Tourism Sector in Montenegro Faces Challenges Amid Capacity Expansion

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Air Montenegro’s acquisition of a fourth Embraer E195 has been delayed due to administrative and technical issues linked to the aircraft lessor TrueNoord. The aircraft, designated as 4O-AOI, is under a long-term lease aimed at enhancing the airline’s fleet ahead of the peak summer travel season.

Although the delay is not significantly detrimental at the company level, it highlights the operational vulnerabilities faced by a smaller airline with a limited fleet. The availability of aircraft, maintenance support, and performance from lessors can directly impact route reliability during a critical period for Montenegro’s tourism sector.

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As of July, Montenegro recorded over 100,000 visitors on 25 June, marking an increase of approximately 10% compared to the previous year and a rise of 13% over the same period in 2019. In May, the country saw nearly 250,000 arrivals and around 1.15 million overnight stays, reflecting annual increases of about 6% and 7%, respectively.

The health tourism sector also showed promising signs, with the Dr Simo Milošević Institute in Igalo reporting around 670 patients and guests at its Phase II facility on 9 July. This figure indicates improved performance relative to the prior year and sustained demand from Slovenia and surrounding markets.

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Montenegro’s tourism industry is thus entering its peak summer period with heightened demand, additional sustainability financing, and recovering specialized assets. However, challenges remain regarding capacity quality. Factors such as airline reliability, road congestion, water infrastructure, and hotel energy costs will play a crucial role in determining how much of this increased visitor volume translates into operational profit versus being offset by rising seasonal expenses.

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