Croatia: Tourism is booming, but prices rise dangerously!

Croatia: Tourism is booming, but prices rise dangerously!

Kroatien - Croatia, a popular holiday destination, depends heavily on tourism. Current reports show that the situation develops both positively and negatively. While the Croatian tourism authority reports impressive figures for 2024, the situation could further tighten due to rising prices and fewer overnight stays in the high season. This could have serious consequences for many locals who live from this sector.

In 2024, Croatia recorded a total of 16.9 million arrivals and 89.5 million overnight stays in the first eight months. This corresponds to an increase of 4% for arrivals and 1% in overnight stays compared to the previous year. Nevertheless, some media report that the months of May and June 2024 were disappointing, with around ten percent fewer overnight stays compared to 2023. At the same time, five percent more accommodations were offered, which could still tighten the situation. The Croatian tourism authority described this trend as worrying and warned that unused apartments and holiday homes could have negative economic effects. Smaller providers may be faced with the choice of closing and selling their accommodations.

growth and challenges

The official tourism authority states that the focus is on strengthening the pre -season and post -season to make Croatia attractive all year round. In August 2024, the country recorded 265,000 arrivals more than in the previous year, which could show that efforts to have sustainable tourism have an effect. Nevertheless, Tourism Minister Tonči Glavina notes that the summer capacities have already been reached and there is a need for an operational plan to develop sustainable accommodation capacity.

Especially in the most visited regions of Istria, Split Dalmatia and Primorje-Gorski Kotar, the pressure is high in summer. The average utilization of hotels is 95%, while private accommodations only reach 62%. A total of over 5.4 billion euros is expected for the summer months, which corresponds to an increase of 11.5% compared to the previous year

price increases and economic effects

Despite these positive signs, there are worrying trends in the catering and other parts of the tourism industry. Fewer guests mean that prices are increased, which could deter some tourists. Transport costs, services and food prices have also increased, which leads to a more expensive vacation in Croatia. These developments make it more difficult for the locals to benefit from tourism and could affect the country's competitiveness in the long run.

Croatian dependence on tourism has reinforced over the years. In 1995, tourism income amounted to 988 million euros, while before the 2019 corona pandemic, they were EUR 10.7 billion. After a severe decline in pandemic, the income rose again, but the industry remains on the hat in view of the upcoming challenges. By the end of 2024, a total income amount is expected to be forecast by 15.2 billion euros.

To support the sector, the Croatian government plans new legislative measures, including a reformed tourism law and changes to real estate taxes. These obligations aim to reduce the pressure on the peak months and to improve the tourist infrastructure. The forecasts are careful, but it remains to be seen how the situation develops and whether Croatia can keep its place as a popular holiday destination without endangering the quality of the services.

For more information on the tourist developments in Croatia, you can see the reports from OE24, Karlobag and country data: Karlobag country data .