Dinner for a family of four for 200 euros, apartment for 100 euros per night: for a long time Croatia was considered a cheap destination, but in recent years this has changed. Does the quality match the high prices?
For many years, Croatia was considered a cheap summer holiday destination. With its low prices, the country's tourism sector managed to attract many foreign visitors. Now, however, when prices are rising noticeably, the industry is looking for new solutions. Many believe that the answer lies in offering better quality services.
But what does this mean for the population of a country where the average salary is half that of richer European countries?
Is Croatia too expensive and are the high prices justified?
Gracia Horvatin has been working in the tourism industry for more than 30 years. It all started when she took over her grandmother's old tavern on the Croatian island of Murter. Over time, the modest establishment grew into a restaurant that is now very popular with tourists.
Gracia's story mirrors the development of tourism in Croatia. Once affordable for every budget, Croatia has gradually become a destination for more affluent visitors.
Part of this change is strategic, but it is mainly due to high inflation, state-imposed costs and labor shortages. Prices peaked last year - few dare to raise them again this season.
"I do not plan to raise prices, although all my suppliers have increased theirs and will probably do so again during the season. Maybe it is not logical from a business point of view, but I believe that sustainability is an important factor," Grazia told DW.
Almost all of Grazia's guests are foreigners - mostly Germans and Austrians, followed by Slovenians and Scandinavians. Her experience so far shows that prices are not something her guests comment on too much.
"A dinner for a family of four in my restaurant, including drinks and dessert, costs around 200 euros. An apartment for four with a nice view costs around 100-120 euros per night. And a boat trip to the Kornati National Park costs between 50 and 80 euros per person," says Grazia.
Natasha from the German city of Cologne has been spending her summer holidays in Croatia for 50 years. Half a century ago, her grandparents bought a traditional stone house on the island of Murter, and the family has been coming here every year since.
"Many Germans and Austrians like to come to Croatia because it is cheap. However, over the years, everything has become more expensive. The country adopted the euro and now the difference is tangible. Yes, the quality of services has improved, but I still think that for this level of service the prices are too high. I think the Croatians are working to improve this situation," says Natasha.
Are the guests satisfied - that's what success depends on
The Croatian Tourist Board warns that media reports about high prices are not based on facts and are damaging Croatia's reputation abroad right at the beginning of the peak season. However, expectations are for a good season and strong July and August.
"The fact is that last year there were examples that shed a different light on Croatia in terms of price competitiveness. I hope that this year there will be no more such cases. "Overall, I think that Croatia still offers a good price-quality ratio and remains within the framework of price competitiveness, which is ultimately confirmed by our analyses," says DW's director of the Croatian Tourist Board, Kristijan Stanićić.
Croatia is expensive, maybe even too expensive, but prices are not the main problem, says restaurateur Graćija Horvatin. "I think our main problem is that we need to work on service and quality to justify these prices," she says.
Long-term success in tourism depends on satisfied guests who will want to come back again and will tell good things about the country when they get home.
But as prices in Croatia start to catch up with those in richer European countries, where the average salary is twice as high, there are growing fears that locals will one day only be able to see their own coastline on a postcard.