The area surrounding Ulcinj, particularly the Velika Plaža, is recognized as Montenegro’s largest untapped opportunity for coastal tourism development. This region features approximately 13 kilometers of unbroken sandy beach, which attracts a significant number of seasonal visitors but generates limited economic returns.
Tourism in this region primarily caters to short-stay, price-sensitive tourists, who typically stay for an average of 2 to 4 nights and spend between €80 and €110 daily. The retention rate of local visitors is between 55 and 60 percent, indicating a reliance on informal accommodation options and a fragmented service sector.
Employment patterns in the area are characterized by high seasonality and volatility. During peak tourist months, net monthly wages can range from €900 to €1,200; however, employment opportunities diminish significantly in the off-season, leading to income instability and increased migration pressures.
Municipal revenues tend to peak in the summer months but lack sustainability throughout the year. The primary challenge lies not in demand but rather in planning and governance issues. The absence of clear zoning regulations, along with insufficient infrastructure investment and a lack of formalization, turns potential growth into a liability.
To address these challenges, targeted capital expenditures ranging from €25 million to €40 million are proposed for improvements in wastewater management, access roads, and public spaces. Such investments could facilitate a transition towards longer visitor stays, increased daily spending, and the development of structured eco-sports tourism, thereby enhancing both fiscal stability and employment prospects for local communities.
