Direct Tourism vs. Broader Economic Benefits
In public debate, the figure of 20% frequently surfaces — the supposed share of tourism in Croatia’s GDP. It is a number that sounds compelling in promotional brochures and industry conferences. Yet data published by the Croatian Bureau of Statistics (CBS) for 2022 tells a rather different story. Tourism’s share of GDP stood at 11.32%, not 20% as is commonly assumed. Moreover, this figure includes activities only indirectly linked to tourist activity — retail, transport, food service — which do not always derive from international visitor arrivals.
For comparison, tourism accounts for around 12% of GDP in Spain, and between 15% and 17% in Greece — widely regarded as the benchmark for an economy built on tourism. In Croatia itself, the direct share — arising from purely tourism-related activities such as accommodation, attractions, guides, and organised tours — is just 10.54%. The remainder constitutes what might be called the “economic environment of tourism”, which only partially benefits from its development. These figures have not changed significantly since previous measurements in 2019 and 2016, suggesting stability — but also a degree of constraint on growth potential.
Where Does Tourist Spending Go? The Scale of Import Leakage
There is more to the picture. More striking still is the fact that a substantial portion of the money spent by tourists — and by businesses in the tourism sector — does not remain in the country. Recent research by two Croatian academics, Stjepan Srhoj and Josip Mikulić, shows that over 52% of expenditure by tourism businesses flows abroad in the form of imports. Published in the prestigious journal Annals of Tourism Research, the findings are based on an analysis of nearly 10,000 tourism sector enterprises.
According to the research, 8% of expenditure constitutes direct imports — goods sourced directly from EU suppliers. A further 44% represents indirect imports — purchases from domestic suppliers who themselves rely on foreign products. In practical terms, this means that for every €100 spent by a hotel, guesthouse, or restaurant in Croatia, more than half leaves the country. Money that could support local producers flows instead to companies outside Croatia — most commonly from Germany, Italy, or Austria.
This is not a uniquely Croatian phenomenon — so-called “import leakage” is common in many countries with highly seasonal tourism. However, in Croatia’s case, given the country’s limited industrial base and relatively small domestic market, the scale of this leakage is particularly significant. As a result, Croatian tourism functions like an economic set of “lungs” — through which money flows in, and largely flows back out.
An Opportunity for Foreign Companies – Entering the Croatian Tourism Market
All of this points to one clear conclusion: the economic potential of tourism in Croatia has not yet been fully realised. What is lacking are stable, long-term local supply chains, developed cooperation between the services sector and domestic production, and appropriate investment incentives for the B2B sector. Many hotels — particularly those outside major cities — do not source from domestic suppliers of furniture, equipment, or food. Instead, they turn to wholesalers offering western products: faster, cheaper, more predictable. From a national economic perspective, however, this represents a missed opportunity to develop domestic industrial and processing sectors.
From another angle, it also represents a significant opportunity for companies from outside Croatia. Foreign businesses increasingly offer products and services that are competitive in terms of quality, price, and logistics compared to Western European suppliers. This is especially relevant given that Croatia, as an EU and eurozone member, imposes no customs barriers, and the single market allows for the free movement of goods and services — making market entry considerably simpler than in non-EU countries.
Demand is particularly strong in the areas of hotel and hospitality equipment, HoReCa products, premium and organic food, property management technology for tourist facilities, and energy efficiency solutions. In the era of the green transition and the push for sustainable development, a growing number of Croatian tourism businesses are also seeking suppliers of photovoltaic systems, water and energy monitoring systems, and certified construction materials. This market is not yet saturated.
Moreover, many local government bodies — particularly in regions heavily dependent on seasonal tourism, such as Istria, Dalmatia, and Kvarner — are actively seeking stable, long-term partners for infrastructure and procurement projects.
Looking at the data, one conclusion stands out clearly: Croatian tourism can generate revenue not only for Croatians, but also for companies that build strong, long-term relationships with it. It is well worth examining this market not simply as a holiday destination — but, above all, as a dynamically growing outlet for quality products and services from abroad.
Would you like to learn more about expansion opportunities in Croatia? Are you looking for local contacts, sector-specific data, or market entry support? Get in touch — CroBiz will help you take your first steps southward.