Croatia's Valamar Riviera plans to earn 30% of 2019 revenue this year

Still, Valamar hopes that it will post operating profit this year, the company said in a statement on Thursday.

"The summer tourism season had a good start but travel warnings issued by several countries during August restricted travel to Croatia which caused a major drop in arrivals in late August and the post-season," the hotel operator said.

Valamar expects that the tourism sector will continue to be affected by the crisis in 2021, while business is expected to return to normal in 2022 and 2023, it added.

The company also said it has postponed 125 million kuna ($19 million/17 million euro) worth of investments in 2020, in response to the coronavirus crisis and the uncertainty of future business operations.

These investments include the construction of Valamar Pinea Collection Resort in the town of Porec, on the Istria peninsula, and other projects whose completion was planned for the 2021 season. The projects have now been postponed by 12 to 24 months, Valamar said.

The company said that in the following period, its focus will be on maintaining liquidity, protecting employment, adjusting to the crisis conditions and preparing projects for future growth and development.

In August, Valamar reported it swung to a negative consolidated EBITDA of 107.9 million kuna in the first half of 2020, from a positive 84.7 million kuna EBITDA in the like period of 2019, as consolidated revenues fell 80.6% on the year to 133.8 million kuna.

The hotel operator owns five brands: Valamar Collection, Valamar Collection Resorts, Valamar Hotels and Resorts, Sunny and Camping Adriatic.

Its shares, which are part of the Zagreb bourse's blue-chip index CROBEX10, traded 0.41% lower at 24 kuna by 13:12 CET on Friday.

(1 euro = 7.54897 kuna)