Croatian tourism, which has relied heavily on a workforce from Serbia, Bosnia and Herzegovina, and other regional countries, is facing severe challenges this summer, potentially its most significant setback since the onset of the COVID-19 pandemic.

This situation is attributed to the implementation of a new Foreigners Act, which has introduced stricter criteria for issuing work permits.

Official data from the Croatian Ministry of the Interior indicates that in the first five months of 2025, a total of 83,252 residence and work permits were issued to foreign workers, representing a decrease of 10,514 permits compared to the previous year—a drop of 11.2%.

The tourism and hospitality sectors, which are vital to Croatia's summer economy, have been most affected, with only 27,841 work permits issued.

This marks an 11.4% reduction from the same period last year, leading to an unfilled workforce shortage of nearly 3,600 positions as the tourist season begins.

Seasonal jobs traditionally filled by workers from Serbia, including positions such as waiters, chefs, housekeepers, receptionists, and auxiliary staff, are now in jeopardy.

The reduction in issued permits means that bars, restaurants, and hotels in popular tourist areas such as Pag, Novalja, Split, and Dubrovnik lack sufficient staff to accommodate incoming tourists, which directly impacts revenue and the reputation of Croatia as a travel destination.

Estimates suggest that an average seasonal worker in the tourism sector contributes between €15,000 to €20,000 to the overall income during the season.

Considering the current shortage of approximately 3,600 workers, the financial loss could exceed €50 million in just the first half of the season.

This figure represents a conservative estimate, with potential losses likely to increase if the worker deficit persists through July and August, the peak months for tourist spending.

The challenges related to the new immigration regulations stem from more bureaucratic processes and extended wait times for work permits.

Rather than simplifying procedures in response to a pressing demand for workers, employers are facing complexities in meeting paperwork requirements as the tourist season approaches, leading to an acute shortage of vital hospitality staff.

If the trend of declining work permits continues, Croatia risks not only losing tens of millions of euros but also jeopardizing its status as one of Europe’s most sought-after summer destinations.

Tourists may become frustrated with long wait times for service and inadequate accommodations, presenting further challenges to the Croatian tourism industry this season.