The Government of Montenegro has approved a new Law on Tourism and Hospitality on 18 June 2026, aiming to extend tourism regulation beyond the mere licensing of hotels, agencies, and restaurants. This legislation seeks to incorporate principles related to local community quality of life, the preservation of intangible heritage, regional diversification, destination resilience, and the integration of digital technology into the tourism sector.
Currently pending parliamentary approval, this bill signifies a shift in Montenegro’s approach to managing its tourism industry, which plays a vital role in attracting investment, generating employment, and earning foreign exchange. The proposed law introduces the concept of “tourism regions,” which are defined as integrated areas encompassing resources, infrastructure, and services that are collectively planned, managed, and promoted.
This new definition addresses a longstanding issue where tourists experience destinations as cohesive units while regulations often focus on individual establishments. For example, a luxury hotel cannot independently resolve challenges such as traffic congestion or water shortages. These systemic failures can significantly impact hotel reviews, pricing strategies, and overall investment returns.
The tourism-region model acknowledges that accommodation, transportation, infrastructure, cultural assets, and local communities collectively represent a single product. If effectively implemented, it could enhance coordination among national ministries, municipalities, tourism organizations, and private sector operators.
The commercial implications of this model are particularly relevant for northern Montenegro. The government has consistently aimed to reduce reliance on the short summer season along the Adriatic coast by promoting investment in mountain tourism, rural experiences, wellness initiatives, and nature-based activities. Legal provisions for regional diversification may support this strategy if accompanied by improvements in infrastructure such as roads and wastewater systems.
A case in point is Kolašin, where significant investments in hotels and residential properties have outpaced municipal infrastructure development. While investors can construct buildings quickly, they cannot independently provide essential services like road access or sewage connections. Although legislation cannot replace necessary capital projects, it can clarify the need for destination capacity in planning processes.
Conversely, coastal areas face challenges related to high visitor concentrations and seasonal congestion. The new principles aim to provide a legal framework for addressing these pressures rather than viewing increased visitor numbers solely as a success metric.
The private accommodation sector also presents challenges under the new law. Montenegro has a substantial market for apartments and holiday homes; many operate informally while others are registered within the tourism framework. The rise of digital booking platforms has made these accommodations more accessible internationally but has diminished the role of traditional travel agencies.
The proposed law’s endorsement of digital technology is expected to be linked with the establishment of a Central Tourism Register, which would facilitate guest registration systems and local tourist taxes. A modern registry could assist authorities in differentiating between small family rentals and larger commercial operators. This distinction is essential to avoid either overlooking informal businesses or imposing excessive regulations on legitimate rural accommodations.
Furthermore, the bill aims to simplify household and rural tourism activities by permitting close family members to assist in service provision. While this could alleviate unnecessary formalities for small family-run businesses, it must not become a loophole allowing commercial entities to bypass employment laws or safety regulations.
Changes will also affect tour operators and agencies by aligning terminology with company law standards. For instance, the outdated term “exposure office” will be replaced with “branch.” Although these technical adjustments may seem minor, inconsistent terminology can lead to complications in licensing and regulatory compliance.
For major hotel investors, clarity remains paramount. They require assurance regarding whether their sites fall within viable tourism regions and whether their planned capacity aligns with spatial documents. Additionally, they need clarity on who is responsible for providing necessary infrastructure and how environmental restrictions will impact development plans.
Environmental considerations are integral to tourism policy in Montenegro. The proposed Natura 2000 network and national park regulations will shape where developments such as resorts and marinas can be situated. Destinations that successfully monetize protected landscapes without compromising their inherent value are likely to thrive.
This new law represents a more sophisticated approach than typical licensing frameworks. Its effectiveness will depend on whether “tourism region” evolves into an actionable unit characterized by data-driven decision-making, prioritized infrastructure development, and accountable management rather than remaining an attractive yet ineffective legislative term.
