Brijuni Rivijera – Privatisation Instead Concession Attracting Investors

Tourism Minister Veljko Ostojic (IDS) (see Person of the Week below) announced changes to the proposed business model for the Brijuni Rivijera resort project near Pula.  The new model allows for investors to be owners of the resort building(s), instead of the previous model which only allowed for long-term construction rights (66 years).  Ostojic announced new tenders for the project in a few weeks.  Ostojic determined that facility ownership, instead of construction and concession rights, was a determining factor for investors, resulting in little to no interest in the project.  “It would be a waste of time to repeat a tender according to the old business model where no one showed interest.  If we did not succeed in attracting investors…we must change the model,” stated Ostojic.  The new tenders will encompass the Brijuni Rivijera locations Hidrobaza and Pineta.  In order to further simplify the investment process and attract investors, Ostojic announced that a cultural regulator will supervise the cultural development conditions for the locations; this is a result of the complications resulting with the Sv. Katarina Monument location where cultural conditions were added after the international tender.  This situation will be avoided in the future.  It can be expected that this model change will be extended to tourism projects throughout Croatia and along the Adriatic, further promoting and attracting reputable investors in tourism, since this has been a restricting conditions for investment.