The number of tourists visiting Croatia has plummeted in a major blow for the industry. The Balkan country has been a haven for visitors from Germany, Austria, Czech Republic, and Italy - many attracted by the cheaper prices to be found there.

However, in the last three years tourism prices in Croatia have surged by a whopping 50%. The spike in prices is making Croatia more expensive than two of its biggest rivals - Spain and Greece. Costs in the two Mediterranean countries have risen by only 15-20% over the same period.

The steep rise is now putting Croatia's reputation as an affordable travel destination at great risk.

The ballooning costs are not the result of external factors - such as energy costs or value-added tax (VAT) rates.

Croatia boasts some of the lowest energy prices within the EU and reduced tourism VAT rate of 13%.

The main cause for the price spike lies in the rising operational costs within the hospitality industry.

Higher prices have seen a stagnation in overnight stays and worryingly a decline in tourist spending.

During the peak summer season last year, foreign tourism revenue in Croatia fell by 0.7% compared to the previous year.

Tourists have vented their anger at the steep rise in prices on travel review platforms, like Tripadvisor.

One Norwegian was left deeply disillusioned after holidaying in Croatia last year.

"Everything is much more expensive than before," they wrote. "Prices are abnormally high and have probably increased two to three times in two years.

"The price of a sunbed is 25 to 30 euros! Croatia was our first choice for a summer vacation, but now everything has unfortunately become too expensive.

"I don't know if we will return. I'm sorry that Croatia is developing in this direction."

However, a UK tourist didn't see any evidence of a steep rise year-on-year.

They wrote: "Comparing what we spent in Rovinj on food and drink in 2023 and what we spent in Hvar this year was very close interestingly.

"There wasn't a great variation of prices. The only difference was that Rovinj was a bit better value wine wise with more in the way of carafes on offer."