BREZOVICA AT A GLANCE

The last great opportunity in the Balkans

Vienna, October 2007

Investment Promotion Agency of Kosovo - IPAK ♦ Economic Initiative for Kosova - ECIKS ♦ ZVR-Zahl 516893686
Nussdorfer Strasse 20/23, A – 1090 Wien, Tel.: +43 (01) 890 50 26 ♦ Fax: +43 (01) 890 50 26 26
Web: http://www.eciks.org, http://www.ipak-vienna.org, E-Mail: info@eciks.org, info@ipak-vienna.org
 Brezovica at a Glance ECIKS/IPAK

Kosovo – a general overview

Tremendous progress has been achieved in Kosovo in all fields since the end of the conflict
in 1999. With assistance of international community, including United Nations, USA and
European Union, Kosovars have built their democratic institutions and have set the basis
for sustainable economic development. Kosovo’s legal system was built on a completely
new basis and is the only one in the region to be EU-compatible. The Kosovo of today has
modern business support institutions, a sound banking system, a simple and
straightforward tax system, a liberal trade regime, and a well skilled labour force. With its
main asset – the young, multilingual and highly educated population with high
entrepreneurial spirit – Kosovo is increasingly becoming very attractive to foreign
investors.

The 1999 conflict has left Kosovo’s economy in disarray. After the conflict, Kosovo was put
under United Nations Administration (United Nations Interim Mission in Kosovo - UNMIK)
and has grown to be a stable and predictable democracy. The UNMIK mission is
concentrated in four pillars: police and justice, civil administration, democratisation and
institution building and reconstruction and economic development. During the recent
years, most of the competencies in all fields have been taken over by Kosovo Government
and its institutions. With the final status of Kosovo to be resolved very soon, the last
obstacle for the economic development and the continuous inflow of foreign investments
is removed.

Kosovo offers today great investment opportunities. “National Treatment” for foreign
investors, the Euro as official currency, a central position in the region and the already
mentioned young, educated and dynamic population, are only few of many reasons to
consider investing in Kosovo. Many known international companies, such as Raiffeisen,
Uniqa, Wiener Städtische, Xella, Telekom Slovenija, Holcim, Nova Ljubljanska Banka,
Strabag, etc. have already invested and are making profits in Kosovo.

The Kosovo of today is completely different from the one you might remember from
media coverage of the conflicts of last decade. We invite you to learn more about it. The
Investment Promotion Agency of Kosovo and its office in Vienna will be at your service.
Welcome to Kosovo.

ECIKS/IPAK Vienna, October 2007

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 Brezovica at a Glance ECIKS/IPAK

The Sector of Winter Tourism

Taking into consideration the current and foresighted trends that prevail in the global
tourism sector, Kosovo has the real resources needed to compete in the international
tourism market. With its different sport, recreational and wellness facilities located
throughout the country, Kosovo offers a wide range of tourism attractions.

One of the most important tourism resorts is the Brezovica Ski Centre, which is presented
in more detail below in this document.

The second and even larger Mountain complex in Kosovo is “Bjeshkët e Nemuna” also
known as “Albanian Alps”. Located among the border with Albania and Montenegro, this
complex reaches a maximum height in Gjeravica with 2656m and represents a tourism
region with the highest potential in Kosovo. The beautiful landscape and nature areas, the
high capacity for the admission of visitors and the wide range of cultural monuments
create innumerable possibilities for the development of tourism. According to the
estimations, "Albanian Alps" have a capacity and sufficient ground for 30,000 winter
tourism visitors.

Kosovo is in addition blessed with numerous wellness and thermal water sources that are
known throughout the region for their recreational and health qualities. Foreign
investments and know-how can easily turn this potential into profit bringing industry.
Apart from the above-mentioned tourism potentials, Kosovo is generally rich on
mountains, rivers and artificial lakes and therefore also offers prime possibilities for
hunting and fishing.

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 Brezovica at a Glance ECIKS/IPAK

Brezovica Skiing Resort

The Ski-Resort Brezovica is located in the furthest south of Kosovo, on the north face of
Sharr Mountain range between Kosovo and Macedonia. It was established in 1983 in order
to develop the winter tourism in this region.

Figure 1: The geographical location of Brezovica in Kosovo

The site of many International Ski-Federation races in the 1980’s and ‘90s’, the Brezovica Ski
Centre represents one of the last remaining yet-to-develop ski areas in south-eastern
Europe.

The Kosovo Trust Agency (KTA), after receiving the green light from the UN-Headquarters
in New York and in cooperation with the current management of Brezovica as well as with
the Municipality of Shtërpce, where the resort is situated, is expected to announce during
October the tender for the privatisation of this Ski-resort. The due-diligence period is
expected to last for around 2 months and the biding will most probably take place in the
early weeks of 2008. The KTA aims at targeting suitable investors and developers with a
proven record of accomplishment in large-scale real estate development.

The complex includes three localities:

1. Brezovica settlement, 900 m above the sea level,

2. Trsenja (the footage of the mountain massif), 1200 m above the sea level;
3. Ski Centre – 1700 to 2500 m above the sea level.

Each of these localities has specific advantages and resources for the development of
various tourism features in addition to their winter tourism potential. Taking into account
the topographical surface, the abundant precipitation, the rich vegetation and fauna, Sharr
Mountains provide an excellent potential for complementary exploitation and the
development of the following tourism activities also: leisure activities, mountain climbing,
fishing and various other activities in healthy conditions.

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 Brezovica at a Glance ECIKS/IPAK

Brezovica represents a remarkable investment opportunity for financial investors and

operators offering unique advantages and an all-inclusive offer for its large and densely
populated market. The position of Brezovica in relation to the main tourism routes,
destinations and market potentials is exceptionally favourable, since it is surrounded by
relatively large cities like Prishtina, Prizren, Skopje, Gjakova, Tetovo, Peja and it is in the
proximity of Greece, Macedonia, Serbia and Albania. The main road Doganoviç-Prizren
passes through Brezovica and the nearest railway station is only 20 km far from the ski-
centre.

The Ski-Centre lies conveniently between two major international airports, the Prishtina
International Airport (60 km) and the Skopje International Airport (70 km) in Macedonia.
Transfer times for passengers arriving on international flights to either Skopje or Prishtina
airports are less than two hours.

Slopes and Skiing Possibilities

With the typical features of Alpine mountains and the most slopes facing northwest,
Brezovica enjoys a lengthy ski season, due to base and peak elevations, offering skiing
opportunities of at least 128 days per year. The ski slopes have a full northern exposure and
the ski area ranges from 1700 to 2500 m above the sea level. Therefore, the skiing location
is usable from December until the end of April, which is of exceptional importance for the
duration of the high season and commercial exploitation of the already installed
capacities.

Slopes for slalom and giant slalom have been officially registered by Federation
Internationale de Ski - FIS with exceptionally high points because Brezovica fulfils all the
prescribed norms and standards.

Currently Brezovica has transportation utilities with the capacity to optimally carry 10.000
persons per hour. In particular Ski seats have a capacity of 6.080 people per hour while the
Ski-lifts have a capacity of 3.900 people per hour. The transportation utilities include:

• 1 single seat cable car with fixed earth terminal;

• 2 double seat cable cars with fixed earth terminal;
• 3 plate type ski-lifts;
• 2 anchor type ski-lifts;
• 1 train with two cabins - cable railway

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 Brezovica at a Glance ECIKS/IPAK

Figure 2: Slope and Ski-lift Map 1

Figure 3: Slope and Ski-lift Map 2

In addition, the Brezovica Complex offers an excellent year-round potential for hiking,
swimming, other summer sports, and cultural events.

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 Brezovica at a Glance ECIKS/IPAK

Hotel and Restaurant Facilities

The Brezovica Ski Centre has 680 beds in 3 hotels (Breza: 80, Narcisse: 300, and Molika:
300). Additional accommodation possibilities exist in independent hotels and private
facilities. Hotel clients have free transportation and free access to ski lifts. In addition,
Brezovica Ski Centre has 1200 seats in four principle restaurant facilities.

In Brezovica there is additional land available for substantial new development of the
complex – an area comprising approximately 230 hectares.

Hotel Narcisse Hotel Molika

Restaurant Molika
Restaurant Molika

The Stone House

Figure 4: Restaurant and Hotel facilities in Brezovica

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 Brezovica at a Glance ECIKS/IPAK

Market potential

Total population in targeted market segments is estimated to be 2.4 million customers.

This estimation includes potential customers from neighbouring countries like Albania and
Macedonia but excludes potential tourists that can be attracted from abroad.
1400000

1200000

1000000

800000

600000

400000

200000

0
Kosovo Albania Macedonia

Figure 5: Market potential of Brezovica

Having in mind the long tradition of the winter tourism in Kosovo a wide clientele of
visitors from the region already exists. Due to its climatic and geographic conditions
Brezovica was once one of the most important skiing resorts in Ex-Yugoslavia and based
on that it attracted a very high number of winter tourists.

Although currently the majority of the visitors come from the local urban centres and the
near regional centres, there is a positive trend in visits from international skiers. Based on
the collected data the structure of Brezovica visitors currently is as following table shows:

International ski
customers; 6%

Local ski
professionals ; 33%

Local ski amateurs ;

61%

Figure 5: The structure of customers

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 Brezovica at a Glance ECIKS/IPAK

In addition to the figures shown above, it is expected that the number of international
clients coming from the neighbouring and EU-countries will further increase from
currently 6%.

Moreover, there are a large number of foreigners in Kosovo working in various

organizations such as UNMIK, KFOR and other international organizations and NGO’s
which represent an interesting economic potential thus increasing the demand for the
tourist market.

There is no other ski centre which could become a serious “rival” to Brezovica.

Current price structure

The current price structure (prices during 2005) and additional statistical information are
shown in the tables below.

Hotels
Nr Description Fees €/person
1 Single Room half board 38
2 Double Room half board 25 – 30
3 Three bed room half board 17 – 25
4 Sporting activities -
5 Conference room - Daily/fee 50 – 200

Restaurants
Nr Facility Places
1 Narcis Hotel 600
2 Molika Hotel 400
3 Breza Hotel 120
4 Bernare Restaurant 80

Ski-lifts
Nr Description of Ski-lift services €
1 One lift 2
2 1-day pass 10
3 2-day pass 18
4 3-day pass 25
5 7-day pass 70
6 Seasonal pass 400

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 Brezovica at a Glance ECIKS/IPAK

Average client price per day

Package/person Quantity Euro Total
One Weekend
Hotel half board 2 25 50
Ski pass 3 days 1 20 20
Ski rent 3 10 30
TOTAL 100
Per day 50.00 €

One Week
Hotel full pension 7 25 175
Ski pass 7 days 1 60 60
Ski rent 7 10 70
TOTAL 305
Per day 44 €

A strategic Vision for Brezovica

• Year-round resort, including winter and summer sports, conferences, and music
festivals
• Significant potential for new sub-developments under the control of a master
developer
• Renovation or replacement of the nine ski lifts
• Major new hospitality projects, in addition to the renovation of existing facilities
• New residential accommodation for longer-term visitors
• Architectural standards in keeping with the traditions of the region
• Restrictions on building height and limits on the use of available land area
• Possible self-sufficiency in electric power, taking advantage of local hydro-electric
potential

Keys to Success

1. Brezovica has exceptional natural conditions for skiing (Slopes for slalom and giant
slalom recognised by IFS)
2. It has a good geographical position
3. An existing customer base and
4. An existing infrastructure.

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Picture Gallery

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References:

1. Business Environment in Kosovo, Investment Promotion Agency of Kosovo, Office

in Vienna, Implemented by ECIKS, March 2007
2. Leaflet on Strategic Sectors in Kosovo, Principal business and industrial sectors,
Investment Promotion Agency of Kosovo, Office in Vienna, Implemented by ECIKS,
July 2007
3. Development of Tourism in Brezovica Region, KDA Business Development Centre,
August 2004
4. Brezovica Ski Resort – An excellent opportunity, Kosovo Trust Agency, 2006
5. ECIKS, Dobruna, Kujtim et al., Potentialanalyse Kosovo zur Umsetzung des
Intrumentes “Unternehmenspartnerschaften” innerhalb des Sektors/Im Bereich
“Wirtschaft und Entwicklung” im Kosovo, Economic Initiative for Kosova – ECIKS,
December 2005

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