Montenegro loses approximately €86 million annually due to unregistered private accommodation, caused by outdated records, inefficient tax collection, and the lack of a central tourism information system, according to a government report based on 2024 tourism data. These losses exclude unpaid tourist taxes and indirect revenues. In 2024, over 15 million overnight stays were officially recorded, generating about €11.6 million in tourist tax revenue.
The report highlights the absence of a centralized Tourism Information System (TIS) that would unify all registration and tourism traffic data, helping to combat the shadow economy and recover lost income. The estimated cost to develop the system is around €1.3 million, with additional startup costs of €100,000 to €200,000.
Currently, Montenegro’s tourism sector operates multiple disconnected digital systems for tourist registration, accommodation, inspections, and statistics, leading to duplicated entries, inconsistent data, and weak oversight of accommodation providers. This fragmentation results in inaccurate statistics and hampers effective tax collection.
The government prioritizes implementing the TIS as part of the 2022-2026 reform agenda to improve data accuracy, transparency, and administrative efficiency. The TIS will enable electronic registration and deregistration of tourists, property registration, tax calculation, and integration with state and commercial platforms.
By centralizing data, the system aims to reduce administrative burdens on legal accommodation providers, simplify inspections, and enhance monitoring of illegal rentals and unreported guests. Currently, inspections face staffing shortages and legal limitations, making control difficult during peak seasons.
Legal accommodation providers will benefit from reduced paperwork, as the system automates data reporting to authorities, replacing redundant paper and electronic records.
The lack of incentives for legal registration and the absence of formal cooperation with online booking platforms contribute to ongoing underreporting. Many tourists must register individually because their hosts are unregistered, affecting the country’s tourism image.
The report also notes improper handling of personal data in some municipalities, where tourist registrations are done using photos of passports sent via messaging apps.
Efforts to establish a unified tourism registry began in 2023 under the previous Ministry of Finance leadership, with plans to introduce an e-visitor system similar to Croatia’s. However, political changes and parliamentary blockades halted these reforms, and the current ministry leadership has abandoned the plan.
Overall, the introduction of a centralized Tourism Information System is seen as essential to curb Montenegro’s shadow tourism economy, increase tax revenues, and improve management and competitiveness in the sector.
