Measuring Social Impact and Enhancing Workforce Integration in Croatia’s Hotel Industry: Challenges, Opportunities, and Strategic Perspectives

Abstract

Background: Croatia’s hotel industry faces persistent labour shortages and a rising reliance on foreign workers, underscoring the importance of structured workplace integration and measurable social outcomes. Objective: This paper proposes a sector-specific framework for social impact and integration aligned with EU sustainability directives and leading Environmental, Social, and Governance (ESG) standards. Approach: Drawing on literature and insights from three Croatian hotel leaders, we synthesise integration practices and map them to relevant indicators. Results: We identify actionable metrics and governance levers that improve employee satisfaction, retention, and community cohesion. Implications: The framework supports transparent ESG reporting and practical workforce strategies for sustainable tourism growth. In addition, the study makes a conceptual contribution by linking workforce integration practices to ESG reporting requirements, and a practical contribution by offering a structured indicator set tailored to the hospitality sector. This positions the paper as a conceptual, case-informed research article with both academic and managerial relevance.