A 50% increase in tourism prices since 2022 risks damaging Croatia’s reputation as a travel destination, Tourism Minister Tonči Glavina warned on March 14.

Glavina said that unchecked price hikes, especially in seasonal services like taxis, beach bars and restaurants, could drive visitors away if quality does not keep pace.

Over-reliance on peak-season tourism remains a major issue, with nearly 60% of annual revenue concentrated in just two to three summer months. Instead of pushing for more visitors in July and August, the government is focusing on extending the season with better pre- and post-season offers. 

Early booking discounts and last-minute deals are being encouraged to keep Croatia competitive, while marketing campaigns shift the focus from price to quality and sustainability.

Tourist hotspots like Split, Dubrovnik, and Poreč are already feeling the strain of over-tourism, with infrastructure struggling to keep up. Glavina stressed that adding more summer visitors isn’t the answer. Instead, the goal is to spread arrivals more evenly throughout the year to reduce pressure on local services.

The booming short-term rental market is another challenge. Croatia expects 30,000 to 40,000 new rental properties this year alone, a trend the minister called unsustainable. In response, the government has tightened regulations and introduced a real estate tax aimed at curbing speculative property purchases, particularly by foreign buyers.

While tourism demand has grown steadily since 2016, the rapid expansion of accommodation has led to lower occupancy rates, falling from 95% to 88% in recent years. 

To ensure a more balanced approach, local authorities must now assess their destinations' capacity to handle tourists. Those leading the way in sustainable tourism will be recognized at the annual Days of Croatian Tourism event.

The government is also cracking down on cheap imported labour, requiring businesses to hire local workers alongside foreign staff. Larger tourism companies already comply, with domestic workers making up 70% of their workforce. 

There is also a push to increase the use of local products in tourism, though high transport costs remain a barrier for small producers, especially those in inland regions like Slavonia.