Montenegro has 300 kilometers of Adriatic coastline, but the revenue from beach concessions is alarmingly low. Despite a record 2023 year, the state – specifically the Public Enterprise for Coastal Management – only earned 6.8 million euros, a figure that has been even lower in previous years. This is a striking contrast to Greece, which, with 15,000 kilometers of coastline, generates significantly higher revenue from individual beaches through a concession system.
Where is the money leaking?
Concession fees for beaches in Greece range from 20 to 50 euros per square meter annually, with top destinations like Mykonos reaching up to 106 €/m². For example, a 100-square-meter parcel on Mykonos costs the concessionaire over 10,000 euros a year. In Montenegro, however, the concession system is much weaker, resulting in minimal revenue rather than serious income.
In Croatia, until 2023, there was a complex model for distributing beach revenue, where a portion stayed with local governments and the rest went to the state. New legislation allows municipalities to choose their own concessionaires and keep more of the revenue. In Malta, the income from beach concessions stays within the national economy, though the lack of transparency in contracts raises concerns about privileged deals.
Montenegro needs to establish clear rules – ensuring that the state, not private individuals, is the primary financial beneficiary of its natural resources. Revenues from beach concessions must be significantly increased, and contract transparency must be guaranteed. European and global trends indicate that tenders are increasingly international, with a slight favoring of local bidders.
Million-euro bids and tender tricks
The example of “Lučiće” beach, with a seasonal concession estimated at a minimum of 44,570 euros, shows how undervalued the system has been. Four bids were received, one reaching as high as one million euros. However, insiders claim that the bidder may withdraw, as such a price would be unfeasible for a profitable business. If this happens, previous concessionaires, who offered much lower sums, may regain control of the beach for another four years.
The tender scoring system is designed so that, even if an extremely high bid is made, it could still return to the initial, laughably low rental fees if the bidder backs out. These maneuvers are suspected to manipulate the tender process and allow previous concessionaires to continue paying far less than what they should be paying.
What the state must do:
- Increase revenue to 20 million euros: The state cannot accept small amounts. With proper beach valuation, concession revenues should not be less than 20 million euros annually.
- Transparency and drone monitoring: Similar to developed countries, Montenegro must use technology, including drones, to monitor compliance with concession agreements and the use of public space.
- Mandatory 50% public space: Beaches are public assets. Every concession must guarantee that at least 50% of the space remains free for citizens.
- No tender manipulation: Existing tender manipulations, where bidders with unrealistic figures eliminate competition only to later withdraw, must be penalized. Laws must clearly define severe penalties for such attempts.
- Public contracts: Every concession must be transparent, with clearly defined obligations for concessionaires. The state must have accurate data on who pays what and how much is earned.
The current tender, where controversial high bids were received, is unlikely to be canceled due to lawsuits from domestic and international courts.
What’s next?
Montenegro can no longer afford to lease its beaches for small sums while the state and citizens suffer the consequences. It’s time for a serious reform of the coastal management system – if we want the sea and beaches to be a national resource, not a privileged business for a few.
