Croatia has been extremely popular with German-speaking boating holidaymakers in recent years. In addition to the climate, beautiful nature, crystal-clear water, cozy konobas and good infrastructure for water sports enthusiasts, the main reason for this was the prices. In some cases, they were significantly lower than those of competitors such as Spain, Italy or France. It seems that this has now come to an end. Many boaters and tourists are dissatisfied and are turning their backs on Croatia. The reason: the prices, some of which have risen sharply recently.
And prices in Croatia continue to rise, sometimes to dizzying heights. The Kölner Express is quoted as saying that Croatia is currently the vacation destination with the highest inflation rate.
What is the story behind the “price explosion” claimed in many places in Croatia? What are the reasons for this? Is it still worthwhile for sports skippers or land tourists to spend their vacation in Croatia? Or is it perhaps even better to go elsewhere for the same (high) price? And above all: is an end to the high price level in sight? SeaHelp did a fact check.
First of all: Croatia was and is a popular vacation destination, especially among German-speaking guests, but also among Italian guests. However, it is also a fact that the country has become noticeably more expensive in recent years. In recent months in particular, prices for food, restaurants and accommodation (including boat moorings and camping pitches) have risen sharply.
Some claim that the introduction of the euro is to blame for these price increases. This is disputed by politicians and, on closer inspection, may not be the main reason for the price increases that have been affecting almost all sectors of the Croatian service economy for several months.
The biggest cost driver is the sharp rise in inflation, which is currently stagnating at a high level
One of the biggest cost drivers we identified in our research was the sharp rise in inflation, which is currently stagnating at a high level inflation, which Croatia’s economy is currently struggling with. According to Country Data Info, inflation in Croatia was 7.94 percent last year and is even expected to reach 10.78 percent in 2022, while inflation in the previous years (2019 to 2021) was only between 0.15 percent (2020) and 2.55 percent (2021).
This had led to a sudden rise in prices, particularly for accommodation, but also for services; food was also suddenly noticeably more expensive than in Germany or Austria, for example.
Many SeaHelp members on Croatia cruises reported “exploding” prices in restaurants along the Croatian coast. According to our own research, it is a fact that there have indeed been significant price increases in Croatian restaurants, especially in the last two seasons. This applies equally to food and drinks, regardless of whether you visit a simple or upscale restaurant.
“In the restaurants we visited on our extended trip to Croatia this year, we were charged between 95 and 100 euros for a kilo of fish,” reports SeaHelp Managing Director Wolfgang Dauser, who has been traveling to Croatia by boat for several weeks a year for 15 years.
A small beer (0.33l) cost between 4.50 and six euros, and for a large beer (0.5l) you had to pay between five and seven euros, and not in a bar, but in a simple konoba, which is a lot by Croatian standards.
Alcoholic drinks
Non-alcoholic drinks
Reservations in restaurants are often no longer necessary as there is plenty of space available
Friends have reported that the konoba’s are currently often empty or only half of the tables are occupied, as the crews have reacted to the increased prices and now go out to eat much less often – and instead cater for themselves more often, says Wolfgang Dauser. “In central Dalmatia, a konoba owner even shouted from the terrace at around 9 p.m.: “Half price from now on!” because the bay was full of boats, but his restaurant was almost empty.”
Reservations in konoba’s & restaurants – often unavoidable in previous years – are now mostly no longer necessary.
Reservations in restaurants – as was often unavoidable in previous years – are now mostly no longer necessary, as there is always enough space available, Dauser continued. The absolute “highlight” (in a negative sense) was the price for a simple starter and fish for two people without alcoholic drinks a few days ago on the island of Zut: “we were asked to pay more than 170 euros for this”.
Appetizer for 2 persons
Fish for 2 people
In general, there was “less going on at sea” this season, according to boat professional Dauser, who noted that there were “fewer charter yachts and also far fewer yachts flying the Italian flag” – which had accounted for more than half of the berths in recent years.
The SeaHelp Managing Director describes further impressions of this year’s boating season in Croatia as follows: “In the north of Dugi Otok, we had to pay 75 euros (5 euros per meter of boat length) per night for a buoy.” In Hvar, he and his crew had wanted to dispose of on-board garbage, which turned out to be “really tedious” as there were no longer any garbage racks (as used to be the case) in any of the bays they called at; a garbage boat from the Hvar island administration had charged a disposal fee of seven euros for a large garbage bag.
Garbage boat: € 7 for the disposal of a garbage bag!
There are many reasons for the price increases in the food service industry and other sectors
There are many reasons for the price increases in the food service industry and other sectors: in addition to high inflation, rising raw material costs and higher food prices also play a decisive role. Added to this are current government measures to improve working conditions (specifically the increase in the minimum wage), which is further driving up operating expenses, particularly in the catering sector.
“Average real gross wages rose by 10% in the first quarter of 2024 compared to the same period of the previous year. An increase in the statutory minimum wage by 20 percent also came into force at the beginning of the year,” Stefanie Ziska, Managing Director of the German-Croatian Chamber of Industry and Commerce (AHK Croatia) of Germany Trade & Invest, is quoted on her website gtai.de on this topic; in the public sector there were “strong salary increases” in April 2024, but these rising wage costs are “a problem” for Croatia’s competitiveness.
How should boaters, land-based tourists and Croatia lovers in general behave in future? Ultimately, every guest must decide this question for themselves. However, there are some signs that the situation could soon improve and prices in Croatia could soon return to a more normal level – although it can be assumed that prices will probably not return to the levels of three or four years ago.
In May 2024, the price increase in Croatia was 6.1 percent. However, the Croatian National Bank expects a significant slowdown in the near future
As Germany Trade & Invest recently reported on its website gtai.de, consumption is currently boosting the economy in Croatia – despite many “price explosions” in the country. According to the report, Croatia’s economic growth is currently one of the strongest in the EU, and tourism is driving consumption. Above all, inflation in Croatia is falling.
Specifically, private consumption grew by six percent in the first quarter of 2024 compared to the same period of the previous year, and this momentum should continue throughout the year, according to analysts. Strong tourism plays an important role here: in the first four months of 2024, the total number of registered tourists was 4.7 percent higher than in the same period of the previous year. Gross fixed capital formation grew even more strongly than private consumption in the first quarter of 2024, with an increase of 10.8%.
However, as gtai.de further reports, Croatia continues to struggle with high inflation. In May 2024, the price increase was 6.1 percent. However, the Croatian National Bank expects a reduction to 3.8 percent for the year as a whole and to 2.6 percent in 2025.
The authors of the report point out a Croatian paradox: “a stronger tourism season can further accelerate GDP growth as a driver of consumption”, but “too much tourism could fuel inflation again”. The conclusion: Croatia would be “well advised to reduce its high dependence on tourism and ensure greater sustainability”.
Source link : https://www.sea-help.eu/en/news-general/croatia-high-price-konoba-vacation/
Author :
Publish date : 2024-08-09 07:00:00
Copyright for syndicated content belongs to the linked Source.
The post sharply rising prices in 2024, dissatisfied holidaymakers first appeared on Love Europe.
—-
Author : love-europe
Publish date : 2024-10-04 23:08:46
Copyright for syndicated content belongs to the linked Source.