Now Spain, Germany, Austria, Poland, Albania, Hungary, Iceland, Portugal, And Greece See Tourism Boom While Croatia Struggles With Rising Costs

Monday, June 30, 2025

Croatia’s once-thriving tourism industry is facing a challenging period, with countries like Spain, Germany, Austria, Poland, Albania, Hungary, Iceland, Portugal, and Greece becoming key competitors as the costs in Croatia soar. The country, once known for its affordability, has seen a sharp rise in prices, making it less attractive to budget-conscious travelers. In May 2025, Croatia saw a significant decline in tourist arrivals and overnight stays, with visitors from Central European nations, including Germany, Austria, and Poland, dropping notably. This decline has led to concerns that Croatia’s tourism success may be short-lived, as travelers now consider other Mediterranean destinations, where prices remain more reasonable. With Spain, Greece, and Portugal offering competitive alternatives, the shift in tourist preferences could significantly reshape the region’s tourism landscape.

A Promising Start Overshadowed by May’s Decline

Croatia’s Ministry of Tourism remains upbeat about June, calling it a “promising” month for the tourism sector. However, local publications like Jutarnji List are less certain about the future, expressing concerns that 2025 might end up disappointing. Compared to the previous year, tourist arrivals in May 2025 saw a 5% drop, and overnight stays plunged by a stark 14%, casting a shadow over the initial optimism that had surrounded the year’s prospects. While local visitors have somewhat softened the blow, the significant decline in foreign tourists, particularly from key Central European countries such as Germany, Austria, Poland, and Hungary, raises concerns. According to the European Travel Commission (ETC), German visitors—who represented 30% of the arrivals in May 2024—only accounted for 16.5% of the visitors in May 2025, highlighting the shift in demand.

The ETC also notes that Croatia, along with Iceland, is one of only two countries among 29 surveyed where tourist numbers are actually declining in 2025. There’s even speculation from local outlets like index.hr that Albania, with its growing popularity, might soon surpass Croatia in terms of tourism arrivals. If this prediction holds true, it could dramatically reshape the Mediterranean tourism landscape and reduce Croatia’s status as a top destination in the region.

The Price Issue: A Barrier to Growth

One of the primary reasons behind the decline in visitor numbers is attributed to Croatia’s sharp rise in costs over recent years. The country, once known for its relatively affordable prices, has become increasingly expensive, making it less attractive to budget-conscious travelers compared to other Mediterranean destinations like Spain, Greece, and Portugal. In just three years, the cost of a trip to Croatia has risen by an alarming 50%, which is significantly higher than the 15-20% price increases seen in Greece and Spain. The introduction of the euro in 2023 provided an opportunity for some local businesses to raise their prices excessively, pointing to inflation, higher seasonal wages, and increased taxes as the primary reasons behind the surge. However, the price hikes have led to noticeable dissatisfaction among travelers, who now find Croatia less affordable than in the past.

The price issue has been particularly evident in popular tourist areas where costs have soared, leaving many potential visitors questioning whether the country still offers the value it once did. For example, in some popular seaside locations, the cost of a meal, an overnight stay, or a local tour has become prohibitive for many, especially those on tight budgets. As a result, travelers have begun to seek more affordable alternatives, and Croatia’s neighbors are benefitting from this shift in consumer behavior.

Uncertainty Looms Over the Peak Season

While May 2025’s statistics are concerning, Croatia’s tourism sector still remains a significant part of the national economy. The country welcomed 21.7 million visitors in 2024, generating a remarkable €15 billion in revenue. Tourism is essential to the Croatian economy, and the high season of July and August traditionally brings in the bulk of the revenue. Early indications for June show promising results, with strong numbers suggesting that the peak months may still deliver. However, concerns linger over the long-term sustainability of the country’s tourism model, especially with rising costs and a competitive global market. If the trend of falling visitor numbers persists, it could put additional pressure on the country’s economy, which relies heavily on tourism.

Seeking the Right Balance: Quality Over Quantity

For years, the Croatian Ministry of Tourism has expressed a commitment to focusing on the quality of tourism rather than simply chasing after high visitor numbers. The ministry has encouraged sustainable tourism practices, which aim to increase occupancy rates during the off-peak seasons and extend the length of visitors’ stays beyond the busy summer months. However, the reality is that Croatia’s tourism sector still depends heavily on the revenue generated by the peak season. This creates a difficult balancing act, as the country tries to maintain its popularity while ensuring that it remains an affordable destination.

The question facing Croatia in 2025 is whether May’s disappointing figures were an anomaly, or if the trend will continue throughout the summer and beyond. Many in the tourism industry are anxiously watching the situation unfold, as they depend on the summer months to compensate for the quieter periods earlier in the year. The challenge remains: Croatia must ensure its prices align with the value it offers to tourists, especially in light of the increasing competition from other Mediterranean destinations, such as Albania, which has become an increasingly attractive option for budget-conscious travelers.

The Road Ahead: Will Croatia Adapt?

As ferries continue to transport tourists to some of Croatia’s most beautiful islands, like Vis, the nation’s tourism future hangs in the balance. The year 2025 will be a defining one, revealing whether Croatia can continue to attract visitors while keeping prices reasonable. The country’s natural beauty, cultural heritage, and Adriatic coastline remain as alluring as ever, but without careful consideration of pricing strategies and a shift towards more sustainable tourism practices, Croatia risks becoming too expensive for many travelers. If the country fails to adapt, it may face quieter beaches than anticipated, with fewer tourists coming to experience its charm.

Croatia’s tourism is struggling as rising costs drive visitors to more affordable destinations like Spain, Germany, Austria, Poland, Albania, Hungary, Iceland, Portugal, and Greece. The country’s once-thriving tourism sector now faces competition from these regions as it grapples with falling visitor numbers and soaring prices.

The appeal of Croatia’s coast is undeniable, and many visitors still see it as one of Europe’s top destinations. However, its long-term success will depend on how well it can balance its booming tourism sector with the need to remain affordable and accessible. The road ahead will require careful management, and the decisions made in 2025 will set the course for Croatia’s tourism industry in the years to come.

«Enjoyed this post? Never miss out on future posts by following us»