Human Resources – One of the Key Challenges of Tourism Development in the Republic of Croatia

Abstract

Tourist activity in the Republic of Croatia is one of the leading and most promising activities. It is our past, present and future. According to the National Bank, the share of revenues from travel - tourism in overall GDP in the first 9 months of 2015 was 22.2%, an increase of 1.2% compared to the same period in 2014. In the third quarter share of revenues from travel - tourism in total GDP amounted to 41.3%, as compared to the same period in 2014, representing a growth of 1.4%. The conclusion is that tourism is one of the leading economic sectors in the Republic of Croatia. Due to realized 78 million and 569,000 overnight stays (6.8% more than in 2014) and more than 8 billion of foreign exchange inflows, the Republic of Croatia on the overall tourism market has been recognized as an important destination whose development potentials have not yet been exhausted. Relevant institutions and predictions underline the fact that tourism is one of the keys for faster integration of Croatia in the entire world economy and the networked society, from which it can be read that Croatia must view this sector in a new way and allow tourism to undergo complete transformation, in order to cope with future competitive challenges more easily. According to estimates by the World Travel & Tourism Council direct and indirect employment in the tourism sector in 2008 was about 300,000 employees, but that number will have increased by additional 100,000 in the next ten years. The Croatian tourism today employs 35-40% of workers. Thus, the tourism industry is a comprehensive and a very important generator of jobs of different profiles - from catering and hotel industry to entertainment and animation. In the light of progress in the development of tourism, and regardless of specific personnel, Croatia still needs a lot of work on the construction of the existing profile of tourism personnel and management and educate the tourist interest in tourism future. In addition, employment in the hospitality and tourism industry has a very high seasonal fluctuation of work, while the proportion of highly educated so-called senior managers is weak due to the contemporary needs of the tourism of the 21st century. The system of education for tourism is not performed well at all levels of education, and the result is inadequate qualifications. On the other hand, salaries of employees in the tourism industry, especially in the hospitality and catering industry, are among the lowest in the Republic of Croatia. With its tourism development strategy, the Republic of Croatia has turned towards building quality destinations (new facilities, renovation of existing and quality services). This paper will analyze how the quality of services, backed by human activity, is the key to the success of any enterprise, with an adopted conclusion about what kind of future we are building in this segment. The research will be carried out through the review and analysis of trends in employment in the tourism industry, the qualifying term structure of employees, their share in the total employees in the Republic of Croatia, the competitiveness in the international labor market for a period of last 5 years.

Employee-Related Indicators in the Non-Financial Reporting in Hospitality Industry

“…Croatia shares some of the most common problems in hospitality industry with respect to HRM practices. Educational systems and low salaries offered to employees in hotel and catering industry proved to be obstacles that do not allow for improving competitiveness of Croatian tourism (Buneta, Ćosić & Tomašević, 2016;Ivanović, Milenkovski & Milojica, 2015). Shortage of workforce and problems with employee attraction were most recent problem for Croatian companies operating in hospitality industry.…”