Health resorts suffered signifiant revenue drops during pandemic

Laško/Podčetrtek/Zreče/Bled – Slovenian health resorts were closed during the first lockdown in spring 2020 and have now been closed a second time since October, admitting only patients sent there for rehabilitation. They have suffered a significant drop in revenue and hope that legislation being drafted by the government will help the sector get back on its feet.

Thermana Laško has told the 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 but still the drop in revenue was significant, the company said. Its plans are above last year’s results, but it will all depend on restrictions in place.

The company had to lay off 11 employees and is losing staff through attrition, also expressing the wish for the situation to stabilise.

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

Terme Olimia has said its revenue dropped by as much as 93% in the first quarter of the year compared to the same period the year before.

The company was in a good position at the start of the pandemic and managed to adapt very quickly to the preventative rules the sector faced between the first and the second lockdowns. Terme Olimija is confident that it will be able to attract guests during the summer and survive the year.

The company did not lay off staff because years ago it faced a lack of work force while its capacities were at a limit. Now it wants to avoid that from happening again in the future and even hired some key staff it was missing.

The government measures to help businesses helped, 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 and expressed expectation that it will go back to gradual growth once the pandemic is under control.

Terme Topolšica said it suffered a 70% drop 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 and expects the company to return back to 2019 figures in five years.

The company had to let go some of its staff but plans to hire again this year. Commenting on 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. Considering the forecasts the sector will suffer significant damage and the legislation is needed to soften the blow, the group said.