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Where Croatia's coastal mountain range tumbles into the sea the drowned foothills have created ribbon islands covered with pine woods, flower-rich maquis and fields of vines and lavender.
There are few good sandy beaches, but the sea is crystal-clear and there are often ladders or steps cut into the rock leading to the water. It's a great place for a seaside holiday. Some of the monolithic concrete hotels built during the Communist era have scrubbed up well (though others remain eyesores) and Croatia is seeing the rise of the boutique hotel in its lovely Venetian-built ports and cities. In rural villages deserted buildings are being converted into guesthouses and rental cottages. Island-hopping using the efficient ferry service is particularly rewarding and, outside July and August, one can always find somewhere to stay on the day. The Dalmatian coast has four tourist areas: the Istrian peninsula in the north; the Kvarner region, which includes Zadar and the islands of Cres and Rab; Split and the Makarska riviera in central Dalmatia; and, in the south, the historic port of Dubrovnik and its riviera. Inland, national parks are being developed as multi-activity destinations, especially for trekking, rafting and canoeing.
A bottle of beer costs €1.25, a coffee 62c, and a pizza €3.14.
The quality of food and wine has also improved greatly, especially on islands popular with Italians, who won't put up with bad food.
There is now a good choice of local wines on menus for about €5 a bottle.
Thanks to government grants, locals have been busy renovating their country properties to rent to tourists and there are some agritourism enterprises, such as the Strakovcic family farm in Gorica, which opened in October.
Volunteers can stay for a week or three months and work in the mornings repairing dry-stone walls, helping local shepherds, maintaining forest eco-trails and rescuing and caring for the endangered Eurasian griffon vultures.
Cocktail bars have replaced cheap pizza joints on its Venetian town square and the renovated Riva Hotel is the only place in Croatia to be accepted as a member of the Small Luxury Hotels brand.
There are also boat trips to even more remote islands.
The motorway has also made it much easier to reach Croatia's mountains and the Plitvice Lakes national park, where 16 lakes connected by rapids and waterfalls are set in beech and fir woods.
Deer, bears and even wolves are said to roam here. There is also excellent rafting and kayaking near Karlovac, south-west of Zagreb.
Dalmatian Destinations has added eight luxury gulets and sailing schooners to its portfolio, sleeping between eight and 14 people.
Itineraries are tailor-made and boats are fully crewed with a chef and often an owner-captain. New Venice-to-Split sailing weeks have been introduced this summer.
Most of the big waterfront resorts and boutique hotels have undergone renovation, including the Hotel Excelsior, which reopens in June.
The city is a good jumping-off point for the southern Dalmatian islands and forays into neighbouring Montenegro and the beautiful Gulf of Kotor.
The Summer Festival runs from July 10 to August 25. There are 20 stages, most of them open-air, for more than 80 productions of drama, music, film and dance.
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