Montenegro visa regime may hit 21% of tourism flows

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Montenegro’s new visa regime could reduce tourist flows from Russia and Turkey, which accounted for 21% of tourism traffic last year, Petar Golubović, director of the Centre for Tourism Research and Development, said. He said private and individual accommodation could face the greatest impact if visitors from the two countries stay away.

Visa applications are submitted at Montenegro’s diplomatic and consular missions in Russia, Turkey, China, Belarus and Saudi Arabia, and the approval process can take up to ten days. Andrea Rafailović Stojović, a representative of the Tourism Organization of Podgorica, said the administrative procedure would affect how visitors plan stays in the city.

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Golubović said the decline in arrivals and overnight stays from Russia and Turkey could not yet be estimated with certainty. He outlined possible falls of 20%, 30%, 50% or 60%. A 20% drop would be a milder scenario, based on experience in some other countries, while the fall among visitors from Azerbaijan had reached 60%, he said.

Golubović said some of the lost tourism traffic could be replaced by visitors from Western Europe. He also warned that labour costs would rise in tourism and hospitality, and that businesses might seek to offset the additional expense through higher prices. Higher operating costs could affect both prices and competitiveness, he said, describing price increases as an unpopular measure.

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The regional market accounts for 35% of tourism and is highly price-sensitive, Golubović said. The Tourism Organization of Podgorica said China, Russia and Turkey had been important markets for the city, and that it would step up promotion in Spain, Poland and Scandinavian countries while focusing on markets with potential.

Trade fair presentations, business forums and business-to-business meetings will form part of the organization’s strategy to attract new visitors. Montenegro’s citizens need visas to travel to Belarus, while its visa-free arrangement with China has been extended until the end of the year. The effect of promotional activity in cushioning the new regime’s impact will be reflected in upcoming tourism results.

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