Frane Skoblar: The successful tourism and business story of Turisthotel dd is the dream of every businessman and I want it to stay that way

Author  HrTurizam.hr

2. May 2023.

I am leaving Turisthotel with full liquidity, exceptional profitability, long-term development defined and almost unprecedented creditworthiness, among the five leading tourism companies in Croatia, stressed Frane Skoblar, the long-term CEO of Turisthotel in his statement to the media, which we are transmitting in its entirety.

Frane Skoblar: A successful tourist and business story like Turisthotel dd is the dream of every businessman and I want it to stay that way

For several months now, there has been controversy in the public about the sale of Turisthotel shares, and it is speculated how it will affect the company's future operations. The sale to the new owner in the past few months has really been realized, and the time to come will best show its impact on the business and development of the Turisthotel.

Instead of dealing with stock trading in a way that befits this topic, objectively and impartially, the public is, thanks to certain media articles such as "Turisthotel lagging behind its competitors, its level of quality and service declining", "Many workers left Turisthotel due to an unfavorable working climate", "The takeover of Turisthotel is the final flood of Skoblar" creates a distorted image of the company and its operations.

The above reflects negatively on the reputation of the company which, without any false modesty, has been the flagship of Croatian tourism for all these years and one of the best companies in Croatia.

With this media appearance, I want to contribute to accurate information of the public, and present the facts that are important for the company and me personally. My working life at the Turisthotel lasted 41 years, and for 27 years I held the position of the Management Board - Director. As a witness of the times, below I state the most important facts:

Turisthotel has been a successful company for many decades, which is constantly developing and doing excellent business. In terms of profitability and value creation, it has been among the 5 most successful tourism companies in Croatia for years. We developed a business model that produced and continues to produce excellent results for the company, employees and shareholders, as well as the broader and wider community in which we live and develop.

Our privatization model proved to be one of the most successful in Croatia - unique and transparent, confirmed in practice. This is best illustrated by the figures of over 600 shareholders, and the growth of the share price on the stock exchange, which in 2001 was under €10, and in 2023 over €610, and it is worth even more. By increasing the share price by more than 60 times, Turisthotel stood alongside Ericsson Nikola Tesla, Končar and Adris, and it belongs to the 5 stocks with the highest growth in Croatia, which I can proudly point out.

During that period, a total amount of over €69 million, or €188 per share, was paid to all shareholders through dividends and other corporate actions. The number of employees based on working hours during the mentioned period ranged from 500 to 800 employees. At the moment, Turisthotel has cash and cash equivalents in the amount of €61 million in its accounts. This ranks it among the leading companies in the Republic of Croatia in terms of liquidity and solvency, and another, according to announcements, record tourist season is ahead of us.

A comparison of the business results from 2005 and 2019 can serve as an illustration of the success of the Turisthotel business:

  • 2005 total revenue: €16.566.890,59, EBITDA: €4.358.839,80 (26,3%)

  • 2019 total revenue: €40.824.797,69, EBITDA: €18.875.195,30 (46,2%)

Frane Skoblar 02
Photo: Frane Skoblar / Turisthotel

 

In addition to achieving enviable business results, we supported and donated to the narrower and wider community where most of our employees and shareholders live and work. We developed socially responsible business and were always ready to help those who needed help. We especially helped the health sector - the General Hospital and other health institutions, education, culture, basketball and other sports, and various associations.

In addition to all of the above, Turisthotel always knew how to help individuals in need. Numerous awards and recognitions from the city of Zadar and Zadar County, the Zadar Chamber of Commerce and the Croatian Chamber of Commerce testify to our social responsibility, not only for economic success but also for contributing to the environment in which we live and work.

We have built an impeccable reputation on the tourist market, fought for a leadership position and received a number of awards for our work.

From my first steps in tourism, I knew that only quality service and a satisfied guest can guarantee a successful business. Exactly this approach of me and my associates resulted in the growth of the company's reputation on the domestic and especially the international tourist market, from which we host about 95% of our guests.

With my vision, with the support of our collaborators, we created a "Paradise for families" at Zaton Holiday Resort, a unique oasis of preserved and refined nature combined with quality superstructure - a place where nature and man gave their best in a joint expression. Today, Zaton Holiday Resort as a brand enjoys a leading position on the tourist market, highly valued among partners, and a favorite among guests.

With the growth of guest satisfaction, we have received numerous recognitions and awards, both domestic and foreign. I would particularly like to highlight the ADAC Superplatz award (the highest award for the quality of campsites in Europe), which is awarded by the German ADAC car club with 21,4 million members. ADAC is the undisputed judge and quality controller on the European camping market. We received the highest awards for excellence from a number of prominent associations from other broadcasting countries, from the Netherlands, Denmark to Italy, and we are the first Croatian camp to be a member of the prestigious camping association Leading Campings of Europe. Systematic and high-quality work was recently confirmed by the hosting of the FICC World Camping Festival from June 23 to July 01 this year, and June 29 will be declared World Camping Day.

I personally received the highest recognition in tourism of the Republic of Croatia, the "Anton Štifanić" Lifetime Achievement Award.

Thanks to my work and the support of colleagues and the profession, I received the highest Croatian award in tourism, "Anton Štifanić", which is awarded by the Ministry of Tourism of the Republic of Croatia and the Croatian Tourist Board. I participated in the work of their bodies for years and tried to contribute to the development of Zadar and the entire Croatian tourism with my experience, knowledge of the market and vision of development.

And why was Turisthotel so successful?

Simply because it provided quality, and quality required real, quality and professional people, which we had and who functioned successfully as a team for many years. We have created value that remains and that I am proud of, a proven value for shareholders, employees, partners and the wider community.

How will the Turisthotel owned by Tankerska plovidba continue to develop and operate?

I hope for the best and believe that the new owners are aware that the dynamics of the tourist market force all participants and entrepreneurs to constantly adapt and develop. The expectations and needs of guests are constantly changing, and our tourist offer and business operations should be changed and improved accordingly. We introduced our vision of the future to the public as part of the Open Day for Shareholders, held on December 13.12.2022, XNUMX. where the projects on which we planned to build the future success of Turisthotel were presented.

Among them, I highlight investments in an entertainment and hospitality center, the reconstruction of the rest of the main street "Kalelarga", part of the apartments, the construction of Aenona Park with a hotel, eco villas and a golf course, the conversion of Boutique Hostel Forum into a hotel, the construction of a new hotel in Zadar, as well as a number of supporting infrastructure and entertainment, sports and catering facilities in Zaton Holiday Resort and Zadar.

All of the above will be possible with quality people, with investment in domestic professionals who make up the identity of our region and our tourism, without which our tourism identity will not be credible.

Turisthotel has assets of great value, but these assets by themselves, without professional staff, will not continue to give the results they need, because people are the company's greatest asset. I believe that the new owners will show enough knowledge, market wisdom and love for this very interesting and complex economic activity, which looks simple at first glance, but hides a number of very complex relationships; from employees, local community to guests from various countries and cultures.

It is undeniable that the dynamics of the life of entrepreneurs and the development of relations in the tourist market bring with them a series of changes. It is therefore natural that such changes occur in the management and ownership structure of Turisthotel. As in the life of a person as well as in the business life of a company, changes are the only constant. However, we must admit that we have not successfully completed the necessary process of changing generations at the Turisthotel.

I am leaving Turisthotel with full liquidity, exceptional profitability, long-term development defined and an almost unprecedented credit rating, among the five leading tourist companies in Croatia.

It is my wish that Tankerska plovidba as the new owner continues on the path of development of the company and realizes the planned long-term projects or the largest part of them and, guided by the already mentioned quality and excellence, manages to preserve and further improve the acquired position of Turisthotel on the market. I wish Tankerska plovidba and Turisthotel a calm sea and successful navigation for the benefit of them, the Zadar region and Croatia.

Finally, I take the opportunity to personally thank everyone who built and developed Turisthotel together with me, all current and former employees, shareholders who believed in that development and leadership and personally invested, as well as everyone who helped us in this.

Fran Skoblar

Author  HrTurizam.hr

2. May 2023.