Coronavirus has dealt global travel and tourism a huge blow, and even the City of Dubrovnik, which prides itself on tourism and is known for coming with a hefty price tag for just about everything, is suffering.
Dubrovnik is known for being the first to abolish slavery, its glorious Medieval walls, its UNESCO status, and its often extortionate prices. While it is true that there are many places in Croatia’s southernmost city that are inexpensive (or at least there used to be, I live in Zagreb and it’s been a while since I lived in the country’s tourist Mecca), the most common complaints about Dubrovnik are the traffic and the price of things. Could coronavirus mark the end of that long-lived trend? Maybe…
As Poslovni Dnevnik writes on the 12th of June, 2020, the coronavirus pandemic has dealt a severe blow to tourism, even to Dubrovnik, which is also the primary economic branch from which Dubrovnik exists, and the dire numbers speak for themselves. According to the data of the Tourist Board of the City of Dubrovnik, on June the 1st, 2020, 86 arrivals and 316 overnight stays were recorded in the area of the City of Dubrovnik. For comparison, on the same day last year, there were 6,747 arrivals and 18,481 overnight stays realised, which are incomparably higher numbers.
In the city where almost every street has its own catering and hospitality facility, only about 50 of them are currently open. Currently, only seven of Dubrovnik’s hotels have opened their doors to guests. These are the Dubrovnik Palace, Hilton Imperial, Hotel Lero, Hotel Park, Hotel Petka, the Pucic Palace and Royal Blue.
The president of the Dubrovnik County Chamber, Nikolina Trojic, revealed that the value of issued invoices in the tourism sector fell by an enormous 92 percent.
“According to the Tax Administration, from February the 24th to May the 17th, 2020, 78 percent fewer invoices were fiscalised than in the same period back in 2019, and the total amount of these invoices is 63 percent lower in all activities across Dubrovnik-Neretva County. In the tourism sector, which includes accommodation, catering/hospitality and travel agencies, the value of issued invoices fell by 92 percent,” Trojic told the local Dubrovnik portal, Dubrovacki Dnevnik.
Although a work ban was in place for most industries, trade and traffic were the few that could still work. However, no positive figures were recorded in these sectors either.
“The data shows that the number of invoices issued in the trade sector was 41 percent lower, while the value of those invoices issued in trade was 27 percent lower. Among the most affected activities was the activity of travel agencies, where, during these observed three months of ”lock down”, the value of issued invoices fell by 98 percent compared to the same period back in 2019. Additionally, for the period from May the 11th, when caterers and those in the hospitality industry were allowed to work again, until May the 17th, 2020 (when compared to the same period in 2019) there was a decrease in the number of issued invoices by 71 percent and a decrease in the value of those same invoices by 96 percent in the tourism sector,” Trojic explained.
Although the problem of labour shortages in tourist-oriented Dubrovnik used to exist because of demographic issues, now the priority has become to keep hold of these people and preserve the ability to pay their salaries.
“The absence of tourist figures from previous years will certainly have consequences for our economy. The reduced levels of demand for accommodation services, catering services, excursions and other tourist facilities will affect the downward price correction, it’s an economic fact, the law of supply and demand. The fall in prices will depend on the level of indebtedness of economic entities and the possibility of servicing fixed costs.
Care should be taken to keep the value for money, because in the coming years that will be the biggest engine of recovery of our economy. It’s to be expected that at some point, there will be a reduction in salaries, a reduction of the working week and other mechanisms for preserving these jobs,” concluded Trojic.
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