Plenković calls for “sensible pricing” as Croatia tourism pre-season shows growth

Croatia is seeing a strong pre-season in the tourism sector, with a modest rise in arrivals and overnight stays.

With the most important part of the season still ahead, the government’s Tourism Development Council met today to address challenges facing the sector, including the impact of the war in the Middle East on energy prices.

While Europe remains far from the conflict - an advantage for Croatia - inflation continues to pose a major challenge. Prime Minister Andrej Plenković urged businesses to avoid last year’s mistakes and take a long-term approach by adopting sensible pricing strategies.

“The key takeaway from the third consecutive meeting of this body ahead of the tourism season is smarter pricing. This is the most important issue and will have a decisive impact on the season. Given the current circumstances, the government is once again intervening in fuel prices, as most visitors to Croatia travel by car. These measures are intended to support Croatian travelers, whose numbers are growing, in reaching their destinations, as well as those simply passing through the country,” the Prime Minister said.

In the context of the crisis in the Middle East, Plenković also pointed to a global increase in airline ticket prices, citing data from the European Travel Commission showing that more than 60 percent of travel companies are recording a 20 percent drop in demand.

He added that there is a shift in demand from destinations closer to the conflict towards Europe, calling it an opportunity for Croatia to attract additional tourists.

However, he stressed that price and quality competitiveness will be crucial, noting that other Mediterranean destinations should not react faster in capturing redirected demand.

“A big game has arisen in moments of market turbulence,” Plenković said.

Tourism and Sports Minister Tonči Glavina said that amid geopolitical instability, it is essential that Croatia remains perceived as a safe tourist destination. He highlighted ongoing investments in promoting Croatian destinations and in more balanced tourism development.

He also stressed that price competitiveness will play a crucial role this tourism year.

“We are not aiming to grow by further crowding the peak season, but by distributing demand more evenly throughout the year. While we are encouraged by the positive trends, it is important to note that we are currently in a period that generates only a fraction of our annual revenue, with the most important part of the season still ahead of us,” Glavina said.