Croatia losing its edge in Mediterranean tourism, analyst says

Economist Damir Novotny warned that Croatia has reached the limits of growth in tourist arrivals and overnight stays and is losing its competitive edge to other Mediterranean destinations. He attributes the decline to an outdated, low‑quality offer, a shortage of quality hotel and resort capacity, and a lack of events and affordable gastronomy that modern tourists expect. Traditional guests from Germany and Slovenia increasingly stay in their own properties, reducing overall spend.

Novotny stresses that while the peak summer months may be well‑filled, revenue is expected to fall because visitors stay shorter and spend less. He calls for investment in year‑round tourism, including health‑tourism development and promotion of inland regions such as Gorski Kotar and Lika, as well as a shift away from the sole focus on beach‑sun tourism. Without such changes, the Croatian tourism sector faces an unsustainable model and a “blind alley.”