Croatia has unveiled a draft proposal for a new law governing the hospitality sector. This move comes at a critical time as the industry grapples with rising costs and changing market conditions.
The existing regulatory framework has been amended nine times. This latest proposal aims to stabilize the sector, which is a key pillar of Croatia’s tourism-driven economy.
As of midday, prices in hospitality venues are expected to remain broadly in line with last year. However, price rises could fall in the range of 3 to 5 percent, depending on various factors.
Nominal revenues in the hospitality sector rose between 12 and 15 percent in 2024 and 2025. Yet, operating costs have surged by more than 20 percent over the same period.
Overall profit margins in the hospitality sector have dropped below 10 percent. Wages have effectively doubled in recent years, with waitstaff earning between €1,200 and €1,500 per month.
Chefs can earn between €1,500 and €2,000 per month. These figures underscore the financial pressures facing workers in this vital industry.
The draft law is currently part of a month-long public consultation period. Stakeholders are encouraged to provide feedback on this significant proposal.
Hrvoje Margan noted that any increases will largely depend on rising input costs—particularly those linked to goods purchased from retail suppliers. The ongoing consultation process reflects an effort to adapt to these evolving challenges.
Details remain unconfirmed regarding how the proposed changes will be implemented or their potential impact on consumers and businesses alike.
