Thousands of residents of Dubrovnik and visiting tourists have gathered for the annual Christmas holiday cake market, gathering funds for children with developmental and learning difficulties.

The “Two Stairs” organisation helps children, organises Christmas cake sales where all the funds go to the charity that supports children with difficulties.

People crowded the ancient old town of Dubrovnik buying cakes, priced at 3 euros each, to help those in need.

Organisers say that events like this are help bring holiday joy to the hearts of those who are in need and not only gather funds.

The “Cake party” in Dubrovnik is famous for its traditional Dalmatian cake, along with many other flavoured cakes shaped in various forms and sizes that attract children and their parents' attention.

It wasn't just a festival to show quality cakes, the Dubrovnik tourist board also helped organise the charity event, laying on Croatian music and performers to serenade the old city square.

AP Video shot by Eldar Emric