In the previous blogs we have written a lot about Srđ Portolan and his viewpoint on the development of the nautical tourism in Croatia. Srdj for his part was fascinated by the so called “French” model who were among the first who have recognized the need for the construction of mega yacht marinas like the example of “Billionaire Dock” in St Tropez which Portolan Srđ in his capacity as a member of Dubrovnik Luxury Travel management board visited
back in March 2013 on the incentive trip Srđ took part in together with Portolan’s colleagues from DLT and its sister company Adriatic Yacht Services. Talking to some of the yachts’ captains Srdj was perplexed by the lack of the knowledge captains had about the Albanian, Montenegrin and Croatian side of the Adriatic and marina facilities that were available to them on their trajectory to Venice.
The importance of branding was another issue Srđ Portolan stressed about when Srdj talked about the development of luxury tourism in Dubrovnik as Croatia’s top destination within the destination itself. As Portolan Srdj junior learned from Portolan Srđ senior the recognition of the moment like in any business cycle curve prove to have been the secret ingredient in the winning formula of success in the story of Dubrovnik and for that matter in the wider context of Croatia’s tourism as well. Portolan Srđ prompted that the saturation of the rent-a-car market simply strengthen his belief that the servicing of luxury clients within the destination, providing that this service is of the highest possible quality, is the future of his brands positioning within the luxury segment of the market.
Even within this particular segment, Srđ sees the future in the close co-operation of the owners of luxury villa accommodation and the providers of the luxury services. For instance as far as Dubrovnik is concerned, the Old City will always attract visitors for its preserved beauty. However, for the luxury guests who are accustomed for the high level of service facilities Dubrovnik is not in the league of the top French Riviera destinations. On the other hand many would argue that it is not cost effective to invest in the so called additional value determinants. Portolan Srđ understands why entrepreneurs are discouraged to invest in the high class luxury villa accommodation
because it is difficult to achieve ROI let alone its reasonable rate. Portolan Srđ believes that this is due to short length of the season. That is why Srdj states many opt out to restoring residence houses and present them on the market as villas. We support Srđ’s theory as generally speaking everyone works in its full capacity in the tourism sector in Dubrovnik for the period of 60 days which is not enough to make it till the end of the year. Srđ is a firm believer that the short duration of the season is off putting the investors in general as for starters the opportunity cost is high. We understand Srdj’s statement as it does not make sense to open a luxury restaurant which is going to remain empty for the rest of the year.
Portolan sees strong MICE sector in Dubrovnik as Croatia’s top destination as something that might save the day. Furthermore, Portolan Srdj sees marketing issues as many travel agencies lack the adequate marketing funds to promote themselves on the exhibitions around the world. Srđ for his part realizes that the support of the airline industry plays a pivotal role in making the MICE story a success.
Watch out this space for Portolan Srđ views on the current developments in Dubrovnik and Croatia luxury travel market news.