January 8, 2022 - High prices in Croatia won't work for the upcoming tourist season as Mediterranean competitors came back into the game.
Croatian travel agencies are once again facing another challenging tourist year. Boris Žgomba, president of the Association of Travel Agencies at the Croatian Chamber of Commerce (HGK), said that Croatian tourism hopes for better results in 2022 than last year, but a fight awaits for every guest as other Mediterranean countries return with possible lower prices than Croatia, reports Novi List.
"Behind us is a very bad 2020 and surprisingly good 2021 compared to what was expected. However, this year is uncertain, partly due to the spread of the virus in the first days of the year, and partly due to the expected return of our closest competitors in the market," says Žgomba. Namely, he said that apart from Croatia, most other destinations and countries are preparing for better results, including returning traffic to the level of approximately 2019. Furthermore, according to the announcements, strengthening air traffic is expected. This means that Croatia cannot afford the high price jumps in 2021, which was justified by increased demand.
But also the fact that in the last two pandemic years, Croatia enjoyed a specific privileged position when it comes to epidemiological conditions, and it also positioned itself as a car destination. However, it seems that Croatia is no longer safe in that position because it is expected that other countries will be in a better epidemiological situation than they were last year. And that means that the fight for each guest will be more complex than ever.
As for tourist agencies, he said their business was significantly affected by a higher number of individual tourist arrivals during the pandemic than organized tours. Therefore, in 2022, the agencies would welcome job preservation measures, at least until the end of March and the beginning of April, to bridge the time until spring and the beginning of stronger tourist traffic.
According to the Association of Croatian Travel Agencies (UHPA), UHPA member agencies in the first ten months of 2021 recorded a decline in traffic of about 70 percent compared to 2019, which is a slight recovery compared to 2020 when the drop was about 90 percent. But it is far from recovering, and agencies remain among the hardest-hit part of the tourism sector.
Therefore, they are still on state support and hope that the continued impact of the pandemic on business will continue to help preserve jobs at least until April 2022.
"Most agencies have survived the corona crisis, primarily with government action, but many have exhausted a variety of financial options, from loans to property sales, so we still need action, at least until April 2022, to survive until spring when we expect some tourist traffic," said the UHPA at the last annual Assembly.
However, the agencies also expect that traffic will be difficult this year, especially since the pandemic is raging worldwide and thus throughout Europe, which has already been felt in reservations and payments for skiing and winter holidays through agencies, which went well in the autumn. Skiing was expected to return to pre-pandemic figures, but as the epidemiological situation worsened, bookings fell, and there were last-minute cancellations.
It should also be added that the specificity of agency business is based on the tourist offer and services created for specific market niches whose realization is related to periods outside the tourist season, such as group travel, congress tourism, and school travel, which were also in sharp decline last year.
Also, many agencies specialize in creating and providing services for specific foreign markets from which, or according to which, due to travel restrictions, it was not possible to realize trips such as Asia, Australia, Canada, and so on.
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