Choosing to vacation on Kopaonik during peak season might have made you realize that skiing in France, Italy, or Austria, or visiting Hungary’s swimming pools, could be more cost-effective.
For years, there’s been a persistent question about why tourist and hospitality services in Serbia are pricier compared to neighboring countries. According to experts, the answer largely revolves around economic principles, particularly the law of supply and demand. Aleksandar Seničić, Director of the National Association of Travel Agencies (YUTA), elaborated on this issue in an interview with Biznis.rs.
“It boils down to supply and demand dynamics. Historically, during the short peak season, establishments that operate year-round calculate their costs. They adjust prices to cover expenses accumulated throughout the year. Hence, we often see higher prices than in Hungary, the Czech Republic, North Macedonia, or Montenegro,” explained Seničić.
Adding to this perspective, Dragan Subotić, President of the National Association of Tourist Agencies of Serbia (NATAS), highlighted that “Serbia has consistently been among the more expensive destinations in the region.”
“Accommodation in hotels can be 15 to 50 percent pricier compared to neighboring countries. Reasons for this include higher energy costs, state taxes and the absence of state subsidies,” Subotić pointed out.
Experts point to the core issue: limited hotel capacities that quickly fill up, ensuring sustained high demand. As demand remains strong, there’s little incentive for prices to decrease, thus maintaining their relatively high levels.
Tourism in Serbia has been on a growth trajectory, according to data from the Republic Institute of Statistics. In April 2024, tourist arrivals increased by 7.1 percent compared to April 2023, with overnight stays rising by 9.1 percent. These figures underscore a rising preference for Serbia as a vacation spot.
In 2022, tourism revenues reached $2.71 billion, with nearly two million tourists visiting the country.
