In 2025, Montenegro’s tourism sector reported significant figures, achieving 15.37 million overnight stays and generating €1.48 billion in revenue. While these statistics reflect a robust performance for a small European economy, a comprehensive review of the Tourism Development Strategy 2022–2025 reveals underlying challenges that remain unaddressed.
The implementation rate of the 2025 Action Plan was notably high at 91 percent, with 40 out of 53 planned activities completed, eight partially completed, and five not implemented. This marks an improvement compared to previous years, where execution rates were lower—standing at 85 percent in 2022 and 83 percent in both 2023 and 2024. However, despite these achievements on paper, the market outcomes were less favorable.
The strategy’s two main indicators fell short of expectations. Although overnight stays in 2025 exceeded the 2019 levels by 6.36 percent, they fell significantly short of the targeted 40 percent increase. Similarly, while tourism revenue grew by 34.8 percent compared to 2019, it still did not meet the planned growth target of 50 percent. The only target that was surpassed was tourism’s contribution to GDP, which reached 28.5 percent, above the anticipated 25 percent.
This performance illustrates both the strengths and vulnerabilities within Montenegro’s economy. Tourism serves as a crucial macroeconomic stabilizer, fostering consumption, employment, foreign currency inflows, real estate demand, and local government revenues. However, such dependency on tourism creates risks due to its reliance on a limited season and a narrow range of source markets.
A concerning trend is evident in the decline from priority source markets; Montenegro recorded 9.92 million overnight stays from its top ten markets in 2025, marking a decrease of 5.05 percent compared to the previous year. Notable declines came from markets such as Russia, Kosovo, Bosnia and Herzegovina, Germany, North Macedonia, and Serbia. In contrast, growth was observed from the United Kingdom, Albania, France, and Poland. However, overnight stays from priority markets remained below the 2019 level of 10.72 million, with the index for 2025 at 92.51.
This situation signals a need for diversification in Montenegro’s tourism model, as traditional markets no longer guarantee long stays or reliable occupancy rates. Changes in geopolitical dynamics have altered the landscape for key source markets like Russia. Furthermore, Western European tourists demand improved air connectivity and service consistency.
The year also saw emerging opportunities for diversification with significant growth in overnight stays from countries such as Azerbaijan, Malta, India, Greece, and Israel. There were also increases from more distant markets including New Zealand, China, Japan, Brazil, the United States, and Australia.
The strategy’s strengths included enhanced promotion efforts and improvements in accommodation quality and infrastructure. Notably, the destination campaign “Uncover Your Wild Side” garnered nine awards. The National Tourism Organisation executed 18 marketing campaigns, while support was provided for 140 projects, including cultural and rural tourism initiatives.
The sector also launched 10 new tourism products, surpassing its target of six products. However, overall financial support remains modest compared to the scale of required reforms within the sector.
A significant portion of funds allocated during the action-plan period was directed towards infrastructure development; out of a planned budget of €69.04 million, €58.18 million went towards actual expenditures. Of this amount, €55.65 million were sourced from state budgets while €2.54 million were derived from donor funds.
This spending emphasizes Montenegro’s focus on physical infrastructure improvements such as developments at locations like Kolašin 1600 and Đalovića Cave as well as enhancements to airports and transport links. However, reliance solely on infrastructure will not modernize the tourism sector if regulatory frameworks remain weak.
The report indicates that critical legal reforms are lagging behind: three essential laws—the Law on Tourism and Hospitality and amendments to both the Law on Tourist Organisations and Law on Residence Tax —remain incomplete due to various administrative challenges.
This lack of progress is detrimental as it affects formalization processes and governance within Montenegro’s tourism sector where informal activities are prevalent.
The absence of an operational National Tourism Council further highlights institutional weaknesses; despite plans for its establishment since 2022 frequent changes have hindered its effectiveness.
A key unfinished reform is digitalization; while plans for an electronic guest-registration system were initiated through analysis in 2025 the project remains incomplete. The government has earmarked €1.37 million for further development in this area for 2026.
This investment is critical as accurate data collection is necessary for effective policy-making and management within such a significant tourism economy.
The final report suggests that while Montenegro has seen growth in tourism revenue and product development the sector still faces challenges related to seasonality and regulatory shortcomings that could deter future investments.
The upcoming tourism strategy aims to span a 10-year horizon with adaptable two-year action plans designed to respond to market conditions more effectively.
An emphasis on local community involvement is also highlighted as essential for sustainable tourism development across diverse regions within Montenegro.
The reported tourism revenue of €1.48 billion in 2025 serves as both an accomplishment and a cautionary indicator regarding future policy execution needs within this vital economic sector.
