April the 20th, 2026 – Costs for the Croatian hospitality sector appear to be growing at a faster rate than profits, which is cause for enormous concern as we approach the main part of the season.
As Poslovni Dnevnik writes, the Draft Proposal for the Act on Hospitality Activities has now officially been presented, and will be in public consultation for the next month.
The existing regulations have so far consisted of nine amendments and supplements, and there have been a number of changes in the market for providing hospitality and tourism services. The current situation being faced by the Croatian hospital sector in light of the upcoming events was discussed by Hrvoje Margan, president of the Guild of Hospitality and Tourism Workers of the Croatian Chamber of Crafts.
He emphasised that the prices this season will largely be the same as they were last year. This will likely come as an unpleasant surprise for many for whom Croatia is swiftly becoming a country that has simply grown much too expensive compared to its competition across the Mediterranean.
With that being said, Margan believes that everything depends on how much retailers will raise their prices. The prices that the Croatian hospitality sector will charge will be a reflection on how much retailers do.
“Statistically, it is between 3 and 5%. Namely, it should be said that the sector’s total income has grown, but our colleagues from the Croatian Chamber of Commerce (HGK) conducted an analysis for 2024, and then for 2025, where the sector’s nominal income grew between 12 and 15%,” he revealed.
He added that expenses grew by more than 20% for the Croatian hospitality sector, which is very alarming in and of itself. In the overall calculation, the profit of the sector generally fell below 10%, which means that the catering and hospitality sector will have difficulty investing further at all if it does not follow the cost part in prices.
“The biggest expense for the sector by far is the cost of labour, which has doubled over the past few years. Those waiters who work in year-round tourism can typically earn a salary of between 1,200 and 1,500 euros, and cooks generally take home between 1,500 and 2,000 euros,” he stated, emphasising that considering spiralling prices and input costs, this year, salaries will increase, possibly by several percent, as will the end prices charged to customers.
