Travelers are choosing Greece, Spain, Italy, Austria, Germany, Portugal, and the Czech Republic over Croatia primarily due to rising costs and better value for money. In the past three years, Croatia’s tourism prices have surged by 50%, while competing destinations have kept their increases between 15–20%. This sharp price jump has made Croatia more expensive than major competitors, pushing budget-conscious travelers to reconsider their vacation choices.
The impact is already visible—tourists from key markets like Germany, Austria, the Czech Republic, and Italy are visiting less, leading to a 0.7% drop in foreign tourism revenue during last summer’s peak season. Meanwhile, destinations like Spain and Portugal continue to attract visitors by offering a balance of affordability and high-quality experiences.
As travelers seek destinations where their money goes further, Croatia’s tourism industry faces a real challenge: either adjust pricing strategies or risk losing more visitors to its European rivals.
Why Are Prices Rising So Fast?
You might assume skyrocketing prices are due to higher energy costs or increased VAT rates, but that’s not the case. In fact, Croatia has some of the lowest energy prices in the Eurozone and a reduced VAT rate of 13% for tourism.
So, what’s driving the surge? The answer lies in rising costs in the hospitality sector, which have led to higher accommodation and service prices. This rapid increase has resulted in a stagnation of overnight stays and a noticeable drop in tourist spending.
Key Markets Are Pulling Back
For years, Croatia has been a favorite among German, Austrian, Czech, and Italian tourists, but that trend is shifting. Higher prices are already pushing many travelers to reconsider their vacation plans.
Just last summer, Croatia’s foreign tourism revenue fell by 0.7% during the peak season compared to the previous year—a clear sign that travelers are looking elsewhere for better value.
Kristjan Staničić, director of the Croatian National Tourist Board, pointed out that for two-thirds of Croatia’s main tourism markets, cost is the most important factor in deciding where to travel. If prices continue rising, the country risks losing a major portion of its visitor base.
Government Urges Tourism Sector to Take Action
Croatia’s government is now stepping in, urging the industry to reconsider its pricing strategy before it’s too late.
Finance Minister Marko Primorac didn’t hold back, saying, “I feel like you’ve gotten a little carried away.” He questioned why Croatia should be more expensive than Greece, Spain, or Portugal, arguing that the country’s tourism industry relies heavily on taxpayer support, yet many locals can no longer afford vacations in their own country.
Tourism Minister Tonči Glavina also acknowledged the problem, calling 2025 a crucial year for making Croatia more price-competitive. While he dismissed concerns about a potential tourism boycott, he admitted that price cuts might be necessary to maintain visitor numbers.
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