Croatia has unveiled a draft proposal for a new law governing the hospitality sector. This comes at a critical time for an industry that is a key pillar of the country’s tourism-driven economy.
As of midday, the existing regulatory framework has been amended nine times. The new proposal aims to address ongoing challenges faced by businesses in this sector.
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.
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 have dropped below 10 percent, indicating severe pressure on businesses. 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—significant figures that reflect the industry’s labor demands.
The draft law is part of a month-long public consultation period. Stakeholders are encouraged to provide feedback during this time.
Hrvoje Margan noted that any price increases will largely depend on rising input costs, particularly those linked to goods purchased from retail suppliers.
The hospitality sector is undergoing significant change due to evolving market conditions. Details remain unconfirmed regarding how this new law will impact future operations.
Further developments are expected as the public consultation progresses. The industry is closely monitoring these changes amidst economic uncertainty.