“Strange” summer season for Croatian tourism

More overnight stays but profits under pressure

This year’s tourist season in Croatia has been described by experts as “a little strange” and unlike previous years.

While official reports from the Ministry of Tourism and the Croatian Tourist Board highlight growth in overnight stays, many hoteliers and hospitality operators are warning that revenues are weaker and profits remain under significant pressure.

Goran Fabris, board member of the Rudan hotel chain, pointed out that while capacities continue to expand each year, guest numbers are not keeping pace.

“Figures are higher, overnight stays are higher, overall revenue will be higher, but those who have not invested in time will face serious problems with income,” Fabris told HRT.

Entrepreneur Petar Ćurlin echoed the sentiment. His hotel recorded eight percent more overnight stays than last year, but the peak summer season was weaker.

“Higher revenue does not mean higher profit – last year our net profit fell by 30 percent. That reduces the space for investment and for improving employee standards,” he explained.

Guests and quality

Both Fabris and Ćurlin emphasised the importance of quality and attracting higher-spending guests.

Ćurlin warned that this year saw more visitors from middle and lower spending brackets, while the focus should be on attracting those with greater purchasing power.

He also underlined the importance of hospitality:

“Guests want to experience the destination, not just stay in it. Croatian tourism lacks warmth because much of the workforce are foreigners unfamiliar with the language and culture,” he told HRT.

Fabris added that investment in hotels and apartments alone is not enough without developing entire destinations.

He noted that high construction costs are making it harder to expand capacity further. He also pointed to shifting attitudes among younger workers towards tourism jobs:

“Times have changed – young people work to move on. Let us not criticise them too much; the labour market functions differently today,” he concluded.

The outlook

While Croatia’s tourism numbers remain robust on paper, concerns about profit margins, workforce challenges and the need for more authentic guest experiences suggest that the sector faces significant tests ahead.

Croatia reported a 4 percent increase in both arrivals and overnight stays in the first six months of the year compared to the same period last year.

Experts agree that sustainable growth will require not only investment in infrastructure but also in people and the quality of the overall offer.