ZAGREB, 5 May (Hina) – Prime Minister Andrej Plenković on Tuesday again called on the tourism sector to set prices reasonably, saying this is a key issue that will affect the upcoming tourist season.
He made the remarks at the opening of the 5th session of the Council for Tourism Development Management, bringing together representatives of tourism associations, companies and industry organisations, as well as several ministers and the governor of the Croatian National Bank, Boris Vujčić.
The prime minister recalled that, according to the Croatian Bureau of Statistics, inflation in April stood at 5.8% year-on-year, partly due to rising energy prices, adding that it is important to ensure that a rise in service prices does not contribute further to inflation.
He said tourism performance this year is very strong despite global circumstances that are not favourable for tourism or energy security. Since the beginning of the year, Croatia has recorded 2.3 million arrivals and 6.5 million overnight stays, with growth of 3% in arrivals and 1.4% in overnight stays, Plenković said.
Most tourism traffic was achieved in the coastal part of Croatia, but Plenković also highlighted growth in continental Croatia “a 5% increase in arrivals and a 3% rise in overnight stays. ”This shows we have invested intelligently in the development of continental tourism, in line with all the documents adopted in recent years,” he said.
He also noted that last year tourism revenues from foreign visitors reached €15.3 billion, an increase of 2%.
According to Plenković , revenues of just over €15 billion, along with around 22 million arrivals and 110 million overnight stays, represent the growth limits of Croatian tourism in the past 2-3 years.
Big competition in turbulent times
“Given that we have reached this phase, it is necessary to jointly consider what we can do to ensure continued growth of Croatian tourism and keep it dynamic and expanding, as it has been over the past 10 years,” Plenković said.
Referring to the crisis in the Middle East, he also mentioned a global rise in airline ticket prices, citing data from the European Travel Commission showing that more than 60% of tourism companies are reporting a 20% drop in demand.
He said demand is shifting from destinations closer to conflict zones toward Europe, which presents an opportunity for Croatia to attract more tourists.
However, this requires price competitiveness and quality, PMВ Plenković said, noting that Croatia must be careful not to fall behind other Mediterranean countries in attracting redirected tourist flows. “Intense competition has emerged in times of market turbulence,” he said.
He added that government measures in recent years have significantly supported the tourism sector, including interventions in fuel prices, and expressed a desire for more Croatian citizens to benefit from tourism.
Tourism and Sports Minister Tonči Glavina said that in conditions of geopolitical instability, it is crucial for Croatia to remain perceived as a safe tourist destination. He also highlighted strong investment in destination promotion and more balanced tourism development.
He stressed that price competitiveness will play a decisive role this tourist season. “Croatian tourism has grown strongly, but we are entering a phase where the market is clearly setting limits and such growth is no longer sustainable or realistic,” he said.
He added that all research shows tourists today choose destinations primarily based on value for money.
He also noted that competitors are responding by reducing margins across the value chain. “That is a practice we must also begin applying if we want to remain competitive,” Glavina said.
