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Holiday Destination: Wellness on the Kolpa River

Kolpa River Welness & Spa Resort

 

Executive Summary

 

New tourist facilities will be constructed on one of Slovenia’s most alluring and generic viagra canadian pristine environments. The idea is to offer a great spa and buy viagra wellness getaway, as well as action-packed adventures on and cheap viagra from uk along the Kolpa River. Excellent accommodation and viagra en gel service will complement an outdoor adventure or a simple workout using pools, a gym … All this and cialis tablets more will await guests less than an hour from Slovenia’s capital Ljubljana and healthcare canadian pharmacy Croatia’s capital Zagreb, which means that visitors can reach the new resort by road and get viagra by air or stop there for a couple of days when heading to the Adriatic coast.

 

The investment project envisages a resort standing on 15 hectares of land zoned for commercial development featuring a hotel built on an elevated site with 108 rooms and buy cialis online uk 40 holiday apartments with the combined 4-star accommodation capacity for 380 people.  In addition to hot mineral pools and cialis no prescription sports and recreational facilities at the Kolpa River Resort, there is a golf course and some fine stables for golfing and horseback-riding enthusiasts. Authentic cuisine paired with fine Slovenian wines will delight guests. The project envisaged also an innovative business – a financial development project near the geothermal bore 841 meters deep, with 13.6 l/s capacity of water at 20.6 0C (degree Celsius). The beneficial effects of geothermal water will be enhanced by the beneficial effects of grapes harvested in the nearby vineyards.

 

 

Current Status

 

The Municipality of Metlika in south-eastern Slovenia stretches over the wooded and sparsely settled hills that change into the flat country bordered by the Kolpa River to the south.

 

The idea for the development project dates back to 2006 when the feasibility study of a spa and wellness resort on the Kolpa River convinced the local authorities to prepare the project documentation and to apply successfully for co-financing under the Phare 2003 grant scheme. The planning and zoning process that pencils in the spa and wellness resort on the Kolpa River has entered its final phase and an investor may modify or amend the property development concept to put his individual touches to the facility, provided they meet the required milestones. An analysis will be commission to determine any impact the geothermal water treatment would have on the environment.

 

 

Investment Opportunity

 

The following calculations have been made on the basis of a typical year of operation starting from the fourth year of operation to the end of the project period:

Occupancy rate (%)

54

Estimated number of overnight stays (‘000)

67

Estimated number of quests (‘000)

20

Average length of stay (days)

3.3

Estimated revenue (EUR ‘000)

5,980

  

The following static and dynamic indicators have been used - 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 (EUR ‘000)

8,110

Internal rate of return

9.8%

Modified internal rate of return

7.6%

Profitability index

1.4

Budget / Total Cost

 

The total estimated project value is EUR 21.51 million and includes: construction and finishing  works, 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.

 

The financial parameters of the development indicated the following picture of the operation of the tourist complex based on the hypotheses presented in feasibility study:

Year

1

2

3

4-12

Gross income/Net revenues (EUR ‘000)

4,388*

4,991

5,627

5,980

Operating profit/EBIT (EUR ’000)

1,199*

1,479

1,733

1,994

Gross profit-before tax (EUR ‘000)

1,881*

829

1,145

1,419

* Figure includes extraordinary revenue of EUR 1,360,000 from sale of 40 apartments.

 

 

Project Finance/Support

 

The project to construct the Spa and Wellness Resort on the Kolpa River meets the EU incentive funding requirements for tourist infrastructure. The amount of grant could cover between 20 and 40% of the investment value.

 

 

Investment Advantages

 

There has been a strong growth in the establishment of spa and wellness centers in resorts such as this one. Its alpine setting and Karst phenomena and a beautiful river make an extremely important asset to the resort to be developed as the spa and wellness centre. People have been coming to Bela Krajina for its pleasant and healthy climate for many years and the multi-million euro development is a step in the Kolpa becoming a destination in its own right equipped to tap into the growth spa and wellness resorts are experiencing at present.  The of apartment units guarantees immediate recovery of part of the investment. Since the resort will be built to a high standard and will feature all amenities, high added value is a safe bet and the value of the real estate is set to rise in the future. Its excellent geographical position and transport infrastructure make the new resort quickly reached for a week-end break and easily accessible by those travelling to the Adriatic and Alpine resorts.

 

Other advantages include eligibility for EU co-financing of tourist infrastructure in the amount of 20 to 40% of the investment and all necessary support for the realization of the project (spatial plans, infrastructure, ensuring community backing, etc.) offered   by the Municipality of Metlika.

 

 

Contact Point

 

Municipality of Metlika

Mestni trg 24

SI-8330 Metlika

Mayr Mr. Darko Zevnik

Phone: 00386 (0)7 36 37 400 

Fax: 00386 (0)7 36 37 402

e-mail: obcina.metlika[@]siol.net 

Web: www.metlika.si

 

 

 

 

SPIRIT Slovenia is not responsible for the content of the project descriptions and the views expressed are of the external contributors and not of SPIRIT Slovenia.