WHO EARNS THE MOST IN REPUBLIKA SRPSKA – AND HOW

Despite global economic uncertainty, last year proved lucrative for many businesses in Republika Srpska, particularly for tourism agencies, tour operators, and hospitality providers, whose earnings significantly outpaced those of the previous year. By contrast, some traditional top earners, such as consumer goods and oil traders, saw a dip in their profits despite higher revenues.

According to data from the Agency for Intermediary, IT and Financial Services (APIF), consumer goods traders generated the highest revenue in 2024, with a total of BAM 2.27 billion. While this marks an increase of BAM 292.5 million compared to the previous year, their profit dropped by nearly BAM 7 million, totaling BAM 84.9 million.

Oil traders also posted impressive revenue figures, reaching BAM 1.067 billion, up slightly from the previous year’s BAM 1.035 billion. However, their profits saw a marginal decline, falling from BAM 27.6 million in 2023 to BAM 26.5 million in 2024.

In contrast, the hospitality sector experienced a robust increase in earnings. Restaurants and related businesses earned BAM 77.143 million in revenue last year — nearly BAM 15 million more than in 2023. Their profit surged by around 30%, exceeding BAM 12 million, up from BAM 9.804 million the year before.

Tourist agencies and tour operators also saw solid growth. Their revenue topped BAM 35 million in 2024, with profits nearing BAM 1.9 million. This marked an increase from the previous year’s BAM 32.4 million in revenue and BAM 1.76 million in profit.

Goran Kurtinović, Vice President and Board Member of the RS Hospitality and Tourism Employers’ Association “Horeka,” told Glas Srpske that much of the hospitality sector’s profit is reinvested.

“Hospitality operators are constantly investing. Many of the improvements funded through our earnings are not immediately visible,” said Kurtinović, noting that rising prices in the sector—up by 30% over the past year—are a result of labor shortages and the increased cost of essential supplies.

Despite the rise in profits, he says the financial pressure is still very real. “More hospitality businesses are closing than opening. Business peaks only during holidays and the vacation season, when our diaspora and tourists come,” he explained. “Numbers may show growth, but the reality on the ground is quite different.”

Saša Grabovac, Executive Director of the RS Association of Economists SWOT, pointed to rising labor costs and higher minimum wages as key factors in the reduced profits of retailers.

“Another factor is the increase in energy prices, which significantly affects the overall cost structure of many companies,” said Grabovac. He warned that companies showing lower profits will need to find strategies to return to previous levels, though this will be challenging amid ongoing geopolitical instability.

However, he added that the growing demand for tourism services and the steady development of the domestic tourism offer are clearly boosting revenues in the hospitality sector.