Slovenian spa resorts suffer losses due to pandemic

Slovenian spa resorts suffer losses due to pandemic

Slovenian health resorts suffered a huge loss due to the coronavirus pandemic, with this year’s forecast remaining doomy. According to Slovenian media reports, health resorts hope the government will assist this sector in mitigating the impact of the pandemic on their business.

Spa resorts first shut down during the first lockdown in the spring of 2020, before closing once again in October until today, as they currently accept no customers. Only patients transferred for rehabilitation are admitted.

Thermana Laško tells STA that its net revenue dropped 31% last year compared to 2019, reaching only 49% capacity. 9% of the revenue was generated by tourism vouchers.

The company received state aid, however the drop in revenue remained significant, the company says. Its plans exceed last year’s results, but it will all depend on the restrictions that will remain in place.

The company had to lay off 11 employees and is losing staff through attrition, as it hopes for the situation to stabilise soon.

Thermana believes the legislation drafted by the Economy Ministry to help the industry recover after the pandemic will be vital in order for the sector to have a chance to survive a time when it is virtually impossible to generate revenue.

Terme Olimia said its revenue dropped by as much as 93% in the first quarter of the year YoY.

The company’s figures were rising at the start of the pandemic, and it managed to adapt very quickly to the restrictive measures announced in the interim period between the first and second lockdown. Terme Olimija is confident it will be able to attract guests over the summer and survive the year.

The company, STA reports, did not lay off staff because years ago it faced a lack of workforce while its capacities were reaching their limits. Now it wants to avoid this scenario from replaying in the future, and in this context it even hired some key staff that was needed.

The state measures to aid businesses appeared particularly helpful, especially the tourism voucher scheme, the furlough subsidies scheme and funds that partially covered the company’s fixed expenses. They hope to benefit from the voucher scheme again this year, as many people are yet to redeem their vouchers.

Terme Zreče meanwhile said it saw a 70% drop in revenue in the final quarter of 2020. The company has not laid off staff so far, but decided against extending any fixed-term contracts.

To prevent layoffs, the resort relies on government measures and has welcomed the legislation being prepared by the government.

Terme Krka also said it has not laid off employees, hoping that gradual growth will return once the pandemic comes under control.

Terme Topolšica said it suffered a 70% dip in revenue in the final quarter of 2020 and the first quarter of 2021. Boss Bojan Trifković believes the sector will take a long time to recover, expecting the company to jump back to the 2019 levels in five years.

The company had to let go of some of its staff, although it plans to hire again this year. Commenting on the government measures, Trifković expressed confidence that the government was doing everything in its power to help the sector.

Sava Hotels & Resorts saw a drop in revenue of over EUR 35 million. The group did not hire temporary aid and did not extend fixed-term contracts.

The group welcomed the planned tourism legislation. According to the forecasts, the sector will suffer significant damage and the legislation is needed to soften the blow, the group said. /ibna