Spiking air travel costs worry Croatia's tourism industry

Spiking oil prices and the threat of a jet fuel shortage are worrying Croatian tourist hotspots ahead of the vital summer season.

Oil prices jumped about 6% on Monday (May 4) as Iran stepped up attacks on the United Arab Emirates and ships in the Middle East Gulf, the most serious escalation since a U.S.-Iran ceasefire came into force in early April.

Director of the Tourist Board of Dubrovnik Miro Draskovic said the current situation was roughly the same as last year, but that the uncertainty around the crisis was concerning.

"The season is certainly complicated because it has never happened that the situation changes from day to day," Draskovic said.

European airlines ​are preparing for a challenging spring and summer, with average jet fuel prices at more that $180 a barrel last week according to IATA and concern growing that shortages could lead to flight cancellations.

Draskovic said that the tourist board had recently agreed to a marketing cooperation with EasyJet to financially support flight promotion and better fill summer flights.

Tourist Lukas Fisher, visiting from Canada, said flight prices were becoming more expensive and uncertain. "There's a lot of turbulence going on with the flight prices," he said while visiting the beach in Croatia.

Tourism, Croatia’s main economic engine, accounts for about one-fifth of gross domestic product when related activities are included, leaving a large part of the economy exposed if fuel prices remain high through the summer.

Local landlord Vedran Miovic, who owns around 150 apartments and houses for rent, said that reservations were better than last year. However, he expressed concern that drastic fuel price increases or flight cancellations could severely impact Dubrovnik's tourism, particularly since the majority of guests arrive by air from Europe.

Production: Antonio Bronic, Anna Lubowicka/Reuters