Montenegro is set to implement a €1.37 million national tourism information system aimed at integrating more private accommodation into the formal economy. A government analysis estimates that the country is losing approximately €86 million annually in tourism revenue due to unregistered accommodations.
The Ministry of Tourism has initiated a procurement process for the new system, with bids expected by October 7. The project is planned to be executed over a span of 12 months in six phases.
This platform will centralize accommodation records and guest data, enhancing the information available to tourism authorities, local governments, and inspectors. It aims to provide a robust framework for monitoring taxes and fees associated with lodging.
The initiative targets one of the significant areas of informal economic activity within Montenegro. Private rentals, including apartments and rooms, constitute a considerable portion of the nation’s tourism capacity, particularly along the coastal regions. However, many of these operations remain unregistered, leading to gaps in official statistics.
The aforementioned assessment attributes the loss of revenue to outdated records and ineffective collection mechanisms associated with unregistered accommodations. The estimate does not account for indirect losses such as tourist taxes, suggesting that the overall fiscal impact could be even greater.
The new system is designed to facilitate quicker access for inspectors to accommodation and visitor data, thereby reducing reliance on physical inspections and fragmented municipal databases. This capability is becoming increasingly crucial as tourism transactions transition online.
In addition, Montenegro is working towards establishing closer data-sharing relationships with platforms such as Booking.com and Airbnb. This collaboration could enable authorities to reconcile online listings and bookings with domestic registrations and tax filings.
These combined efforts are expected to significantly enhance oversight of private accommodations. For compliant operators, stricter enforcement could level the playing field against landlords who evade registration and tax obligations. Conversely, informal hosts will increasingly leave digital footprints that can be matched against government databases.
This reform also promises statistical advantages. Accurate registration of visitors in private accommodations can lead to more reliable tourism figures. Enhanced data collection would provide policymakers, investors, and hotel operators with better insights into actual visitor numbers, source markets, and seasonal demand patterns.
This information becomes critical as Montenegro evaluates its tourism strategy, weighing whether to prioritize growth in visitor numbers or focus on maximizing revenue per guest while extending the tourist season.
Local governments along the coast rely heavily on revenues from tourist taxes but vary significantly in administrative capabilities. A national system could help standardize data management across municipalities, addressing disparities in administrative efficiency.
The investment required for this system is relatively modest compared to the potential revenue identified; at €1.37 million, it accounts for less than 2% of the estimated annual revenue gap.
The economic benefits could be considerable if authorities manage to recover even a portion of the estimated losses. However, successful implementation poses challenges. A central database will only enhance enforcement if accommodation providers, municipalities, tax authorities, and booking platforms share timely and compatible information.
Authorities must also ensure that new reporting requirements do not impose excessive administrative burdens on legitimate small landlords. Given that Montenegro’s tourism sector relies significantly on private accommodation, the goal remains formalization rather than exclusion of small operators from the market.
This initiative aligns with a broader trend in Montenegro’s tax administration towards digital solutions for enforcement. Electronic invoicing and automated data collection are gradually replacing traditional inspection-heavy approaches.
Tourism represents an ideal target for this shift since much of its market activity is already digitally accessible to consumers despite being less visible to government entities. The new system could effectively bridge this gap.
With millions of visitors arriving annually, Montenegro’s fiscal opportunities increasingly hinge on ensuring that accommodations sold are properly registered and taxed.
