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U.S. companies
that specialize in hotel management, fast food, sports facilities,
environmental consulting, pollution control, sewerage and waste
management, and water supply services have the best opportunity
to participate in the upgrade and expansion of Romania's tourist
infrastructure.
The development of Romania's tourism infrastructure is one of
the highest priorities of the Ministry of Tourism. Major emphasis
is being placed on the introduction of more efficient management
systems, better pricing strategies and advertising methods. In
addition, U.S. companies may have good opportunities to participate
in the upgrade of major infrastructure facilities that tourism
depends on, including roads and railway rehabilitation, main airports,
and telecommunication networks.
STATUS OF ROMANIA'S TOURISM INFRASTRUCTURE
Few countries can offer the variety of attractions for tourists
as Romania. From beach holidays at the Black Sea Coast to viewing
rare birds at the Danube Delta to snow skiing or soaking in curative
mineral waters in mountainous Transylvania, Romania's physical
features offer a multitude of attractions for tourists. Add on
centuries of accumulated history, preserved medieval villages,
unique rural culture, and beautiful palaces and monasteries, it
is clear why the current government has put developing tourism
as one of its main objectives.
The development of the industry will present both opportunities
and challenges. Since the end of communism, Romania's infrastructure,
transportation and hotel accommodation have yet to fully evolve
to meet western standards. For investors looking for an early
market entry, Romania can be considered an excellent option, as
development levels are comparable to Poland or the Czech Republic
ten years ago. Since tourism is in its infancy in Romania, investors
will need to undertake the challenges of growing the market by
improving both the domestic conditions and its international image
as a tourist destination. Large hotel chains like the Marriott,
Hilton, Ibis and Holiday Inn, have invested heavily in Romania,
a sign that potential for a return on investment exists. However,
the Romanian tourism industry is characterized by a number of
shortcomings, which in turn create opportunities for U.S. firms:
Most of Romania's tourism facilities are run down and operated
by incompetent management. In the 1960s, Romania invested heavily
in its tourism facilities, especially at the Black Sea, and was
at that time successful in attracting international tourists mostly
from Germany, Great Britain, Scandinavia, France, Italy, Austria
and Belgium. During the eighties , quality of tourist accommodation
was not maintained, with a resultant decline in the number of
foreign tourists.
During the past ten years, Romania has experienced:
- A
20% decline in the number of foreign tourists arriving, from
6.5 million to 5.2 million since 1990;
- A
14% drop in total number of beds in hotels and accommodation
facilities, from 328,000 in 1990 to 283,000 in 1999;
- A
drop in the accommodation occupancy rate from 57.8% to 34.5%;
- A
reduction in the length of stays in accommodation by 61% for
Romanian tourists and 53% for foreign tourists.
The national
and regional transportation infrastructure is inadequate and represents
the main obstacle to the development of the tourism sector. Marketing
needs to be upgraded, especially with American and European tour
operators, and overall service quality needs to be competitive
with other European resorts.
CURRENT CAPACITY AND QUALITY
Romania has 3,250 accommodation facilities containing 105,425
rooms that can hold 282,806 persons/places. Accommodation facilities
include hotels, inns, tourist villas, tourist huts, tourist and
agro-tourist pensions, camps, vacancy villages, bungalows, kindergarten
and pupil camps, tourist camps, and passenger ships. Hotels contain
the greatest amount of accommodation capacity with 161,528 places
(57.1%), followed by kindergarten and pupil camps with 41,400
places (14.6%), camps with 25,774 places (9.1%) and tourist villas
with 21,205 places (7.5%).
QUALITY
RATING OF ACCOMODATION
|
Quality
Rating
|
Total
Accommodation
|
%
rooms
by rating
|
|
|
No.
beds
|
%
|
| 5
Star |
1,032
|
0.4
|
| 4
Star |
4,233
|
1.5
|
| 3
Star |
21,285
|
7.5
|
| 2
Star |
108,436
|
38.3
|
| 1
Star |
80,521
|
28.5
|
| Unclassified |
67,299
|
23.8
|
According to quality ratings, the greatest number of rooms, 58.4%
carry a two or three star rating, indicating the average quality
level of the majority of the structures. One star and unclassified
ratings comprise 39.1% of the rooms and are considered to be noncompetitive
on an international level. The superior comfort offered by four
and five star rooms comprise a very small percentage of the existing
rooms, only 2.5%.
The world tourism industry has been shaken up by an accommodation
concept called boutique hotels. Boutique hotels are dedicated to
people with extravagant needs and desires. Initially, the concept
of such a hotel relied on the idea of providing privacy in a non-traditional
intimate hotel atmosphere. The Parlament Hotel, the first boutique
hotel in Romania, is located in downtown Bucharest and has 20 rooms
with fees ranging from $165 to $275 per night, regardless of the
guest's nationality. According to the hotel management, in spite
of the high tariffs the occupancy levels reach 70% and never go
under 50%. The success of this hotel has encouraged the hotel owner
to consider building a small chain of boutique hotels. The necessary
investment to build the first hotel was $500,000 with a two-year
pay-off period.
The state owns more than half, (53%) of the accommodation structure
or units, which contain 69.8% of the guest (person) capacity. On
the other hand, the private sector has assumed complete ownership
of only 35.3% of the units containing 19.1% of the guest capacity.
Based on the density of hotels and guest capacity, the seaside area,
excluding Constanta, contains the greatest concentration of accommodation
units, 41.8%, and is able to host the largest number of persons,
46.6%. The seaside is only open in the summer months.
The Black Sea is a favorite summer destination for Romanians, particularly
as a weekend getaway. The area stretches for 245 km (153 miles)
with the lower 72 km (45 miles) developed into a string of beach
resorts and health spas catering to all ages and interests. The
wide sandy beaches and gentle waters create perfect conditions for
water sports like swimming, water skiing and scuba diving. The area
contains a plethora of hotels and facilities as well as an abundance
of undeveloped land to build new resorts.
Principal tourist destinations are located in the family resort
city of Mamaia, the upscale areas of Neptun and Olimp, and the lively
city of Costinesti which appeals to the 18-30 year old bracket.
Internationally, the Black Sea Coast possesses potential to attract
foreign tourists, however it has a limited reputation and investors
will have to compete with other more well-known and developed tourist
area along the Spanish, Greek and Turkish coasts.
The Danube Delta is an ecological treasure in Romania and is made
up of a network of channels, lakes, reed isles, forests, pastures,
and sand dunes that covers nearly 5,460 sq. km (2,200 miles). The
wetland is home to over 300 species of birds, countless species
of fish and 1,150 plants oak forests to water lilies. Tulcea, a
city as old as Rome, is the starting point for most tours of the
Danube Delta.
The Danube Delta is a destination offered by many tourists operators,
although, the road conditions can make travelling difficult. The
area does, however, present one of Romania's best attractions for
nature enthusiasts.
Moldavia & Bucovina, located in the northeast region of Romania,
are hosts to one of Europe's premier artistic works, the painted
monasteries. Described as a series of Eastern Sistine Chapels, the
exterior frescoes are stunning and largely undiscovered by international
travelers. They were painted under the patronage of Stephen the
Great in the fifteenth century and reflect a Byzantine influence.
Iasi is the principal city of the region and is home of Romania's
oldest university. While the area holds some of Romania's most attractive
sites, it is one of Europe's most visible poor regions.
Transylvania is located in the central part of the country and is
surrounded by the Carpathian Mountains. It is the best known area
in Romania and likely its greatest tourist asset. A favorite tourist
attraction is Bran castle, supposedly the home of Prince Vlad Tepes,
who inspired the legend of Dracula. The area also features some
of Europe's most beautiful cities, including one of the greatest
medieval villages left in the world, Sighisoara. Transylvania has
year round appeal with snow skiing in Poiana Brasov and Sinaia and
trekking in the summer. Maramures, in the northwestern region of
Transylvania, is home to people that live a distinctive lifestyle
based on centuries-old traditions. Villagers dress in colorful costumes
and have a culture rich in folklore and festivals.
Transylvania has the greatest appeal to international tourists,
however the infrastructure can be lacking in some areas and travel
from Bucharest may be time consuming. To help increase traffic to
the area, an international airport is being built in Brasov. Currently,
the Government of Romania has announced plans to build a Dracula
theme park at an undisclosed location in Transylvania. Additional
investment in tourism promise to bring the area the full recognition
it deserves.
Internationally, Romania has garnered a fine reputation for its
curative health and spa resorts. The country hosts around 70 health
resorts, some founded centuries ago by the ancient Romans. The mineral
waters, mofettes (natural sources of carbon dioxide), and mud baths
are known to treat rheumatism, dermatological diseases, kidney,
respiratory and infertility problems, among others.
The resorts are scattered across Romania from the Black Sea Coast
to the Carpathian Mountains. Many facilities need improvements in
accommodations to meet international standards.
OBJECTIVES FOR THE FUTURE
Government Tourism Infrastructure Promotion Plans
To accomplish the tourism reform, the Ministry of Tourism fosters
the development of the transportation and communications sectors
and of local infrastructure. It also promotes the technological
progress, environmental protection activities, and the financial
sector reorganization. The development and restructuring of these
fields are prerequisites for the increased traffic of local and
international tourists.
The EUROPA project – is a new resort on the Romanian seaside
and represents the main challenge of the governmental policy in
the tourism field for this term of office. The emergence of a new
seaside resort in the national and European landscape has at least
two major benefits in terms of boosting the domestic tourism, a
process unfortunately abandoned in the 70's and of the private ownership
of the resort. The EUROPA resort will be built in accordance with
the present international standards regarding tourism, architecture,
environmental quality and operating system. The EUROPA project will
include several 4 and 5 star hotels, holiday villages, villas, nautical
entertainment, water-lands, sports grounds, multifunctional halls,
Ana Aslan and Pell Amar geriatric treatments, sports fishing pools.
EUROPA will be the major attempt to regain the international interest
for the Romanian seaside spas and it is expected to become a profitable
business with strong competitive features. The design concept of
the EUROPA resort relies on a strong partnership among the State
(that provides the financial resources for completing the design
and the public facilities), the local authorities (that grant the
necessary land) and the private sector (that will invest in the
infrastructure and will use it). The selection of the general design
of the EUROPA resort will be based on an international tender.
EUROPA will be located north of Mamaia resort, close to the Danube
Delta, in an area with several essential advantages: a broad high
quality beach, a varied landscape, road infrastructure, utilities,
an international airport and an important urban center (Constanta)
in the vicinity. EUROPA will be located in the heart of the Dobrogea
county, a region of high historical and cultural interest, with
ancient vestiges of Greek and Roman civilizations and an exotic
mixture of modern and traditional features of the ethnic communities
(Turks, Tartars, Lippovans, etc.)
PREDEAL-AZUGA SKI AREA Project
Predeal is one of the best resorts, known as "the resort of the
four seasons" located in the heart of the country at 140 km from
Bucharest and 25 km from Brasov – the main city of the county.
The town is situated at the highest altitude in Romania –
1100 m, its climate is sub-alpine with the following characteristics:
temperature in winter is "-4,5C", in summer "+16,1C", the first
snow is in October, snow average thickness is of 45 cm, there is
snow for 162 days/year. The resort will accommodate more than 4500
people, offering them many entertainment possibilities. The development
of the ski slope is a main concern, as it's important to keep the
tourists happy. The ski slope will be expanded to reach approximately
53,8 ha. This area was granted by the State Forest Administration,
with the approval of the Ministry of Waters and Environmental Protection.
The final length of the slopes (Predeal + link with Azuga) will
reach from 2000 m to 12,300 m. The cable transport will accommodate
from 600 skiers to 8,200 skiers. The snowmaking facility to be put
in place will extend the ski season by one month. This project will
bring about a lot of positive results among which, an increased
number of tourists, more jobs and the construction activity development.
The estimated budget of this project is: ski slopes (Euro 3,542,600),
snow facility (Euro 6,610,800), and cable transport (Euro 14,980,600),
total (Euro 25,134,000).
DRACULA LAND Project
This is a project launched by the Romanian Ministry of Tourism.
Fourteen major firms from Spain, Italy, the United States of America,
France, Germany and Belgium expressed their interest in the Dracula
Land project. The inauguration of the Dracula Land is planned to
take place in the summer of 2002 and the entire project will need
funds of about $60 million.
Privatization
A major objective of Romania's government is the sustained privatization
of state-owned tourist facilities.
The privatization program formulated by the Ministry of Tourism
includes a chapter that specifies that all the buyers of the units
will have to submit investment plans focused on the rehabilitation
of the tourist units as soon as possible. With that goal in view,
the payment in installments has been agreed upon, with a minimum
down payment of 10% of the selling price. Out of privatization revenues
to be obtained in 2001, 80% will go to the State Treasury and 20%
will be allotted to the Ministry of Tourism for privatization expenses.
The Executive has approved the Strategy concerning the privatization
of the commercial companies specializing in tourism. The strategy
includes the Methodological Norms necessary to enforce Emergency
Ordinance no. 52/2001 on the privatization process speeding up and
completion. The strategy has taken into account the uncertain status
of certain commercial companies' patrimony. The strategy has taken
into account the sale of the assets directly to those who hold them,
providing the latter have made investments that have improved the
quality of the services provided to the tourists. The privatization
procedures have also considered the mandatory investments to be
made by a commercial company under privatization. These investments
are considered in conjunction with the conveniences granted by the
state so that the privatization process might lead to the rebuilding
of the existing tourist basis and to the further development of
tourism. The privatization strategy divides the commercial companies
into two categories. The first one includes the commercial companies
where the Ministry of Tourism holds less than 50% of the shares
and whose shares will be sold in a bidding with calling. The second
category refers to those companies where the Ministry of Tourism
holds less than 50% of the shares, and in their turn are divided
into several sub-categories consistent with their size and the legal
situation of their assets, and whose shares will be sold through
bidding or negotiations.
CONTACT INFORMATION
Dinel Saizu, Director General
Privatization Dept., Ministry of Tourism
Str. Apolodor 17, Bucharest
Tel. (40-1) 410—03-30
Fax (40-1) 410-04-85
William Crawford, Senior Commercial Officer
Dublin, Ireland
Tel. 353-1-667-4752
Fax: 353-1-667-4754
Doina Brancusi, Commercial Assistant
American Embassy
Bucharest, Romania
Str. Tudor Arghezi 7-9
Tel. (40-1) 210 40-42/345
Fax: (40-1) 210-06-90
E-mail: Doina. Brancusi @mail.doc.gov
Demographics & Economic Situation
Source: Factbook.net
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Country Reports & Market Analyses
