June 3, 2020 - Austrian newspaper Die Presse and the German Rheinische Post (RP) published an article by journalist Thomas Roser entitled "Croatia: Worse Than in War", which talks about the challenges of this tourist season in Croatia. "The crisis has hit tourism-dependent Croatia hard," the article said, noting that it could be good for Croatia in the long run.

Index.hr reports that the beginning of the article describes the empty Opatija, which is usually full of tourists at this time of year. "Spring in Opatija is always beautiful, but this year it was strange without guests," says Radovan Lazic from the Adriatic Hotel, who adds that there were people in the hotel during the war, there were refugees, but that during the pandemic there were none.

Croatia's dependence on tourism

"Cancellation of reservations, financial pressure is growing, insecurity is growing - all this is upsetting people," Lazic describes the atmosphere in the hotel industry.

No European country is as dependent on tourists as Croatia, and they point out that the income from tourism is almost a fifth of the country's GDP. "The crisis caused by the coronavirus has, therefore, hit the newest EU member like no other: according to the Vienna Institute, Croatia will have an economic decline of 11 percent," Die Presse and RP reported.

The Croatian Adriatic will be officially open to tourists from June 15, and the congress gatherings scheduled for the spring will be postponed to the autumn.

Varteks expects a better market position

The article also cites a different example from the Croatian economy, namely Varteks, who, after a long crisis last year, was given new capital and new life, and now, in addition to tweed suits, protective masks are also sewn.

The president of the board, Tomislav Babić, is not pessimistic about the future, the article states. Babic believes that production will return from Asia to Europe. "We produce for a market that is close to us, so we can react quickly to trends, unlike the competition that imports all its goods," says Babic.

Balkans: Low wages and labor

The article points out that the Balkans could perhaps benefit from supply chain disruptions during a pandemic because now European countries will want to have production nearby instead of in Asia, and there is a workforce in the Balkans. Salaries are also not high.

"It took Croatia half a decade to recover from economic growth after the 2008 crisis. This time it could go faster: 4 percent growth is projected for 2021," the article said, adding that it would take several years to make up for this year's minus. The state's indebtedness will rise to 90 percent, so there is a possibility that "the youngest member will not be able to get closer to the EU average again, but will end up on the floor."

Increasing the number of unemployed

The cancellation of the European Capital of Culture in Rijeka is also mentioned as another blow to Croatia.

Unemployment is a particular problem, rising 32.4 percent from March to May. The current number of 160,000 unemployed could double by the end of the year, according to journalist Thomas Roser. Finally, he quotes Index and warns that "an avalanche of cancellations is yet to come."

To read more about lifestyle in Croatia, follow TCN's dedicated page.

June 2, 2020 - Forbes reveals that Cavtat, Zagreb and Rijeka are among the 20 best European destinations least affected by COVID-19, and thus safest for travel and tourism, according to European Best Destinations. 

On May 28, Croatia fully opened its borders to Czechia, Slovakia, Hungary, Austria, Estonia, Latvia, Lithuania, Poland, Slovenia, and Germany. 

“According to our comparative analysis of the epidemiological situation, those are the countries with either similar progress as Croatia or the trends are such that we can adopt such a decision and enable the arrival of those countries’ citizens during the tourist season, with the appropriate epidemiological recommendations and the special application that has already been made,” Croatian Prime Minister Andrej Plenkovic told his cabinet then. With borders opening, flights resuming and hotels and restaurants operating - tourism in Croatia has begun. 

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Considering Croatia has had only a handful of cases in the last few weeks, and as of yesterday, active cases are down to 66, European Destinations of Excellence, which works to promote sustainable tourism on the continent, has unveiled a list of 20 destinations least affected by Covid-19 (defined as up to 600 times fewer Covid-19 cases).

The southern coastal city of Cavtat comes in at no. 3 on the prestigious list, followed by Zagreb at no. 8 and Rijeka at no. 12!

Forbes' Senior Contributor Celia Rodriguez revealed the news on Monday: 

"Popular with celebrities, families, lovers and fans of gastronomy, culture, nature and water sports, Cavtat is the destination.

Croatia is among the European countries least affected by coronavirus with up to 20 times fewer infected people per million inhabitants than in other European countries.

Croatia is also one of the European countries with the highest number of hospital beds per inhabitant. The hospital in Dubrovnik, the capital, is a 20-minute drive from Cavtat while the airport is only 10 minutes away.

 Cavtat has a large selection of private villas, tourist apartments and small family hotels (selected as travelers’ favorites this summer). In addition, Croatia has implemented hygienic and sanitary measures in larger hotels.

Reopening to travelers on July 1. No quarantine requested."

You can see the full list on Forbes and read more about Zagreb and Rijeka HERE. 

To read more about travel in Croatia, follow TCN's dedicated page.  

As Jadranka Dozan/Poslovni Dnevnik writes on the 1st of June, 2020, as we reported recently, the credit rating agency Standard & Poors has kept Croatia's current ratings, although, like most others, it predicts a 9 percent drop in GDP this year, meaning that Croatian GDP will continue to feel the negative effects of the ongoing coronavirus pandemic for some time yet.

On Friday, state statisticians used a series of economic indicators to quantify the scale of the corona crisis on the Croatian economy.

In addition to estimating Croatian GDP for the first quarter, which the coronavirus pandemic severely affected by reducing annual growth to a mere 0.4 percent, the Central Bureau of Statistics (CBS) announced double-digit rates of decline in retail sales and industrial production for April, Croatia's lockdown month, with the fiercest direct blow to the domestic economy.

As much as the April minuses of 25.5 percent (retail trade turnover) and 11 percent (industrial production) come as a concerning shock, they aren't really a surprise. However, Standard & Poors made sure that the weekend started with a little less bad news for Croatia.

It reaffirmed Croatia's existing credit rating (BBB-) and maintained a stable outlook for the next revision. The report will certainly not do any harm to Finance Minister Zdravko Maric's position, who should enter the international market next week with new Eurobonds, the sale of which will seek to raise significantly more money than the amount needed to refinance 1.25 billion dollars of old bond debt. S&P has kept its current ratings, although, like most others, it predicts a 9 percent drop in Croatian GDP this year, which is one of the highest projected fall rates in the entire European Union (EU) for 2020.

Croatian GDP's recovery could begin in the second half of the year, which could result in a 5.3 percent increase next year, and 2.5 percent a year later, they forecast. Overall, the return of Croatian GDP to the 2019 level, they say, isn't likely before 2023, as the recovery in the tourism sector will also be very gradual.

With this new report, the agency is early in its regular audit calendar for more than obvious reasons.

The confirmation of Croatia's investment rank (although it remains the lowest on that scale) is explained primarily by the expectation that the tourist season will not completely fail (it is likely to record a drop of about 70 percent) because Croatia is a destination to which many can drive for the largest emitting markets such as Germany, Austria and Slovenia, making it a little less dependent on air travel recovery.

In addition, the S&P emphasised the solid level of the Croatian National Bank's international reserves, as well as the recent agreement with the European Central Bank on the so-called currency swap worth up to two billion euros. This should alleviate any immediate external pressures on liquidity and on the kuna's exchange rate.

The aforementioned amount of available currency swap could be further increased when Croatia joins the European Exchange Rate Mechanism (ERM 2), that's if it does end up joining it this summer, the report states.

After the Croatian Government submitted an official request to enter what is commonly known as the "lobby" or ''waiting room'' during the procedure to adopt the euro in July last year, in addition to which it undertook a number of ''homework assignments'', the result of all that remains to be seen.

In the meantime, the findings of the ECB's asset quality review and bank resilience testing, which affected five banks in Croatia, are expected.

As the asset quality review refers to last year, and given the above-average capitalisation of local banks, it seems that these findings shouldn't be an obstacle to Croatia's entrance into ERM 2. The government recently concluded that all points of the action plan have now been met. However, S&P emphasises that in addition to the aforementioned "tangible" benefits, joining ERM 2 could be an incentive for structural reforms.

The key risk for a return below the investment grade rating for Croatia would be the scenario of new travel restrictions and an economic downturn that would result in a more pronounced impact on the deteriorating balance of payments and a more permanent weakening of public finances and an upward public debt trajectory.

Although Croatia is heavily dependent on tourism and less integrated into global value chains than comparable countries are, S&P believes that reducing macroeconomic imbalances in recent years has created the basis that a temporary shock to the economy should not result in more permanent damage to the country's credit metrics.

With the tools at the disposal of the central bank (with generous foreign exchange reserves further strengthened by the arrangement with the ECB), S&P estimates that even in the scenario of a 90 percent drop in tourism revenues (without other serious outflow pressures), the CNB could successfully cope with depreciation pressures.

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June 1, 2020 - The Croatian National Tourist Board is conducting a large promotional campaign titled 'The Vacation You Deserve Is Closer Than You Think' in seven European markets - Slovenia, Austria, Germany, Hungary, the Czech Republic, Slovakia, and Poland.

Dalmatinski Portal writes that the campaign will be active during June and July, and is carried out by intensive advertising on Facebook and Instagram, advertising on YouTube, placing ads through the most-watched TV channels, most read portals and newspapers in each market and through outdoor advertising on billboards, city lights and digital panels.

Promotional materials and ads created for advertising are adapted to all six language variants and include tourist products that are best accepted in certain markets and are the motive for the arrival of guests at this time of year, namely the sun and sea, nautical tourism, natural beauty, active tourism through cycling and camping, but also the cultural offer. As part of the campaign, a new promotional video of 30 and 15 seconds was created, which will be used for advertising on online and offline channels in these markets.

"The first reactions to the launched campaign are extremely positive and we believe that they will encourage our traditionally loyal guests from the surrounding markets to spend their holidays in our country. Along with the campaign we are conducting, on a daily basis, we communicate to numerous partners, tour operators, agents and tourists through the network of our Representative Offices the latest information on the possibilities of crossing the Croatian border, the readiness of accommodation facilities to receive guests, and epidemiological guidelines on beaches, swimming pools and restaurants. With each new day, optimism is slowly awakening and I believe that in the end our tourist traffic during June, July and August will be much better than we hoped a month ago at the height of the crisis caused by the coronavirus pandemic," said CNTB Director Kristjan Stanicic, noting that when good epidemiological conditions and a positive atmosphere for travel are created, the same campaign will be launched in the markets of Italy, France and the Netherlands.

Markets that are primarily air destinations for Croatian tourism, such as Great Britain, Scandinavia, USA, Canada, China, South Korea, are targeted through the campaign 'Enjoy The View From Croatia', in which all stakeholders can participate with their photos and videos.

To read more about travel in Croatia, follow TCN's dedicated page.

As Poslovni Dnevnik writes on the 1st of June, 2020, as the coronavirus pandemic continues but the tourism industry begins to put the state of the economy in first place, the last minute trend in Croatian tourism has already started, meaning that tourists can now can jump on a plane and go on holiday in June with discounts from between 10 and 25 percent.

The Republic of Croatia always swung between being expensive and cheap. The hotels are typically expensive, but eating out in restaurants tends to be quite easy on the pocket. The coronavirus pandemic has altered the view of those who once deemed Croatia a cheap tourist destination, and those who deemed it too expensive will also be disappointed with the attitudes of some stakeholders in Croatian tourism, particularly hotel companies.

There will be certain price reductions and those who wish to scrape by for this tourist season will have to come to terms with the fact that the prices have been slashed and that tourists' pockets are more shallow. However, the managements of some of the largest hotel companies in Croatia have been clear - they would rather not open all of their hotels just to fill up their rooms for a much lower price.

As Vecernji list writes, "if you can't make money, why would you increase your losses?'' asks a Croatian tourism professional on the coast.

The Dubrovnik Importanne resort is among the few that has announced that it will reduce its prices by 30 percent in June and that the reductions will also continue throughout the summer season. True, these are luxury hotels, but, regardless of whether the tourists they attract come from elsewhere in Croatia or from abroad, guests include the bill for the amount of the toll payment along the route from Ploce to Dubrovnik, so the already reduced price drops by about 260 kuna if they stay for at least a couple of nights.

If, on the other hand, the stay includes at least four nights, the package is cheaper by five hundred kuna, or the amount of the toll payment in both directions.

Hotels Pinija in Petrcane, Pastura in Postira, Kolovare in Zadar, apartments Medena in Trogir, Fontana in Jelsa… all offer discounts from 25 to 40 percent. For those who don't care which Adriatic destination or hotel they are going on holiday, it will be worth the risk to wait for the "sale" to begin as Croatian tourism battles to attract tourists from at home and abroad.

For more on companies operating in Croatian tourism in the coronavirus age, follow our business page.

May 29, 2020 - Croatia fully opened its borders to Czechia, Slovakia, Hungary, Austria, Estonia, Latvia, Lithuania, Poland, Slovenia, and Germany - though tourists from these countries haven't made it to the beaches in Split just yet.

Dalmacija Danas writes that we are at the very end of May and only a few days separate us from the first month of the 'climatological summer'. Under normal circumstances, during this part of the year, beaches across the Adriatic would already be abounding in swimmers, and a good part of them would be foreign tourists. However, this year, in the corona era, our beaches are looking quite the opposite. 

Why there are no tourists on the beaches is well known, but why there are no local bathers, or at least not many of them, has nothing to do with the corona crisis. 

Namely, unlike in the previous few years when the sea in May would reach 20+ degrees, this year, the spring warming of the sea is extremely slow.

The surface layer of the sea has even cooled down a bit in the previous days, so now its temperatures are mostly from 17 to 18° C, which is not enough for a comfortable swim - especially when we are talking about Split locals. The bura also contributed to the cooling of the sea, and the day before yesterday, only 14° C was measured in the sea near Šibenik in one term!

Fewer people on the beaches, fewer swimmers, less sea traffic - and what is the result? A sparkling Split sea.

You can check out the scenes from Firule in Split, thanks to photographer Marin Lukas. 

All photos by Marin Lukas

There is no better time to visit Croatia. 

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As Novac writes on the 28th of May, 2020, the director of the Croatian Tourism Association (HUT), Veljko Ostojic, welcomed the Croatian Government's decision to liberalise the facilitation of entry via the country's border crossings on Thursday. He says that this sent a clear message that Croatia is now open to tourism, and that is absolutely crucial for the arrival of foreign guests.

Here is the Croatian Tourism Association's press release in its entirety.

''Today's decision of the Government on the additional liberalisation of border crossings for citizens of countries with a good epidemiological situation is crucial for Croatian tourism because Croatia is one of the first countries in the European Union to send out a clear message from the highest level that it is open to tourism. This is extremely important at this stage when for Croatia, due to the quality of its epidemiological situation, there is growing interest from tourists from our traditional emitting markets.

The announced application, where all foreign guests will be able to announce their arrival in advance and get all of the epidemiological instructions they need online as well as the introduction of special lanes at border crossings for faster crossing, are additional incentives for foreign guests to arrive this season.

Faster border crossings apply to citizens of Slovenia, Hungary, Austria, the Czech Republic, Slovakia, Estonia, Latvia, Lithuania, Poland and Germany, and they make up a significant proportion of our guests.

Hoteliers and tourist staff are ready to welcome guests. Currently, 231 hotels and 86 camps have been opened, and in the coming days, all leading tourist companies have announced the opening of additional capacities. All standards of the safety of guests' stay have been implemented in accommodation facilities, restaurants and other tourist facilities according to the recommendations of Croatian epidemiologists, the World Health Organisation and with regard to the recommendations from Croatia's key emitting markets.

Croatia has been managing the crisis very efficiently throughout the epidemic, and according to international organisations, it is among the most successful countries in managing the coronavirus crisis. New cases of the infection currently appear only sporadically, and Croatia has one of the best epidemiological situations in the entire Mediterranean, which is why the world's leading media point it out as one of the most desirable tourist destinations,'' concludes the statement from the Croarian Tourism Association.

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May 28, 2020 - Croatia fully opens its borders to Czechia, Slovakia, Hungary, Austria, Estonia, Latvia, Lithuania, Poland, Slovenia, and Germany.

Things are moving VERY quickly at the moment, with the situation changing daily. 

And a big announcement today, it would appear. Borders have been fully reopened by Croatia to citizens of no less than 10 countries. 

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Citizens of Czechia, Slovakia, Hungary, Austria, Estonia, Latvia, Lithuania, Poland, Slovenia, and Germany can enter Croatia without restriction. As though corona never happened.

“According to our comparative analysis of the epidemiological situation, those are the countries with either similar progress as Croatia or the trends are such that we can adopt such a decision and enable the arrival of those countries’ citizens during the tourist season, with the appropriate epidemiological recommendations and the special application that has already been made,” Croatian Prime Minister Andrej Plenkovic told his cabinet.

The open border does not apply in reverse in all cases, as Austria showed today. 

TCN will have a fully updated overview in the morning on the latest changes to travel to Croatia. 

ZAGREB, May 28, 2020 - Bosnia and Herzegovina will reopen its border to nationals of neighbouring countries, including Croatia, on June 1, Prime Minister Zoran Tegeltija said on Thursday.

"We have decided to open the border to neighbouring countries on June 1 without any restrictions related to (coronavirus) testing," Tegeltija told reporters in Sarajevo after a session of the Council of Ministers, the country's government.

He added that restrictions regarding passenger transport with neighbouring countries had been abolished despite the fact that Croatia and Montenegro had maintained restrictions on entry for nationals of Bosnia and Herzegovina.

All airports in the country will be reopened to international traffic on June 1 as well.

Bosnia and Herzegovina has maintained restrictions on entry for nationals of countries other than the neighbouring ones, with Tegeltija saying that the border regime for those countries would be liberalised on a case-to-case basis, depending on their epidemiological situation.

As Novac/Privredni/Jozo Vrdoljak writes on the 26th of May, 2020, following the easing of the formerly stringent anti-coronavirus measures and with the aim of improving the general offer and the successful start of Croatian nautical tourism this summer season, ACI is introducing more favourable conditions in its marinas from the 1st to the 30th of June, 2020.

Owing to the implementation of these measures designed to give the Croatian nautical tourism industry a much needed boost for 2020's season, during June, all sailors whose vessels are on an annual berth will receive free daily berths in all ACI marinas, and all other sailors will receive a very welcome 30 percent discount.

Free berths are limited to two free daily berths per individual ACI marina for private vessel owners, who can, as such, spend the whole month of June free of charge outside of their ''home marinas'' in other ACI marinas, from as far north as Umag all the way down to Croatia's southernmost city of Dubrovnik. Sailors in a charter who rent vessels in one of the ACI marinas can also gain access to one free berth in each ACI marina they enter during their charter.

In normalising everyday life and business, bearing the importance of Croatian nautical tourism and the interest of sailors for sailing on the Adriatic sea in mind, ACI has decided to attempt to further meet the needs of annual guests and those in transit.

"The new benefits we have prepared are a kind of thank you for the understanding and support that our guests, both domestic and foreign, have shown in the past and throughout all the years so far. We're glad that together, we've managed to successfully overcome all of the challenges that have been put before us in recent months, and we're looking forward to the arrival of our sailors. Every day, we're further developing our services to provide our guests with added value and better experiences,'' stated Kristijan Pavic, President of the Management Board of ACI.

Given the fact that the Republic of Croatia is home to 40 percent of the world's charter fleet, ACI continues to position the country on the nautical tourism map of the world, which is something that comes with an array of additional benefits. On top of all of that, one of the largest charter fleets in the world is located in the marinas dotted along the Croatian coast, meaning that the time is now to provide the Croatian nautical tourism sector a spring in its step.

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