THE AUSTRIAN newspaper Die Presse and the German Rheinische Post (RP) published an article by journalist Thomas Roser entitled "Croatia: It's worse than during the war," which deals with the challenges of this tourist season in Croatia. "The crisis has hit tourism-dependent Croatia in full force," the article states, noting how that could be good for Croatia in the long run.

The beginning of the article describes the empty Opatija that is usually crowded with tourists at this time. "Spring in Opatija is always beautiful, but this year it was strange without guests," says Radovan Lazic from the Adriatic Hotel, who adds that the hotel wasn't even empty during the war as it housed refugees, but it was completely empty during the pandemic.

Croatia's dependence on tourism

"Reservations are being canceled, financial pressure is growing, and so is uncertainty - all this is upsetting people," Lazic describes the atmosphere in the hotel industry.

No European country is as dependent on tourism as Croatia. The article points out that the revenue from tourism accounts for almost a fifth of Croatia's GDP. "The crisis caused by the coronavirus has, therefore, hit the newest EU member like no other: according to the Vienna Institute, Croatia will have an economic decline of 11 percent," Die Presse and RP report.

The Croatian Adriatic will be officially open to tourists from June 15, and the conferences scheduled for the spring will be postponed to autumn.

Varteks is expecting a better position on the market

The article also cites a different example from the Croatian economy, namely Varteks, which has been "revived by the new capital after a long-lasting crisis last year," since now the company is also sewing protective masks in addition to tweed suits.

The chair of the Management Board, Tomislav Babic, is not pessimistic about the future, the article states. Babic believes that the manufacture will return from Asia to Europe. "We are manufacturing for a market that is close to us, so we can react quickly to trends, unlike the competition that imports all its goods," says Babic.

Balkans: Low wages and enough workforce

The article points out that the Balkans could perhaps benefit from supply chain disruptions during the pandemic, as now European countries might want to have manufacturing nearby instead of in Asia, and there is enough workforce in the Balkans. The wages are also not high, the article adds.

"It took Croatia half a decade to reach economic growth after the 2008 crisis. This time it could happen faster: a 4 percent growth is projected for 2021," the article says, adding that it would take several years to make up for this year's losses. However, the national debt will rise to 90 percent, so there is a possibility that "the youngest EU member will not be able to get close to the EU average, but will instead end up at the bottom."

Increase in unemployment

The cancellation of the European Capital of Culture event in Rijeka is also being mentioned as an example of another blow to Croatia.

Unemployment is a significant problem, having increased by 32.4 percent from March to May. The current number of 160,000 unemployed individuals could double by the end of the year, according to an article by correspondent Thomas Roser. Finally, he quotes Index's warning, stating that "a wave of layoffs is yet to come."