Private Accommodation in Croatia Generates €2,5 Billion in Revenue in 2017

Total Croatia News


If one were to crown the champion of this past tourist season in Croatia, choosing among tens of thousand of people whose work led to record-breaking numbers in 2017, it would the private accommodation sector

Never have there been more accommodation units, never has the season been longer and never has such a massive revenue been generated before. Last year, the private accommodation sector involved around 350.000 employees, 87.000 homes and 609.000 beds, reports Slobodna Dalmacija on January 5, 2018.

It is estimated that private accommodation generated a revenue of 2.5 billion euro last year, with seven million tourists opting for family homes when they were booking a holiday in Croatia. The data was provided by Nedo Pinezić, a tourist professional working in a private accommodation facility on Krk island. He established that the registered capacities of private accommodation in Croatia have an estimated total value of 15 billion euro.

Some have remarked that such a form of service only involves a handful of people and generates revenue exclusively for the apartment owners. However, Pinezić claims that private accommodation in Croatia in its current capacities creates 208.000 job positions in various activities related to tourism – apartments need to be built, furbished, maintained, and cleaned on the regular.

If we looked at an average accommodation unit with 7 beds, the amount of work required would be estimated at 16 hours a day, or 112 hours a week. This directly calls for at least two employees working for a period of 70 days minimum, leading to additional 174.000 seasonal jobs in tourism.



On another note, owners of private accommodation units annually invest a total of 120 million euro in management and renovation. Additional expenses (e.g. swimming pools, wellness equipment, marketing etc.) make for a separate amount of 130 million euro a year.

Croatian citizens who own and manage private accommodation units will contribute to the state budget with 200 million kuna in income tax; another 200 million kuna will be paid to the Croatian National Tourist Board (HTZ), with additional 60 million kuna generated in membership fees.

The summer season has extended as well, with 166.984 guests recorded in private accommodation in October alone, making for an increase of 30% compared to 2016.

“All things considered, private accommodation remains the only sector without representatives in tourist board councils on all levels, from municipalities to the HTZ”, Pinezić stated. Those who contribute to the tourist revenue the most are still excluded from the system that manages the generated funds.

Guests in private accommodation have published over three million reviews on social networks and online booking systems this year, and have presented their experiences on social media at least 20 million times. According to Pinezić, privately owned accommodation facilities are to be seen as a priceless contribution to marketing and promotion of Croatia as a tourist destination.


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