Only 1,200 residents now live year-round in the Croatian town, located on the Adriatic Sea. Dubrovnik, famous for its Baroque churches and Renaissance palaces, is a stopover for holiday cruises.

The city council is expected to adopt a bylaw in April banning new rental permits in the Old Town and surrounding areas. The decision is part of the city's obligation to respect certain Unesco rules, Mayor Mato Frankovic said.. Other European authorities are also seeking to reclaim cities for their residents. Portugal has taken steps to lower property prices.