Published on
January 17, 2026
The tourism industry in Croatia has been an important part of the country’s economy for a long time, with millions of visitors a year attracted to the stunning Adriatic coast of the country. However, the recent changes in the tourism industry policies in Croatia are now bringing a paradigm shift in the way the country will handle the growth of visitors in the coming years. Tourism Minister Tonči Glavina recently spoke on the new changes in the policies of the country, where the need for a stable pricing structure and a sustainable tourism industry was emphasized in the country.
A New Direction: Tourism Reforms and Their Impact on Accommodation
In a recent national television address, Tonči Glavina discussed the effects of sweeping reforms aimed at curbing the rapid expansion of short-term rentals and alleviating pressure on Croatia’s housing market. One of the most significant outcomes of these changes is the reduction of nearly 10,000 tourist beds across the country, resulting from new tax laws. While this may seem like a step back, Glavina views it as part of a larger strategic shift toward a more sustainable and balanced tourism model.
“Fewer beds may seem like a retreat,” Glavina said. “But this was not a short-term measure. It was a change of direction aimed at improving long-term sustainability.”
This shift is not just about reducing the number of beds available for tourists, but about improving the quality of the visitor experience. By reducing the oversupply of short-term rental options, the government aims to increase occupancy rates in existing accommodations, ensuring that tourism growth doesn’t come at the expense of local residents or the environment.
More Occupancy, Less Strain on Local Communities
Early indicators suggest that Croatia’s reforms are beginning to show positive results. For the first time since 2018, private accommodation providers are reporting higher occupancy rates. This is an important sign that the country’s focus on quality over quantity is working. Additionally, the number of property owners switching from short-term to long-term leasing has increased, as more than 3,600 property owners have moved to stable rental agreements, helping to address housing shortages for local residents.
Moreover, the number of people entering the long-term rental market has risen by 14%, which is a clear indication that the reforms are helping to stabilize the housing market. The overall goal is to provide more housing for residents while still maintaining a vibrant tourism industry that benefits local communities. These early results indicate that the reforms are moving the country in the right direction, fostering a more sustainable balance between tourism and residential needs.
The Housing Affordability Crisis and Its Impact on Tourism
At the heart of these tourism reforms is a broader concern about housing affordability. As in many popular European destinations, property prices in Croatia have skyrocketed in recent years, making it increasingly difficult for locals to find affordable housing. While property prices have not yet fallen drastically, early reports from real estate agencies suggest that property sales in the Adriatic counties have dropped by 30%. This slowdown in the housing market could signal a future price stabilization or even a decline in property values, helping to alleviate some of the pressure on residents.
However, Minister Glavina made it clear that the goal of these reforms is not to reduce the prices of new construction, but to ease pressure on older housing stock and long-term rentals. By ensuring that property owners shift from short-term to long-term rentals, Croatia hopes to create a more balanced and stable housing market that better serves both residents and tourists.
Travelers Are Watching Prices Closely
As Croatia prepares for the 2026 tourist season, price sensitivity is becoming a critical factor in destination choices. Research conducted by the Ministry of Tourism suggests that travelers are likely to spend less and travel less in 2026 due to rising costs. This means that Croatia must compete with other Mediterranean destinations like Spain and Italy, where travelers will carefully consider costs before making a decision.
The key factor for many tourists will be the price of accommodations, meals, transport, and everyday expenses. Croatia, once celebrated for offering great value, is now facing stiff competition from its Mediterranean neighbors, who are also trying to balance affordability with quality. As Minister Glavina pointed out, travelers are making last-minute decisions, weighing destinations such as Croatia, Spain, and Italy carefully.
“Guests decide calmly, rationally — between Croatia, Spain, or Italy,” Glavina said.
While accommodation costs in Croatia have not been the main driver of inflation, other expenses like retail, restaurant bills, and transportation are where travelers feel the most pressure. As a result, Croatia’s tourism industry will need to focus on stabilizing these costs to maintain its competitiveness in an increasingly cost-conscious travel market.
Stabilizing Prices: A Critical Move for Croatia’s Tourism Future
Minister Glavina’s message was clear: price stabilization is essential for the future of Croatia’s tourism industry. If the country does not take proactive steps to curb rising costs, the consequences will be felt in the tourism sector, with fewer visitors and less revenue.
“Stabilizing prices is no longer optional,” Glavina warned. “If we don’t do it, we will feel it in tourism results — and already this year.”
As the country works to balance the needs of residents and visitors, these reforms represent a necessary recalibration for Croatia’s tourism industry. The shift away from unchecked growth in short-term rentals and the focus on sustainable tourism practices may lead to a more balanced future for the country, one that ensures its cultural and natural resources are preserved for years to come.
A Changing Landscape: Croatia’s Tourism Reset
Despite these challenges, Croatia remains a top destination for travelers, offering stunning coastlines, historical cities, and a rich cultural heritage. However, the new direction set by the tourism reforms is reshaping the landscape. As the country recalibrates, it will need to focus on maintaining its charm while addressing the economic and environmental concerns that have arisen from rapid tourism growth.
