Gastronomy Tourism Economics
A Comparative Analysis of Croatia and Russia
Economics in Tourism
Leon Kreso & Sofia Butkovskaia
Faculty of Tourism and Hospitality Management, Opatija
November 2025
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Presentation Outline
πIntroduction & Research Objectives
πTheoretical Framework
π¬Methodology
ππ·Croatia: Economic Analysis
π·πΊRussia: Economic Analysis
βοΈComparative Analysis
π‘Strategic Implications
π―Conclusions & Recommendations
Why Compare Croatia and Russia?
Two fundamentally different economic models for gastronomy tourism development
ππ· Croatia
- Tourism-dependent economy
- 17.5% of GDP from tourism
- International market focus
- Mediterranean destination
π·πΊ Russia
- Diversified economy
- <0.5% of GDP from tourism
- Domestic market focus
- Continental destination
50Γ
difference in relative tourism contribution to GDP
Research Objectives
π
Economic Contribution Analysis
Analyze gastronomy tourism's contribution to national GDP, employment, and regional development
π―
Role Assessment
Compare gastronomy's function as tourism driver (Croatia) vs cultural asset (Russia)
π
Value Chain Evaluation
Evaluate integration between agriculture, food processing, and tourism sectors
π
Branding Effectiveness
Assess gastronomy branding and international market positioning strategies
Economic Framework for Gastronomy Tourism
π°
Tourism Multiplier Effects
- Direct: Restaurant, hotel spending
- Indirect: Supplier purchases
- Induced: Employee spending
Typical multiplier: 1.5-2.5Γ
π
Value Chain Theory
- Agriculture β Processing
- Processing β Hospitality
- Hospitality β Tourism
Higher integration = Higher multipliers
π
Destination Competitiveness
- Inherited: Natural resources
- Created: Infrastructure, branding
- Supporting: Policy, governance
Porter & Ritchie-Crouch models
π
Economic Dimensions
- GDP contribution
- Employment generation
- Regional development
WTTC methodology
Analytical Approach
Comparative Case Study Methodology
Secondary data analysis spanning 2015-2024
Data Sources
UN Tourism
World Bank
WTTC
Eurostat
Croatian Bureau of Statistics
Rosstat
Four-Dimensional Analysis
1Economic Contribution
2Value Chain Integration
3Market Positioning
4Development Context
Gastronomy Tourism: Global Significance
25-35%
of travel budget spent on food/beverage by tourists
$1.1T
Global food tourism market (2024)
8.7%
Annual growth rate (CAGR)
1.5-2.5Γ
Typical economic multiplier
Key Global Trends
β Growing demand for authentic local experiences
β Post-pandemic acceleration of culinary tourism
β Food as primary travel motivator for millennials
β Integration of gastronomy into destination branding
Croatia: Tourism-Dependent Economy
ππ·
Republic of Croatia
EU & Eurozone Member (2023)
GDP (2024)
$92.5 billion
Population
3.9 million
GDP per capita
$23,932
Tourism Receipts
$16.2 billion
Tourism % of GDP
17.51%
Tourism Employment
~115,000
Key Fact: Croatia has one of the highest tourism dependencies in Europe
Croatia: Gastronomy as Tourism Driver
Mediterranean Cuisine with Regional Diversity
Istria: Truffles, olive oil, wine
Dalmatia: Seafood, prΕ‘ut, wine
Slavonia: Kulen, paprika, freshwater fish
Zagorje: Ε‘trukli, turkey, game
Key Export Products
π« Olive Oil (15 PDO regions)
π· Wine (130+ indigenous varieties)
π Truffles (Istrian white & black)
π₯ PrΕ‘ut (Dalmatian & Istrian)
π§ Cheese (PaΕ‘ki sir PDO)
International Recognition
β 10 Michelin-starred restaurants
π 140+ Gault Millau listings
π· Top 10 wine destination
β οΈ Key Challenge
Extreme seasonality: 60%+ of arrivals in July-August
Croatia: Tourism Economic Performance
| Indicator | 2020 | 2022 | 2024 | Change |
|---|---|---|---|---|
| Tourism Receipts (bil $) | 5.5 | 13.4 | 16.2 | +195% |
| % of GDP | 9.5% | 18.8% | 17.5% | +84% |
| Arrivals (millions) | 5.5 | 15.3 | ~17.0 | +209% |
| Employment (000s) | ~80 | ~105 | ~120 | +50% |
Tourism Recovery 2020-2024
Key Insight: Full recovery from COVID-19 achieved by 2022, with continued growth
Russia: Diversified Continental Economy
π·πΊ
Russian Federation
World's Largest Country (11 time zones)
GDP (2024)
$2,174 billion
23.5Γ Croatia
Population
146 million
37Γ Croatia
GDP per capita
$14,889
Tourism Receipts
$7.6 billion
Tourism % of GDP
0.35%
Tourism Employment
~1.12 million
Key Fact: Despite 10Γ lower tourism % of GDP, Russia employs 10Γ more people in tourism
Russia: Gastronomy as Cultural Heritage
Continental Cuisine with 180+ Ethnic Influences
European Russia: Traditional Slavic cuisine
Caucasus: Georgian, Armenian influences
Volga Region: Tatar cuisine
Siberia/Far East: Indigenous traditions
Signature Products
π₯£ Traditional dishes (borscht, pelmeni, blini)
π¦ͺ Caviar (Caspian)
π― Honey (world's largest producer)
π· Emerging wine regions (Krasnodar)
π« Tea culture traditions
Market Focus
Domestic Tourism: Primary focus - vast internal market
International Recognition: Limited but growing
β οΈ Key Challenges
Infrastructure gaps β’ Quality consistency β’ Marketing fragmentation
Russia: Tourism Economic Performance
| Indicator | 2020 | 2022 | 2024 | Change |
|---|---|---|---|---|
| Tourism Receipts (bil $) | 3.9 | 5.6 | 7.6 | +95% |
| % of GDP | 0.26% | 0.24% | 0.35% | +35% |
| Int'l Arrivals (millions) | 6.4 | ~4.0 | ~3.5 | -45% |
| Domestic Trips (millions) | ~55 | ~70 | ~85 | +55% |
Tourism Receipts 2020-2024
Key Insight: Shift to domestic tourism compensates for international decline
Head-to-Head: Economic Comparison
| Indicator | ππ· Croatia | π·πΊ Russia | Ratio |
|---|---|---|---|
| GDP (2024) | $92.5 billion | $2,174 billion | 1 : 23.5 |
| Population | 3.9 million | 146 million | 1 : 37 |
| Tourism Receipts | $16.2 billion | $7.6 billion | 2.1 : 1 |
| Tourism % of GDP | 17.51% | 0.35% | 50 : 1 |
| Tourism Employment | 115,000 | 1.12 million | 1 : 9.7 |
π‘
Croatia earns 2Γ more tourism revenue with 37Γ smaller population
Two Development Models
ππ·
EXPORT MODEL
Gastronomy as Tourism AttractionπInternational market focus
πPremium pricing strategy
πStrong international branding
πHigh economic dependency
πTight value chain integration
Risk: Over-dependence on external demand
π·πΊ
DOMESTIC MODEL
Gastronomy as Cultural Assetπ Domestic market focus
πΊοΈRegional development tool
πLow economic dependency
π±Self-sufficiency potential
πLoose value chain integration
Risk: Underutilized international potential
Value Chain Integration Analysis
| Dimension | ππ· Croatia | π·πΊ Russia |
|---|---|---|
| Agriculture-Tourism Links | β β β β β | β β βββ |
| Local Sourcing Rate | 60-70% | ~30% |
| Quality Certification | Advanced (EU PDO/PGI) | Emerging |
| Agritourism Development | Mature | Early Stage |
| Scale Potential | Limited | High |
Value Chain Flow
πΎ Agriculture
β
π Processing
β
π½οΈ Hospitality
β
βοΈ Tourism
Key Finding: Croatia's superior integration generates higher multipliers (2.0-2.5Γ vs 1.2-1.5Γ)
Strategic SWOT Analysis
ππ· Croatia
Strengths
- International brand
- EU standards
- Quality products
Weaknesses
- Extreme seasonality
- High dependency
- Small scale
Opportunities
- Premium positioning
- Off-season dev.
- Inland expansion
Threats
- Competition
- Over-tourism
- Climate change
π·πΊ Russia
Strengths
- Vast domestic market
- Cultural diversity
- Self-sufficiency
Weaknesses
- Limited intl. brand
- Infrastructure
- Fragmentation
Opportunities
- Regional development
- Authentic positioning
- Domestic growth
Threats
- Geopolitics
- Investment limits
- Quality gaps
Policy Recommendations
ππ· For Croatia
1
Diversify Within Tourism
Develop gastronomy tourism in off-peak seasons and inland regions
2
Strengthen Value Chains
Increase local sourcing to 80%+ through partnerships
3
Build Resilience
Create tourism stabilization funds; diversify markets
π·πΊ For Russia
1
Prioritize Domestic Tourism
Develop regional gastronomy circuits; leverage internal market
2
Create Regional Brands
Establish Krasnodar wine region; Siberian honey certification
3
Invest in Infrastructure
Modernize rural tourism facilities; improve accessibility
Key Findings
1
Economic Structure Determines Role
A 50Γ difference in relative GDP contribution reflects fundamentally different economic structures
2
Value Chain Integration is Critical
Croatia's superior agriculture-tourism integration generates higher economic multipliers
3
Neither Model is Superior
Both represent context-appropriate strategies for their economic situations
4
Gastronomy Serves Multiple Functions
Can act as tourism driver (Croatia) OR regional development tool (Russia)
π‘
Effective strategy must align with broader economic structure and development goals
Thank You
Questions?
Authors
Leon Kreso & Sofia Butkovskaia
Course: Economics in Tourism
Institution: Faculty of Tourism and Hospitality Management, Opatija
Date: November 2025
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