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Why Is Istria’s Economy on the Brink of Collapse Without Foreign Workers Before Summer?

03/13/2026

Why Is Istria’s Economy on the Brink of Collapse Without Foreign Workers Before Summer?

The tourist season is just around the corner, and the Istrian economy is facing a historic challenge of a shortage of domestic labor.

It is becoming completely impossible to imagine the regular functioning of cafes, restaurants, hotels, and construction sites without the diligent hands of workers from distant countries. As Glas Istre writes, the situation has reached a level at which foreign workers are becoming the absolute and irreplaceable foundation of the survival of the entire regional economy.

During last year alone, the Istria Police Administration issued as many as 24,456 residence and work permits. Given the intensive preparations for the upcoming season, it is quite certain that this figure will rise drastically in 2026.

Also interesting is the information presented by the president of the Chamber of Trades and Crafts of Istria County, Robert Momić, which reveals that foreigners currently make up between 13 and 15% of the total workforce on the peninsula.

Digital networking and the fight for better working conditions

Istria currently has around 32,000 business entities for which foreign assistance is urgently needed for sheer survival on the market.

Although a share of 15% foreigners in a county with just under 200,000 inhabitants does not sound apocalyptic, it certainly represents a serious alarm bell. Robert Momić emphasizes that the local population must stop living in illusions, expecting newcomers to adopt Istrian customs overnight or sing traditional local songs. Foreign workers today are extremely well connected and very aware of their legal rights, unlike in their very beginnings in Croatia.

Through digital platforms such as WhatsApp and Viber, they create their own closed communities in which they exchange detailed information about employers, working conditions, and wage levels. In this way, a kind of bidding emerges on the labor market, which Momić considers a completely legitimate move because their primary and only goal is financial gain.

Systematic integration as a response to demographic changes

Aware of the new demographic and economic realities, the leaders of Istria County are urgently launching the establishment of a Regional Support Network for foreign workers and their families. The main goal of this ambitious initiative is to ensure the sustainable and long-term integration of new residents into the local community in order to avoid social tensions. The program includes free learning of the Croatian language and the Istrian dialect, getting acquainted with the rich Istrian culture, and providing necessary psychosocial and legal assistance.

The appointment of special contact persons is planned in every town and municipality, whom foreign workers will be able to approach directly for help in resolving bureaucratic obstacles.

Rising operating costs and the closure of iconic restaurants

Despite the great efforts of the competent institutions, practice in the field regularly shows a significantly different and more complex picture. Representatives of tradespeople are very skeptical about the actual success of integration programs because they notice that many foreign workers actually show no interest whatsoever in participating in the social life of the community.

Most of them are focused on working 2 or 3 different jobs, and they spend what little free time they have exclusively in their isolated accommodations. They very rarely spend their hard-earned wages within Croatia's borders, instead sending the lion's share of their funds to their families in their home countries.

At the same time, domestic employers are fighting an exhausting battle with enormous operating costs. Finding a quality and reliable worker has become a real rarity, and labor costs are rising to unimaginable heights. The end result is the permanent closure of long-standing hospitality establishments, which has already happened in 2 or 3 well-known cases in Poreč and the surrounding area, solely because owners can no longer financially withstand the enormous pressure of high wages. Because of all this, employers are being urged to stop unfairly poaching labor from one another and finally show a higher level of business solidarity.

Without any doubt, Istria is at a crucial historical turning point where it must urgently balance the insatiable needs of a strong tourism economy with the preservation of an authentic local identity. Foreign labor is definitely no longer just an emergency and temporary solution for the summer months, but a permanent and solid foundation without which the entire economic system would experience immediate collapse. Institutional attempts at systematic integration are a commendable step forward, but real success in practice will depend exclusively on the willingness of both involved sides to make deep compromises and mutually adapt.

Businesspeople will have to find much smarter financial models in order to survive the mercilessly rising labor costs, while the local population will have to show a greater level of understanding toward people who have come from thousands of kilometers away from their homes in search of a better future. The real question is whether Istrian tourism will manage to preserve that well-known quality and recognizability in this complex process during the challenging years yet to come.