Croatia to be careful about prices evolution in the hospitality sector

The head of Croatia’s National Tourist Board (HTZ), Kristjan Staničić, has urged the hospitality sector to show restraint in setting prices, warning that the country is teetering on the edge of losing its competitive edge in the Mediterranean tourism market.

Speaking on national broadcaster HRT’s Dnevnik, Staničić acknowledged that Croatia remains competitively priced overall but cautioned that the margin is shrinking. “We are still within limits, but just barely,” he expressed on television.

At a recent meeting of the Tourism Development Council, Staničić renewed calls for the industry to approach pricing with “care and consideration,” stressing that sharp price increases could jeopardize long-term visitor loyalty.

“Tourism is not a short-term industry,” he said. “Tourists will return year after year—but only if we’re careful. Excessive pricing could turn them away.”

He emphasized the need to distinguish between accommodation and hospitality services when making international comparisons.

According to data from Eurostat and other sources, hotels and campsites in Croatia are cheaper than in source markets like Austria and Germany but more expensive than in Mediterranean competitors such as Greece, Spain, and Italy. Private rentals, meanwhile, cost more than in Italy and France but remain more affordable than in Greece and Spain.

Despite the concerns, Staničić pointed to positive performance indicators across key markets. “We are seeing growth from Germany, Slovenia, Austria, Poland, the United States, and the domestic market,” he said. He also underscored the strategic advantage of a diversified visitor base.

Still, he noted that while safety has become a more important factor for travelers, pricing remains the decisive consideration for many. “That’s why we keep stressing the need to be smart and wise when it comes to setting prices,” Staničić concluded.

Entering a period of stagnation for tourism?

Prices could however be behind a slight decline in tourist arrivals and overnights to Croatia for the first five months of 2025.

From January to May, Croatia recorded a total of 4.0 million arrivals and 11.5 million nights in commercial accommodation. This represented a decrease of 0.6% in the number of tourist arrivals and of 6.4% in the number of tourist nights compared to the same period of 2024.

Foreign tourists realized a total of 3.0 million arrivals and 9.4 million nights in the first five months of 2025, which was a decrease of 3.6% in the number of arrivals and of 9.2% in the number of nights compared to the same period of 2024. Dubrovnik and Istria received the most international travelers, followed by Split and Zagreb.