- by croatiaweek
- April 19, 2026
- in
Šibenik
Croatia has unveiled a draft proposal for a new law governing the hospitality sector, with the legislation set to enter a month-long public consultation period.
The move comes as the industry undergoes significant change, with the existing regulatory framework having already been amended nine times.
Market conditions for hospitality and tourism services have evolved considerably, prompting the need for updated legislation.
Speaking on HRT show Studio 4, Hrvoje Margan, president of the Guild of Hospitality and Tourism at the Croatian Chamber of Trades and Crafts, outlined the current state of the sector ahead of the upcoming tourist season.
Margan said that prices in hospitality venues are expected to remain broadly in line with last year. Any increases, he noted, will largely depend on rising input costs, particularly those linked to goods purchased from retail suppliers.
According to Margan, the extent of price adjustments in restaurants and cafes will mirror increases imposed by suppliers. Current estimates suggest that price rises could fall in the range of 3 to 5 percent.
While revenues in the sector have grown, profitability has come under pressure. Industry analysis indicates that nominal revenues rose between 12 and 15 percent in 2024 and 2025.
However, operating costs have surged by more than 20 percent over the same period.
As a result, overall profit margins in the hospitality sector have dropped below 10 percent, raising concerns about the industry’s ability to invest and sustain growth without corresponding price adjustments.
Labour costs remain the most significant burden. Wages in the sector have effectively doubled in recent years, with waitstaff in year-round tourism roles earning between €1,200 and €1,500 per month, while chefs can earn between €1,500 and €2,000.
Looking ahead, wage growth is expected to be modest, likely increasing only by a few percentage points in line with any price rises implemented across the sector.
The draft law and ongoing consultation process come at a critical time for Croatia’s hospitality industry, as businesses balance rising costs with the need to remain competitive in a key pillar of the country’s tourism-driven economy.