As Croatia gears up for another bustling tourist season, the nation is facing a critical challenge: a severe shortage of foreign workers. With its economy heavily reliant on the tourism sector, Croatia is urgently seeking skilled seasonal workers to maintain its reputation as a top European destination. This blog explores the current labour shortage crisis, the changing sources of foreign workers, government initiatives, and the impact on key sectors.

A Growing Labour Shortage in Croatian Tourism

Croatia’s tourism industry, known worldwide for its pristine beaches, historic cities, and vibrant culture, is at risk due to a shortage of seasonal workers. Recent reports indicate that the need for foreign workers is more pressing than ever. In the first half of 2022, approximately 30,000 seasonal workers were required to meet market demand. Although this figure dropped to around 21,000 in 2023, it still highlights the persistent labour shortage affecting the country’s tourism and hospitality sectors.

The ongoing shortfall has significant implications for the tourism season. With fewer workers available, hotels, restaurants, and tour operators struggle to maintain service levels, potentially diminishing the overall tourist experience. This challenge has prompted the Croatian government and industry stakeholders to look beyond traditional labour pools.

Diversifying the Workforce: New Sources of Talent

Historically, seasonal workers in Croatia have primarily come from neighboring Bosnia and Herzegovina. However, in recent years, there has been a noticeable shift in the origin of these workers. Croatian employers are increasingly welcoming talent from distant Asian countries such as India, Nepal, the Philippines, and Bangladesh. This shift is largely driven by the liberalisation of the Law on Foreigners, which has eased entry restrictions and enabled a broader range of workers to access Croatian job opportunities.

Ivana Mehle, Deputy Director of the Croatian Employment Service (CES), has highlighted that while workers from Bosnia and Herzegovina remain a significant part of the workforce, the growing influx of workers from Asia is proving vital. Their arrival is crucial in sustaining the tourism sector during peak season, ensuring that the industry continues to thrive despite domestic labour shortages.

Government Initiatives and Industry Support

The Croatian government recognises that the stability of the tourism sector—and by extension, the national economy—depends heavily on the availability of skilled foreign workers. Former Interior Minister Davor Božinović has been vocal about the importance of foreign labour in sustaining Croatia’s economic growth. “Our economy needs them. Croatia relies more and more on its efforts and work in many sectors, from tourism and construction to service activities. They deserve the same safety and dignity as all of us,” he stated.

In response to the labour shortage, the government has implemented several measures to attract and support foreign workers. Key initiatives include:

• Liberalisation of the Law on Foreigners: This reform has significantly eased the process for foreign workers to obtain permits, ensuring a smoother entry into the Croatian labour market.
• Enhanced Support Services: Efforts are underway to provide better integration and support for foreign workers, including language training, accommodation assistance, and access to legal resources.

These measures not only help fill immediate vacancies but also pave the way for a more sustainable and inclusive workforce in the long term.

Sectoral Impact: Where the Demand is Highest

The shortage of foreign workers is most acutely felt in the hospitality and hotel industries. Croatia’s tourism sector relies heavily on these workers for:

• Accommodation Services: Hotels and resorts require a steady influx of staff for front-desk operations, housekeeping, and guest services.
• Food Preparation and Service: Restaurants and cafes depend on skilled chefs, waitstaff, and kitchen personnel to deliver a high-quality dining experience.
• Support and Administrative Roles: Car rental agencies, travel agencies, and facility maintenance companies are also seeking additional staff to manage the increased tourist flow.
• Transport and Warehousing: Efficient logistics and transport services are critical to support the tourism industry, further increasing the demand for skilled workers.

By addressing these shortages, Croatia aims to “save” its tourism season, ensuring that the influx of international visitors is met with the high level of service that the country is known for.

Record Issuance of Work Permits

A strong indicator of the government’s proactive approach is the record high number of work permits issued in 2024. Local media reports indicate that Croatian authorities granted 171,000 work permits in 2024, marking a 14% increase compared to the previous year. This surge not only reflects the immediate need for foreign labour but also underscores the commitment of the Croatian government to support its tourism and hospitality sectors.

The increase in work permits is expected to continue as the demand for foreign workers rises. It highlights the role of strategic immigration policies in addressing labour shortages and bolstering economic growth.