Croatia tourism faces overcapacity, rising prices and a shift toward sustainable growth

Tourism officials and industry leaders warn that the Adriatic coast is saturated with seasonal restaurants and bars. Restaurateur Marin Medak says half of the Jadran establishments should be closed because the supply exceeds demand. The same over‑supply issue is reflected in private accommodation, where the number of holiday homes now outstrips visitor demand, according to Director of the Croatian National Tourist Board Kristjan Staničić.

Tourism figures for the first half of the season are comparable with last year: more than 294,000 arrivals have been recorded so far and the sector remains among Europe’s top performers. The government’s target is to keep annual arrivals at 21‑22 million and overnight stays around 110 million, focusing on strengthening the pre‑season and post‑season.

Minister of Tourism Tonči Glavina highlighted that, despite a volatile geopolitical environment, the sector’s results are satisfactory and Croatia ranks fourth in Europe for tourist arrivals. Cruise‑ship traffic to Croatian ports rose 8.9 % in the first five months, with Dubrovnik retaining its status as the busiest cruise‑port.

Price debates continue at the local level: a coffee served for €1.60 in a Šibenik café sparked discussion about tax exemptions and the impact of high VAT on restaurant prices. At the same time, some restaurateurs note that average wages for waitstaff, including tips, can exceed €3 000 per month during the peak season.

Overall, the tourism industry is pivoting from relentless growth toward a more balanced model that addresses capacity, price pressures and seasonal distribution.