HELSINKI, Finland (July 6, 2015) — Holiday Club Resorts Oy and the Municipality of Salla are starting a property company together of which Holiday Club owns 49% and the Municipality of Salla 51%. The co-operation is aimed at securing the high quality of the current accommodation capacity in Salla, increasing the offerings in the area, developing and diversifying the tourism services, and improving the vitality of the municipality and the well-being of its residents. The total investment amounts to approximately €7.5 million.
Tourism is one of the most important industries in Salla. Considering the private and public services connected to tourism and the increasing connections between reindeer husbandry and rural industries and tourism, we can conclude that a significant part of the residents of Salla receive income and the municipality receives tax revenue and other income, either directly or indirectly, from tourism. The planned investments will strengthen the tourism revenue and the municipality’s vitality. In addition to creating jobs during the construction, the co-operation will protect existing jobs and create new jobs directly and indirectly.
The new property company will purchase a parcel of the existing spa hotel property and the section of the building that is on the parcel. The property company will lease the parcel and building to Holiday Club, which will operate the spa hotel.
Holiday Club aims to build new holiday homes in the holiday resort area in conjunction with the current spa building. The plan involves building 25–35 high-quality holiday homes in the form of a balcony access block. The Villas flats with 40–50 m2 and practical space solutions will become available for advance sales during 2015. The first phase of construction is meant to start in May 2016. The investments will be completed by the end of 2018. Holiday Club already has positive experiences with Villas flats from Holiday Club Saimaa, Katinkulta and Kuusamon Tropiikki. The flats are expected to have high utilisation rates: approximately 15% by the owners themselves and 85% hotel use.
In addition to the new construction, Holiday Club will renovate the existing hotel wing and its 26 rooms as necessary. The 52 flats of Kiinteistö Oy Sallatunturin Kelorinne will be renovated to meet
modern requirements and completely refurnished. The Kelorinne renovations will be completed in three phases outside the high seasons in 2015–2017.
The co-operation agreement also includes a spa development project to increase the spa’s quality and versatility.
The municipal residents will also benefit from the development of the Salla resort. The spa can be used for the educational and sports needs of schools and day care centres, the treatment needs of the municipality’s social and health care institutions, the teaching and club needs of the community college, and promoting the health and well-being of pensioners and other residents of the municipality, either free of charge or at reduced rates.
The agreement between Holiday Club and the Municipality of Salla also includes the opportunity for the municipally owned slope company Kaunisharju Oy to develop and sell products that include the right to use the spa at reduced rates. The product will be included in the marketing of the spa company and Holiday Club. The growing and increasingly international tourism streams will also bring the region’s other service providers more customers with purchasing power.
PRESS RELEASE SOURCE: Holiday Club Resorts Oy
Holiday Club Resorts Oy
Tapio Anttila, Director, Villas and TS-business
+358 40 732 3067
Municipality of Salla
Erkki Parkkinen, Municipal Manager
+358 400 393 987