Croatia, known for its coastline and historic cities, is becoming too expensive for tourists. With prices rising faster than in Greece, Spain, and Italy, officials and business leaders fear that tourists may opt for better deals elsewhere, reports N1. 

Prime Minister Andrej Plenković has warned that maintaining competitive prices is crucial to protecting the country’s tourism industry, according to Etias.com.

Tourism Sector Sees Price Hikes

In the past three years, tourist prices in Croatia have surged by around 50%, while other Mediterranean countries have experienced increases of only 15-20%. As a result, Croatia has become more expensive than key competitors such as Greece and Spain, raising concerns about affordability.

A Growing Problem for Croatia and Other Tourist Destinations: “It Will Only Get Worse”

Rising costs in the hospitality sector have driven up prices, leading to stagnation in overnight stays and a decline in tourist spending. The impact is already evident, as fewer tourists are arriving from key markets such as Germany, the Czech Republic, Austria, and Italy. Last summer, Croatia’s revenue from international tourism during peak season dropped by 0.7% compared to the previous year.

Kristjan Staničić, director of the Croatian National Tourist Board, highlighted that many travelers are now prioritizing value for money. His analysis showed that for two-thirds of Croatia’s main tourist markets, cost is the most important factor in travel decisions.

Government Criticism

Finance Minister Marko Primorac criticized the industry for excessively raising prices. “It seems like you’ve gotten carried away,” he said.

He argued that Croatian tourism does not justify higher prices than Greece, Spain, or Portugal. He also pointed out that Croatian taxpayers support tourism through tax policies, yet many cannot afford vacations in their own country.

Tourism Minister Tonči Glavina stated that 2025 will be a crucial year for Croatia to become more price-competitive. While rejecting the idea of a tourism boycott, he acknowledged that price reductions might be necessary to maintain high visitor numbers.

Meanwhile, hotel industry leaders claim that wage growth and inflation, rather than profit-seeking, are driving price increases. Veljko Ostojić from the Croatian Tourism Association noted that hotel profits have declined because costs are rising faster than revenue. He added that last year, hotel prices in Croatia rose by only 1.9%, whereas other Mediterranean destinations saw an increase of 4.5%.

The Croatian Family Accommodation Association has also expressed concern over the high commission fees charged by global booking platforms. Some industry leaders have suggested creating a national booking system to reduce reliance on international platforms.

Rising Costs and New Restrictions

As Croatia struggles with rising costs, travelers within the European Union (EU) must also prepare for new entry requirements under the European Travel Information and Authorization System (ETIAS). Starting in 2026, visitors from visa-exempt countries outside the EU will need ETIAS approval to enter the Schengen Area, including Croatia.

Tourists making short-term visits, already deterred by high prices, may turn to cheaper destinations, especially as budget-conscious travelers consider both costs and new entry requirements. While obtaining ETIAS approval is a simple process, it could discourage those already hesitant about visiting Croatia.

For long-term visitors and migrants, the situation is more complex. Croatia’s full integration into the Schengen Zone has made it an attractive option for digital nomads and seasonal workers. However, the rising cost of living, including higher tourism prices, may push some away.

Economic Consequences

A decline in Croatia’s tourism sector could impact labor mobility and work permit discussions across the EU. Countries with strong ties to Croatia, such as Austria and Germany—where many Croatians work—could see more people seeking jobs abroad if the tourism sector weakens, increasing pressure on the EU labor market, especially in industries already facing worker shortages.

At the same time, fewer tourists could prompt the Croatian government to find new ways to attract foreign workers. Policymakers may adjust work visa rules or offer incentives for long-term migration. If tourism-related jobs decrease, immigration quotas—especially for seasonal workers from outside the EU—may also be reconsidered.

A Warning Sign for the EU

Croatia’s situation serves as a warning for the EU. Tourism-dependent economies are vulnerable to price changes, and maintaining reasonable costs is crucial for stability. Other Mediterranean countries, such as Spain and Greece, may take note and adjust their pricing strategies to avoid losing visitors while keeping their economies strong.

An Uncertain Future

The Croatian government hopes that prices will stabilize in 2025, but the outlook remains uncertain. As Germany, Austria, and Italy face economic slowdowns, tourists may become more cost-conscious than ever.

If Croatia fails to address affordability issues, it could lose its position in the Mediterranean tourism market. Officials and industry leaders must find a way to maintain quality while keeping the country accessible and competitive for both international and domestic travelers.