Croatia's tourism hit by soaring prices and renter tax disputes

Eurostat data shows Croatia among the most expensive Mediterranean destinations for restaurants and hotels, with price indexes higher than Greece and Spain and only Turkey cheaper. Analysis of more than 1.6 million online reviews found tourists repeatedly complain about high costs for accommodation, food and drinks, especially in Dalmatian hotspots such as Hvar, Makarska and Dubrovnik where a six‑night stay can exceed €49 000 for a luxury apartment.

Small family‑run holiday rentals argue that the government’s new tax measures unfairly target them. SDP MP Sanja Radolović said, “Plenkovićeva vlada guši male iznajmljivače novim nametima.” The party also claims the state ignores a growing grey‑market of roughly 700 000 illegal beds while penalising legal hosts.

Tourism minister Tonči Glavina counters that recent reforms aim to curb the informal sector, introduce a “family host” status that removes property tax for qualified renters, and allocate over €1 million for electric‑charging infrastructure. He reported a drop of about 8 000 illegal beds and a 26 % rise in long‑term rental contracts, arguing the measures protect both the tourism industry and housing affordability.

The debate highlights a widening gap between rising tourist demand, record‑high accommodation prices, and the policy struggle over who should bear the cost of Croatia’s booming summer season.