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Abazović: Tourism enables the complete sustainability of Montenegro and public finances

The Prime Minister said that at this moment the number of visits is 20 percent higher than in the same period last year. "The goal is for Montenegro to be branded as a responsible and sustainable destination, which applies innovative solutions, digitalization, eco and green tourism trends," emphasized the relevant minister, Goran Đurović.

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Members of the Government at Lake Biograd, Photo: Government of Montenegro
Members of the Government at Lake Biograd, Photo: Government of Montenegro
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.
Ažurirano: 26.07.2023. 14:44h

Prime Minister Dritan Abazović, at the thematic session of the Government on tourism, said that this branch of the economy enables the complete sustainability of Montenegro and public finances at the moment.

"I don't think this has happened before, or it certainly hasn't happened on this scale. This means that we generate enough revenue to service the expenses that every state has without any problems," said the Prime Minister in the opening part of the session. on Lake Biograd.

Abazović stated that at this moment the number of visits is 20 percent higher than in the same period last year.

He said the tourist season was "going very well" and that the pre-season had exceeded all expectations. The main tourist season is slightly higher than 2019 when it comes to the number of visitors, but revenues are significantly higher than that record year, Abazović points out.

"Everything is working as it should. Despite the increased pressure on the road infrastructure and electrical distribution network, no significant problems have been observed, the border crossings function almost flawlessly. Detention on the Montenegrin side is minimal or almost non-existent. The overall effects of the tourism industry as of today are beyond optimistic expectations at the beginning," said the Prime Minister.

thematic session of the Government
photo: Government of Montenegro

As he said, it is expected that August will "traditionally be the best month" and that at the beginning of September it will be concluded that the "peak" season has met expectations.

He also pointed out that the visit to the north of the country - places like Žabljak, Biogradska gora, Kolašin, Plav and other places - is significantly better than before.

Abazović said that they expect the Kotor - Lovćen cable car to be put into operation for tourists soon.

"It's kind of the crowning glory of the 43rd Government, considering that cable car has been talked about for 30 years, maybe more. Last year, on July 13, the foundation stone was laid, on the same date this year we had a test run. I think everything is working flawlessly, I expect that in the coming days we will receive an exact date when the cable car will be put into operation for visitors," concluded Abazović.

Đurović: Montenegro is an attractive destination for the whole world

The Minister of Economic Development and Tourism, Goran Đurović, said that tourism has a multiplier effect on other economic sectors and that movements in the tourism market dictate many other social trends.

Đurović said that the implementation of this season is accompanied by problems such as "our decades-long legacy", which primarily relate to infrastructure.

"Here I am thinking of traffic jams, water supply and electricity supply, jams at border crossings, but this is the minimum of what someone might have expected and where there were fears that we would have these problems. As the Prime Minister said, we have no major problems," he said. the minister.

thematic session of the Government
photo: Government of Montenegro

He pointed out that the structure of tourists in Montenegro is changing significantly. "Our country currently has guests from Germany, Israel, France, the Emirates, Saudi Arabia, Great Britain, the Netherlands, Albania, Russia, Ukraine, Serbia, Poland, Turkey, Bosnia and Herzegovina, Belarus, Kazakhstan and other countries. This indicates that we are becoming an attractive destination not only for the region, but for the whole of Europe and the world".

According to the latest official statistical data of Monstat, in the first five months, 575.447 tourists were registered in all types of accommodation, which is 53 percent more compared to 2022, and 24 percent more compared to 2019.

According to the report of the National Tourist Organization, 171.410 tourists are staying in Montenegro, which is slightly more than in 2019, and even 20 percent more than in 2022.

Airports recorded a 14 percent increase in aircraft traffic in the first six months compared to 2022.

National parks were visited by 201.149 people in the same period, which is 68,57 percent more than last year. "Income from sold tickets amounted to 874.747, which is almost 42 percent more compared to the same period last year," he points out.

Đurović said that they strive to create long-term development policies based on sustainable tourism.

"The goal is for Montenegro to be branded as a responsible and sustainable destination, which applies innovative solutions, digitalization, eco and green tourism trends," he emphasized.

The goal, he said, is primarily to encourage high-paying tourists, but also all tourists, to come more often and stay longer in Montenegro.

Damjanović: Taxes are still being avoided

Minister of Finance Aleksandar Damjanović said that there is still a huge zone for additional tax revenues in tourism.

"We have data on 10 percent more revenue from VAT, at the level of other revenues, these are even better figures, but VAT is interesting, because it says a lot. If we include the inflation factor compared to last year, which is below ten percent, and the number tourists, it is clear that we still have tax evasion in terms of accommodation, offers in catering establishments and as far as beach furniture is concerned," he stated.

thematic session of the Government
photo: Government of Montenegro

He appealed to citizens visiting from abroad to be "some kind of inspectors" and to report embezzlement from the state by irresponsible individuals, who also create unfair competition for those who operate legally.

He also indicated that visitors to facilities where fiscal invoices are not issued are not required to pay for services or goods.

"They have the full protection of the state to do that. If someone tries to embezzle from you and embezzle from the state through you, you have the right to resist by not paying for the goods," said the minister.

Damjanović said that Montenegro "slowly but surely can become a sustainable system".

"We entered this year with deposits of around 40 million euros, and that we borrowed only 100 million euros, out of the 600 million allowed by the Parliament. This means that Montenegro de facto, with strong measures to suppress the gray economy, especially in the area tourism can slowly but surely become a sustainable system. I think that the activities of this Government have laid the foundations for the sustainability of public finances," he pointed out.

Directors of administrations and state-owned companies also attend the thematic session on tourism.

Bulajić: Zero tolerance for black economy and corruption

The Revenue and Customs Administration achieves an excellent gross collection of budget revenues, strengthened the controls of taxpayers during the summer season and makes a significant contribution to the best possible results of the state in tourism, said UPC director Vladimir Bulajić.

Vladimir Bulajic
photo: Government of Montenegro

"UPC has a zero tolerance rate for the gray economy and corruption. Indiscriminateness is one of the basic principles in work, we have also identified weak points and are quickly solving problems in order to get the fastest and most modern service for citizens and businesses," he emphasized.

He recalled the record gross revenue collection of 1,39 billion euros, from the beginning of the year until now.

"This is 25 percent or almost 280 million euros more than in the same period last year and significantly above the budget revenue plan. The most significant budget revenue is realized in the months of the tourist season, and we expect that because all the capacities of the UPC are aimed at increasing tax discipline." , said Bulajic.

Mikijelj: In July alone, profit from ferries is about one million euros

The executive director of Morski Dobr, Mladen Mikijelj, said that this year the company had an obligation to put into operation the ferry line Kamenari - Lepetane.

"Currently, we have eight ferries with a capacity of some 300 vehicles. From the beginning of collection on May 5 until today, 2,1 million euros have been collected," said Mikijelj.

He explained that until this month, they could not declare expenses, because they did not have a full fleet.

"In July, we will have 1,2 million euros in income, while expenses for salaries will amount to about 140 thousand, and for fuel and oil 50 thousand, so the total will be about 200 thousand euros. This means that in July alone, we will have a profit of about one million euros, which is almost five times more than the state had in previous years," Mikijelj announced.

Abazović said that the net profit achieved from the Kamenari - Lepetane ferry line in just one month was five times higher than the state received on an annual basis.

"This shows that this is a business with a huge margin," said Abazović.

Tripković Marković: Residence tax collection increased by 47 percent

The director of the National Tourist Organization (NTO), Ana Tripković Marković, announced that the collection of tourist tax since the beginning of the year amounts to more than five million euros, which is 47 percent more than last year.

"This is encouraging information," Tripković Marković said.

She stated that this year's promotional activities covered 34 countries of the world.

"The intensity varies depending on the importance of the market, and we are also planning for next year, for which we have planned a large digital campaign," Tripković Marković announced.

Martinović: National parks exceeded the record in 2019.

The Director of National Parks (NPCG), Vladimir Martinović, said that by July 23, 308 thousand visitors stayed in national parks, which is 117 thousand or 61 percent more compared to the same period last year.

"The income realized on this basis as of July 23 is 1,36 million euros, which is 790 thousand more than last year," said Martinović.

He stated that they exceeded the record year of 2019.

Drašković: Podgorica airport is stronger compared to 2019, Tivat is lagging behind

The director of the Airport of Montenegro, Vladan Drašković, said that both airports are growing at the level of 38 percent compared to the number of passengers last year.

"Podgorica Airport is about 27-28 percent stronger compared to 2019, while Tivat Airport lags behind at the level of 37-38 percent. Cumulatively, they are some four percent below 2019. The reasons should be sought in the Ukrainian market, which, before the development of the geopolitical situation in in an unfavorable way, some 40 percent participated at Tivat Airport", said Drašković.

He said that he was lowcost In 2019, it brought about 330 thousand passengers, and last year 480 thousand.

"This year we will defeat last year and establish a new record in that segment," announced Drašković.

Anjur: We will have about two million profit

The CEO of Air Montenegro, Mark Anjur, announced that at the end of the year, if there are no surprises, the company should earn around two million euros.

"By the end of the year, we will have a 40 percent increase in the number of passengers, which will be around 500 thousand by the end of the year, which is excellent. Revenues will increase by 50 percent to 52 million. We will have a profit of around two million euros, which is great. We can be proud of this result," said Anžur.

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