Debunking the myth: Tourism’s impact on Croatia’s GDP

Croatia registers over 20 million tourists a year

For years, it has been widely believed that tourism contributes around 20% to Croatia’s GDP.

However, fresh data from the Croatian Bureau of Statistics (DZS) has once again confirmed that the direct share of tourism in GDP is actually 11.32%, daily Jutarnji list writes.

Breaking Down the Numbers

The latest figures, though reflecting data from 2022, align with previous reports from 2019 and 2016. According to DZS, the gross value added by tourism-related industries in 2022 amounted to HRK 104 billion, making up 24.53% of the total gross value added.

However, after refining calculations to include only the direct contribution of tourism, the figure stood at HRK 44.7 billion, which is 10.54% of the total gross value added.

In terms of GDP, the direct contribution of tourism in 2022 was HRK 57.7 billion, translating to 11.32% of the total economy—far from the often-quoted 20%.

Consistent Trends Over the Years

These figures come from the Satellite Tourism Account, a methodology used internationally to gauge tourism’s economic impact.

They reveal that the role of tourism in Croatia’s economy has remained stable over the years. For instance, in 2016, tourism’s direct GDP share was 11.82%, while the broader tourism sector, including related activities such as transport and trade, accounted for 24.41% of GDP.

Croatia

The Challenge of Measuring Tourism’s Contribution

Damir Krešić, director of the Institute for Tourism, explains that tourism is not classified as a standalone industry under Croatia’s national classification system, making it difficult to extract precise data.

“These figures should be taken with caution, as they also include spending by domestic travellers within Croatia. For example, if someone from Karlovac visits a friend in Zagreb, buys a pastry, and pays for a round of drinks, that spending is counted in tourism statistics,” Krešić told Jutarnji list.

How Much Do Tourists Spend?

In 2022, total domestic tourism spending reached HRK 115 billion. Of this, internal tourism expenditure was nearly HRK 113 billion (97.98%).

Foreign visitors contributed significantly, with inbound tourism expenditure making up 87.59% (HRK 99 billion) of internal tourism spending. Meanwhile, domestic tourists accounted for HRK 14 billion, or 12.41% of total expenditure.

Non-resident tourists who stayed overnight in Croatia spent an estimated HRK 93 billion, representing 94.02% of inbound spending, while day-trippers spent almost HRK 6 billion.

Tourism Remains Vital, But Not Overwhelming

While tourism is undoubtedly crucial for Croatia’s economy, these figures dispel the myth that it directly accounts for one-fifth of GDP.

Instead, its true contribution stands at just over 11%, with a broader economic influence when factoring in related industries.