Croatia (Hrvatska) has come a long way since the summer of 1991, when foreign tourists fled from a region standing on the verge of war. Now that stability has returned, visitors are steadily coming back to a country which boasts one of the most outstanding stretches of coastline that Europe has to offer. This return to normality has been keenly awaited by Croats, but patriotism - and a sense of the nation's place in history - remains a serious business here. Croatia was an independent kingdom in the tenth century, fell under the rule of Hungary in the eleventh, and was subsequently absorbed by the Austro-Hungarian Empire before becoming part of the new state of Yugoslavia in 1918. Croatian aspirations were frustrated by a Yugoslav state which was initially dominated by Serbs, and then (after 1945) ruled by Communists. Croatia's declaration of independence on June 25, 1991 was fiercely contested by a Serb-dominated Yugoslav army eager to preserve their control over portions of Croatia in which groups of ethnic Serbs lived. The period of war - and fragile, UN-supervised ceasefire that followed - was finally brought to a close by Croatian offensives during the summer of 1995. Croatia's capital, Zagreb , is a typical central-European metropolis, combining elegant nineteenth-century architecture with plenty of cultural diversions and a vibrant café life. At the northern end of the Adriatic coast, the peninsula of Istria contains many of the country's most developed resorts, with old Venetian towns like Porec and Rovinj rubbing shoulders with the raffish port of Pula . Further south lies Dalmatia , a dramatic, mountain-fringed stretch of coastline studded with islands. Dalmatia's main town is Split , an ancient Roman settlement and modern port which provides a jumping-off point to the most enchanting of Croatia's islands, Brac , Hvar , Vis and Korcula , where you'll find lively fishing villages and the best of the beaches. South of Split lies the walled medieval city of Dubrovnik , site of an important festival in the summer and a magical place to be whatever the season. In 1918, the Croats, Serbs, and Slovenes formed a kingdom known after 1929 as Yugoslavia. Following World War II, Yugoslavia became an independent communist state under the strong hand of Marshal TITO. Although Croatia declared its independence from Yugoslavia in 1991, it took four years of sporadic, but often bitter, fighting before occupying Serb armies were mostly cleared from Croatian lands. Under UN supervision the last Serb-held enclave in eastern Slavonia was returned to Croatia in 1998. Before the dissolution of Yugoslavia, the Republic of Croatia, after Slovenia, was the most prosperous and industrialized area, with a per capita output perhaps one-third above the Yugoslav average. The economy emerged from its mild recession in 2000 with tourism the main factor, but massive structural unemployment remains a key negative element. The government's failure to press the economic reforms needed to spur growth is largely the result of coalition politics and public resistance, particularly from the trade unions, to measures that would cut jobs, wages, or social benefits. As a result, the country is likely to experience only moderate growth without disciplined fiscal and structural reform.