Restaurants and shops taking a hit on Croatian coast 

Croatia’s tourism industry is facing a challenging summer as tourists increasingly turn away from overpriced restaurants and shops, opting instead to cook at their accommodation.

Despite a rise in visitor numbers, spending has dropped significantly, with many guests feeling they are being overcharged.

Industry experts are worried about the impact of this trend, particularly with the noticeable decline in tourists from key markets like Germany. As the sector grapples with these issues, the question remains: can Croatia regain its appeal without compromising on value?

Croatia is not expensive, just overpriced. Prices are particularly high in restaurants and shops, and guests see that. The question is how they will behave next year. This is the message daily Jutarnji list has reported hearing from multiple sources as they assess whether Croatian tourism is really in such a downturn as rumoured.

Jutarnji list reports that initial unofficial figures for July indicate a five percent drop in foreign tourist arrivals in Croatia, with nearly ten percent fewer tourists from the most important market, Germany, compared to last July—a statistic that deeply worries tourism professionals.

Simultaneously, figures from the Croatian Chamber of Economy’s Association of Caterers report a decrease in turnover at Adriatic hospitality venues.

Numbers along the coast are significantly lower than the Croatian average, indicating a disappointment among the most loyal summer guests who visit Croatia for the sea.

Industry insiders are cautious in their statements, holding moderate optimism and waiting to see what August will bring, but there is concern that earnings may not meet expectations.

“It’s not that bad, a few percentage points up or down. We’ve been saying we don’t need growth in the season, but we still need to consider what’s happening with the German market, which is difficult to replace. I believe official statistics will confirm that those offering high quality and value for money have no problems,” an industry veteran told Jutarnji list.

Fiscal data from the Tax Administration shows that in July this year, the average bill in catering establishments was six percent higher than last year, with a 17 percent increase in the number of bills issued.

However, despite these numbers suggesting tourists are spending less than last year, Jelena Tabak, president of the Association of Caterers, reveals that figures are significantly worse along the coast.

Their surveys among members indicate an average revenue decline of 20 percent in July compared to last year, with Istrian caterers experiencing the steepest drop at 30 percent, and Dalmatia reporting between 10 to 20 percent, while islands suffer even more at 50 percent.

Dubrovnik

Tabak believes high prices haven’t driven away guests, as they are still lower than those in Germany and Italy. Instead, she attributes the consumption decline to the poor economic situation and reduced standards.

Not everyone agrees with these assessments. Long-time tourism entrepreneur in Istria, Jasmin Šabić, who sold his villa rental agency Istria Home to Novasol last year, based on his experience, analyses, and numerous guest conversations, told Jutarnji list that greed is coming back to haunt them.

He particularly blames caterers and merchants, providing examples. “I have two high-value rental houses where only affluent guests stay. These guests used to dine out at restaurants at least three times a week in previous years, but now they don’t go out at all because they refuse to pay inflated prices. They cook at home.

Tomorrow, English guests are arriving, where prices are significantly higher, incomes are greater, and everything is expensive. Even they don’t dine out because they feel cheated and foolish. One evening, I came to the house to attend to something for other guests, and my guests were cooking, baking in the oven, grilling,” Šabić recounted, a frequent traveler himself who sees prices elsewhere and cringes when he returns home.

“I have many German friends and I talk to them, as well as my guests, and hear that they are not sure they will come back to us if they can travel to other destinations at a reasonable price. Istria has not been a cheap destination for some time, and that’s not our goal, but we mustn’t let our guests feel taken advantage of,” concluded Šabić.

Croatia has to be wise with tourism prices