Slovenia is entering the height of the summer holiday season with growing confidence after a strong start to the year, as rising visitor numbers, particularly from Germany, point to another successful tourism season.

But behind the upbeat outlook, the industry continues to grapple with labour shortages and rising operating costs, forcing employers to look increasingly beyond Europe for workers.

"As far as the expectations for the summer season in Slovenia are concerned, we are optimistic; in first five months 7.5% more overnights were recorded in Slovenia and the reservations for the summer months look good," Fedja Pobegajlo, director of Slovenia's Tourism and Hospitality Chamber (TGZS), told IntelliNews in a written statement.

“However, companies face challenges regarding the increased operational costs,” he added, without elaborating.

The optimism is backed by official figures. Between January and May, Slovenia welcomed 2.1mn tourist arrivals, up 6% from a year earlier, while overnight stays climbed 7% to nearly 5.3mn.

International visitors continued to drive the sector, accounting for 69% of all overnight stays, or 3.6mn nights, a 9% increase compared to the same period last year. German tourists led the rankings, ahead of visitors from Italy and Croatia, with arrivals from Germany surging 29% year-on-year.

The momentum accelerated in May alone, when tourist accommodation providers recorded 680,000 arrivals, up 10%, and almost 1.6mn overnight stays, an 11% annual increase. Foreign guests generated nearly four-fifths of all overnight stays during the month, while Ljubljana, Piran and Bled remained the country's most visited destinations.

Mountain resorts proved especially popular, attracting almost one-third of all overnight stays. Bled, Bohinj and Kranjska Gora all benefited from a sharp rise in German visitors, reinforcing the country's appeal as an outdoor destination during the warmer months.

Ljubljana also continued to strengthen its position as Slovenia's leading city-break destination. Foreign tourists accounted for 97% of overnight stays in the capital, with visitors from the United States generating the largest number of nights, followed by Germans and Britons.

Tourism plays a vital role in Slovenia's economy, contributing 5.4% directly to GDP and 8.7% overall once indirect effects are taken into account.

While demand remains strong, tourism businesses continue to face a structural challenge that extends well beyond Slovenia.

"Like many other European countries, Slovenia's tourism sector is facing staff shortages. However, the shortage has eased as salaries have increased by almost 50% since 2019," Pobegajlo said. However, he dismissed media reports suggesting that the sector is facing a shortage of 10,000 workers.

The labour market has changed significantly in recent years. Tourism operators once relied heavily on seasonal workers from neighbouring Balkan countries, but increasing competition for staff across Europe has widened recruitment efforts.

"Labour shortage is present not only in Slovenia and not only in tourism, therefore not only employees from South Eastern Europe can cover the needs (as before). As the result more employees from third countries are being employed, especially from the Middle East, Southern Asia and Latin America," Pobegajlo said.

“Therefore more language and cultural differences are present,” he added.

Workers from the Balkans remain the preferred choice because of their language compatibility and cultural familiarity, but employers are increasingly hiring staff from countries including Bangladesh, India, Nepal and the Philippines as they struggle to fill vacancies.

Domestic tourism has also remained resilient, with Slovenian travellers generating more than 1.6mn overnight stays during the first five months of the year, up 3% year-on-year. In May, however, domestic overnight stays edged down 3%, suggesting that much of the recent growth has come from foreign markets.

For Slovenia, whose tourism sector combines Alpine landscapes, Adriatic coastline, spa resorts and a compact capital city, the challenge is no longer attracting visitors but ensuring there are enough people to welcome them.

With bookings looking solid for the remainder of the summer, the industry's ability to manage staffing pressures may prove just as important as the weather in determining how successful the season ultimately becomes.