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Vilnius market

Expensive electricity forces spa complexes and water parks to save money: "Vichy" is considering raising prices

BNS
in 2022 October 01 11:00 a.m
7 min. reading
Photo by Irmantas Gelūnas/BNS.
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Electricity and gas prices have risen several times this year hotels, spa complexes and water parks say that they have limited opportunities to adapt to such a situation, but they do not plan to stop their activities yet - companies are saving at the expense of profits, increasing service prices. However, some of them mention that they may have to lay off workers if they do not receive state aid. Some hotels in Šventoji resort are closed during the winter season. 

In addition, some health centers are planning to install alternative sources of electricity and say they need urgent government help to finance their installation.

Spa complexes: adapt - limited options

Rokas Navickas, the head of the Raminora company that manages the Druskininkai wellness center "SPA Vilnius", says that recently the monthly electricity bills amount to about 60. euros, when a year ago it was about 10 thousand. euros. According to him, the company compensates for the greater part of the increased costs at the expense of profit. 

"We cannot provide a half-hearted service. We cannot have a half-warm pool, a half-full plate, or a half-warm environment where a person walks around in slippers and a robe. The possibilities of adaptation are not great," R. Navickas told BNS. 

According to him, the prices of services are also rising slightly, but they "inevitably lag behind the increase in costs."

According to R. Navickos, the company is reviewing all lines where savings can be made, but in the long term - in about a year, it intends to produce most of the electricity itself. 

Rimantas Černauskas, head of the Druskininkai Health, Rehabilitation and Recreation Center UPA Medical SPA, says that in August, compared to July, electricity prices were almost four times higher. According to him, the company is taking saving measures, but it will be difficult to survive without the support of the state. 

"Electricity prices in August made us very worried about the profitability of the activity (...) Since we also provide medical rehabilitation services, high comfort standards are applied to us, as we have to ensure a certain water temperature regime in the rooms and pools," R. Černauskas told BNS. 

"Yes, we are already applying some saving measures - we have reduced the water temperature of the pool by 1 degree, shortened the working hours of the saunas on weekdays, we try to turn off the equipment when it is not in use," he added. 

According to the manager of UPA Medical SPA, the aim is to avoid layoffs for the time being, but, according to him, this will also depend on the Government's decisions.

"We are not in a hurry to draw conclusions based on one month's numbers, but it is obvious that if this situation of electricity and heat price increases continues, it will be very difficult to survive without state support," he said. 

Aistė Pranckuvienė, manager of Birštonas SPA center and hotel "Vytautas Mineral SPA", says that in June the electricity bill was 50, and in August - 120. euros. According to her, there is no other option but to install alternative energy sources.

"We need to invest in alternative energy as soon as possible, we have to produce electricity ourselves. There is no other way, we have to have our own energy source. (…) We would need measures or loans for that, specifically for the installation of alternative energy sources", A. Pranckuvienė told BNS.

“Profitability is suffering now. It's a challenge, because we still have loans to the bank to repay, it's our essence to have enough for the bank loans, because there will also be a question of business survival then," she added.

A. Pranckuvienė also stated that there is no more room to increase the prices of services, nor are there any opportunities to reduce heating or electricity consumption and the number of employees, since the services must be of high quality. 

In Šventoja, some hotels stop their activities

Ingrida Valaitienė, the head of the Palanga Hotel and Restaurant Association, said that hotels calculate three-four times increased costs for electricity and about 10 times for gas. According to her, due to the unbearable burden, the activity of the hotel "Auksinės kopos" in Šventoja has already been suspended until the summer, and the resort hotel "Elija" is also planned to close from the beginning of November.

"It's not the season when our average price and hotel occupancy drop, because it's a resort. When that passive time of the season comes, we face all kinds of challenges. What that seasonality was before, it is even more difficult in today's current affairs", I. Valaitienė told BNS.

"It cannot be said that Palanga is closing, but there are facilities that have closed," she added. 

According to the head of the association, the hotels that received record high electricity bills as early as August took saving measures, such as replacing light bulbs with more economical, sealed heating points. According to her, hotels cannot rapidly increase the prices of services, because then they simply would not have customers.

Some water parks are considering raising prices

Marius Šiškauskas, the head of Vilnius "Vichy" water park, says that the 3-4 times increase in electricity bills has had a painful effect, and in the absence of state support, it is being considered to reduce the number of working days of the water park and increase service prices. 

"It is extremely unpleasant for us that we will have to take such measures, but we also want people's understanding, because everyone thinks that by raising prices we are only lobbying ourselves." However, the reality is completely different, when the income is two times lower than the costs - it's a matter of survival," M. Šiškauskas told BNS. 

"The specificity of our business is that utility costs make up a large part of the total costs and there is no possibility of half-time work or not working. Pool systems, saunas, and downhill slides consume huge amounts of electricity, and we also have to maintain a temperature of 30 degrees indoors and heat the pools, which also means heating costs," he said. 

According to the manager of Vichy, in order to save money, the number of operating saunas, the work of the descent slides and the like are regulated according to the flow of visitors. 

At that time, Jūratė Vaitkevičiūtė, the marketing manager of Druskininkai water park "Aqua", said that no radical measures were planned for the time being. 

"We have a good contract with the electricity supplier, we are not planning any radical measures yet and customers should not suffer as a result. We will not shorten working hours or raise prices, they are now scheduled until February of next year," J. Vaitkevičiūtė told BNS.

According to her, the company constantly takes saving measures, for example, outdoor swimming pools are closed during the winter season, roller coasters operate alternately on weekdays, lighting bulbs are changed to more energy-efficient ones. In addition, the installation of a solar power plant is being considered in the future.

The author is Erika Alonderytė-Kazlauskė

It is not allowed to publish, quote or otherwise reproduce the information of the news agency BNS in public information media and on websites without the written consent of UAB "BNS".
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