Romania tourism sector seeks structural reform and foreign investment

The Romanian tourism sector is facing calls for structural reform to reduce dependence on domestic travelers and improve international competitiveness. The Federation of Hotel Industry in Romania (FIHR) has emphasized that mere promotion is insufficient without strategic management, predictable funding, and investment in infrastructure and heritage.

FIHR advocates for the implementation of functional Destination Management Organizations (DMOs) to establish development priorities through collaboration between local authorities and private operators. The federation also suggests linking local tourism promotion taxes to the existence of these organizations and multi-year strategies to ensure transparent reinvestment.

Minister of Economy, Digitalization, Entrepreneurship and Tourism, Irineu Darău, noted that increasing profit margins requires attracting more foreign tourists by developing better products and services. Additionally, industry experts highlighted that music festivals have become significant growth drivers for the sector, shifting the focus from low taxation and holiday vouchers toward niche tourism and large-scale events.

Labor shortages also remain a critical challenge. FIHR is calling for specialized training programs tailored to industry needs and simplified access to employment agency tools to address the deficit of skilled personnel in the hospitality sector.