Croatia before summer vacation: growing oversupply meets falling numbers!

Croatia before summer vacation: growing oversupply meets falling numbers!

Kroatien - Croatia faces a challenge in the tourism sector after the country has a record of tourists in 2024. Compared to the previous year, the number of visitors rose by almost four percent. But at the same time, the Croatian tourism authority's report shows that the overnight stays declined by about one percent, especially in May and June. Despite an increase of five percent, this happens on the range of accommodations, which indicates that many new apartments and holiday homes may remain unused. This development is referred to as a "worrying trend", which could endanger the economic stability of many small providers. The employees are concerned that, if this trend continues, numerous providers have to close or sell their accommodations, which could lead to a drop in prices and tightened competition.

A look at the market conditions shows that the demand for accommodation as well as leisure activities and excursions has dropped significantly. The gastronomy also feels the effects: Restaurants fight with fewer guests while they are forced to increase prices. Rising transport costs, service and food prices, as well as a shortage of skilled workers in the catering and hotel industry contribute to this situation. In addition, the European Football Championship and the late Pentecost holidays ensured that many families adapted their vacation plans, which also influenced the booking figures. Despite a decline in German, Austrian and Swiss tourists, there is an increase in visitors from Poland, the Czech Republic and Slovakia.

The influence of mass tourism

The negative effects of mass tourism in Croatia have long been viewed critically by environmentalists. The boom has economic advantages, since tourism contributes up to 20 percent to the Croatian gross domestic product, especially in the coastal regions, but it also has considerable ecological challenges. Croatia's accession to the Schengen area and the introduction of the euro in 2023 increased the travel calms for tourists from Schengen countries, which led to a further increase in visitor numbers. However, critics fear that the introduction of the euro will be used by some companies as an excuse for price increases.

Environmentalists particularly warn of the effects in Istria, where problems such as inadequate infrastructure and illegal construction projects increase. They demand stricter controls and measures against unfair practices. Initiatives such as the certification project Dalmatia Green, which is intended to honor sustainable accommodations, aim to counteract mass tourism and improve the situation.

Way into the future

The Croatian government has a comprehensive tourism law in planning that aims to regulate the growth of the sector and introduce a vacationer tax. This tax is intended to benefit the environment and is introduced in the affected regions. Conversation of implementation is initially not planned before 2025. The coming years could be crucial to find the balance between economic benefits and ecological sustainability.