For years, Croatia was considered a budget-friendly destination for summer holidays by the sea. But with inflation and the introduction of the euro, that has changed in recent years.

In the past, the key to success in tourism on the Adriatic Sea, at least in terms of attracting foreign visitors, lay to a large extent in the country's low prices.

But now that prices are rising, what can the hospitality sector in Croatia do to keep people coming back? Many feel that offering quality and service is the answer.

And what does this mean for the local population, where average wages are half what they are in more affluent European countries?