Croatia, with a population of just over 3.8mn, welcomed more than 20mn tourists last year, and the influx this summer is expected to surpass that, based on the strong numbers seen in the spring. While the country hasn’t yet experienced the protests seen in other southern European countries such as Greece and Spain, Croatian officials are already exploring the question of how to manage the growth of the sector in the sustainable way. 

After posting exceptional tourism figures for the first half of 2024, Croatia is on track to have its most successful tourism year to date, according to Minister of Tourism and Sports Tonci Glavina. Speaking on July 4, Glavina celebrated the post-pandemic rebound that has seen tourism continue to grow steadily in recent years. In June alone, tourist arrivals rose by 3.4% year on year, reaching 2.8mn visitors, according to Croatia's Bureau of Statistics (DZS).

Despite this success, Glavina stressed the need to balance economic growth with sustainability. In an interview with HRT, he acknowledged the need to protect the environment and preserve the quality of life for Croatian residents. 

“We must shift from a model of constant growth to one that focuses on managing tourism's impacts,” he said, adding that reforms are essential to address issues like spatial planning and housing affordability.

Dubrovnik, one of Croatia’s most popular tourist destinations, exemplifies these challenges. The city has seen a surge in visitors, particularly due to its role as a filming location for Game of Thrones. Recently, Dubrovnik was identified as Europe’s most over-touristed city by Holidu, surpassing even Venice. Cruise ships are a significant contributor to the problem, bringing thousands of day visitors who crowd the city’s historic streets but contribute little to the local economy.

In response, Dubrovnik has taken steps to manage the influx of tourists. In 2017, the city, under UNESCO’s guidance, introduced daily visitor caps for its Old Town. More recently, the city council voted to halt the issuance of new rental permits in the Old Town. 

Across the country, local residents are affected by high prices in shops and cafes, especially in popular tourist areas, as well as an increasing scarcity of property. 

Deputy Prime Minister and Minister of Spatial Planning Branko Bacic recently spoke of the importance of prioritising residential space over short-term tourist rentals, which have contributed to skyrocketing real estate prices and a shortage of long-term rental properties. With 10% of Croatia’s housing stock now dedicated to short-term rentals, Bačić warned that young people are being priced out of the market. The government is working to strike a balance between the interests of property owners and the need for sustainable tourism development.

Speaking to HRT, Glavina stressed that Croatia should avoid ending up like other southern European countries, where local residents have begun protesting against tourism and the influx of visitors.

Anti-tourism protests have surged, particularly in Spain, where in July 2023, about 20,000 activists in Palma de Mallorca called for a tourism overhaul. In Barcelona, water pistol attacks were directed at tourists. Similar protests have erupted in Greece, Italy and Portugal. 

This hasn’t yet happened in Croatia, and tourism remains critical to Croatia’s economy. Directly and indirectly, it accounts for around 25% of Croatia's GDP, making it one of the key drivers of the country's economic recovery post-pandemic. 

In 2023, Croatia recorded a GDP growth rate of 2.8%, making it the EU's second-fastest-growing economy. The tourism industry has played a significant role in this expansion, with visitor numbers surpassing pre-pandemic levels.

Tourism is also heavily represented on the Zagreb Stock Exchange, accounting for around 20% of trading. Leading companies in the sector, such as Valamar and Arena Hospitality Group, posted strong revenue growth in the first half of 2024, reflecting the ongoing strength of Croatia’s tourism sector.

Still, there are other thriving sectors in Croatia beyond tourism. Additionally, the country’s access to EU funds has supported infrastructure improvements, digitalisation efforts and green initiatives, further bolstering its economic performance.

In the long run, Croatia’s challenge will be to maintain its booming tourism industry while ensuring that it benefits both the economy and local residents.