been drilled 841meters deep, with 13,6 l/s capacity of water which is 20,6 oC warm. The water from the bore could be exploited as thermal mineral water as the water is very high quality and clean.
The overall design of the spa is based on a close relationship with nature and ethnological elements of the region in a sophisticated form that will allow quests to enjoy perfect comfort along with a romantic and relaxed experience of tradition.
In the framework of the project, the construction of a tourist settlement is planned on a 15- hectare building site that will include hotel with 108 rooms and 40 apartments in a apartment colony. The total accommodation capacity is therefore 148 four-star accommodation units with 380 beds. The planned program content is based on wellness activities with a heavy emphasis on the area’s natural assets, the traditions of the area, and the source healthy natural thermal water. The overall wellness offer will have a theme concept based primarily on the winegrowing tradition of the area with programs focused on the beneficial effects of grapes and wine in combination with thermal water.
The project has been designed by company HOSTING d.o.o. of Ljubljana and has been cofinanced within grant scheme programme Phare 2003.
Investors may change or modify the program envisaged in the concept and feasibility study, including the spatial planning and architectural concept, based on their own vision of the realization of the program. However, they must respect the basic starting-points that the Municipality of Metlika established while developing the project.
ESTIMATED INVESTMENT VALUE
The total estimated investment value of the project amounts to 21,51 mio EUR (June 2006) and includes: construction and installation work, furnishings and interior decoration and landscaping; purchase of the land; project engineering and supervision; legal fees, taxes, consultation costs; start up costs of marketing and staffing prior to opening; necessary operating funds for start up of operation.
FINANCIAL INDICATORS OF THE PROJECT
In the framework of the envisaged program offer of the complex and on the basis of a completed market analysis, we anticipate the following physical and value realization from the project for a typical year of operations in the operation phase, which represents the period from the fourth year of operation to the end of the economic period of the project:
| Occupancy rate-beds (%) |
54
|
| Anticipated number of overnight stays (,000) |
67
|
| Anticipated number of quests (,000) |
20
|
| Average length of stay (days) |
3,3
|
| Anticipated revenue (EUR ,000) |
5.980
|
The following static and dynamic indicators are anticipated:
Static indicators of investment efficiency (typical – 4th year)
| Calculation of break-even point (EUR ,000) |
2.380
|
| Operating efficiency |
1,48
|
| ROE (%) |
16
|
| Added value per employee (EUR ,000) |
48,2
|
Dynamic indicators of investment efficiency
| Normal return period (yrs) |
8,2
|
| Discounted return period (yrs) |
10,7
|
| Net current value (in ,000 EUR) |
8.110
|
| Internal rate of return |
9,8%
|
| Modified internal rate of return |
7,6%
|
| Profitability index |
1,4
|
Reasons to invest in the “Destination wellness on the Kolpa” project
We recommend that potential investors join the presented development project primarily because of the following features and conditions of the project:
- in terms of marketing, program, and spatial planning and architecture, this is an innovative and unique project in the wider region of south eastern Europe:
- because the concept is consistent with trends in tourist demand in Slovenia and Europe, the reality of anticipated turnover and income of the project is ensured;
- the envisaged sale of part of the real estate (apartment units) guarantees immediate recovery of part of the funds invested;
- it is based on a high level of quality and comfort, which ensures high added value in the operation and a high growth of value of the real estate in future relative to its initial cost;
- it is located at very attractive, advantageous, and accessible geographical location;
- the project can apply to obtain a non-refundable EU grant for the partial financing of tourist infrastructure ob between 20% to 40% of almost the entire investment value;
- The Municipality of Metlika offers all the necessary support for the realization of the project (spatial plans, infrastructure, ensuring wider support, etc.)
The entire concept documentation of the project will be available to potential investors who express in written form a serious interest in participating in this development project. In the realization process of the investment project, the selected investors will receive the full support of the Municipality of Metlika.
CONTACTS:
MUNICIPALITY OF METLIKA, Mestni trg 24, 8330 METLIKA
Tel. number: 00386 (0)7 36 37 400 Fax number: 00386 (0)7 36 37 402
E-mail: obcina.metlika@siol.net
http://www.metlika.si
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