Croatian tourism revenues set to reach a record €16 billion

Brač

During the peak tourist season of 2024, Croatia generated €64 million less than the previous year, according to the latest data from the Croatian National Bank (HNB).

However, thanks to a very strong pre-season, the annual revenue grew by 1.7%. In the first nine months alone, revenues from foreign tourists reached €13.19 billion, HRT reports.

A Strong Pre-Season and Record-Breaking Post-Season

Visitors began arriving earlier than ever, with tourists flocking to Istrian towns as early as late February. Even campsites started filling up during this period.

“We do a lot of cycling, walking, skiing, and so on,” shared Uroš, a tourist from Slovenia, in February 2024.

Sports groups, outdoor activities, history, culture, and gastronomy were the main drivers for pre-season travel. Similarly, the post-season exceeded last year’s numbers by double-digit percentages in terms of visitor numbers.

The strengthening of air traffic significantly boosted Dubrovnik’s figures.

“That was our primary focus. A lot of effort went into this area, resulting in the most substantial growth during April, May, October, and November,” said Marina Ruso Mileusnić, spokesperson for Dubrovnik Airport, in November 2024.

High Accommodation Prices

Inland regions saw a 5% increase in tourist traffic. When it came to accommodation, hotels performed the best both on the coast and inland.

“We achieved a higher average room rate and total revenue per room. However, it’s important to note that inflationary pressures remained high, marking the third consecutive year of declining gross operating profits,” explained Veljko Ostojić, Director of the Croatian Tourism Association.

Private accommodation saw 30,000 more beds rented at the peak of the season compared to last year but only managed a marginal 1% improvement in performance.

“In Trogir, we had 400 new licences issued for rentals this year, which is a significant number. Yet, even at the height of the season, some properties remained empty, reflecting a decline in demand,” stated Marin Piveta, Director of the Trogir Tourist Board.

Challenges in the Peak Season

Several factors contributed to reduced demand during the peak season, including major sporting events such as the Football Championship and the Olympics. Additionally, there was a 5% drop in German visitors, traditionally Croatia’s most numerous tourist demographic.

“Pricing policies are definitely a factor. The market has opened up, competition is strong, and we need to be reasonable with our pricing,” commented Boris Žgomba, President of the Croatian Chamber of Commerce’s Travel Agency Association.

“Everyone in tourism must bear in mind the need to provide value that matches the prices we charge,” added Veljko Ostojić.

Record Revenues Driven by Higher Prices

Tourism revenues for 2024 are expected to hit a record €16 billion. However, this growth has been partly driven by increased prices across all services.