Economy in 2023: Good results in tourism, reforms and new law

Croatia's tourism industry has achieved good financial results and turnover weathering all the challenges, including growing costs and price hikes, in 2023, and the recently adopted Tourism Act is supposed to address a weak spot in the industry: a poor structure of tourism accommodation.

In early 2023, a new strategy on sustainable development of tourism until 2030 was endorsed and also a new marketing plan for this sector was made. These documents, along with the law, adopted on 15 December, focus on the sustainable development of the tourism industry with economic, ecological and social approaches, taking into account the fact that this industry makes up 20% of the country's GDP.

The new Tourism Law, which goes into force in 2024, makes it possible for local government units to decide on the development of their tourism industry based on exact data.

Local authorities are given new powers and obligations in tourism management, in accordance with the specific features of their tourist destinations.

Towns and cities will be able to decide on the number and category of hospitality establishments and accommodation facilities, restrictions on the number of tourist arrivals or schedule of their arrivals, and the introduction of a tourist environmental contribution.

Structure of commercial accommodation

On 1 September, 133,200 properties with a total of 1.24 million beds were included in the provision of accommodation to travellers, whereas on 1 September, there were 123,000 properties with 1.2 million beds.

Broken down by type of commercial accommodation, family-run bed and breakfast facilities dominated, with 118,500 properties or 89% of all the facilities offering accommodation in the tourist trade. They had 653,100 beds (53% of all beds for accommodation of tourists), as against 111,000 properties of this type with 629,000 beds in 2019.

On 1 September 2023, Croatia had 1,199 hotels with 180,500 beds as against 1,174 hotels and 177,000 beds in 2019.

On the same day, there were 368 camping sites in Croatia.

The number of family-run farms that offer accommodation to tourists rose from 313 such farms with 2,700 beds on 1 September 2019 to 550 family-run farms that provide accommodation to tourists and had over 4,500 beds on 1 September 2023.

Investments

In 2023, investments in the tourism sector amounted to over €400 million, according to data provided by the tourism ministry.

As a result, 14 hotels, three campsites and some more facilities in tourism resorts have been built.

Skilled workforce in high demand

This year, Croatia has issued 42,000 work permits to foreigners for employment in the tourism industry, which was 10,000 more than in 2022, and the labour shortage is the main challenge for the sector.

The sector calls for more employment incentives, tax breaks and better promotion of professions and occupations in the hospitality industry to address the shortage of skilled workers.

Visitors, travellers and overnight stays as well as income higher than in 2022

From 1 January to mid-December, 20.4 million guests visited Croatia and made over 107 million overnight stays, a rise of 9% and 3% respectively from 2022, and at the same level as in the pre-pandemic 2019.

In 2023, statistics from the pre-season and post-season showed excellent results which contributed to this high level of aggregate results.

According to data provided by the European Travel Commission (ETC), Croatia is among four or five countries that have managed to reach levels of tourism turnover from the pre-pandemic 2019 year.

(Hina/FaH)

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