ZAGREB, 15 Sept (Hina) - Croatian National Bank Deputy Governor Sandra Švaljek said tourism’s contribution to Croatia’s economic growth is declining, despite continued strong tourist demand for Mediterranean countries.

Speaking in Dubrovnik at the “Business Forum Dubrovnik 2025,” Švaljek presented Croatia’s economic outlook and structural trends.

“After the pandemic, Croatian tourism recovered more quickly, but in recent years the number of overnight stays has stagnated, while in most countries growth has continued. Croatia’s share of the Mediterranean market has fallen, and other countries have overtaken us. We have even fallen below pre-pandemic levels, which is not good news,” she said.

“Prices of tourism-related services have skyrocketed. Previously we competed in terms of prices with Greece, Spain, Cyprus and Malta, but now our prices are at the level of Italy and France. Competing with Italy and France in tourism is very ambitious, but the question is how we will fare in that competition. Prices in France are falling year by year, while in Croatia they are rising. These prices are reflected in demand, so tourists are looking for other destinations,” she said, adding that due to rising prices, the real spending of foreign guests has declined.

“Tourism revenues in Croatia are still rising, but only slightly, primarily due to higher prices rather than real consumption,” Švaljek said, stressing that wages in Croatian tourism have not risen as they have in other countries. “In other countries, prices have risen less and wages more. In fact, the unit labour cost in Croatian tourism has been decreasing.”

Švaljek also said that tourism and construction have been the strongest drivers of Croatia’s economic growth. “The less good news is that investment in the construction sector does not contribute to growth potential, but produces effects only in the years when projects are implemented.”