Without urgent and coordinated action by institutions, key issues affecting the tourism industry threaten serious consequences for the success of the summer season, business sustainability, and overall public revenue, as highlighted during a session of the Tourism and Hospitality Committee of the Chamber of Commerce of Montenegro, held in the Municipality of Budva.
Representatives from local government, tourism organizations, business and state institutions openly addressed multiple challenges already being felt on the ground.
Ranko Jovović, President of the Tourism and Hospitality Committee, stressed that last year’s decline in tourism revenue is a serious warning that demands immediate, strategic measures to avoid a continuation of the negative trend, especially in light of the lack of key strategic documents and insufficient involvement of the private sector in legislative processes.
He emphasized the need for more efficient, digitized procedures for hiring seasonal workers and urged the completion of all infrastructure projects before the start of the season. He also pointed out that the increase in VAT from 7% to 15% would negatively impact the competitiveness of Montenegro’s tourism product, especially compared to neighboring countries maintaining lower tax rates.
Delays in tender procedures for the rental of parts of the coastal area and uncertainty regarding beach readiness could seriously threaten the start of the season, he warned. Without a clear strategic direction, even Montenegro’s greatest advantages as a destination—its natural beauty, diverse offerings, and cultural heritage—could be compromised, he added.
Nikola Jovanović, Mayor of Budva, emphasized that the session represented an example of cooperation between the Chamber of Commerce, the private sector, and local government. He acknowledged that, although Budva faces key challenges such as delays in beach tender procedures and rising beach rental prices, the municipality is committed to improving conditions for a successful tourist season.
Petar Odžić, President of the Budva Municipal Assembly, noted the uncertainty surrounding the tourism season due to delayed tender processes and the VAT increase, which could undermine the competitiveness of the industry. He emphasized that increasing tax burdens does not necessarily lead to higher tax revenue and could contribute to a larger informal economy. He advocated for restoring the previous VAT rate.
The private sector also raised concerns about the shortage of qualified labor, slow and complex procedures for obtaining work permits, and the challenges posed by increasing beach rental prices and incomplete infrastructure. They stressed that these issues could further distance Montenegro from regional competitors like Croatia and Albania.
Aleksandar Božović from the Budva Tourist Organization highlighted the need for better promotion of destinations and the creation of a new tourism strategy that involves all stakeholders, from local organizations to the Ministry of Tourism.
Dragan Dašić from the Ministry of Interior noted the significant workload and pressure on local authorities, despite limited resources. He called for more investment and support in this area.
Milena Milić from the Ministry of Tourism presented the government’s 2025 summer tourism preparation plan, focusing on infrastructure improvements, increasing accommodation capacities, diversifying offerings, and enhancing destination promotion. The plan also emphasizes extending the tourist season and strengthening Montenegro as a year-round destination.
Zoran Vučinović, from the Tourism Security Committee, spoke about enhancing the security environment and coordination between the tourism and security sectors to maintain guest trust and preserve Montenegro’s reputation as a safe and desirable destination.
In conclusion, it was agreed that Montenegro must adopt a strategic approach to tourism development, focusing on sustainability, simpler procedures, and stronger cooperation between the state and private sector to address long-standing issues. Otherwise, Montenegro’s tourism could fall behind its competitors and harm the country’s long-term economic growth.
