The gaming and esports sector in Montenegro is advocating for a more ambitious national economic strategy, suggesting that competitive gaming, software development, and technology events could evolve into a significant export-oriented industry. This initiative aims to extend the tourism season beyond the traditional summer peak, thereby diversifying the economy.
Filip Šoć, president of the Electronic Sports Association of Montenegro and co-founder of the Montenegro Future Festival, argues that gaming should transition from being viewed as a niche recreational activity to a vital component of Montenegro’s digital economy. He envisions this sector as a means to strengthen ties with the younger diaspora and establish an international events business that attracts visitors to coastal cities outside the main holiday season.
The global gaming market is vast, with estimates indicating it generates over $250 billion annually. Projections for mobile in-app spending alone suggest figures nearing $130 billion by 2025. Given this scale, Montenegro’s potential lies not solely in hosting tournaments but in leveraging multiple interconnected activities such as game development, localization, esports events, and technology-led tourism.
With a population exceeding 600,000, Montenegro’s strategy focuses on creating digital products that can be developed locally and marketed globally, circumventing costs associated with physical exports. A small studio achieving success with a mobile or PC game could yield foreign revenue significantly surpassing domestic market limitations.
While Montenegro cannot compete with larger European capitals in terms of arena capacity, cities like Bar, Budva, Podgorica, and Tivat are positioned as attractive venues for tournaments and gaming festivals. The advantages stem from their event infrastructure, accommodations, accessibility, and coastal appeal.
The upcoming Montenegro Future Festival, scheduled for April 24 to 26, 2026, exemplifies this approach by combining esports tournaments with various tech discussions and competitions. Organizers expect participation from over 60 countries, featuring around 120 speakers and approximately 500 international guests, with total attendance anticipated to reach about 5,000 people.
The economic impact of such events hinges on whether they lead to supplier contracts, local employment opportunities, sponsorships, and repeat events rather than merely showcasing international companies. For example, Bar traditionally relies on its port and summer tourism but has begun attracting different visitors through recurring technology festivals held during off-peak seasons.
In 2024, Montenegro recorded 2.61 million tourist arrivals and 15.59 million overnight stays, primarily concentrated on the Adriatic coast. This heavy reliance on seasonal tourism highlights the need for diversification towards higher-value specialist travel through gaming-related events.
The focus remains on cultivating a robust domestic digital industry. Montenegro’s ICT sector has already expanded significantly beyond telecommunications, generating over €700 million in annual revenue and employing nearly 9,600 individuals. This sector encompasses various businesses despite some being small or inactive.
The presence of major operators such as Crnogorski Telekom, One Montenegro, m:tel, and Telemach Montenegro, alongside international firms like Huawei and Ericsson, contributes to a solid technical foundation for growth within the gaming industry.
To maximize potential returns from gaming activities, focus should shift towards intellectual-property ownership and specialized services rather than merely retail sales or sporadic tournaments. Initial funding requirements for small development studios can range from €250,000 to €1 million, while larger projects may require several million euros before release.
This financial model aligns more closely with venture capital rather than traditional lending due to inherent risks associated with unproven intellectual property. Early-stage studios often rely on founders’ capital or private investments until they establish recurring revenue streams suitable for conventional financing.
A strategic approach to investment policy is essential for fostering growth in this sector. While general tax incentives may encourage company registrations, they do not guarantee a thriving gaming cluster without experienced personnel capable of navigating the complexities of game development.
The educational infrastructure must also evolve to meet industry demands. While esports can engage youth in technology fields, developing games requires advanced skills in areas like programming and design. Closer collaboration among educational institutions, gaming organizations, and international networks is crucial for nurturing talent.
The Montenegrin diaspora presents an opportunity to bridge gaps in expertise by facilitating connections between local economies and professionals abroad who possess valuable market knowledge. This relationship could prove more beneficial than relying solely on remittances or property investments.
A clear distinction between gaming, esports, and gambling is necessary to avoid regulatory confusion that could hinder access to educational resources and funding opportunities. Establishing comprehensive regulations will help address player protection issues while promoting integrity within tournaments.
The economic viability of events should be measured against tangible outcomes such as international attendance and local procurement instead of relying solely on public funding. The experience gained from organizing events like the Montenegro Future Festival can inform future initiatives aimed at achieving sustainable growth.
Transport infrastructure poses another challenge; reliable air connections are critical for hosting large-scale international tournaments throughout the year. Additionally, venue specifications must cater specifically to esports requirements rather than adapting existing facilities at high costs post-factum.
A comprehensive strategy must also account for market volatility within the global gaming industry. While long-term revenue growth has been observed, challenges such as studio closures highlight the need for resilience against shifting consumer preferences and rising user acquisition costs.
Montenegro’s best path forward may involve focusing on service exports and smaller independent titles rather than directly competing with major publishing groups. By building experience through regional events and specialized production services first, local companies can gradually take on larger financial risks associated with significant projects.
The potential benefits of developing a diverse portfolio centered around gaming are substantial but will require concerted efforts across various sectors to materialize fully. As Montenegro continues its journey toward economic diversification beyond traditional tourism models, leveraging its existing assets alongside emerging digital opportunities will be key to sustainable growth.
