Hot topics

Slovenia Business Week no. 35: French Company to Build a Modern Tourist Complex in Bovec

The municipality of Bovec has established a joint venture with France's Transmontagne to build a EUR 27m worth tourist complex in a disused army barracks in the town by the Soca river by 2008

The municipality of Bovec, NW Slovenia, has established a joint venture with France's Transmontagne to build a EUR 27m worth tourist complex in a disused army barracks in the town by the Soca river by 2008.

The partnership contract and the contract establishing the joint venture Turisticni center Bovec (Bovec Tourist Centre) was signed in Ljubljana on Friday, 3 November by Bovec Mayor Danijel Krivec and Philippe Gausset, the CEO of Transmontagne.

The 18,000-square-metre centre is to provide accommodation for 1,000 visitors in three apartment buildings, complete with a spa and pool complex, an entertainment centre, a reception and a multi-purpose hall.

The Bovec municipality and the French investors reached the deal following almost two years of negotiations. According to Krivec, the municipality will provide the plots and investment in public utility infrastructure, while the French partner pledged to build and run the complex for 15 years.

The option to extend cooperation or to enter new partnership projects was also agreed, according to Krivec. He said the target was to attract 100,000 skiers to the nearby ski slopes of Kanin each year. Transmontagne already holds a majority stake in the company running the ski resort.

To meet their goal, the partners will have to complete overhaul of the ski resort's infrastructure, ensure sufficient artificial snow, build restaurants and other attractions, and connect Kanin with the ski resort of Sella Nevea on the Italian side of the border, which is also owned by Transmontagne. The French company estimates the total worth of investment to be made over the next five years at EUR 12m.

Under the partnership contract, the public utility infrastructure to be set up for the purpose of the project shall belong to the municipality, while the joint venture shall own the tourist infrastructure. Apartments will be sold to investors in exchange for a long-term lease.

The contact on the joint venture stipulates that Transmontagne is the majority owner of the company to control the construction and operation of the centre, holding 60%, while the municipality shall hold 40%. The two partners will have an equal say in decision-making.

Gausset said that the construction of a modern tourist centre was a prerequisite to Bovec entering the European market as a tourist destination. The company decided for comprehensive investment in the Kanin ski resort and now Bovec tourist centre because destinations offering a combination of ski slopes and accommodation are most appealing to tour operators.

While the name of the complex to be built in Bovec has not been chosen yet, the partners plan a comprehensive marketing campaign, as well as more active marketing of Bovec. To make it a really attractive resort, Bovec would need more sports, entertainment and accommodation facilities, Transmontagne believes.

Source: Slovenian Press Agency STA

Author: STA, Slovenian National Press Agency