May the 10th, 2025 – Could the new Croatian law on foreigners harm tourism? That question has already been asked with regard to certain businesses, and it seems the fallout of some changes could be huge…
As Poslovni Dnevnik/Dalibor Krahtovil writes, according to data we were able to gleam from the Interior Ministry, in the first three months of this year, around 54,000 residence and work permits were issued to foreign nationals. That’s three percent more than in the same period last year. By far the largest number, as is standard, was issued in construction, tourism and hospitality, followed by industry, transport and communications, and trade.
could amendments to the croatian law on foreigners be a thorn in the side of tourism?
In other words, labour remains a burning issue for the Croatian economy, especially on the run up to the height of the summer season. Foreign labour is still a necessity without which a large number of economic entities cannot respond to regular demands, let alone the increased volume of work brought about by reconstruction activities, or the upcoming tourist season.
The new Croatian law on foreigners, or more specifically the amendments to it, are now posing a potential issue for tourism as opposed to a quick fix. The country required a regulation that would facilitate and accelerate all of the processes that are key to the smooth maintenance and strengthening of activities that are key to Croatia’s GDP. The amendments to the Croatian law on foreigners have brought this to some extent, but there are issues with it, pertaining primarily to tourism.
some good news, some issues… employers cite a mixed bag
Most businesses have welcomed the extension of the validity period of residence and work permits to three years. They are also happy with the extension of the validity period of permits to nine months for seasonal work. Many businesses have advocated for these changes strongly, continuously and on every possible occasion. The same workforce over a longer period of time means greater security and continuity for both employers and employees. It also encourages further training in the work they’re engaged in, and a higher level of integration into the local community.
It is also generally considered positive that a residence and work permit can now be issued without the need to conduct a labour market test, nor seek the opinion of the Croatian Employment Service in many cases. Despite all of the positives, perhaps the most frequent and loudest objections coming from the field are that the procedure for employing a foreign national legally remains extremely lengthy and the rules and procedure should be adapted to smaller employers.
The period to which the aforementioned provision applies (an employment duration of 90 days) is no longer enough even for the tourist season itself. This is rendered even more problematic when we consider the trend of strengthening the pre-season and post-season.
an unrealistic view of employer issues
Perhaps the loudest complaints are that the employment of foreign nationals is time-consuming and inflexible. These processes should be accelerated and simplified because certain businesses who would employ foreigners simply cannot plan their needs for workers so far in advance. This is true for all companies, not only those for whom the new Croatian law on foreigners would pose a more obvious issues, such as those in tourism.
According to statements made by representatives of the competent authorities, it is being claimed that more complicated cases in this vein will be considered individually. The claim is that the goal is to encourage and control in a better way, but not to restrict. We are also waiting for the Ordinance, which will, hopefully, clarify all doubts, provide important interpretations and open up space for necessary adjustments.
The regulations must follow the requirements of the impossibly seasonal Croatian labour market, which currently has a strong need for foreign employees for an array of reasons. The fundamental task should be to activate the available domestic labour force first and foremost, and then allow for companies to quickly and easily employ foreign workers if necessary. If this isn’t rapidly dealt with, then the new Croatian law on foreigners could end up harming tourism in a serious way as early as this summer.
Burdensome restrictions make it difficult for the processes that are currently crucial for the preservation and development of Croatian crafts and the Croatian economy. The focus must be placed on flexibility and the stronger and faster connection between employers and employees, for mutual benefit. Some projections of economic activity in Croatia highlight the possibility that it will need more than 300,000 (likely foreign) workers by 2035.
