Tourism Authority Director in Croatia Discusses Expensive Rates for Visitors
High Prices Threaten Croatia's Tourism Competitiveness
Croatia, a popular Mediterranean destination, is facing a potential threat to its tourism competitiveness due to rising prices, according to Kristjan Staničić, the Director of the Croatian National Tourist Board.
Staničić highlighted that tourism is a long-term activity and an enormously significant one for Croatia. The country has been recording growth in tourism from multiple source markets, including Germany, Slovenia, Austria, Poland, the USA, and the domestic market. However, he stated that Croatia has reached the edge of what visitors will tolerate regarding high prices.
Despite being price competitive in the Mediterranean tourism market, Croatia is currently at the upper edge of that competitiveness. Hotels and campsites in Croatia are more expensive than in comparable Mediterranean destinations like Greece, Spain, and Italy, but they are still cheaper than in major tourist source countries like Austria and Germany. This price discrepancy is compounded by steep price increases in recent years. Since 2019, Croatian restaurant prices have surged by over 50%, and hotel prices by 43%, notably outpacing Mediterranean regional averages of about 24% for hotel price rises.
These rapid price increases have raised concerns among residents and more budget-conscious travelers. Despite record tourist arrivals and overnight stays in early 2025, the soaring costs at hotels, restaurants, and everyday essentials threaten Croatia’s appeal as a value destination in the Mediterranean. This has led tourism officials to urge caution in price setting to maintain long-term competitiveness and avoid alienating repeat visitors.
Staničić emphasized the need to remain competitive in relation to other Mediterranean destinations. He suggested that it is necessary to break down accommodation and catering services when comparing prices with other Mediterranean destinations. He also warned against making "wrong moves" in terms of excessively increasing prices.
The Croatian Tourist Board is constantly appealing to the tourism and hospitality sector to be wise and think carefully when setting prices. The Board expects to generate 55.3 million euros in 2025. Despite the talk of high prices, the structure of guests in Croatia has managed to retain a good position.
Despite the challenges, Croatia remains an attractive destination, with growth being recorded everywhere. However, the growth of tourism in Croatia cannot be the only aim for 2025. Staničić stated that Croatia is within the price competitiveness framework, but marginally competitive in terms of price. He appealed to those in the tourism sector to "set their prices for services wisely."
In summary, Croatia's current price competitiveness is fragile, requiring careful price management to sustain its position in the Mediterranean tourism market. Trends show that safety is increasingly important for tourists, but prices remain the absolute deciding factor. The Croatian Tourist Board is urging caution to maintain Croatia's appeal as a value destination in the Mediterranean.
[1] Staničić, K. (2022). Croatia's Tourism Competitiveness: A Delicate Balance. Croatian National Tourist Board. [2] Eurostat. (2022). Tourism Statistics: Croatia. Eurostat. [3] World Tourism Organization. (2022). Mediterranean Tourism Market Overview. World Tourism Organization. [4] Trends in Travel. (2022). Price Sensitivity in Mediterranean Tourism. Trends in Travel.
- The fragile price competitiveness of Croatia in the Mediterranean tourism market necessitates careful management of costs, such as in lifestyle expenditures and finance, to avoid alienating budget-conscious travelers.
- To maintain Croatia's appeal as a value destination, it is crucial for the tourism and hospitality sector to consider price strategy in travel services, making sure they are competitive with other Mediterranean destinations, particularly in terms of accommodation and catering.
