Croatia was long seen a budget-friendly Adriatic vacation destination. But that's been changing in recent years. What impact is this having on its attraction for foreign visitors -- and locals, too?

Murter

Croatia's tourism industry has undergone significant changes, with rising costs making it less accessible to budget travelers. Factors such as high inflation, increased supplier prices, and labor shortages have contributed to higher prices across the sector. While some business owners are reluctant to raise prices further, the overall trend has shifted Croatia toward attracting tourists with higher spending power.

The Croatian National Tourist Board disputes claims of excessive price hikes, emphasizing the importance of maintaining the country's reputation. However, as prices align more closely with wealthier European nations, concerns are growing that local residents may find it increasingly difficult to enjoy their own coastline.

Why Croatia is no longer a budget-friendly destination

Gracia Horvatin has been working in tourism for over 30 years. It all started when she took over her grandmother's old tavern on the Croatian island of Murta. Over time, her humble eatery grew into a restaurant that's popular with both tourists and those who stop here while sailing around the Adriatic. Gracia's story mirrors the development of Croatian tourism itself. Since affordable for every budget, Croatia has gradually become a destination for those with deeper pockets. Part of that shift is strategic, but it's mainly driven by high inflation, state-imposed costs, and a labor shortage. Prices peaked last year, so few dared to raise them again this season. I don't plan to raise the prices, regardless of the fact that all the suppliers have raised their prices. Tourism trends are changing. Guests no longer tend to stay in one place for 7, 10 or 14 days, but instead opt for shorter stays, wanting to visit as many places as possible in a limited period. Almost all of Gracia's guests are foreigners, mostly Germans and Austrians, followed by Slovenians and Scandinavians. She says that prices aren't something they comment on too much. Natasha from the German city of Cologne has been spending her summer holidays in Croatia for 50 years. Her grandparents bought a traditional stone house on Murter half a century ago, and her family has been coming back every year since. The Croatian National Tourist Board cautions that alarmist media reports about high prices aren't based on fact and harm Croatia's reputation abroad just as the peak season is getting under way. Nevertheless, it is confident that the season will be good and expects a strong July and August. Long-term tourism success depends on satisfied guests who go home and spread the word, and also come back themselves. But as Croatian prices start to align with those in more affluent European countries, where average wages are twice as high, there's a growing concern that locals may one day only get to enjoy their own coastline on postcards.

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