Croatia has called on tourism stakeholders to adopt a balanced and responsible approach to pricing ahead of the upcoming summer season, as the country looks to maintain competitiveness in an evolving global travel market.

At a meeting of the Tourism Development Management Council, chaired by Prime Minister Andrej Plenković, pricing and service quality were identified as key issues for the months ahead.

Despite ongoing global instability, including geopolitical tensions in the Middle East affecting energy security and travel patterns, Croatia’s tourism sector has recorded a positive start to the year.

From the beginning of 2026, the country has registered more than 2.3 million arrivals and 6.5 million overnight stays. This represents a 3% increase in arrivals and a 1.4% rise in overnight stays compared to the same period last year.

The Adriatic region continues to dominate tourism activity, accounting for 1.7 million arrivals and 5.2 million overnight stays. However, continental Croatia is showing notable growth, with arrivals up 5% and overnight stays increasing by 3%, reflecting continued investment in inland tourism development.

According to central bank data, foreign tourist revenue reached €15.3 billion in 2025, marking a 2% increase.

Plenković noted that Croatia’s tourism sector is entering a phase of stabilisation following a decade of strong expansion. This shift, he said, requires a renewed focus on sustaining growth through strategic adjustments rather than relying on volume increases alone.

A key priority remains pricing. The Prime Minister reiterated calls, now made for the third consecutive Council session, for reasonable pricing policies across the sector.

Rising travel costs, particularly in air transport, are shaping demand. Global increases in airfares, driven in part by fuel supply challenges linked to disruptions in the Persian Gulf, are affecting travel patterns.

At the same time, more than 60% of tourism companies globally are reporting a 20% drop in demand, according to European travel industry data. This decline is contributing to a redirection of demand towards European destinations, an opportunity Croatia aims to capitalise on.

The government emphasised that competitiveness will depend on maintaining a strong balance between price and quality, in line with other Mediterranean destinations.

The Prime Minister also warned that excessive price increases in tourism services could contribute to inflationary pressures. Croatia’s annual inflation rate reached 5.8% in April, largely driven by rising energy costs.

While some indicators, such as falling industrial product prices and slower food price growth, offer modest relief, they are insufficient to offset broader global economic pressures.

Plenković stressed that inflation is affecting most EU member states, underscoring the need for careful pricing strategies within the tourism sector.

Croatia currently has a record 1.735 million people in employment, with unemployment at around 4%. The government highlighted the tourism season as an opportunity to further strengthen employment, particularly for those currently out of work.

Focus on safety, value and sustainability

Tourism and Sports Minister Tonči Glavina emphasised the importance of maintaining Croatia’s reputation as a safe and high-quality destination.

He noted that sustained investment in promotion, infrastructure and regional development has helped build Croatia’s global image. However, he warned that continued price increases are no longer sustainable in the current market environment.

“Market conditions are clearly setting limits,” Glavina said, adding that future success will depend on coordination, realism and responsible management across the sector.

During the Council session, Croatian National Bank Governor Boris Vujčić addressed pricing competitiveness, while Croatian National Tourist Board Director Kristjan Staničić presented ongoing marketing efforts.

The government also outlined legislative updates affecting the sector, including a new Hospitality Act and amendments to laws governing foreign workers and undeclared labour, presented by Deputy Prime Minister Davor Božinović and Minister Alen Ružić.

Croatia is entering the 2026 tourist season with solid early indicators but growing global uncertainties. Authorities are urging stakeholders to adopt a measured approach to pricing to ensure long-term competitiveness, protect demand and support broader economic stability.