Croatian Tourism Growth Offsets Economic Gloom

Written by Andrey Bibarsov

Croatia saw one of the biggest growths in tourism in 2010 according to new data released in the IPK Travel Trends report.

According to the data Croatia saw the fourth biggest growth of +7%, beaten only by South Korea (+28%), China (+23%) and Germany (+11%).

This is fantastic news for a country very much in need of cheering up. Flash estimates for GDP growth show that the 0.3% growth recorded in Q3 was a flash in the pan (get it), and was cancelled out by a 0.7% contraction in Q4, leaving GDP down 1.4% for the year. This isn’t bad, but in a year when most of the EU came firmly back into the black it is far from brilliant.

The Croatian property market has always been one primarily driven by tourism, with most buyers purchasing holiday homes, or holiday home investments. As such the growth in tourism more than off sets the economic contraction, especially given that a contraction was expected.

Furthermore the European Parliament has passed a bill stating that Croatia can complete its accession negotiations this year. Then it is just a nervous referendum between Croatia becoming the 28th member of the bloc. This would also boost the country’s property market, and, coupled with the reduction in property prices, is already stirring investors’ interest.

You can download the ITK travel trends report here.