This Budget-Friendly Mediterranean Destination Is An Underrated Gem With Crystal Waters

There's only one coastal town in Bosnia and Herzegovina, and it makes full use of the 12 miles along the Adriatic. Tucked between Croatia's Dalmatian Coast and the foothills of the Dinaric Alps, tiny Neum offers the aquamarine sparkle of the Mediterranean — without the huge price tag. If you've been priced out of Dubrovnik or Split, consider Neum an alternative that is both easy on the eyes, and your wallet. Most travelers arrive by bus or car from Dubrovnik Airport, which is under 50 miles away (about a 90-minute drive), or from Mostar, about an hour and a half inland.

Because Bosnia and Herzegovina isn't in the EU, Neum is a tax-free zone that makes everything from seaside hotels to fresh seafood meals significantly cheaper than its neighbors. Summer is the peak season here, with sun-drenched beaches, paddle boarding in azure bays, and espresso in breezy waterfront cafes. Even during the busiest months, it's common to find three-star hotels for under $60 a night and private guesthouses for even less. For Mediterranean charm without the Mediterranean markup, Neum delivers as one of the best budget-friendly destinations in the region.

In Neum you're not going to find sprawling beaches or a booming nightlife. But that's not what you come here for, is it? This is a place where time slows down. The main beachfront promenade is lined with open-air taverns and markets selling sun hats and local honey, while the protected bay remains calm enough for swimming, kayaking, and snorkeling. The town's bay is shielded from stronger coastal winds, making the water some of the warmest and clearest in the Adriatic.

While here, you've got to check out the nearby Hutovo Blato Nature Park, located about an hour inland by car. Known for its birdwatching and tranquil boat safaris through wetlands and rivers, the park is a hidden Balkan treasure. Bring sunscreen, a wide-brimmed hat, and a camera to capture lush greenery, birdlife, and mirror-like water. If history is more your thing, explore Neum's Hinterland, where you'll come upon medieval tombs and a necropolis or head into town to check out St. Anthony's Church, a landmark perched on a hill overlooking the coastal city. After, head to Neum's waterfront for a grilled fish dinner at Bonaca, known for its daily catches and sweeping sea views. 

What makes Neum especially convenient is its location. Sandwiched between Dubrovnik and Split on Croatia's coast — and within easy reach of Mostar and Međuorje — Neum is an ideal (and economical) base for day tripping between two cities, something Rick Steves has called one of Europe's richest experiences. Public buses connect it to most major cities in the area, though renting a car offers the freedom to explore on your own schedule. Be aware of border crossings: since Neum splits Croatia's coastline in two, travelers often cross into Bosnia and Herzegovina here even if they're just passing through.

While most come for the sea, Neum's hospitality and slow pace turn short visits into longer ones. Family-run bed and breakfasts and small hotels dominate the scene, offering cozy accommodations. Budget travelers can find rooms starting as low as $35 a night. Peak season runs from June to August, though late May and early September bring warm weather with fewer crowds. Whether you're planning a quick stop en route to more popular destinations or a full weekend escape, Neum gives you all the beauty of the Adriatic without draining your travel fund.

Trading the Adriatic Sea for the Amalfi Coast, but don't want a beefier bill? Alghero is an underrated Italian beach town offering beautiful shorelines, a treasure trove of history, and light crowds. And much like Neum — all at an affordable price.