No bids were submitted for six companies and the process of setting up a public-private partnership in the Suncani Hvar hotel chain has been instigated and is expected to be completed at the start of 2005.
Of the four hotel companies that have been privatised in 2004, three are located in the Dubrovnik region -- Hotel Lapad, Hotel Srebreno and Grand Hotel Park Dubrovnik -- while one is from Split -- Hotel Split. The total amount of the sold shares in the four company is 198.15 million kuna.
Following a government's decision, the HFP set for itself a special task for 2004 and at the start of June it instigated the process of setting up a public-private partnership in the Hvar-based hotel chain Suncani Hvar. It was decided that the process be conducted in two phases. Non-binding bids were submitted in the first phase. Bids were invited at the start of July and seven offers were submitted.
Binding offers were requested in November and that was the second phase. The original deadline was December 20 but it was later expended to January 21 2005.
The Croatian government said that in 2005 the main objective in the tourism portfolio would be the continuation and completion of the privatisation of the remaining 27 hotel companies partially owned by the state for which it would seek an adequate strategic partner.
Apart from privatisation, the government's objective is to reconstruct hotel companies. Profit from the sale should be invested in the development and stabilisation of business activities.