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The paper is a research summary of the comparative study, based at the results of the ‘Horwath Hotel Industry Survey’. The study positions the Croatian hotel sector with regard to the hotel industries of competitive countries. The results of the market performance analysis and operative effectiveness show the Croatian hotel sector to be inferior to the respective hotel industries of the analysed countries judging by all the key indicators. Without an activity taking place simultaneously on the national, destination and corporate levels, it will not be possible to achieve any significant market breakthrough or positive shifts in the efficiency of the Croatian hotel industry with regard to its competitors.