Published on
September 8, 2025
Croatia, a stunning jewel on the Adriatic, is facing significant challenges in its tourism sector. Known for its beautiful coastline, charming historic towns, and world-class resorts, the country has long been a top destination for international travelers. However, in recent years, Croatia has seen an increase in prices that is raising concerns among locals and tourists alike.
Soaring Prices and Decreasing Affordability
Tourism plays a crucial role in Croatia’s economy, contributing about 20% of its GDP. Unfortunately, the rising costs are starting to price out not only international tourists but also the Croatian population. According to the Croatian Central Bureau of Statistics, consumer prices have increased by 4.1% in July 2025. Accommodation prices have risen by as much as 50% in just three years, outpacing inflation and making the country less affordable compared to other Mediterranean destinations such as Greece and Spain, where price increases have been more moderate.
Locals are feeling the pinch most acutely. With wages not keeping pace with inflation, many Croatians can no longer afford to vacation in their own country. The discrepancy between wages and rising costs is also causing dissatisfaction among residents. The government is under pressure to find ways to balance the needs of the tourism industry with the economic well-being of its citizens.
The Shift to Private Rentals
A key factor contributing to the price hike is the growing reliance on private rentals rather than traditional hotels. Over the past two decades, private accommodations such as Airbnb have become more prevalent in Croatia, replacing the more regulated hotel sector. While private rentals offer tourists a more “local” experience, they have resulted in less reliable service quality and weak oversight.
Ljubo Jurčić, a former Croatian economy minister, has criticized the government’s failure to focus on long-term growth in the tourism sector. Instead, he argues, the rise in private rentals has prioritized short-term profit over sustainable development. This shift has led to a surge in accommodation prices, contributing to the affordability crisis.
The Euro’s Impact on Croatian Tourism
In January 2023, Croatia adopted the euro, hoping to strengthen its position within the European Union. However, this move has inadvertently contributed to rising costs, with businesses using the currency change as an excuse to inflate prices. While the euro was expected to streamline Croatia’s economy, it has exacerbated the gap between rising prices and stagnant wages. This has created dissatisfaction among both locals and international visitors who find Croatia increasingly expensive compared to other eurozone countries.
Tourists from Germany, Austria, Italy, and the Czech Republic have particularly felt the sting of higher prices. As these countries account for a significant portion of Croatia’s visitors, the drop in affordability is worrying for the nation’s tourism sector. For example, some tourists have complained that prices have doubled or tripled in the last two years, making them reconsider future visits.
Impact on International Visitors
The surge in costs is not only turning away domestic tourists but also affecting international visitors. Croatia’s main tourist markets, particularly from nearby European nations, are now less enthusiastic about visiting. According to Kristjan Staničić of the Croatian National Tourist Board, the cost factor has now become the top consideration for two-thirds of the country’s primary markets. With Greece and Spain offering more competitive pricing, Croatia’s edge as a top Mediterranean destination is starting to fade.
Despite a 4% increase in tourist arrivals and a 1% rise in overnight stays in 2024, the financial benefits from tourism are not what they could be. Visitors are spending less, and this is making the overall economic impact of tourism smaller than expected. For Croatia, this situation presents a significant challenge. The country must rethink its pricing strategy to ensure it remains a desirable destination for international tourists.
Ministry of Tourism’s Response
The Croatian Ministry of Tourism, led by Tonči Glavina, is aware of the urgency of addressing the affordability issue. Glavina has stressed that 2025 will be a pivotal year in reversing the rising price trend. While he has opposed the idea of boycotting tourism, he believes that a shift towards higher-quality tourism rather than mass tourism is necessary for long-term sustainability.
In response to the crisis, the government is taking several measures. The number of new tourist accommodations will be reduced in 2025, with only 7,500 new beds being added compared to 26,000 in the previous year. This move aims to help preserve Croatia’s coastline and prevent overcrowding. The Ministry is also encouraging off-season travel and promoting lesser-known destinations to alleviate pressure on popular areas.
A Sustainable Path Forward
At a crossroads, Croatia’s tourism industry must find a way to balance affordability with quality. Prime Minister Andrej Plenković has stressed the importance of staying competitive on price without compromising the country’s unique appeal. In light of rising costs, Croatian tourism experts are calling for reforms to ensure the industry remains viable for both visitors and locals.
To safeguard its future, Croatia must focus on improving service quality, reining in the private rental sector, and ensuring that prices are aligned with local wages. By investing in infrastructure, training workers, and promoting tourism beyond the high season, Croatia hopes to regain its position as a top destination in the Mediterranean.
