Extending the economic citizenship program could bring additional value to Montenegro, considering the positive examples of countries like Malta and Portugal. These programs have proven effective in attracting capital, strengthening infrastructure, and creating new jobs, contributing to long-term economic growth, said Jelena Damjanović-Vidaković, Head of PR & Marketing at Montenegro Luxury Hotels and Resorts. Her company is the investor behind the Montis Mountain Resort in Kolašin, one of the projects implemented through the economic citizenship program.
She believes that restarting the program would bring further value to the economy as a whole by enhancing Montenegro’s attractiveness as a tourist and investment destination.
Adapting the conditions
“Such programs are globally recognized today as a means of attracting foreign direct investment and a catalyst for economic growth and diversification, with the industry’s value measured in billions of euros. It is important to note that, as in other countries’ examples, the program’s conditions should be adjusted, focusing on sustainability and clear economic objectives, to further increase its attractiveness and credibility,” said Damjanović-Vidaković.
According to her, the economic citizenship program has significantly contributed to Montenegro’s economic development, particularly through attracting foreign investments in key sectors such as construction, tourism and hospitality.
“The example of Kolašin clearly shows the results – from a tourist underdeveloped town to a hub of investment boom in Montenegro, with as many as 11 future high-category hotels,” she said. She also mentioned that the program has enabled the development of luxury resorts in Tivat and Čanj, as well as the attraction of global hotel brands, further increasing Montenegro’s visibility on the global market.
“These effects are not only economic – they also have broader social significance through the creation of new jobs and the improvement of local infrastructure,” Damjanović-Vidaković said.
She argues that extending the program could further strengthen Montenegro’s position as an attractive destination for foreign direct investments.
“The previous program has already proven its worth, not only in generating economic growth but also through job creation, increased construction activities, and the modernization of hotel capacities. Furthermore, the program has shown that there is growing interest from investors in developed countries, including the United States, who bring not only capital but also valuable business experience. Focusing on encouraging investors who have already obtained Montenegrin citizenship to reinvest in new projects, through support and development of favorable investment conditions, could further enhance long-term economic benefits,” Damjanović-Vidaković stated.
She believes there is room for improving the program’s conditions.
Additional incentives
“One key step could be the introduction of additional incentives for projects that promote sustainable development, such as investments in renewable energy, infrastructure, and technology. Additionally, more transparent investment evaluation processes and monitoring of their results could further increase investor confidence. The government could also consider more flexible investment conditions for less developed regional areas, which would lead to a more even distribution of the economic benefits of the program,” Damjanović-Vidaković suggested, adding that the previous economic citizenship program was based on clearly defined criteria and a structured implementation approach.
“We believe that these good practices should be further improved and precisely defined in the future program to ensure maximum economic benefit for the country. Besides the economic aspects, it is important to focus on better educating the public about the functioning of the program, including the criteria for acquiring citizenship, rigorous applicant screening, and the transparency of the entire process. This would avoid negative connotations and misinterpretations, and further increase trust in the program,” she concluded.
Focusing on investments in less developed regions
According to Jelena Damjanović-Vidaković, the program should focus on encouraging investments in less developed regions and projects that would not be financially sustainable without such support.
“The hospitality sector, especially the development of high-category hotels, has proven to be a successful model in the previous program, as these are long-term projects that generate significant multiplier effects on local communities and the economy as a whole. Additionally, we believe that funds raised from the economic citizenship program should be directed through a special fund into infrastructure projects of strategic importance, such as the modernization of road and railway infrastructure. This would ensure visible and lasting benefits for the entire country,” Damjanović-Vidaković concluded.
