The law targets the booming sector of private holiday apartments along Croatia’s coastline, where surging rental supply has been linked to rising housing costs and infrastructure stress. The measures include tighter controls on licensing for tourist rentals, efforts to shift properties into long-term lease markets and stronger enforcement against illegal short-term use. Early feedback from local authorities shows a noticeable drop in applications for new tourist accommodation and a reduction by around 7,000 beds in one coastal district alone.
This development is significant for European tourism because Croatia is a major destination, and the move illustrates how tourism-oriented economies are rebalancing growth with community housing and sustainability concerns. By limiting the over-conversion of residential properties into tourist units, the country aligns with broader trends of responsible travel and sustainable destinations. For tourism businesses and policymakers, the shift signals that regulation of accommodation supply will increasingly matter alongside marketing and attraction development.

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