Development of small tourism businesses under regional regulations in Croatia

The purpose of this article was to examine the impact of regulatory requirements on the economic performance and occupancy rates of small tourism enterprises in Croatia. The research methodology combined legal analysis of regulatory acts with statistical processing of data from eVisitor, the Croatian Bureau of Statistics, and international sources, which enables an assessment of the influence of regulations on the operations of small tourism businesses. Between 2015 and 2019, the development of small tourism enterprises in Croatia was characterised by a steady increase in the segment of private rooms and apartments: the number of arrivals rose from 4.934 million in 2015 to 8.135 million in 2019. At the same time, tourist apartments, after a short-term increase in 2016, demonstrated a gradual decline: arrivals decreased from 207,000 in 2015 to 198,000 in 2019 (after peaking at 230,000 in 2016), while the average length of stay shortened from 6.36 to 5.72 days. The subsequent period, 2020-2024, was marked by a sharp drop in indicators due to the COVID-19 pandemic; however, private apartments and family homesteads quickly regained their positions and became the cornerstone of post-pandemic recovery. In 2024, the number of arrivals in private rooms and apartments reached 8.3 million, while total tourism revenues amounted to USD 16.4 billion, surpassing pre-crisis levels. At the same time, tourist apartments continued to exhibit stagnation, indicating a gradual loss of competitive advantage. The research findings highlighted the need for an integrated approach to supporting small tourism businesses, which should include the simplification of regulatory procedures, reduction of administrative costs, and promotion of digitalisation through targeted investments and staff training. The obtained results may serve national and municipal authorities in formulating support policies for small tourism enterprises by improving information and technological infrastructure, developing digital skills, subsidising internet access, and implementing standardised digital solutions