Dubrovnik became famous worldwide as the setting for King's Landing in Game of Thrones. The show filmed the "walk of shame" scene with Cersei Lannister on the Jesuit Steps in 2014. The attention turned the city of 41,500 residents into a major destination. But this fame brought a high price in the shape of short-term rentals.
Walking through the Old Town in summer feels like visiting a theme park. Crowds fill every corner. Prices are high. Authentic local life has faded. Neighbors rarely chat from open windows or argue about daily matters. Residents call the city an "open-air museum." Game of Thrones souvenirs replace the history of poets, engineers, and diplomats.
Tourism drives the Croatian economy and makes up about 20% of GDP. This figure is double the rate in Italy. The country received over 21.8 million tourists in 2025. These visitors accounted for more than 110 million overnight stays. The number of tourists is five times the population of 3.8 million. This ratio is higher than Spain's. Revenue from foreign visitors doubled in recent years compared to 2016 and the growth continues.
But this success has negative effects. Short-term rentals like Airbnb drove up the housing costs. Locals like doctors, teachers, and firefighters cannot afford homes in Dubrovnik, Split, or Zadar. Inflation is also high. The Harmonized Index of Consumer Prices hit 4.3% in November 2025. This rate was above the euro area average and made living costs harder to manage.
The government and local officials took action. They focus on quality tourism rather than more tourists. They also want the industry to support the community.
Key initiatives include:
Strict rules for short-term rentals. The Hospitality Law changed in early 2025. It separates family hosts from commercial businesses. The law requires strict registration and some taxes are higher. Owners need consent from neighbors in apartment buildings. These changes push owners toward long-term leases.
The results look good so far. Private tourist beds dropped by over 2,000 in the 2025 peak season compared to the year before. Between 3,000 and 3,600 owners switched to long-term rentals. Long-term contracts rose by about 11–14%.
Cruise ship controls in Dubrovnik. The city allows only two ships to arrive at the same time. Only 4,000 passengers can enter the Old Town at once. Ships must stay for at least 8 hours. Ships with more than 4,000 people must stay for 12 hours. This spreads out the crowds. It also stops quick visits that clog the streets but bring little money.
Visitor management. People must book online to walk on the city walls. This rule will apply fully by 2026. It prevents sudden crowds. The "Respect the City" campaign helps too. Officials plan new housing for young families in the suburbs. Inspectors check that these homes stay residential.
The Ministry of Tourism knows that other cities and islands face similar problems in the summer. Prime Minister Andrej Plenković warned against high prices. He stated that overcharging hurts Croatia's reputation since the tourists write reviews instantly.
Officials focus on strict monitoring and watching the data. They want the tourist season to last longer than just the summer. Enforcing rules is hard. But the goal is to make the city livable again. They want to bring back the local lifestyle and community.
Whether these steps succeed will decide if the city recovers. Dubrovnik becomes a lively home rather than a polished stage set for tourists. Croatia balances economic growth with the needs of residents. This experiment offers lessons for other crowded destinations around the world.
