Croatian Tourism Records Modest Growth in 2025, Anticipates Stabilization in 2026 Amid Rising Costs

Modest Growth Defines Croatian Tourism in 2025

Croatian tourism experienced a period of modest growth in 2025, registering a slight boost in tourist arrivals, overnight stays, and foreign spending. The year was anticipated to be a record-breaker, with projections of over 21.6 million visitors and approximately 110 million overnight stays. Overall, arrivals were estimated to be around 2% higher than in 2024, with overnight stays increasing by 1%.

A significant trend observed in 2025 was the success of the shoulder seasons, encompassing the spring and fall months, which contributed substantially to the overall growth in arrivals and overnight stays. This shift was viewed positively by many industry players, who saw it as an opportunity to alleviate congestion during peak summer months. However, the traditional peak months of July and August saw a decline in physical tourist traffic for the first time in many years, with a reduction of approximately 745,000 overnight stays compared to 2024, leading to an estimated revenue loss of around €140 million. The highest demand for accommodation was recorded in hotels, campsites, and high-category facilities, while the private accommodation sector experienced varied results, with some providers offering discounts. The private accommodation sector also saw a loss of nearly 3,000 beds in 2025 due to new tax measures and increasing costs. Annual revenue from foreign visitors was expected to reach around €15.5 billion.

Rising Operational Costs Impact Profitability

Despite the overall growth, the Croatian tourism sector faced considerable challenges in 2025, primarily due to rising operational costs. Inflation, higher wages, and increased prices for goods and services significantly suppressed profitability across the industry. Wages in the hospitality sector, for instance, rose by more than 50% between 2020 and 2025, while food prices increased by 4.9% in the first nine months of 2025. Croatia emerged as one of the most expensive destinations in the Mediterranean, second only to France, with tourism prices surging by approximately 50% since 2020. These escalating costs reduced the profitability of many tourism-related businesses, particularly in the private accommodation sector, where price increases were not always matched by improvements in service or quality.

2026 Outlook: Stabilization and Strategic Shifts

Looking ahead to 2026, analysts predict that the Croatian tourism sector will enter a phase of stabilization rather than strong growth. While tourist arrivals and overnight stays may match or slightly exceed 2025 numbers, the robust growth seen in previous years is not anticipated. The continued impact of rising operational costs is expected to remain a key issue, affecting profitability and limiting investment potential.

In response to these challenges, price competitiveness has been identified as crucial for 2026. Minister of Tourism and Sport, Tonči Glavina, emphasized the need for 'very clever' pricing strategies and price stabilization, noting that price will be a primary deciding factor for European travelers. The focus is shifting from sheer volume to quality, value for money, and the further development of year-round tourism. The Croatian government plans to increase its promotional budget for 2026 by 40%, reaching €53 million, with a strategic emphasis on promoting pre- and post-season tourism and sustainable travel initiatives. Furthermore, reforms in accommodation policy, including legislation to curb the rapid growth of private accommodation and the introduction of a new hospitality law by summer 2026, aim to foster a more sustainable accommodation structure.

Conclusion

Croatia's tourism sector navigated a year of modest growth in 2025, achieving record numbers largely driven by successful shoulder seasons. However, the industry now faces the imperative of adapting to rising operational costs and a more price-sensitive market. The outlook for 2026 points towards a period of stabilization, with a clear strategic pivot towards enhancing quality, ensuring price competitiveness, and fostering sustainable, year-round tourism to maintain Croatia's position as a desirable destination.