It is no secret that Croatia has always attracted visitors from all over the world. According to HD Consulting, the rating of Croatian hotels jumped from 4 to 5 percent last May, while at the same time the growing influx of tourists makes Croatia a recognizable Mecca for investments by foreign investors and brands, writes Hotelmanagement.net.
In their report, Ernst & Young predicted that by 2022, investments in the Croatian hotel sector will jump to an impressive 1.2 billion euros. Until then, they have planned the opening of as many as 6.000 new accommodation units, as well as the renovation of the existing 3.700.
Also, in May this year, HD Consulting points out, interest in accommodation, both hotels and campsites, increased by 5 percent more than in the same month last year.
Despite the return of strong tourist competition such as Turkey, Egypt and Tunisia, which marked their return with a high rental rate of accommodation units, Croatia in 2018 still recorded an increase in the number of overnight stays. Hotels are being renovated, the quality of accommodation and offer is growing every year, and the security of Croatia as a country is in favor of that. Despite the rise in prices, growth in tourism is projected at 10 percent compared to the previous year.
Investments in the Croatian hotel industry are projected to grow to 2022 billion euros by 1.2, and 6.000 new accommodation units will be opened by then
In the hotel industry, Croatia is dominated by large domestic hotel houses, of which only the five largest have 60 percent of the country's total potential. Nevertheless, these large owners continue to invest in their capacities, by purchasing new units, but also by raising the overall quality of the offer. Investing in tourism in Croatia, especially in the hotel industry, guarantees long-term financial stability, which makes it attractive for domestic and foreign investment. Under the attack of foreign investors, there are currently existing hotel houses with a special interest in Zagreb and larger cities along the Adriatic coast.
In Croatia, 24 percent of the total accommodation capacity is internationally branded through exemplary hotel management, through franchise agreements or as part of a much larger international hotel association. Out of 10 world-famous hotel houses, as many as 5 are currently operating on the Croatian market. Foreign investors are very interested in entering the generous Croatian market, but the choice of a suitable place to channel capital is significantly narrowed, precisely for the aforementioned reason, that most markets are owned by large domestic hotel houses.
The Croatian market is apparently operating on a pay-as-you-go basis, while at the same time foreign investment is knocking on our door. The question is, is there any room in the global world for such a form of tourist ethnocentrism?