By the end of August 2022, total tourist arrivals in Croatia amounted to 4.59m, representing an increase of 7% YoY. At the same time, tourist overnight stays amounted to 32m, representing an increase of 4% YoY.
The Croatian Tourist Board (HTZ) has published the latest report on the number of tourist arrivals and overnight stays in Croatia. According to the report, August 2022 continues the positive growth that the tourist industry experienced during 2022, with growth recorded in both the number of tourist arrivals and overnight stays.
Overall, the tourist arrivals in August 2022 amounted to 4.59m, which is an increase of 7% YoY. Foreign tourist arrivals amounted to 4.19m, which is an increase of 9% YoY, while domestic tourist arrivals amounted to 397.5k, representing a decrease of 7% YoY. The growth in foreign tourist arrivals can be attributed to higher saving rates that they managed to achieve in 2020/2021, as well as the proximity of Croatia to its main emitive markers, i.e. the Central European market. At the same time, the decrease in domestic tourist arrivals can be attributed to the current inflationary environment, which is having both a negative impact on the disposable incomes of domestic tourists, while at the same time, pressuring tourism companies to raise their prices to compensate for higher expenses.
Moving on to the tourist nights, they amounted to 32m, which is an increase of 4% YoY. Of this, foreign tourist nights amounted to 28.3m, representing an increase of 6%, while domestic tourist nights amounted to 3.7m, which is a decrease of 7% YoY. This also means that the average stay per person increased to 6.98 nights per person, which compared to the same period last year, is a decrease of 2.7%.
Total tourist arrivals and tourist nights in Croatia (January 2019 – August 2022)
Looking at the tourist nights by the country of origin, German tourists are far ahead of others, with 8.35m tourist nights, or 26% of all tourist nights. Following them, we have the domestic tourists, at 12%, (or 3.7m), Slovenia, with 9% of the total, or 2.8m, and Poland, Italy, and Austria, with 7% arrivals each, respectively. This data is again supportive of the fact that the Central European region is the one with the most tourist arrivals, as well as overnight stays. Meanwhile, looking at the counties by the number of overnight stays, Istra leads the way, at 8.8m, followed by Splitsko-dalmatinska, with 6m, Kvarner, with 5.8m, Zadarska, with 5m, and Šibensko-kninska, at 2.3m.
Taking a look at the data for the period from January – August 2022, the number of foreign tourist arrivals amounted to 13.1m, which is an increase of 45% compared to the same period in 2021. Meanwhile, domestic tourist arrivals amounted to 1.93m (an increase of 12.8% YoY). Foreign tourist nights amounted to 76.3m, an increase of 31.7%, while domestic tourist nights amounted to 10.3m, an increase of 2% YoY.
Finally, taking a look at the data compared to 2019, in August 2022, total arrivals are at 92% of 2019’s level, with foreign arrivals decreasing by 9%, while domestic arrivals increased by 3%. On the other hand, total tourist nights are at 97% of 2019’s level, with foreign tourist nights 2% lower, while domestic tourist nights were 9% lower.
Another thing that should be taken into account is that by the end of August 2022, the value of taxable invoices in tourism activities amounted to HRK 28.9bn, which is 64% higher than in 2021, and 38% higher than in 2019. In fact, this value is higher in the first 8 months of 2022 than it was in the entire of 2019. The thing that can be taken from this data is the fact that even with a lower number of arrivals and overnight stays, higher prices are producing a lot of revenue for the tourism industry.
By the end of July 2022, the total deposits of Croatian financial institutions amounted to HRK 397.2bn, representing an increase of 3.5% MoM, and 13.3% YoY.
The Croatian National Bank (HNB) has published the latest monthly report on the consolidated financial positions of the monetary financial institutions, for July 2022. According to the report, at the end of July 2022, the total deposits in Croatia amounted to HRK 397.2bn, which is a growth of 3.5% MoM, and 13.3% YoY. The positive trend in deposits has continued strongly for the 2nd month in a row, with June 2022 marking a 3.3% growth MoM. This is a deviation from the standard trend, as over the last couple of years, for the majority of the time, the MoM growth has been steady, but low, usually under 1%. There are two main reasons for this increase. First of all, as the tourist season was (and still is) in full swing during June and July, there are a lot of inflows of cash in the hospitality industry. Considering app. 50% of all tourism-related real estate that is rented is in the hands of private individuals, the trend in the growth of deposits in this period is expected. The 2nd reason that has to be taken into account is the fact that the switch to the euro will happen in January 2023, so a lot of money that was physically held before by people is being put into banks, so it can safely be converted into euros. Furthermore, the 3.5% MoM and 13.3% YoY increases are again setting new records, topping last months (which were the highest since 2008).
It should also be noted that the current macroeconomic situation and geopolitical uncertainty are putting a lot of pressure on many types of investments, especially investments into equity. Considering that Croatians hold a very high level of cash in the form of deposits, the above-mentioned growth of deposits is expected.
Breaking the deposits by their components, on a yearly basis, demand deposits increased by 16.3% and amounted to HRK 169.7bn. At the same time, saving deposits increased by 11.1% and amounted to HRK 227.5bn. On a monthly basis, demand deposits grew by 4.1%, while saving deposits increased by 3%.
Meanwhile, if we were to divide saving deposits into domestic and foreign currency deposits, saving deposits in HRK decreased by 10.8% YoY, and 4.1% MoM. This decrease can be attributed to the above-mentioned conversion to the euro in January 2023 and the strong summer tourism season. In a way, higher prices of hospitality real estate and very strong demand meant that during the month, a lot of money inflows have been made. This would also mean that saving deposits in HRK accounted for 12.1% of all saving deposits, which is a decrease of 0.9 p.p. MoM and 3 p.p. YoY. At the same time, foreign currency saving deposits increased by 14.9% YoY, 4% MoM, and ended the month at HRK 199.9bn, close to breaching the HRK 200bn mark. This would also mean that 87.9% of all deposits held were household deposits.
Croatian deposits breakdown (November 2012 – July 2022, HRKbn)