The governor of the Croatian Central Bank, Boris Vujcic, warned that the vital The country’s tourism sector could be harmed by the cumulative impact of price increases in recent years.
His warning came at a time when many tourists are beginning to look for destinations and accommodations for the upcoming summer travel season.
Vujcic said in a television interview on Sunday that Tourism prices in Croatia had increased around 50% in the last three or four years. That’s far more than the 20% increases experienced in competing Mediterranean destinations such as Italy, France, Greece, Spain and Malta, he said.
Overall, consumer prices in Croatia have risen 28% over the past four years, according to the national statistics office.
“It’s a huge difference,” Vujcic, who is also a member of the Governing Council of the European Central Bank, told N1 television in Zagreb. “We have already noticed that in the last two years we have started to lose market share. We have to be careful if we want to be price competitive and offer services at a price that customers are willing to accept.”.
Tourism is the most important economic sector in Croatia, contributing approximately 20% of the gross domestic product.
