POSLOVNI ĐIR Barbara Marković

Guest Barbara MarkovićHosted by Ojdana KoharevićMay 3, 2026

Barbara Marković

About this episode

What you'll hear in this conversation

Croatian family accommodation owners just wrapped a strong tourist season, but instead of celebrating, they face a looming fiscal challenge. The government's proposed tax and legal reforms are set to drastically increase costs for private landlords, with some increases described as "much higher" than in previous years. Barbara Marković, President of the Croatian Family Accommodation Association, finds herself navigating this uncertainty, fielding calls from concerned members across the country who are now trying to price next year's stays without knowing their true tax burden. Marković argues that these changes fail to distinguish between small, local family businesses and large commercial operators, or even foreign-owned properties that extract profits from Croatia. She sees family accommodation as a cornerstone of Croatian tourism, a sector that maintained quality even through the pandemic by offering a more isolated, safer experience. Her association is pushing for policies that recognize the local investment and authentic experience these small businesses provide. This conversation will make you consider the delicate balance between government revenue goals and the long-term health of a vital industry, particularly when policy changes risk undermining the very local character that makes a destination unique.

Insights from the conversation

What to take from this episode

Family accommodation owners finished a good season, but Barbara Marković notes the conversation is dominated by tax reform, not success. The real challenge for small businesses isn't just operational excellence, but constant adaptation to sudden policy shifts that can overshadow any market win.

With the new tax proposals, some rates are "much higher" than before, forcing owners to recalculate viability and set prices for the next season now. This uncertainty means small businesses must make critical pricing decisions without a stable understanding of their future cost structure.

The Ministry's decision to separate family accommodation from commercial is welcomed, but Barbara Marković argues this distinction "should have been done first, and only then the taxes." Applying sweeping tax changes before clearly defining categories risks disproportionately burdening small operators.

Marković highlights the "big disproportion" in earnings between small family accommodation and large commercial players. Treating these vastly different income structures with the same tax approach fails to recognize the distinct economic realities of local entrepreneurs.

When discussing new taxes, Marković points out that policymakers often miss "how much money people invested in these properties" and continue to invest annually. Ignoring the capital and maintenance costs of small property owners paints an incomplete picture of their true profitability.

Private landlords account for "seventy percent of accommodation" in Croatia. Any policy change that impacts this majority segment will have widespread, systemic effects on the entire tourism industry, not just a niche.

During the pandemic, family accommodation "carried a lot on its shoulders," becoming the most popular and safest option for travelers. This ability of smaller, adaptable businesses to provide resilience in crises is a critical contribution that policy often overlooks.

The money earned by local family accommodation owners "does not stay with us only, it stays in Croatia," circulating through other local services, Marković explains. She contrasts this with foreign-owned commercial accommodation, where profits are often "taken out of Croatia," highlighting a critical difference in economic impact.

The host asks if it's "a bit unusual" that the same tax applies to a city-center apartment and one on the eleventh floor in a less desirable neighborhood. A uniform tax rate ignores vast differences in location value and market demand, creating unfair burdens and distorting market signals.

Split is dealing with guests who "cause trouble," leading to early closures, but Marković asks: "what will these guests actually do if we can't offer them a beach, a beach bar, or anything constructive?" Simply curbing undesired behavior without enhancing offerings for target segments risks alienating all visitors.

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