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CROATIA: AS A PILLAR OF THE ECONOMY

Currently the newest member of the EU, is an anchor of stability between Central and South-East Europe. A high youth unemployment rate and the necessary reforms still pose big challenges for the country. However, tourism is a beacon of hope which successfully cushioned the blow of the recession following the fnancial crisis.

Zadar – A symbol for growth “Tourism in Croatia has a 170 year-old tradition. This is one of the reasons why Croatia is so hospitable and cosmopolitan. It is certainly The city of , which has 75,000 inhabitants, also because my country was a melting pot of diferent cultural circles over is a good example of Croatia’s development. the course of its history and because our roots are just as diverse as those During the Croatian War of Independence, this of our guests. port city on the Adriatic was under siege for almost four years. In 2016, Zadar was voted Most holidaymakers come to the coast in the summer to enjoy the sun, Europe’s most popular travel destination in an sea and beach. However, visitors to Croatia will also be won over by its rich online poll and welcomes around half a million cultural heritage, mountains and national parks. Tourists can visit prehistoric guests every year. This 3,000-year old city sets sites as well as ancient and medieval cities, and enjoy the varied nature and an example for how reconstruction and tourism gastronomy. development can mutually reinforce one other. Tourism is one of the most important industries in Croatia – not least thanks to its positive efects on other branches of the economy. Because Tourism as an economic driver the transport, building and commu- in the recession nication sectors proft just as much The efects of the fnancial crisis in 2008/9 from tourism as agriculture. As one didn’t spare Croatia. They drove the country of the largest tourism companies, into a recession that lasted for six years. The TUI has long been active in Croatia gross domestic product (GDP) only began to and is a welcome employer and grow again in 2015. But Croatia’s economy could partner. We look forward to expand- count on its continuously growing tourism sector ing our cooperation with TUI.” Ranko Vilović, during this difcult phase. The number of over- Ambassador for the Republic of Croatia in night stays in Croatia increased by over 30 per- cent over this period. 12.7 million tourists visited the country in 2015, which amounts to three Tourism defes the recession tourists for every resident. Among them were The number of visitors has risen continuously for a decade. This means that tourism over two million holidaymakers from Germany – remained a growth sector – and an important pillar of support – despite the recession. a rise of 6.8 percent. This makes them the nu- merically largest contingent. Indexed, 2006 = 100 +40% Prospects for the people Overnight stays This growth is good. The travel industry alone of foreign tourists generated around 18 percent of the GDP. Tourism also creates jobs in the process. GDP (nat. currency, current prices) -4.5% 130,000, or ten percent of all jobs in Croatia, stemmed directly from the tourism sector.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Sources: Croatian Bureau of Statistics, IWF, own calculation

policyAGENDA January 2017 Issue 6 Location | Further topics | Foundation | Notifcations

Germans are the largest group If we take into account the positive efects on other sectors, such as agriculture, tourism of holidaymakers in Croatia provides an income for 300,000 people – which equates to every fourth job. The forecast Countries of origin for Croatian tourists in looks bright thanks to further investment. Around 800 million euros should fow into the 2015 tourism sector in 2017.

16.75% TUI expands its commitment Germany The TUI Group is a key partner in tourism development. The TUI Blue Jadran, a four-star 9.40 % hotel on the Riviera, will open this summer. Moreover, hundreds of thousands of tourists will use the comprehensive travel options ofered by TUI in Croatia in 2017: 8.83% • TUI Airlines: The airlines ofer 44 weekly fight connections across Europe to , and Split. 8.76% • Cruises: TUI Cruises and Hapag-Lloyd Cruises dock at Dubrovnik, and . Thom- 50.78% 5.49% son Cruises also stops in Zadar, Rijeka and Split. TUI Cruises is planning to further expand Other the Croatia programme of the Mein Schif feet in 2018.

Source: Croatian Bureau of Statistics • Individual travel: Those travelling individually to the country will also fnd a comprehensive choice from TUI. The travel group currently has over 62,000 holiday homes and around 450 hotels in its programme in Croatia.

Croatia

Osijek Rijeka Rovinj Pula

MS Europa 2

8 UNESCO world heritage sites 8 national parks Zadar 1,244 islands Mein Schif 2 6,278 km long coastline Split

Brač TUI Blue Jadran Hvar Thomson Dream

Dubrovnik

policyAGENDA January 2017 Issue 7