Tourism is an inherently labor intensive industry. From hotels and restaurants, tourist accommodation and transportation services, most jobs involve face-to-face interaction with clients. As a result, companies must retain a relatively large workforce, which increases labor costs. This dependence on human labor makes it difficult to reduce salary costs without affecting the quality of service. Wage costs in the tourism sector represent a significant problem due to the labor-intensive nature of the industry, increasing regulatory and the challenges of managing a seasonal and often transient workforce. These costs weigh on profitability, especially for small businesses and those operating in highly competitive markets. The paper analyzed the costs of salaries in the tourism sector during the period from 2012 to 2022 in the Republic of Croatia, with an emphasis on the activities of providing accommodation, preparing and serving food, and travel agencies. The results showed that during the observed time period (2012-2022) the costs for wages continuously increased - the only costs decreased in 2015 and 2016 in the food and beverage preparation and service sector and in 2016 in the travel agency sector. During the COVID pandemic, wage costs decreased in all analyzed sectors. In 2019, the highest expenditure for salaries was recorded for the travel agency sector.