The paper deals with the problems that have arisen due to the rapid development of traveling motives in the world tourism market. Croatia, as Mediterranean tourism country still does not have a clear solution of alternative tourism offer. There are other problems that are generated by the growing number of tourists and changes in tourism consumption. In the paper author have demonstrated the results of influences of trends in the tourist demand side. The changes in the tourist demand have resulted in the change in the concept of mass type of tourism. Such trends have influenced the emergence of specialized producers and offers of typical Croatian products.Strategy, Tourism, Croatia, Alternative tourism, European market.

Grzinic Jasmina

English

Research Papers in Economics

 
  51 
Management – Marketing - Tourism 
STRATEGY OF TOURISM IN CROATIA FOR COMPETING ON THE EUROPEAN TOURISM 
MARKET 
Assist. Prof. Ph.D Grzinic Jasmina 
University Jurja Dobrile in Pula 
Department of Economics and Tourism  
«Dr. Mijo Mirkovic» Pula, Croatia 
 Abstract: The paper deals with the problems that have arisen due to the 
rapid development of traveling motives in the world tourism market. 
Croatia, as Mediterranean tourism country still does not have a clear 
solution of alternative tourism offer. There are other problems that are 
generated by the growing number of tourists and changes in tourism 
consumption.  In the paper author have demonstrated the results of 
influences of trends in the tourist demand side. The changes in the tourist 
demand have resulted in the change in the concept of mass type of 
tourism. Such trends have influenced the emergence of specialized 
producers and offers of typical Croatian products. 
Key words: Strategy, Tourism, Croatia, Alternative tourism, European market. 
1. Introduction 
  Tourism is now one of the global engines of development. Every year, more 
people are in motion than ever before in history.  
  The supply and the demand of the tourist product meet on the market. This 
product includes natural beauties, goods and services. With good planning and 
management, tourism can be a positive force, bringing benefits to destinations around 
the world. Also, the tourism could be one of the important sectors that create the GDP.  
  The transformation of the European tourism market caused also major changes 
in the Croatian tourism offer. Fast and efficacious restructuring of the Croatian tourism 
sector is a prerequisite for successful adjustment to the EU tourism market. The subject 
of analysis of this paper is basic tendencies and competitiveness of the tourism sector. 
Basic causes of the long-term (negative) trends are identified through the alternative 
tourism offer today and in the future tourism trends. Lack of innovation in this way 
disenables the faster expansion, which would consequently result in the decrease of 
competitive abilities of the tourism industry and of the entire Croatian economy.  
  The article focus is on the use of alternative/selective tourism as a central 
instrument for improved planning and development of today’s tourism sector. 
2. Contribution of Tourism to the Croatian economy 
Tourism in 2006 realized 3% more overnight stays than in the previous 12 
months and by that the level of overnight stays from 1990 was exceeded. The greatest 
number of tourists still comes from Germany, Italy and Slovenia. During the course of 
the year an increase in number of tourist capacities has been recorded and now Croatia 
has almost 860,000 tourist beds at disposal. The occupancy rate is still low  
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Revista Tinerilor Economi ti 
approximately 60 days. According to the data of the Croatian National Bank, tourism 
has realized foreign currency income of approximately EUR 6 billion, which is in 
comparison with 2005 more by 3.7%. On the other side, expenditures in foreign 
currencies, consumption of domestic tourist abroad are by 13.6% lower in 2006 if 
compared to the year 2005
29.  
It is estimated that Croatia will achieve about 65 million nights till 2010 (80% 
of which by foreign tourists). According to the WTTC estimation, tourism in Croatia 
would employ 380 thousand people till 2010, from which 180 thousand directly.  
Table No. 1. Tourism in the Croatian economy 
Years 2004  2005  Index 
2005/2004 
GDP (in mil. EUR)  27.379 30.950  113,00 
Revenues (in mil. EUR)  5.505,6 5.998,9  108,96 
Share of tourism in overall 
economy in % 
20,1 19,4   
 Source: Croatian National Bank  
Table No. 2. Basic indicators of tourism development 
Years 1970  1990  1995  2005 
Number of beds (in 000)  616 863 609 909 
Number of tourists ( in 000)  6.454 8.498 2.438 9.995 
Number of overnights (in 000)  42.411 52.523 12.885 51.421 
Average number of overnights per bed 72 61 21 57 
Average number of overnights per 
tourist arrival 
6,6 6,2 5,3 5,1 
Source: Central Bureau of statistics, Croatia 
  
In 2010 tourism will directly bring 7,5 billion USD, total effect (direct and 
indirect) of tourism and travel industry will be about 12,6 billion USD which will make 
28,8% of GDP.  
Tourism is now concentrated mainly on the coastal part of Croatia including 
seven counties in which 96% of total number of tourist nights is realized.  
3. Croatian tourism attractions 
Since its beginnings in the 1960s, the development of Croatian tourism was 
based on the sun and the sea as products. Mass tourism, predominant in Croatia seldom 
used natural advantages as a tourist attraction.  
                                                      
29Croatian Chamber of economy, 2006.  
  
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Management – Marketing - Tourism 
Table No. 3. Structure of daily tourists spending in Mediterranean receptive 
countries (in euros, 2005) 
 Croatia  Italy  Spain  France 
Bed & Breakfast (Hotel, 
camp, Private rooms) 
28 30  30  31 
Hospitality services (food, 
beverage) 
8 14  14 15 
Trade services (shopping)  7  14  15  16 
Fun, recreation, other  4 11  12 15 
TOTAL 47  69  71  77 
Source: Cerovi , Z. (2006), Struktura turisti ke potrošnje u zemljama Mediterana, VEZ, Krk – 
Rijeka, p. 8. 
 
Structure of tourist spending by Mediterranean countries (table 3.) shows the 
difference in all categories except Bed & Brekfast. It is the disproportion of all tourism 
spending structure categories except Bed & Breakfast category. We can conclude, from 
the table above, that Croatia does not develop alternative ways of tourism satisfaction 
although it has all predispositions for it. 
Dr. Eduard Kušen in his book gave the detailed specification of possible tourist 
attractions that draw tourists in individual destination. He stated 16 attractions in the 
following order: geological characteristics of the place, climate, water, flora, fauna, 
protected natural inheritance, protected cultural and historical inheritance, famous 
people and historical events, manifestations, cultural and religious buildings, natural 
healing places, sport and recreational buildings and playgrounds, tourist paths, routes 
and roads, attractions for attractions and tourist para attractions.
30 
The only developmental way out of the used product and out of the type of 
tourism that is definitely out on the market is a diversification. The Master Plan of 
Croatian tourism recognizes diversities of individual units - clusters, whose particular 
features will be shaped into new products that need to be competitive on the market and 
mutually complimentary
31.  
Continental part of Croatia is neglected as tourism resort, although it is rich in 
attractions like: old towns, castles, thermal water-springs, pilgrimages, rivers, 
panoramic roads, wine roads, national parks and other protected areas. In that part of 
Croatia there are preconditions for development of congress tourism, farm and rural 
tourism, hunting tourism, health tourism, cultural tourism etc. 
Table No. 4. Type of visitor tourism attractions in Croatia 
 2004  2005  INDEX 
2005/2004 
Museum and Galleries  2.261.222 2.274.700 100,60 
Pilgrim places  730.422 710.000 97.20 
castles  70.427 74.202 105,36 
Parks of nature  364.704 323.534 88,71 
Memorial areas  2.219 2.129 95,94 
Sports events  71.995 89.105 123,77 
                                                      
30 Kušen, E. (2002), Turisti ka atrakcijska osnova, The Institute for Tourism, Zagreb. P. 67-141. 
31 www.istra-istria.hr/masterplan/okvir.htm  
  54 
Revista Tinerilor Economi ti 
 2004  2005  INDEX 
2005/2004 
Other events  176.100 259.986 147,64 
Old cities  722.920 886.186 122,58 
Fairs  720.460 620.049 86,06 
Carnivals  54.880 10.000 18,22 
National parks  1.775.907 1.986.708 11,87 
Aquariums  134.025 155.834 116,27 
Casions  271.151 390.688 144,09 
Festivals  154.783 188.366 121,70 
Archaelogical sites  4.839 9.755 201,59 
Forest parks  10.009 17.035 170,20 
Protected landscapes  15.630 16.800 107,49 
Monasteries  4.817 3.764 78,14 
Zoological gardens  387.315 401.632 103,70 
Cultural monuments  394.781 710.677 180,02 
Arboretums  31.423 30.424 96,82 
Famous peoples birth houses  3.586 6.461 180,17 
Other natural monuments  20.873 22.272 106,70 
Special reserves  65.875 89.061 135,20 
Fish - ponds  236 214 90,68 
Other  95.265 92.120 96,70 
TOTAL 8.545.864 9.371.701 109,66 
Source: Ministry of the sea, Tourism, Transport and Development, 2005. 
 
The seasonality is one of the main weaknesses of the Croatian tourism. The 
alternative forms of tourism are an optimal solution in the current tourism position. 
Other tourism products, apart from the sea can extend tourism season during the year. 
(table 4.). It is mainly concentrated on two months in a year. Over 63% of total number 
of nights is realized in two summer months, July and August. Other tourism products, 
apart from the sea can extend tourism season during the year.  
The importance of the attractions can be diminished by deficient image of 
destination and bad organized visits. Potential tourism offering is described in the 
second part of the article. 
4. Managing alternative form of tourism  
Selective tourist activities have not been sufficiently utilized until now, but 
have huge potentials in cultural rural tourism, but also in wider cultural tourism, 
especially archaeological, speleological, adventurous, hunting, trip, curative, wellness 
and gastronomic tourism. In the text below are listed the most important forms of 
alternative tourism that Croatia can successfully valorize as alternative forms of tourism 
offer. 
4.1.  Adventure tourism 
Adventure tourism is attractive form of selective tourism in Croatia. Croatia has 
great possibilities for the development of adventure tourism because of its natural 
resources and healthy environment as comparative advantages (especially its 
archaeological, speleological, adventurous, hunting resources).  
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Management – Marketing - Tourism 
4.2.   Health tourism 
In this sector of tourism, Croatia has 6000 beds in 18 health establishments. In 
2005 health resorts were visited by 22,213 tourists and there were 202,859 overnight 
stays in total. The main potential and support for future and up-to-date development of 
health tourism lies in the diversity of natural resources, ecological quality of Croatian 
regions, curative waters, sea, favorable climate and healthy food
32.  
 
4.3. Cultural tourism 
The wealth of Croatian material and non-material heritage is a resource for the 
development of Croatian culture tourism. Culture tourism is manifested in heritage 
tourism, UNESCO sites, museums, archaeological sites, rural cultural tourism and eco-
tourism. Croatia has to offer the autochthonous atmosphere of Mediterranean coastal 
towns. On the other sides there are urban centers and traditional rural areas.  
In 2005 there were 309 tourist rural households registered in the Republic of 
Croatia with 84 beds, out of which 210 or 68% offered food and drinks while 167 or 
54% has brandy and wine tasting facilities. The largest number of registered tourist 
rural households can be found in the County of Istria, almost 80 (26%) with 408 beds or 
52% of the total number of beds in Croatian rural tourism industry
33.  
The County of Dubrovnik-Neretva is the second largest with 75 beds (24%), 
but with significantly smaller number of beds - only 17 or 2% of the total number of 
beds in Croatian rural tourism industry.  
 
  4.4. Nautical tourism 
Croatia has 50 marinas. In the past few years it is noticed an increase in the 
marina traffic. At the same time, there were more than 320 charter companies with 
approximately 2,600 boats in 2006. The visitors in Croatian Marines are mostly from 
Croatia, Austria and Germany. It has been estimated that nautical tourism will be on a 
rising trend. Croatia has a great potential to become a leading Mediterranean country in 
nautical tourism. 
5. Future actions in tourism at local destinations 
Below is an indicative list of needed cooperation in each destination in the 
process of developing alternative forms of tourism offer.  
Local knowledge can be a key source of unique information on such factors as 
local use of resources, key traditions, and the values they hold most important regarding 
the destination. Local residents often will have clear ideas regarding the current 
situation and strong opinions on what is likely to be acceptable in the future.  
Table No. 5. Potential stakeholders in tourism at local destinations 
Communities 
Local community groups 
Native and cultural groups 
Traditional leaders 
Private sector employees 
Property and building owners (night live in the community or night be outsiders) 
                                                      
32 Croatian Chamber of economy 
33 Ibid  
  56 
Revista Tinerilor Economi ti 
Communities 
Tenants 
Public sector 
Municipal authorities 
Regional authorities (planning areas, conservation authorities, coastal zone, regional 
parks, authorities) 
National (end State, Province, County, Departments or equivalent) ministries responsible 
for tourism and its key assets 
Other ministries and agencies in areas affecting tourism (transport, natural resources, 
environment, culture, infrastructure, planning, heath, etc.) 
Agencies with an interest in the planning or maintenance of special attractions (parks 
protected areas, museums, marketplaces, cultural sites and events). 
Private sector 
Tour operators and travel agents 
Accommodation, restaurant and attractions, and other associations 
Transportation and other service providers 
Guides, interpreters and outfitters 
Suppliers to the industry 
Tourism and trade organizations 
Business development organizations 
NGOs 
Environmental groups (in the destination and outside but with an interest) 
Conservation groups (wetlands, native species, parks, cultural heritage) 
Other interest groups (hunters, fishers, sports and adventure associations) 
Tourists 
Organizations representing tourists interests at the point(s) of origin 
International tourism bodies 
Source: Indicators of sustainable Development for Tourism Destination, (2004), A guidebook, 
WTO, Madrid, Spain, pg. 27. 
 
  In most tourism destinations there are many different governmental, semi-
governmental and private bodies involved in the planning and management of the 
resources and programs affecting tourism and conditions at the destination. A challenge 
lies in bringing these agencies, organizations and firms together to participate in 
indicators development and use. In particular, local authorities, planners, and the 
tourism industry are key players. In most destinations there are utilities, economic 
planning groups, hotel associations, transport organizations, unions or labour boards 
and organizations charged with the development or maintenance of key assets such as 
parks, beaches, or cultural sites. Any participatory process should recognize both the 
interest of such bodies, and also the constraints associated with their participation in 
public processes
34. 
 
 
                                                      
34Indicators of sustainable Development for Tourism Destination, (2004). A guidebook, WTO, 
Madrid, Spain. 
   
  57 
Management – Marketing - Tourism 
6. Conclusion 
In the European Union, especially in the globalization process, tourism is regarded 
as having a core role in regional development. The key role in strategic positioning of 
Croatia is played by small hospitality companies which are important part in the process 
of increasing the destination attractiveness. The same is a more recent mechanism to 
achieve economic and social objects. The potential for tourism to contribute to regional 
development will depend on a quality level of all offered tourism events in Croatian 
tourism. The research has been made on the basis of alternative/selective tourism offer. 
The same factor should be increased in the future tourism development. 
Tourism administrations and other public authorities at the regional and 
national levels, should aggregate data from several sites or destinations. On the other 
hand, tour operators, transportation companies and other service providers are also 
important part in the development process of specific attractions, natural and cultural 
sites or protected areas. Researchers and students dealing with tourism-related 
development issues should actively participate in the process of interaction members of 
interest groups, community organizations and the host community. 
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STRATEGY OF TOURISM IN CROATIA FOR COMPETING ON THE EUROPEAN TOURISM MARKET

STRATEGY OF TOURISM IN CROATIA FOR COMPETING ON THE EUROPEAN TOURISM MARKET

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