Estonia, Financial Services, Loan, Markets and Companies, Tourism

Piret Betlem, head of Kalevi Veekeskus, said in a letter to Minister of Culture Tonis Lukas that due to the restrictions caused by the COVID-19 pandemic, the company has ended up in a sector risky for banks.

The water park's wish is to reduce the current monthly loan payment in connection with the pandemic and a more sustainable financial plan, but as it is not possible to significantly reduce expenses, the company is forced to reconsider its revenue side.

Betlem said that if necessary, Kalevi Veekeskus is ready to raise prices or, if absolutely necessary, close the swimming pool with the only 50-meter swimming pool in northern Estonia.

The head of the company also pointed out that water centers and swimming pools in Finland receive a state subsidy, because according to her, it is difficult and even impossible to manage such an object without it.

"The future of the next few years does not correspond to the original business plan already in terms of credit conditions promising to deteriorate, not to mention the restrictions caused by COVID-19 and the lack of foreign tourists," she said.

The owners of Kalevi Veekeskus are Grenster OU belonging to Jaan Manitski and Eesti Spordiselts Kalev MTU (NGO Estonian Sports Association Kalev). Last year, the company posted a revenue of approximately 4.5 million euros and a loss of 437,000 euros.