Net Holding, which currently operates 10 hotels and 11 casinos in Northern Cyprus, Croatia, and Bulgaria, is eyeing Montenegro as the next major investment destination, according to Hande Tibuk, the executive member of the board of directors.
Speaking with Özlem Ermiş Beyhan from Dünya newspaper, Tibuk stated, “We may consider new investments in Montenegro. It is centrally located in Europe and very investor-friendly, offering great potential.”
Net Holding already owns a hotel and casino in Montenegro and manages residential properties there. Tibuk explained the 'buy to let' system, where property owners rent out their homes when not in use, predicting that the sharing economy will gain a stronger foothold in the tourism sector.
"Turkey has become expensive"
Net Holding, with nearly 100% of its shares publicly traded, currently does not operate any hotels in Türkiye. Tibuk pointed out that Türkiye has become expensive, stating, “Post-pandemic inflation has been a global issue, but Europe and the US managed to control the situation more swiftly, while we were late. Competing countries like Spain and Greece have managed to control their prices, but we couldn't. Consequently, we have become expensive in terms of tourism. Previously, we offered quality at a low cost, but now we are expensive. The main reason for this is the increase in wages, a significant cost in the tourism sector, in dollar terms. This has inevitably caused challenges in the industry.”
"Mid-segment struggles"
Hande Tibuk noted that Net Holding employs 7,000 people, including 6,000 in Northern Cyprus, emphasizing the importance of employee satisfaction and the company's commitment to regular wage increases. However, she acknowledged that these wage increases have particularly strained mid-segment tourism businesses. “We are in the luxury segment, our calculations are different. We create our own customer base. Guests at our hotels return, and the staff providing personal service are special personnel whose happiness is crucial to us. However, mid and lower segment hotels have struggled with these increased personnel costs. Recently, we have seen them resort to price cuts, adjusting prices to navigate this period,” Tibuk explained. She stressed that for tourism success in a region, all segments must be present.