Two very interesting possibilities for investments in hotel and mount-center in Municipality of Paraćin!

Overview

Paraćin has strong potential in sports, business and MICE tourism as it locates only 1.5 hours away from Belgrade and has civilian airport and sports center. Serbia's inbound tourism receipts quadrupled between 2002 and 2006 to $ 398 million, but are still in the early stage of a rebound toward pre 1990s levels. Underpinning this growth is one of the region's friendliest business environments, lowest human capital costs, fastest economic growth rates, and a number of desirable leisure attractions.

Occupancy drivers

Distance to Belgrade & Airport: 156 km/ 1.5. hours drive

Distance to Highway: Located on main Corridor X (E-75 highway) at crossroads od main roads Paraćin - Zaječar (E- 761), Kruševac and Montenegro (E-760) and Pojate-Jagodina

Major business Attractors: The 48-ha Industial zone Zmič is being equipped with infrastructure financed by the government National Investment Plan (Euro 800,000). No firm is located there yet, but interest for purchase of parcels is high.

Investment Environment

Permitting: Average Total Construction Approval Time: 7 days for municipal permitting

Highlighted Investment Opportunity

Greenfield Sports Complex "7.juli"

Description: Proposal by the municipality, with flexibility to investor needs, is the construction of a four-floors accommodation facility with 33 rooms (70 beds) and a renovation of a 120-seat restaurant. This will be physically linked to the complex made up of a 10,000 capacity and UEFF-registered Stadium eligible for international matches, a 1500-seats Sports Hall, and two (25m and 12m) Europena standard swimming pools. The overall Sports center is currently being renovated.

Estimated Tourism Traffic: About 150,000 trainees pass through the center annually. They currently stay at Hotel Petrus downtown.

Estimated Cost of Investment: Euro 800,000 or less if more modest design is chosen (detailed info available at www.paracin.org.yu)

Rationale: Existing demand clearly exceeds nearby capacity. Construction of accommodation facility will also spur further demand.

Brownfield - Hotel Petrus

Average Occupancy: 30%

Description: A pyramid-shaped modern architecture, Petrus houses 110 beds and is located downtown. It is partially innovated. Owned by an inexperinced operator and willing seller, the hotel typically houses Western EU travellers on way to Greece and has existing arrangements with tour opetators.

Rationale: Appealing overal structure and central location can take advantage of the spurring business-driven tourism and the large number of stopover tourists to Southern Europe.

Recommendation: Purchase and inject new management. Explore potential by renovating to three-star level and establish services amenable to high-level clients. Leverage international tour operators relationships and advertise as a stopover hub.

Contact:

Jasmina Vidović

Phone: ++381 35 566 020, 511 962

Email: jasmina_vidovic@paracin.org.yu

Site: www.paracin.org.yu