“The bankruptcy started last December. The company had total debt of EUR7.2 million, EUR6.4 million (including interest) to BCR and the rest to suppliers, other creditors and the state budget,” said Paul Stanciu, the representative of Edge Business Restructuring Advisors, the court-appointed liquidator of the bankrupt company.
“They were unable to repay their debt on the due date. And the effects of the crisis contributed to it. There are many such cases in their industry.”
Statiunea Ocna had taken out a loan from BCR about ten years ago to develop its second hotel, Helios.
Statiunea Ocna posted 3.3 million lei (EUR735,000) revenue last year and RON981,000 loss, according to the Finance Ministry data.
The resort consists of the 52-room four star Helios Hotel, the 23-room three star Salinas Hotel, a restaurant in a landmark building, a swimming pool and a hot bath treatment facility.
The bankruptcy of this resort is indicative of the state of the spa town tourism in Romania.
All those who have run the ministry talked about the existing potential without actually doing anything to promote it, devise programs for it or develop the infrastructure.
Only 33,000 foreign tourists stayed in Romanian spa towns last year, according to the National Statistics Institute.
Ocna Sibiului spa town in central Romania is known for the therapeutic effects of its water.
Although the Tourism Ministry under Minister Maria Grapini had EUR30 million budget last year and the National Tourism Authority subordinated to the Ministry had a EUR17.5 million budget, the spa town tourism saw no improvement.
In comparison, Hungary, though twice and a half smaller in size and half Romania’s population, knows how to entice foreign tourists to spend ten million nights in its accommodation facilities, according to the 2012 data, the latest available. The difference is that Hungary promotes is spa towns with their luxury hotels and modern treatment facilities.
“I haven’t seen anything seriously done for the Romanian spa town tourism. Spa town tourism plays an important part in Romania’s tourism strategy, it is the only product capable of attracting mass tourism,” said travel consultant Sorin Ionescu with Fivestar Hospitality.
If supported by investment it could generate significant revenue, Sorin Ionescu said.
A total of 240,000 people, mostly Romanians, came to take a bath in the nine lakes in Ocna Sibiului last year, compared with 300,000 in 2011, said Daniela Buta, representative of the Lacurile Naturale Ocna Sibiului (Ocna Sibiului Natural Lakes) a company held by the Town Hall.
“The insolvency was requested by the debtor, and the bankruptcy came because no reorganization plan was submitted,” said the representative of the court-appointed liquidator.
“The assets of the resort will be sold; how they will be sold and at what price will be decided at the creditors’ meeting,” Paul Stanciu said.
BCR officials did not reply to ZF’s request for comment by the time the story was ready for posting. (EUR1=RON4.4873)
(English version by Loredana Fratila-Cristescu)