By: Gašper Blažič
You probably already know the old proverb that says a sparrow in the hand is better than a pigeon on the roof. So, it is better to hold onto something than to chase after something else. You might think that this is somehow related to our Prime Minister. Well, indirectly, perhaps. Why? You will see in the following.
Recently, I went on vacation to our southern neighbour, the island of Rab in Croatia. It was not long, just a week. Throughout the month, I had been noticing articles online about how prices in Croatia have skyrocketed, not only in tourism but also in stores. Some Slovenian media outlets were trying to “prove” that prices in stores here are lower than in our southern neighbour by comparing the prices of the same products at Lidl in Croatia and Slovenia. According to them, the shopping basket would be considerably cheaper here. However, my experience showed the opposite: a slightly larger purchase at Lidl (in Novi Vinodolski) resulted in a 20% lower price compared to shopping at the same store in Slovenia, mainly due to lower prices for meat and fruit. So much for the idea that Croatians shop here (and supposedly even “fill up their tanks”), as our (literally) most expensive Prime Minister recently claimed. He is just a courier (a pigeon mail carrier) and a useful idiot of the deep state. Admittedly, stores on the islands are more expensive than here, but the situation is not comparable.
As for tolls and ferries, everything remains the same. The costs of both increase slightly every year. However, it is worth mentioning that it is difficult to compare Croatian highways with Slovenian ones because Croatia mainly uses a closed system of conventional tolling, while we have vignettes that Golob’s government recently raised the prices of, despite the fact that the introduction of electronic vignettes last year reduced administrative costs. However, there are significantly more traffic jams on our roads now because the Minister of Infrastructure is more concerned with her weekend house than caring for the common good. In Croatia, both ferries and the (Dalmatian) highway operate at a loss since they are only profitable during the main tourist season. Consequently, the prices for using the highways per kilometre are relatively high, which deters many people who travel these routes frequently from using the highway, unless they are in a hurry. This shows how a high price for using a particular infrastructure facility can backfire on the entity managing it since they end up chasing the “pigeon on the roof” with high prices. The result? Especially in winter, the Zagreb-Dubrovnik highway connection is relatively underutilised, and many restaurants at rest areas are closed because the cost of their operation is too high compared to the low traffic frequency.
And what about the prices of tourist accommodations? It is necessary to agree with those who warn that with cartel-like price increases, Croatia has hit the wall of reality hard. Last October, when I was exploring options for the next season, I found that the island of Vir, for example, was affordable in terms of private apartments and rooms. However, in February 2023, when many providers were announcing prices for the new season, the picture was significantly different – despite the intense competition among small private providers in Croatia. Apparently, many were misled by the excellent tourism season last year, and with Croatia’s entry into the Schengen and Eurozone, they expected an even higher influx of guests from Western Europe this year, so they pre-emptively raised prices. Excessive pre-season optimism seems to have psychologically influenced the effect of cartel-driven price increases among almost all private providers, expecting great interest without considering global economic conditions (the recession in Germany) and competitive offers in other countries. If you happened to be searching for accommodation in Croatia, you may have encountered the inflated balloon effect, as many advised not to hesitate too long because of the high interest from guests with much greater purchasing power, such as Germans who often pay the full amount for their stay in the same unit around the same time. Of course, this creates the illusion that the pre-season (until the end of June) is a rich catch for local tourism.
Is it really like that? Not at all! My experience on Rab: my wife and I were the only guests (!) in a house with four apartments for most of the week, and only towards the end, some guests from Slovakia arrived. Many apartments along the main roads had signs saying “available”. Surprisingly, the number of Czech guests was low, but there were quite a few Germans, who were never known as typical pre-season guests. It is said that Czechs are now opting for Turkey in large numbers, while Croatian economists are already warning of catastrophic figures that already reflect the harsh reality and deviate from expectations. Of course, it is worth mentioning the grandiose moves that are turning luxury tourism into mass tourism, which means transforming already built houses into small castles suitable for guests with deep pockets from all over the world, as now even rich oil sheikhs will be able to vacation on Croatian islands (so they can have a little bit of green instead of the desert) and various Russian tycoons. On one hand, such expectations are understandable because one such guest can bring more profit to the Croatian budget than a hundred Slovenians who will cause traffic congestion on Croatian roads, but as mentioned before, this is again the effect of the “pigeon on the roof” – also due to global circumstances. Apparently, the COVID-19 pandemic was not a big enough reminder, nor was the war in Ukraine, which indirectly significantly reduced the presence of wealthy Russians in European tourist destinations (although their presence was not particularly significant before). As a result, numerous luxury villas with pools will remain untouched and condemned to slow decline, just like one of the hotels in Suha Punta on Rab, where there is a very nice beach. But here is the catch – for the collectors who demand a daily fee of five euros per car from each visitor (30 kuna last year), the season starts on June 21st. However, with a bit of resourcefulness and insider information obtained from the locals, it is possible to avoid them.
By the way, if you go to Rab for a beer, you will not go bankrupt if you choose the right place. Prices were quite reasonable in the outdoor bar (Suha Punta) by the sea, while the Hotel Imperial in Rab town will charge you a hefty price for every drink. And of course, always check the menu prices in each establishment beforehand to avoid any unpleasant surprises, just like those people who complained about the exorbitant price of čevapi in Umag in the Slovenian newspapers. If you want cheap beer or a spritzer, it is better to buy them at a store. And enjoy (while you can). Despite the distortion of the tourism market due to excessive optimism, it is still possible to have a vacation at our southern neighbours without excessive expenses. Of course, if you are a bit more ascetic. And do not let yourself be tempted by some shellfish in an elite restaurant (of course, not date mussels, as their picking has been strictly prohibited for decades!).
But let’s be optimistic: maybe the year 2024 will pass at our southern neighbours with the saying “a sparrow in the hand” once again…