Currency conversion effects: Insights into tourist attitudes towards Croatia’s entrance to the euro area

Abstract

This study examines tourists’ attitudes toward prices in the Republic of Croatia following the transition from the Croatian kuna to the euro. It investigates how the currency change influences destination choice, perceptions of price stability, and overall tourism attitudes that shape a destination’s competitiveness. A survey (N = 939) was conducted during the currency transition period to assess tourists’ expectations of price changes and the broader impact of the conversion on Croatian tourism. The survey results show that while most respondents trusted the euro as a stable currency and did not view currency differences as a barrier, more than four fifths expected tourism prices in Croatia to increase after the changeover, and payment behaviour was shifting toward card-based and digital methods. These expectations of higher prices, particularly for tourism-related services, raise concerns about the future perception of Croatia’s affordability and competitiveness. At the same time, the increased use of electronic payment methods suggests a move toward more seamless and modern transactional practices in the tourism sector. Overall, the research provides empirical insights into how currency conversion shapes tourists’ perceptions, behaviours and offers a foundation for further inquiry into the real impact of the common currency on tourism dynamics in euro area member states.