Visitor Numbers Plummet in Croatia: High Costs Push Tourists Away from Dubrovnik, Istria, and Split—What This Means for the Future of Mediterranean Travel

Published on December 9, 2025

Croatia, once a flourishing gem of the Mediterranean, is now facing a significant downturn in its tourism sector, with the 2025 summer season experiencing a sharp decline in visitors and revenues. Despite ambitious efforts to extend the tourism season and promote year-round visits, the high cost of travel in Croatia has caused many potential tourists to opt for alternative destinations. During the summer months, particularly in July and August, the country saw a decrease of 745,000 overnight stays compared to the same period in 2024, resulting in an estimated loss of €140 million in revenue during the peak season. This marks a worrying trend, with Croatia emerging as one of the most expensive Mediterranean destinations, second only to France.

Price Hikes and Visitor Decline Hit the Industry Hard

The summer of 2025 was a particularly tough period for Croatia’s tourism industry. The rise in prices, which have increased by approximately 50% since 2020, has significantly outpaced many of Croatia’s competitors. These rising costs are now being felt across various sectors, from accommodation to basic services. As prices continue to climb, many visitors are choosing more affordable holiday spots, leaving Croatia’s hotels with empty rooms and a growing sense of frustration within the industry.

Despite some segments, such as hotels and campsites, reporting increased turnover (up by 2.4% and 2.2% respectively), the overall profitability of these businesses remains under pressure. High labor costs, coupled with rising food prices that have increased by 4.9% in the first nine months of 2025, are taking a toll on businesses that are striving to maintain quality while managing costs. This situation has pushed EBITDA margins for hotels down from 28.2% in 2024 to an expected 26.6% in 2025, despite growth in accommodation revenue by 8.2% over the first ten months of the year.

The Growing Divide Between Private Rentals and Hotels

The tourism market in Croatia is becoming increasingly fragmented. Out of nearly two million tourist beds, 1.5 million are in private short-term rentals, leaving only a smaller portion of the market for hotels and campsites. This imbalance has led to significant concerns about quality control, tax collection, and the seasonality of employment. In contrast, hotels and campsites, which are actively investing in infrastructure and extending their operating seasons, face growing challenges in balancing quality service with cost pressures.

While private rentals continue to dominate the market, there are growing calls for government intervention to support the hotel sector, which is essential for long-term growth and stability in the Croatian tourism industry. By incentivizing hotel investments, the government could foster the development of better-quality facilities, which in turn could encourage more sustainable tourism and help improve overall visitor experiences.

Structural Reforms and the Road Ahead

Looking forward, Croatian officials are aware that a radical shift in tourism strategies is needed. To address the ongoing challenges, the Tourism Minister and Croatian Tourist Board have emphasized the importance of adjusting pricing strategies and improving service quality. Croatia’s reliance on high-value tourism is under threat, and without addressing these issues, the country could see its share of Mediterranean tourism continue to decline.

In response, the Croatian government plans to increase its promotional budget for 2026 by a significant 40%, raising it to €53 million. This budget boost will focus on improving pre- and post-season tourism as well as highlighting sustainable travel and the country’s unique year-round offerings. A concerted effort to provide more value for money and attract tourists outside of peak summer months will be key to ensuring that Croatia can recover and regain its competitive edge in the global tourism market.

Travel Tips for Visitors to Croatia

For those planning to visit Croatia in 2026, here are a few tips to help navigate the current tourism landscape:

• Book Early: With high demand during the summer months, booking accommodations in advance is essential to securing the best deals.
• Explore Outside Peak Season: Consider traveling in spring or autumn when the weather is still beautiful, but prices are lower, and tourist spots are less crowded.
• Stay in Less Touristy Areas: While Dubrovnik and Split are popular, exploring places like Istria or Zagreb can offer a more affordable and authentic experience.
• Use Public Transport: With prices on the rise, using public transport or renting a car can help avoid the high costs associated with taxis or private transfers.
• Local Dining: Opt for local restaurants away from tourist hotspots to get better prices and authentic Croatian food.

The Future of Croatia’s Tourism

In the face of economic challenges and rising prices, Croatia’s tourism industry is at a crossroads. Structural changes are needed to ensure its future success, with a stronger focus on sustainability, quality tourism, and more competitive pricing. The country’s ability to restore its reputation as an affordable and desirable destination will depend on how quickly it can adapt to the changing dynamics of the global travel market.

As the Croatian government and tourism officials continue to address these concerns, the emphasis will likely shift towards offering value-driven travel experiences that entice visitors to return year after year. Croatia’s tourism industry may face a tough road ahead, but with the right reforms and strategies, it has the potential to bounce back and reclaim its position as one of the Mediterranean’s leading destinations.