Romanian Hospitality Sector Revenue Grows, But Profitability Declines; Tip Tax Contributes 584 Million Lei

Romania's hospitality sector achieved a turnover of nearly 58.5 billion lei in 2025, yet this revenue growth did not translate into improved profitability for businesses. During a "Hospitality Barometer" conference, industry representatives revealed that the sector generated an estimated 12.2 billion lei in taxes, duties, and contributions for the public budget. A notable portion of this, approximately 584 million lei, came from the taxation of tips, a measure introduced in 2023 to formalize payments previously made informally to employees in restaurants and bars. While the total revenue reached 58.44 billion lei, representing a 12% increase from the previous year and surpassing the national average company growth and inflation rates, businesses are under pressure. Net profit for HoReCa companies decreased from 4.17 billion lei in 2024 to 3.54 billion lei in 2025. This reduction lowered the sector's profitability from about 8% of revenue to just 6%, the lowest level since the pandemic period. Beyond the tip tax, the bulk of fiscal contributions from the HoReCa sector stem from employee-related taxes, estimated at 5.68 billion lei, and Value Added Tax (VAT), contributing around 4.94 billion lei. Corporate profit tax added another 993 million lei to the state's coffers. For every 100 lei earned by HoReCa companies, approximately 21 lei go to the public budget.