Panic in Croatia as country 'abandoned' by tourists - 'It's too expensive!'

A beautiful European country that has seen prices surge by an eye watering 50% over the past three years has described its summer season as "strange" with profits under pressure. Initially, Croatia attracted tourists with its stunning beaches, charming buildings and its cheaper prices.

However, its spike in prices means Croatia is more expensive than two of its biggest rivals - Spain and Greece. The main cause for the price spike lies in the rising operational costs within the hospitality industry. And it seems money conscious tourists are turning their back on the Balkan country, during the peak summer season last year, foreign tourism revenue in Croatia fell by 0.7% compared to the previous year.

While official reports from the Ministry of Tourism and the Croatian Tourist Board show a growth in overnight stays this year, many concerned hoteliers and hospitality operators are warning that revenues are weaker and profits remain under significant pressure

Goran Fabris, board member of the Rudan hotel chain, pointed out that while capacities continue to expand each year, guest numbers are not keeping pace.

He told HRT: "The numbers are higher, the number of overnight stays is higher, the total revenue will be higher, but some of the stakeholders who did not invest in their facilities on time will have serious problems with their income.

"Times have changed - young people work to move on. Let us not criticise them too much; the labour market functions differently today."

Meanwhile tourism expert Petar urlin says while his hotel recorded 8% more overnight stays than last year, the peak summer season was weaker.

He said: "Higher revenue does not mean higher profit - last year our net profit fell by 30 percent. This reduces the space for investments and for raising the standards of employees."

Mr urlin also pointed out a potention problem in Croatia's tourism strategy that may be putting off holidaymakers.

"Guests want to experience the destination, not just stay in it. Croatian tourism lacks warmth because much of the workforce are foreigners unfamiliar with the language and culture", he said.