Croatia booming tourism struggles to further boost its tourism infrastructure

Published on : Thursday, October 20, 2016

croatia-booming-tourismDespite tourists flowing and tourism demand rising, Croatia is struggling to develop and further boost its tourism infrastructure.

 

There is a structural shortage of medium to large luxury hotel developments as is evident from the figures that only 14-20 per cent of guest beds in the country are in hotels while the rest are in small-scale guesthouses or are private rooms.

 

The country has nearly 100 empty, crumbling hotels. Some have been converted by the six or seven international hotel investors that lead the market, including Turkey’s Dogus and Austria’s Falkensteiner. But more needs to be done considering the country’s booming tourism scene.

 

Croatia is 33rd on the World Economic Forum’s Travel and Tourism Competitiveness Index, behind France and Italy but ahead of regional peers. Tourism accounts for nearly 20 per cent of its output.

 

Dubrovnik, a key tourist trademark in Croatia was to have a €94m cruise port terminal in nearby Gruz. But the project was cancelled within six months and in July the state-owned Dubrovnik Port Authority, which granted the original concession, voted down the project. The reasons behind the cancellation are unclear but strongly reminds us of the barriers to development of the country’s high-potential tourism sector.

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