Source: Hina/N1
“From the beginning of 2022 to September 2024, the cumulative growth in tourism prices in Croatia was almost 50 percent. It is not just a price increase, there are also many elements of raising quality, which is good and what we want,” said Glavina, speaking on N1 television today, and he reflected on the period when prices in tourism began to rise rapidly.
Shortly after Covid, prices began to rise significantly, the minister claims.
“A year after Covid, when everything opened up, we were cheaper than France and Italy. About 10-12 percent cheaper than Spain and Greece, and now in 2023 we have become more expensive than Spain and Greece by 5 to 7 percent. When the data for 2024 comes out, the difference will probably be even greater,” said Glavina.
The minister adds that the alarming fact is that real tourist spending per night has fallen by about 10 percent for the second year in a row.
When asked what his personal vision of Croatian tourism is, Glavina says that he shares the vision that we have defined as a tourist country and that the Croatian Tourist Board adheres to.
“That places Croatia in a so-called premium segment, that is, higher added value. Not luxury, that is a very big difference. Higher added value is a tourist country that is sustainable and that is developing and that is developing all its potential in the direction of year-round tourism,” Glavina explains.
Will VAT be lowered?
The tourism sector says that VAT is incorporated into their prices and that is why the prices are so high, and Glavina claims that VAT is only one part of the tax system and that everything should be taken into account.
“When we talk about the entire tax system, then we should talk about all those benefits and everything in which we are more competitive than other countries, and in many ways we are. Although there is some thinking that we have a heavy workload, we are somewhere in the middle of the European table,” the minister lists.
Are you currently considering further lowering VAT?
“No. We communicated very clearly. Our system as such is now very competitive. We need to create the preconditions for price competitiveness, and that is something that the Government cannot do alone. We cannot dictate what the prices of rooms in a hotel, an apartment will be… But we can participate in raising that competitiveness with the measures we implement,” the minister reiterates.
Quality of life of people in tourist resorts
The Ministry of Tourism has been emphasizing sustainability as an important part of the vision of Croatian tourism for some time. However, for citizens living in tourist resorts, the prices of everything are increasing drastically, from real estate, prices in shops, taxis…
“That is precisely why we are implementing strong reform measures that are not popular. The measures we are implementing regarding renting in general and regarding apartments,” said Glavina, emphasizing that he believes that it will be better precisely because of the measure to transfer properties that are in short-term lease to long-term lease.
What if that doesn’t produce results?
“It will, but it won’t happen overnight. The strategy is not a failure.”
