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June 21, 2023

6 Months After Joining Schengen, Croatia Is Already Witnessing Significant

Croatia, the most recent country to become a Schengen member, is expecting an increased number of tourists this summer season.

As the TotalCroatiaNews reports, the mention of the latest figures from the Tax Administration for the fiscalised turnover of applicable enterprises being on a good track further supports the positive outlook and expectations of the sector, SchengenVisainfo.com reports.

Fiscalised turnover refers to the revenue generated by businesses that must issue fiscal receipts for their transactions. These figures provide insights into the financial performance of enterprises operating in the tourism sector.

Accommodation Sector Registered Bill Payments Worth €171 Million During Last Month

In addition, the increase in bill payments for card and cash transactions shows a positive trend in Croatia. Compared to last month’s figures and the ones for the same month, 2022, there is a noticeable increase from less than €117 million euros to €171 million. This represents a growth rate of about 46 per cent.

Similarly, comparing the first five months of this year with the same period a year ago shows significant growth. Fiscalised turnover increased from €275 million to €403 million, again reflecting a growth rate of about 46 per cent.

However, it is important to consider that the increase in traffic and revenue is partially attributable to higher prices in 2023. The price increase is likely to contribute to the overall increase in the sector’s revenue.

Cafes, Restaurants & Other Hospitality Facilities Reported Growth in May 2023

In terms of turnover, the sector of hospitality also reported more than €290 million last month, which is nearly a 30 per cent increase compared to the turnover of around €224 million reported in the same month of 2022. The number of bills issued during this period saw a relatively modest increase of less than five per cent.

Looking at the cumulative figures for the year up to the end of May, restaurant owners had already reached approximately one billion euros in fiscalized turnover (€999 million). This represents a significant increase of 31 per cent compared to the same period last year. The recorded turnover growth was achieved with an 8.4 per cent increase in the number of bills issued.

The data suggest a positive start to the tourist season in Croatia, not only in the accommodation and hospitality sectors but also in related areas such as taxi services and Transportation. In the taxi services sector, the fiscalised traffic exceeded €12.3 million in May, which is a notable increase compared to the figures of 9.1 million euros in April and €8.5 million in March.

Moreover, based on a quick assessment by state statisticians, consumer prices in May increased by an average of 0.5 per cent monthly. On the other hand, the annual rate of inflation fell below eight per cent, the drop in energy prices by three per cent, while the category of food, beverages, and tobacco is still with a double-digit annual growth of 13.5 per cent.