72 PERSPECTIVES ON BUSINESS AND ECONOMICS | VOL 44 | 2026 dependence, Croatia suffered ~20,000 casualties and extensive damages: ~$37B of damaged infrastructure, lost-output, and refugee-related costs (Association for Diplomatic Studies and Training, 2016). The role of cultural heritage in war Yugoslavia’s embrace of collectivism hindered the Croatian ethnic group’s ability to sustain its own distinct identity. Accordingly, Croatian nationalism had to be hidden; its existence inherently negated Yugoslavia’s fundamental purpose (Mahečić, 2014). A core argument for Croatian independence—enshrined in its 1991 constitution—is that its rich history, beginning in the seventh century with the founding of Croatian principalities, creates a historical right for full sovereignty (Croatia 1991, n.d.). In short, Croatia’s belief in heritage as grounds for independence ignited the Homeland War. Cultural heritage is integral to a sense of belonging; so, when destruction occurs, individuals are left emotionally distraught, displaced, and dislocated (Clack, 2022). Thus, heritage is an extremely important facet of society to safeguard during conflict and to reform during postwar reconstruction, by acknowledging and working through shared trauma. The 1954 Hague Convention for the Protection of Cultural Property in the Event of Armed Conflict attempts to safeguard heritage by requiring that no cultural sites are harmed amid conflict. However, reliant on voluntary participation, this convention failed to save Dubrovnik (UNESCO, 1954). Siege of Dubrovnik In terms of destroying collective identity, the most relevant conflict of the Homeland War was the siege of Dubrovnik. Between October 1991 and May 1992, the JNA surrounded the entire city, blockading entrances from both Montenegro and Bosnia and Herzegovina. The siege had a large, detrimental impact on Dubrovnik’s citizens and refugees from nearby areas, who were intermittently without power, telephones, and fresh water through eight months of shelling. Fresh water and food were rationed: Families received 1.3 gallons of water per day and a weekly food package of small portions of cooking oil, milk, potatoes, bread, fish, and meat (Hensel, 2023). Inhabitants were further endangered by shortages of other necessary supplies, such as medication, and risk of diseases from untreated sewage. The population was forced into underground shelters, where they would hide from blasts (Hensel, 2023). A UNESCO World Heritage Site, the walled area of Dubrovnik, known as the Old City, was largely physically unscathed during the beginning of the siege. As it continued, however, projectiles inched closer to the walls, and international news attention focused on the potential damage to the protected heritage site. In October 1991, Croatia and the JNA decided to partially evacuate the city, except for men between the ages of 18 and 60, who were allowed to leave only if accompanied by elderly or sick relatives. This decision did not lead to a substantial reduction in the city’s population, however, as refugees continued to arrive. Though Dubrovnik was in the midst of a violent conflict, refugees from smaller Croatian villages sought safety in the larger city, with its greater numbers of people and buildings for protection (their smaller villages having been destroyed). The siege reached new heights on December 6, 1991, when more than 600 projectiles fell on the Old City, killing 19 and wounding 60 people. In the process, the architecture, structures, and historic nature of the city were largely destroyed. Figure 1, an image from a plaque on a side entrance into the historic walls, uses geometric shapes to identify damage to infrastructure during the siege. In the entirety of the siege, 92 civilians were killed and 140 injured (City of Dubrovnik, n.d.-a). Growth in tourism after the Homeland War After the Homeland War ended in 1995, Croatia turned to recovery, rebuilding the physical architecture as well as its perception to the rest of the world. Specifically, Croatia focused on reestablishing an image attractive to international tourists. Before the war, Croatia’s economy relied heavily on tourism. In 1989, the Dalmatia region (where Dubrovnik is) had 386,746 tourist accommodation facilities (beds), a 144% increase from 1975. This statistic mirrored the entirety of Croatia, which saw a 146% increase in tourist accommodations over that same period (Corak, 2013). However, that industry suffered severely during the conflict, as foreign tourists perceived the area as unsafe. Even after Croatia’s war ended, conflicts in Bosnia and Herzegovina caused lingering concerns about safety in the Balkans. Subsequently, Croatia’s economy as whole weakened (Wise, 2011). Corak (2013) argues that tourism endured the hardest blow, with estimated losses of around $23.6B. To grow the economy after the war and separate from the formerly Yugoslavian neighbors, the Croatian National Tourist Board (CNTB) launched an extensive global marketing campaign that positioned Croatia as a safe, serene, and desirable vacation destination (Kaminski, 1998). A major target of this campaign was the UK, as the number of UK citizens visiting Croatia fell substantially during and after
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