Learning from Global Success: Mixed-Use Projects can Revolutionize Croatian Tourism

Croatia is at a critical juncture in developing its hospitality industry. Despite some state support for hotel construction, the real catalyst lies in rapidly promoting innovative business models, especially mixed-use resorts and urban structures. Currently, Croatia trails behind in urban conversions due to public resistance and transitional setbacks.

Mixed-use projects offer a unique solution. By combining luxury hotels with real estate sales, these projects minimize investor risk. A prime example is the Saint Regis in Belgrade Waterfront, which includes both a luxury hotel and 100 residences sold at premium prices. This model can be a game-changer for Croatia, allowing for the development of luxurious hotel accommodations previously absent in the market.

However, this requires a shift in mindset. The prevalent "Zimmer Frei" mentality, which focuses on short-term rentals, is holding back progress. As a result, the proportion of hotel accommodations is declining within the overall market offering. To reverse this trend, Croatia must embrace mixed-use projects, which can revitalize neglected urban areas and create new landmarks.

Urban mixed-use projects are another crucial aspect. Besides residential buildings, Croatia must explore other options for rejuvenating its urban areas. National and local officials should embark on benchmarking trips to cities like Tirana, Riga, Tallinn, or Vilnius. These cities have successfully transformed derelict areas into vibrant urban spaces, setting a benchmark for what can be achieved in Croatia.

Global hotel brands have already recognized the potential and are increasingly branding urban residences. For Croatia, positioned as a premier tourist destination, mastering these new business models is essential. This approach will open up new development perspectives in both tourism and urban real estate, ensuring sustainable growth and enhanced attractiveness for investors and tourists alike.

In conclusion, Croatia stands on the brink of a transformative era in its hospitality and real estate sectors. By adopting mixed-use projects and learning from successful urban transformations elsewhere, the country can create luxurious, sustainable, and profitable developments that will secure its place as a leading tourist destination.

Denis Šikljan, CEO