Page 96 - SE Outlook Regions 2024

of the third quarter of 2023. NPLs fell the most in the portfolio of loans to non-financial corporations where their share fell from 6.4% to 5.1%. The portfolio of household loans also saw a fall in the amount of NPLs, with their share falling from 5.0% to 4.4% of loans to that sector.
The return on assets (ROA) thus rose from 1.0% to 1.9% and return on equity (ROE) rose from 8.2% to 16.9%.
Credit institutions' liquidity measured by the liquidity coverage ratio (LCR) also remained very high. At the end of the three quarters of 2023, all credit institutions met the prescribed minimum liquidity requirements, with the average LCR standing at 235.4%.
5.4.3 Industry
Tourism remains one of Croatia’s most important industries. With roughly a fifth of GDP coming from tourism, Croatia's economy is by far the most reliant on visitors from abroad among its European peers.
In October 2023, Croatia saw 1mn tourist arrivals and 3.2mn nights in commercial accommodations, up 14.9% and 11.9% respectively y/y, according to the latest available statistics office data.
Domestic tourists accounted for 210,000 arrivals and 440,000 nights, up 4.6% y/y each. Meanwhile, foreign tourists increased significantly with 815,000 arrivals and 2.7mn nights, marking a 17.9% rise in arrivals and a 13.2% increase in nights m/m.
Croatian hotel company Valamar Riviera is planning investments of €81.57mn in 2024. Key investments in the Valamar Group for the next season are directed at repositioning and improving the quality of services, digitalisation, green construction, sustainable energy sources and tourist infrastructure.
Planned capital investments of €43.14mn as set out in the business plan for 2024 were approved by the supervisory board in December. Valamar has already announced investments of €38.43mn in the Imperial Riviera.
Investments mainly concern the development of Allegro Sunny Hotel & Residence in Rabac and Koralj Sunny Hotel on Krk Island, which will be repositioned under the Sunny brand.
There are ongoing investments at the Isabella Valamar Collection Island Resort in Poreč, Valamar Argosy Hotel in Dubrovnik, and the company's various campsites. Additionally, allocations are planned for further improvements in guest facilities, as well as the maintenance and improvement of products across all destinations.
At the facilities managed by Imperial Riviera, the focus is on the initial phase of reconstruction and repositioning of the Suha Punta tourist resort as Valamar Collection Rab Resort 4*/5*. Other projects include the repositioning of Riviera Sunny Resort in Makarska under the Sunny brand, the establishment of a new Bike Centre in Poreč, and additional
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