Montenegro has successfully expanded its luxury hotel offerings and restored visitor numbers, yet it now confronts the challenge of maximizing tourism value while managing seasonal, regional, and environmental pressures. The country has consistently attracted tourists, but translating this influx into a more sustainable and productive economy remains complex.
In 2024, international arrivals in commercial accommodations reached 2.5 million, a figure that remained stable compared to the previous year. However, tourism receipts experienced a decline of 3.1% to €1.5 billion, as reported by the OECD’s recent review. This stagnation in visitor numbers alongside falling income suggests a potential decrease in tourist spending or lower revenue per visitor.
This situation is particularly significant given that travel accounted for 54.6% of Montenegro’s service exports in 2024, highlighting the sector’s critical role in the national economy. The domestic market offers limited support against fluctuations in external demand, with only 3.9% of overnight stays attributed to local residents. Data from Monstat indicates a heavy reliance on neighboring countries for tourism, with Serbia contributing 23.5% of foreign overnight stays, followed by Russia at 18.3% and Bosnia and Herzegovina at 8.4%.
This dependence on specific markets makes Montenegro’s tourism sector vulnerable to changes in air travel, visa regulations, household incomes, and geopolitical events. Disruptions in key markets during peak seasons could pose significant economic challenges.
Despite these vulnerabilities, Montenegro has made notable strides in enhancing its tourism infrastructure. Since 2012, the country has introduced 38 five-star hotels with approximately 5,560 beds and 155 four-star properties offering around 17,400 beds. Currently, over half of the hotel inventory is classified as four or five stars, a substantial increase from less than a quarter a decade ago.
Tax incentives have played a crucial role in this transformation, allowing investors in luxury accommodations to benefit from exemptions on import VAT and reductions in real estate taxes. These policies have bolstered Montenegro’s position within the high-end Adriatic market and attracted international hotel brands.
However, an increase in luxury hotel capacity does not automatically translate into an improved tourism economy. Enhanced accommodations do not address existing issues such as traffic congestion, pressure on water and waste systems, and shortages of skilled labor. Moreover, higher hotel ratings do not guarantee that increased tourist spending will remain within the local economy.
The government’s Tourism Development Strategy for 2022-2025 acknowledges these challenges and aims to extend the tourist season, increase per-visitor spending, and promote a more even distribution of tourism across the country. Key measures proposed by the OECD include support for energy efficiency in hotels, grants for rural accommodations up to €20,000, and investments in northern attractions and ski resorts.
The initiative targeting northern regions seeks to create an alternative tourism economy beyond the coastal areas. Planned projects include ski resorts at Žarski, Cmiljača, and Štedim–Hajla as well as enhancements to Kolašin 1600 and Savin Kuk ski areas and development of Đalovića Cave alongside necessary infrastructure improvements.
While these projects aim to stimulate investment and employment in northern municipalities and promote year-round mountain tourism to reduce reliance on summer coastal activities, they necessitate thorough commercial and environmental evaluations. The financial viability of winter infrastructure remains uncertain due to rising temperatures impacting lower-altitude ski developments.
Digitalization presents another avenue for improvement through the introduction of a new Tourist Information System launched in July 2025. This system aims to automate registration processes, enhance data collection capabilities, and identify unregistered accommodations—issues that have historically complicated tax collection and management of visitor statistics in Montenegro’s informal rental market.
The primary concern is whether Montenegro will continue to measure success solely by metrics such as tourist arrivals or hotel classifications without addressing deeper economic implications. Future strategies should establish measurable objectives related to revenue per night, employment productivity, year-round occupancy rates, regional tourism distribution, and local infrastructure pressures while distinguishing between genuine diversification efforts versus merely constructing new facilities.
The OECD review portrays Montenegro as a destination that has regained its scale and improved accommodation quality; however, it also indicates that the current growth model may be nearing its limits. The focus should shift from merely increasing summer tourist numbers towards attracting visitors who stay longer, spend more money locally, explore beyond coastal areas, and maintain manageable impacts on local communities.
