Located in the north-east of Montenegro, Rožaje is strategically positioned to leveragecross-border trade routes and a robustdiaspora network, benefiting from its proximity toKosovo and Serbia. Although the area’s tourism sector is still developing, it holds significant potential for growth.
The municipality’s tourism appeal is largely derived from theHajla and Štedim mountains, alongside its forested plateaus and rich cultural-religious heritage that reflects both Islamic and regional traditions. Unlike more popular destinations such as Durmitor or Prokletije, Rožaje offers a unique blend ofcultural depth and mountain landscapes.
Visitor numbers are currently modest; however, those from the diaspora and regional areas tend to stay an average of3–5 nights, particularly during peak summer and holiday seasons. Daily expenditures for these visitors typically range from€100–140, with spending concentrated in accommodation, food, retail, and transportation. The local economy benefits from a high retention rate of over70 percent, bolstered by family-owned businesses and micro-enterprises funded by the diaspora.
The impact of tourism on employment is noteworthy. It provides one of the few opportunities fornon-public-sector employment within the municipality. In the tourism and services sectors, net monthly wages average between€750–1,000. The income stability in this sector is further supported by consistent demand from the diaspora, which tends to be less affected by fluctuations in international travel.
Municipal finances are positively influenced by tourism activities driven by the diaspora, which contribute to increased construction efforts, retail sales, and service tax revenues. While tourism does not yet represent a major source of budgetary support, it stands out as one of the few viable growth avenues available locally. A sustained rise in tourism could potentially enhance municipal revenues by approximately15–20 percent over several years.
However, there are structural challenges that hinder scalability. Issues such as road quality, border crossing procedures, and a lack of branded accommodations pose significant constraints. Nonetheless, Rožaje has a strategic opportunity to developcross-border tourism circuits, linking Montenegro with Kosovo and Serbia. With targeted investments estimated between€15–20 million aimed at improving access roads, trails, and visitor services, Rožaje could evolve into aregional mountain-culture hub, rather than remaining a peripheral town.
