Montenegro’s tourism sector is experiencing a notable increase in visitor numbers, with the first half of 2026 seeing 994,459 arrivals, reflecting a growth of 5.71%. Additionally, the country recorded 5.14 million overnight stays, marking an increase of 6.47%.
However, the hotel industry is facing challenges in capitalizing on this influx. Collective accommodation establishments welcomed 614,697 visitors, which represents only a marginal increase of 0.36% compared to the previous year. Meanwhile, overnight stays in hotels and similar facilities rose by just 1.55%, totaling 1.86 million.
In contrast, private accommodations have seen significant growth. Arrivals at individual units surged by 15.69%, reaching 379,762, while overnight stays in these facilities increased by 9.48%, amounting to 3.28 million. Private apartments, villas, and other units accounted for nearly 64% of all tourist nights and contributed approximately nine-tenths of the annual increase in stays.
This shift in accommodation preferences has broader economic implications. Hotel-led tourism typically generates formal employment and centralized procurement, resulting in more easily identifiable tax revenues. Conversely, private accommodations distribute income among property owners and can be more challenging to regulate, integrating visitors directly into residential areas.
The travel patterns associated with these two types of accommodation also differ significantly. Data indicates that guests in private units tend to stay an average of about 8.6 nights, compared to approximately 3.0 nights for those in collective establishments. This suggests that private accommodations are attracting longer-staying and often more budget-conscious travelers, while hotels cater more to shorter leisure trips and business travel.
This distinction poses challenges for hotel investors in Montenegro. Despite record visitor volumes, collective accommodations struggle to enhance occupancy rates. New hotel developments must contend not only with existing hotels but also with a rapidly expanding supply of private apartments.
Municipalities are also facing related issues as the rise of private accommodation increases demand for public services such as water, waste management, roads, and parking. Without adequate registration and local taxation measures, the costs incurred by municipalities may outpace revenue growth.
The ongoing expansion of Montenegro’s tourism sector is evident; however, it increasingly reflects a trend towards property-based accommodation rather than a traditional hotel boom.
