Ministry of Tourism of Croatia
Croatia
November, 2024
In-Depth Data-Driven Analysis and Benchmarking on Key Segments and Opportunities for Hotel Development and Investment in Croatia
Context
The Mediterranean tourism market is very competitive, not only for destinations to appeal to travellers and increase stays and spending, but also to attract foreign investment to enhance tourist products, services and infrastructures, including hotels. In parallel, the travel choices have increased in the last 10 years, as new Mediterranean destinations have entered in the competition with new development and promotion strategies, such as Croatia, which is finding its place by distinguishing from other traditional destinations.
Though smaller in scale, Croatia boasts a range of unique qualities that appeal to travellers looking for authentic, balanced and more secluded Mediterranean experiences, growing in tourist arrivals, stays, and spending; the cornerstone of hospitality profitability. Croatia’s tourism brand image is built around this sustainable perspective, the thread that organically connects the local travel experience around other tourism drivers, harnessing its cultural blend, culinary scene, great outdoors and natural treasures, and providing an affordable travel experience that elevates the perceived value for money. So, how can Croatia leverage this favourable scenario to boost international hotel investment and development?
Key goals
To answer this question, Mabrian studied the destination from a hospitality investment perspective, using a data-driven approach to unveil the opportunities for hospitality investment, particularly global brands, to Croatia. The report benchmarks Croatia’s potentialities and strengths in the context of leading Mediterranean destinations, not only comparing to traditional, more mature markets, but also understanding the specific cases of these countries’ tourism development that could be lessons for Croatia, as well as to find out unique conditions the Croatian travel and hospitality market show that could be compelling arguments for international hotel investment.
Approach
Mabrian’s performance and forecast analysis, includes demand forecasting, accessibility by air, hotel market composition, positioning and pricing, destination perceptions and demand drivers, and emerging destinations trends in the country. Such factors are taken into account by hospitality companies when choosing a destination, the expansion model that better fits it, as well as to forecast the return of investment and potential to grow within that same destination. In addition to this universe of updated and forward looking information, Mabrian counted on the Horwarth HTL expert consultancy to assess the conclusions.
The outcome, “Croatia Outlook: Data Insights for Hospitality Expansion” is a market trends study that provides a complete overview of Croatia as an emerging contender in the competitive Mediterranean tourism market, and in the bustling hospitality investment market for the region.
Results
Data featured in “Croatia Outlook: Data Insights for Hospitality Expansion” uncovers the advantageous conditions for foreign hospitality investment in Croatia, highlighting these conclusions:
- An outstanding increase in connectivity with its inbound markets;
- A consistent demand growth in resort areas, but also in city and less-seasonal destinations;
- A remarkable investment in tourist infrastructures throughout the destination;
- A concentrated but outperforming luxury and upper-upscale hotel segment, featuring a relevant share of non-branded / independent hotels;
- A distinct competitive advantage of the destination in active and natural tourism segments where new lodging formats, matching global brands portfolio diversification needs, and specialised hotel offering can fit.
The data insights also suggest that high-yield opportunities for hotel development and investment in the country span from luxury resorts to boutique eco-lodges, and from well-known coastal hotspots to emerging inland destinations; a strong basis for attracting foreign hospitality investors that should also consider creating a general investor-friendly environment boosted by a climate of confidence and stability. By leveraging its strengths and strategic positioning, Croatia is poised to redefine its role as a key player in the region’s tourism and hospitality landscape.
