Spa operators going to battle: the weak ones will go under, the strong ones will start shopping
14. listopadu 2012, 12:12
The Czech spa industry is expected to lose between one and one and half billion crowns next year – as a result of a decree effective as of October 2012. The new legislation seriously cuts down spa benefits paid for by health insurance. Eduard Bláha, the Luhačovice and Jáchymov Spa Holding CEO and its minority shareholder, predicts the spa market will become concentrated in the hands of the strongest players.
“A lot of managers and owners have failed to fully understand their position as yet. In fact, the worst of it will hit us in the first quarter of 2013. They will soldier on for a while, but then their losses will accumulate over one or two years’ time, and the moment for acquisitions will come,“ he told motejlek.tv.
At present, the holding of Luhačovice- and Jáchymov-based spa companies, founded by investor Martin Burda, holds the strongest position in the Czech market, and would therefore be expected to start taking over other companies in times of crisis. “Mr. Burda has been speaking dreamily about a multitude of Czech spa resorts, the time has not come yet, though. But it will, and we should also look beyond our borders then,” Mr. Bláha assesses the perspectives, indicating that some Czech spa companies’ offers could already be on the table. In addition, he mentioned acquisition efforts by Alexandr Seidl, the owner of Lázně Libverda, or Radovan Vítek’s insatiable appetite. “However, the latter says himself is interested only in resorts with high international tourism potential, such as Karlovy Vary, Mariánské Lázně, or Františkovy Lázně.“ The entire interview will be soon available on motejlek.tv.
Translated by Lingvus