Wednesday, 21 September 2022

Guaranteed Croatian Gas Prices Until April 2023 for Some This October

September the 21st, 2022 - Croatian gas prices are set to be charged at a guaranteed price for some in the country, which will definitely result in a sigh of relief.

As Poslovni Dnevnik writes, all public service suppliers will have enough gas for households this winter season, emphasised Ivo Milatic, State Secretary in the Ministry of Economy after a meeting with gas suppliers that provide such public services.

About 100,000 people in the country who want to change their gas supplier and connect to the public service can wait for the cold weather to come in a more relaxed frame of mind, because gas from the new supplier should start arriving from October, and it will remain at the same price until April the 1st next year. There will be enough gas for all, but certain technical problems should be expected because a huge number of requests will need to be processed in a very short time.

This encouraging message was delivered by representatives of the Ministry of Economy on the sidelines of the recent Government session, which was chaired by Prime Minister Andrej Plenkovic recently after he recovered from COVID-19 and came out of isolation, as reported by Novi list.

State intervention

The Zagreb gas plant (GPZO) is under the greatest pressure from people who more than understandably want cheaper Croatian gas prices, a service to which about 70,000 people want to switch. Its director Jeronim Tomas said that the connection of new consumers is expected by October the 1st, with a guaranteed price set in stone. This should not be a problem, but it is important, he warned, to solve the technical difficulties implied.

''People will have to read all of their gas meters by the end of this month,'' Milatic pointed out, adding that everyone who wants to switch from market service to public service must be allowed to do so by October the 1st, 2022. However, he noted, this transition could take longer due to the large number of requests that have come flooding in, so there is a possibility that some time will pass before people begin receiving their first bills with these set Croatian gas prices on them.

"We asked HERA, the gas supplier and distributor, to publicly and clearly explain all this to the public by the end of the week," emphasised Milatic, adding that the suppliers do happen to run out of gas, the state is more than ready to intervene and help them.

"If one of the suppliers does begin to experience a supply problem, HEP Plin (Gas) is a guaranteed supplier and it would once again assume the obligation to supply those same people with gas,'' Milatic assured. The onslaught on public gas suppliers in many Croatian cities occurred after many smaller suppliers on the market could no longer deliver gas to people at more favourable prices.

Recently, the government lowered the price of diesel fuel, which now costs 12.29 per litre, a considerable 59 kuna less than before. Petrol will be being sold for 10.58 kuna, one lipa more, while the price of blue diesel will remain the same, which is 8.49 kuna per litre.

"Since diesel prices on the Mediterranean market dropped significantly on Thursday and Friday, we decided to go with this new regulation, because this reduction in the market will be reflected in the reduction of retail prices here," explained Davor Filipovic, Minister of Economy.

For more, make sure to check out our dedicated lifestyle section.

Wednesday, 14 September 2022

Inflation Grinding Croatian Projects to a Halt, Prices Soaring

September the 14th, 2022 - Spiralling inflation is causing Croatian projects, some of them long-since planned, to grind to a halt. Originally agreed upon costs have risen, leaving some wanting to shelve their plans.

As Poslovni Dnevnik/Suzana Varosanec writes, the increase in the prices of energy sources and construction materials is very much spilling over into current Croatian projects dealing with regional waste management centres (WMS). The aforementioned market trends create far more financially difficult conditions for such projects, which will obviously require more generous national funds than were originally planned for.

Otherwise, these centres and everything to do with their construction is defined by the Law on Waste Management and the Waste Management Plan of the Republic of Croatia 2017-2022, they're managed by special companies and owned by regional and local self-government units, i.e. the City of Zagreb.

That said, some of them are clearly stuck in the proverbial mud and their financial structure(s) cannot be closed properly without the intervention of the competent ministries. Such is the case of the Regional Centre for Waste Management (RCGO) in northwestern Croatia - Piskornica, this is a company of the same name whose business is run by director Mladen Ruzman, and it is facing the very real problem of a lack of money.

This is the unfortunate case in spite of the fact that after the first tender, significant interventions were made in the procurement documentation in the repeated public procurement procedure for the design and execution of the works on the construction of RCGO Piskornica.

Speaking more specifically, the estimated value of this project stands at an enormous 346.6 million kuna, and in both tenders announced in less than a year, the bids received were significantly higher than the estimated value of the project. The public opening of bids in the first public procurement procedure was held back in October 2021, and the bids received amounted to approximately 676 and 716 million kuna.

At the opening of bids in September, it can be seen that the bidder Helector S.A  Athens submitted a bid worth 820.5 million kuna, and the Association of Bidders Kostak komunalno in gradbeno podjetje d.d., Krsko i Kostak - graditeljstvo tehnologija sirovine, Zagreb, submitted a bid worth 669.8 million kuna in total.

"Although changes were made in the procurement documentation for the new procedure with an emphasis on those that reduce the conditions of technical and professional abilities in order to open up the market, and on those that reduce the risk for contractors, given the unpredictability of the market and sudden changes in material prices and energy products, the bids received in the repeated procedure are slightly lower than those received in the earlier procedure,'' they stated from the Piskornica Administration.

In addition to the available financial resources, according to the answer received from the Ministry of Economy and Sustainable Development, the dynamics of the construction of these centres also very much depends on the readiness of the project of each individual centre for waste management, the realisation of which is the responsibility of the commercial company that manages each CGO.

So far, they claim, around 630 million kuna in grants have been spent from European Union (EU) funds for Croatian projects which deal with the preparation and construction of waste management centres, including CGO Mariscina and CGO Kastijun, which have been in operation since back in 2017 and 2018 respectively.

Of the Croatian projects also currently under construction, CGO Bikarac has been constructed and all of the trial work has been completed, while CGO Biljane Donje is in the process of construction and will only be completed next year.

The planned deadline for the construction of the Lucino razdolje CGO, the Babina gora CGO and the Piskornica CGO is until the end of 2026, depending on when the contracts for the works will actually be concluded. The contract for works is expected to be signed soon for CGO Lucina razdolje, while public procurement procedures for the construction of CGO Babina gora and Piskornica are now underway.

Considering the state of the market, the competent ministry has also noted that the funds will be secured when the procurement procedure is successfully completed and the final value of the Croatian projects involved is determined through amendments to the grant award contract.

"Considering the current prices on the market, the fact of the matter is that for certain procurement procedures, offers are being received that now exceed the original estimated value of the procurement, therefore, for price increases on individual projects, which can be proven, growth will be being justified through an increase in the prices of materials and of other input parameters, consider the possibility of securing additional national funds,'' they stated from MINGOR.

For the Management of the Piskornica company, the following activities include holding a meeting with MINGOR and the Ministry of Regional Development and European Union Funds in order to agree and coordinate the next steps in the realisation of the project.

They have stated that they expect this meeting to take place as soon as possible, as well as that the beginning of the project implementation depends on this coordination with the ministries in terms of further implementation regarding the securing of funds above the estimated value, while the deadline for completion is 44 months from the date of signing the contract with the selected bidder.

For more on Croatian projects and ongoing inflationary pressures, make sure to check out our dedicated business section.

Saturday, 10 September 2022

Croatian National Association of Caterers Welcomes Government Measures

September the 10th, 2022 - The Croatian National Association of Caterers has welcomed the package of economic measures the government has introduced to battle inflation and spiralling energy bills.

As Morski writes, on Thursday, the Croatian National Association of Caterers welcomed the package of measures introduced by the Croatian Government following drastic energy bill increases which, over recent months, have posed a huge amount of danger to the survival of enterprises already exhausted by the dire effects of the global coronavirus pandemic.

This is especially true with those operating within the catering, hospitality and tourism sector, which are mostly micro, small and medium-sized businesses and companies, the aforementioned association's press release notes.

From the government's package of measures, the Croatian National Association of Caterers have singled out the measure of capping the cost of electricity and the measure which seeks to increase the amount of tax-free payments to employees, which, as they pointed out, will enable the continuation of the work of catering and hospitality establishments this winter, as well as contribute to the preservation of jobs.

They have assessed that by limiting the cost of electricity for half-yearly consumption by companies up to 250,000 kWh to 0.53/kWh kuna, which ensures a price 12 times cheaper than the stock exchange price, the Ministry of Economy and Sustainable Development has showcased "a previously unheard of level of understanding and support for micro, small and medium-sized companies which experience the most difficult moments when doing business, and at the same time forms the backbone of the domestic economy."

The Croatian National Association of Caterers has also said that they hope for successful negotiations and equal treatment when it comes to the limiting of the price of gas, which, along with electricity, is an essential energy source in the hospitality industry, especially in the area of ​​continental Croatia in the winter period of the year.

Considering the wide scale and long-term nature of this ongoing and unfolding crisis and limited resources, they're also calling for the implementation of savings measures and the rationalisation of energy consumption in the business and private spheres, as reported by HRT.

For more, make sure to check out our dedicated business section.

Friday, 9 September 2022

PM Plenkovic Talks Anti-Inflation Measures: We'll Cap Price of Electricity

September the 9th, 2022 - Ongoing inflation is continuing to spiral, and with countries across Europe making various arrangements and creating measures to help citizens and companies through this extremely difficult period, Croatia's PM Plenkovic has now spoken out, confirming that the Croatian Government will cap electricity prices as energy bills are set to soar.

The Croatian Government was very quick in stepping in with a package of various measures when the global coronavirus pandemic reached the country and began disrupting life as we've never known it before. Many sectors across the economy are hoping for the same rapid response as inflation rises, taking the cost of energy with it.

As Poslovni Dnevnik writes, PM Plenkovic stated that this recently held session was entirely dedicated to the autumn package of measures the government intends to put into place to protect households, companies and the domestic economy from continually rising prices.

''We've dedicated as many as the first twenty points of the government session solely to this," PM Plenkovic assured.

"We are going to be opting for a very strong intervention, as we've always done until now for the benefit of the Republic of Croatia and for our citizens," he said, adding that ''we are in a time of global disruption," before showing a presentation in which the graphs clearly show an extreme rise in oil, gas and electricity prices.

"The first part of the package we're going to introduce will be to mitigate the rise in energy prices, and we've primarily concentrated on electricity costs. When it comes to households, we're going to be capping electricity prices. This measure will be fixed for the period from October the 1st to March the 1st, and as such it will cover the autumn-winter period," he said.

"Whoever spends less will of course pay a lower price. Those who use more will be put into a higher price class," Plenkovic said.

For more, make sure to check out our dedicated politics section.

Wednesday, 7 September 2022

Croatian Calculator for Electricity Price Comparison Now a Reality

September the 7th, 2022 - Inflation is spiralling, and electricity prices are continuing on their upward trajectory. As such, the first Croatian calculator for working out and comparing the prices of electricity is now a reality, thanks to the Croatian Energy Market Operator (HROTE).

As Poslovni Dnevnik writes, customers from the category of households and businesses with an expected annual consumption of less than 100,000 kilowatt-hours can use this new and informative tool for comparing the offers of electricity suppliers' models and tariffs, prepared by the Croatian Energy Market Operator (HROTE).

This new Croatian calculator is an independent information tool which readily provides its users with an insight into updated information received from suppliers. It enables the comparison of offers on the entire retail electricity market up to the update date indicated in the tool, with clear and objective criteria shown, HROTE announced on Tuesday.

In order to make the offers comparable, the display does not include discounts and other benefits that suppliers may offer to users. This new Croatian calculator for electricity price comparison is fully adapted for use by people with disabilities, and it also has an easy to use procedure for reporting incorrect information about published offers, in accordance with the provisions of the Electricity Market Act.

It can be found by clicking here.

After entering the required data on the electricity consumption of the household or company, the approximate amounts that the household or company would pay to an individual supplier on both an annual and monthly level are displayed.

For more, make sure to check out our dedicated Made in Croatia section.

Wednesday, 7 September 2022

Tourist Spending Great, But Croatian Energy Bills Soaring

September the 7th, 2022 - Tourist spending has been excellent so far, but with Croatian energy bills soaring just like across the rest of Europe, it's difficult to say just how much cash businesses have actually managed to pocket.

As Morski writes, it doesn't take a rocket scientist to work out that year's summer tourist season will definitely surpass all previous ones in terms of revenue earned, primarily due to higher prices caused by inflation, but what about energy and food prices?

Due to there never having been so many concerts held at the Pula Arena before, the number of daily visitors to this historic structure was only slightly less than back during the record year of 2019. However, this wasn't felt in terms of consumption, not even in the souvenir shop, where people still spent a decent amount.

''Things weren't expensive, just 22 kuna, it's fine,'' says Renie from the Netherlands, who bought a small ceramic souvenir from the famous Istrian city.

''This year, we generated income in the souvenir shop of 1,660,000 kuna, last year it was around a million, and even that is a 4 percent increase when compared to 2019, which means that people have had deeper pockets, people are spending money as if there's no tomorrow,'' said Darko Komso, director of the Archaeological Museum of Istria.

The terraces of Pula's restaurants and cafes are still full, and it seems that main season is still going on.

''The prices are fine, they're not too expensive, about the same as in Poland,'' says Camil, a guest from Poland. Even some Americans, who have been travelling in Croatia for several weeks now, have no objections to anything except payment methods. ''The only thing is that in Split we had to pay for everything in cash, and here we can pay by card everywhere, which is much more convenient for us,'' says Dean.

There is no doubt that there has been truly excellent consumption, but restaurateurs are still worried about energy and food prices as Croatian energy bills continue to soar.

Consumption was growing even back during the pre-season, and according to the Chamber's data, 30 percent more bills were issued in Istria, and their value was 80 percent higher, and back then there was no inflation and higher prices. In Fazana, they say that the demand for fish dishes has never been better.

''It's definitely been the best so far, even better than the record year of 2019. The terraces are full, both here and across the whole of Fazana. The guests are relaxed, more and more of them are coming and asking for tables, and waiting in line to get one,'' said Almir Mahmutovic, a restaurateur in Fazana.

However, Croatian energy bills are rising, and the sources of energy used for everything involved in their business are three times more expensive for restaurateurs. This means that the purchase price of food is at least 20 percent higher, too.

While restaurateurs are figuring out how to stay competitive and still make money at the same time, the umbrella association of hoteliers expects compensatory measures from the state to moderate price increases. They point out that otherwise, not only will profitability and the investment cycle be put at risk, but the viability of doing business completely will also.'' writes HRT.

For more, make sure to check out our dedicated lifestyle section.

Saturday, 30 July 2022

Osijek Mayor Ivan Radic Avoids Inflationary Woes in Eastern Croatian City

July the 30th, 2022 - Osijek mayor Ivan Radic has discussed the woes of inflation which have the entire country, continent and indeed the world in a very firm grip, and just how the Eastern Croatian city he is in charge of has managed to avoid many price hikes.

As Poslovni Dnevnik writes, Osijek mayor Ivan Radic recently made a statement to N1 television about inflation, price increases and how Osijek has managed to avoid many unpleasant situations in the face of a very uncomfortable inflation wave following the Russian invasion of Ukraine back in February.

"I'm happy with what we managed to do as a team. We launched a lot of projects, even thirty years ago, nowhere near this much was ever invested in Osijek,'' stated Radic when discussing the first year of his mandate as the city's mayor, also going on to announce that he plans to keep the same pace in the coming years.

The renovation of the pedestrian bridge, the swimming pool, the Drava river's banks... There are numerous projects that are being worked on in Osijek, and there appears to be no plans to stop.

"The pedestrian bridge had to be rebuilt because the statics were damaged and the bridge has become dangerous, and the works on the bridge's reconstruction were completed before the agreed deadline,'' Osijek mayor Ivan Radic said.

When asked about saving energy, which is also being strongly recommended by the European Commission (EC), Radic explained that they have already started saving in many ways in the City of Osijek.

"Much like any other city you can think of, Osijek is far from immune to these things. We immediately issued recommendations to the entire city system, we gave them very specific recommendations that must be followed. We found that cooling by one degree less leads to 15 percent energy savings, which is a massive 100,000 kuna per month. That's a nice amount of savings, and we started with it all on time. The City of Osijek hasn't increased the price of any of its services, neither water nor electricity, nor kindergarten charges, nor transport costs,'' concluded Osijek mayor Ivan Radic.

For more, make sure to check out our dedicated politics section.

Friday, 15 July 2022

Inflation in Croatia Reaches Record High of 12.1%

ZAGREB, 15 July 2022 - Consumer prices in Croatia rose by 12.1% in June 2022 compared with the same month in 2021, the highest inflation rate since the national statistical office (DZS) monitors these data, mostly as a result of increased energy and food prices.

The prices of consumer goods and services, as measured by the Consumer Price Index, increased by 1.1% from May 2022 and by 12.1% from June 2021, the DZS reported on Friday. In May, consumer prices rose by 10.8% year on year.

The annual inflation rate continued to accelerate in June, reaching a historic high of 12.1%, after entering double-digit territory in May. The average increase in consumer prices in the first half of the year was 8.6%, analysts at Raiffeisenbank Austria (RBA) said in their comment on the DZS report.

The highest increases were observed in prices of transport (20.3%) and food and soft drinks (16.9%), followed by restaurants and hotels (14.6%), household furnishings and maintenance (13.0%), clothing and footwear (11.1%), housing, water, electricity, gas and other fuels (9.6%) and recreation and culture (8.0%).

The core inflation rate, which excludes food and energy, reached 7.1% in June.

RBA expects that elevated rates of inflation will continue in the third quarter before calming down towards the end of the year. It predicts that this year Croatia will record the highest inflation rate in its recent history.

For more, check out our politics section.

Wednesday, 13 July 2022

Central Bank Expects GDP to Increase 2.5%, Inflation to Drop to 4.6% in 2023

ZAGREB, 13 July 2022 - Real GDP growth could be 5.5% this year and 2.5% in 2023, while inflation could slow down from this year's 9.4% to 4.6% in 2023, the Croatian National Bank (HNB) said on Wednesday.

According to the HNB's summary of macroeconomic trends and estimates, the economic repercussions of the Russian invasion of Ukraine, the continued rise in energy and raw material prices, and the disruption of global supply chains have not seriously affected Croatia's economic growth outlook.

However, unfavourable global circumstances and pronounced inflationary pressures could have a bigger impact on domestic economic trends in 2023, when real domestic activity growth is expected to slow down to 2.5%.

The risks remain pronounced in the projected period 2022-23, with the prevalence of risks that could have a negative impact on economic growth, such as a gas embargo, food and energy price hikes, tighter financing conditions than expected, and a deterioration of the COVID situation.

HNB governor Boris Vujčić told the press that growth in Q2 this year was expected to be stronger than in Q1, when it was 7%, the tourism season was expected to make a very strong contribution in Q3, and "solid growth" was expected in Q4.

He said Q4 was much more uncertain and that for the most part, it depended on developments on the energy market, and whether there would be a gas embargo for Europe, which would significantly change the economic outlook for Q4 and 2023.

Vujčić said a recession was possible next year, mainly due to a stoppage in gas deliveries to Europe. The recession could first occur in Croatia's main trade partners, Germany and Italy, and then spill over to Croatia, he added.

As for this year's tourism season, he said arrivals were almost the same as in 2019, while accommodation and hospitality prices increased by 20 to 30%, which would point to a record tourism season financially.

Inflation in June surpasses 11%

This year's inflation of consumer prices could accelerate to 9.4%, first and foremost as a result of considerably higher global energy and raw material prices, the HNB says. On the domestic market, energy and food prices continue to increase the most, but the increase in prices of other goods and services is gradually accelerating, too.

Vujčić said inflation was expected to increase to over 11% in June, that during the summer it should be at 11% or 12%, while it was expected to start slowing down at the end of this year and especially at the start of 2023.

The growth of the main inflation sub-components is expected to slow down in 2023 and total inflation as well, to 4.6%. However, this forecast hinges on the stabilisation and, later this year, the gradual decrease in energy and raw material prices on the global market, according to the HNB.

Inflation projections for this year and the next are dominated by risks that could increase it further, including higher energy and raw material prices and a more pronounced salary growth.

Vujčić said the fight against inflation envisaged higher interest rates and that the European Central Bank announced that this could begin this month already. "I expect this to continue in the autumn."

The goal is for HNB and ECB interest rates to be the same as of 1 January 2023 and Croatia's accession to the euro area, he said.

Mandatory reserves to be reduced to 1%, no more foreign currency claim obligation

The HNB Council decided today to reduce banks' rate for calculating mandatory reserves from 9% to 5% this August and from 5% to 1% in December, which is the mandatory reserve rate in the euro area, Vujčić said.

He also decided that the minimum amount of foreign currency claims be reduced from 17% to 8.5% in August and abolished in December.

The effect of the first measure will be the release of HRK 34.2 billion in mandatory reserves, while the second will allow banks to release or differently dispose of €5 billion, Vujčić said.

Historically low interest rates

He said today's decisions would also affect interest rates by making financing cheaper for banks, so they would have fewer reasons to raise them, notably on new loans. They can reduce them further, depending on their business policy, he added. "But we'll see where we are at the start of next year."

Vujčić said interest rates in Croatia were historically low, while those in EU countries outside the euro area were considerably higher, twice as high for housing loans.

Decrease in real and increase in nominal pay

This year, employment is expected to continue to grow and unemployment to fall, with an increase in nominal and a decrease in real pay.

Vujčić said the current situation on the labour market was unusual, given that the private sector was recording a strong rise in nominal pay, about 10%, mainly due to the difficulty to find qualified labour, while wage increases in the public sector were slower.

Looking at the two sectors together, the growth in wages is somewhat lower than that of inflation, and this year real pay is expected to drop 1.5-2%, Vujčić said, adding that wage increases were expected to be at the level of inflation growth only in the private sector.

Euro area and Schengen additional incentive to foreigners to buy real estate

Speaking of the real estate market, Vujčić said property prices in Q1 were 13.5% higher year on the year and that the increase was also due to very low interest rates on savings, which are even negative in neighbouring countries, prompting foreigners to buy due to the higher yield.

The increase in property prices is also due to the government's subsidised housing scheme as well as the acceleration of inflation.

Vujčić said Croatia's accession to the euro and Schengen areas would be an additional incentive to buy real estate. On the other hand, if the rise in ECB interest rates also affects those on deposits, this rise should also reduce the incentive to buy real estate, but this can't happen overnight, he added.

Market activity could slow down due to the expected tightening of financing conditions and unfavouable income trends.

For more, check out our politics section.

Friday, 8 July 2022

Ongoing Inflation Forcing Prices Up, How Do Croatian Hotel Prices Stand?

July the 8th, 2022 - Inflation is forcing hotel costs up across the entire Mediterranean, but just how does the situation look with Croatian hotel prices?

As Marija Crnjak/Poslovni Dnevnik writes, the combination of ongoing inflation and increased demand for tourist trips have led to the significantly rising prices of hotel services at rates that often exceed inflationary rates, and Croatian hotel prices are only a small part of the global market which is recording growth in hotel accommodation by more than 50 percent, depending on the destination.

As such, the largest increase in hotel accommodation prices, compared to the last normal tourist year of pre-pandemic 2019, occurred in Rome, Berlin and Palma de Mallorca, according to an analysis by the British magazine Hotel News Resource, one of the 10 most influential global travel portals operating as part of the Nevistas group.

The analysis was made on the basis of their historical data on hotel accommodation prices across leading European cities, noting that demand in the short to medium term, despite the upward trend in inflation, will continue to grow until the end of the year. With high demand, prices will continue to creep upwards, but it's uncertain what the price policy will bring next year.

Comparing average room rates from 2019 to 2022, the analysis shows that prices are currently significantly higher. Room prices in June rose by 51.4% in Rome, 50.2% in Berlin, 44.5% in Dublin, London had an average increase of 44.3%, Barcelona 29%, Amsterdam 12.1%, and Paris by 19.8 percent.

There's been a similar trend in the leading European summer tourism destinations for June, where Palma de Mallorca (+40%) leads in terms of price increases when compared to June 2019, in Ibiza prices increased by 30 percent, in Aix en Provence by 21 percent, Montpellier is recording price growth of 14 percent, and Rhodes is up 13 percent. The last official figure for Croatian hotel prices with 12 percent growth refers to the month of May, while for June and the peak summer season in this sector, an average increase of between 30 and 50 percent is mentioned, also depending on the exact destination and the individual hotel.

The circumstances surrounding Croatian hotel prices increasing are far from simple, although they might look it at first glance. External factors, economies quickly opening up after coronavirus crisis and the Russian invasion of Ukraine, have all put a lot of pressure on supply chains. As a result, there has been a dramatic increase in energy and food costs for hotel companies as well. Croatian hoteliers within in the umbrella organisation of the Croatian Tourism Association calculated that the increase in the price of electricity alone would eat up the entire last year's profit of the sector of 1 billion kuna.

Therefore, without raising prices and revenue per available room (RevPar), hotel profit margins would inevitably fall significantly, and for most, they'd fall to unsustainable levels, analysts of Hotel News Resource magazine conclude, which is fully in line with the rhetoric of Croatian hotel operators and owners.

It's also very important to note that labour costs for hoteliers have risen significantly all over the world, especially in the USA and here in Europe. There are significantly more vacancies than there are qualified people who can fill them, which means that hoteliers have had to offer higher wages and other benefits. This further increases business costs - HUT recently revealed that compared to 2019, labour costs increased by another 10.1 percent, and thus exceeded the share of 30 percent in total company revenues, which has never happened in Croatian history so far.

For more on Croatian hotel prices, make sure to check out our dedicated business section.

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