After the collapse of the winter tourist season, Montenegro is grappling with numerous perennial problems at the dawn of summer, which could negatively affect the budget revenues of a country that is heavily dependent on tourism.
The summer season officially begins on May 1st, and Montenegro is welcoming it with an unfinished tender for renting out beaches, a lack of seasonal labor, poor traffic connections, especially on the coast where people travel in kilometer-long queues during the peak of summer, uncertainty about the opening of the symbol of Montenegrin tourism - "Sveti Stefan", a lack of parking in the national parks "Biogradska gora", "Durmitor" and "Skadar Lake", old and often unairconditioned trains, undefined airlines of public importance whose goal is better air accessibility and temporary locations for catering terraces in Budva, poor infrastructure at the airports in Tivat and Podgorica, illegal landfills from Ulcinj to Durmitor...
Most of these problems have been present for years, and since the end of last season, despite promises from the authorities, the issue of public bus transport from the capital and Ulcinj to the Podgorica airport and vice versa has been resolved.
Because of all these shortcomings, tourism workers are hardly mentioning the possibility of a record season and, as they unofficially say, they expect a result similar to last year's.
Unlike them, the Ministry of Tourism expects higher traffic, but does not explain what they base their optimism on...
Last year, tourism in Montenegro fell for the first time in two decades. Revenue amounted to 1,46 billion euros, which is 3,6 percent less than in 2023. According to Monstat data, 2,6 million tourists visited Montenegro last year, who made 15,6 million overnight stays. The number of tourists is only seven thousand fewer than the year before, but 800 thousand fewer overnight stays were made, which is the main reason for the drop in revenue.
The impact of tourism on gross domestic product (GDP) is around 25 percent...
In order to prepare for the summer season, a decision was made in February to temporarily exempt citizens of Uzbekistan, Kazakhstan, Armenia, Egypt, as well as residents of the United Arab Emirates, from March 1 to November 1.
No seasonal laws, no airlines of public importance
Although the Law on Seasonal Foreigners was announced for the beginning of this year's summer season, which should regulate the labor shortage by introducing the category of permanent seasonal worker, the Ministry of Labor's department Naide Nišić with that act, he arrived at the draft. The Ministry did not respond to "Vijesti" when it can be expected that the "permanent seasonal worker" will come into force. The law would allow employees to remain in the same jobs outside the tourist season, receive compensation and contributions even when they are not working, while employers would receive a permanent workforce, even for parts of the year with a smaller workload...
The plans for this season also specified airline routes of public importance (PSO-Public Service Obligation), but until yesterday the Government had not come up with a proposal for the routes, nor had amendments to the Air Transport Act been adopted to create a legal framework for them. The amendments to the Act proposed by the Democratic People's Party (DNP) parliamentary group have been "gathering dust" in parliamentary drawers since January. PSO is an arrangement in which the state offers subsidies to airlines through public procurement, so that the one who wins the tender has the obligation to provide air transport on precisely specified routes for a certain period of time, for a certain fee.
Preparations are late, optimism is unfounded
The (lack of) seriousness of the Government in preparing for the summer season, on whose success the filling of the state budget largely depends, is also evidenced by the fact that the preparation plan was adopted in early April, less than a month before the official start. The plan contains a large number of activities and descriptions of plans, but without clear operational steps that would guarantee that the key challenges will be resolved by the start of the season.
Although the activities mentioned are in the areas of promotion, inspection, seasonal employment, infrastructure and the organization of cultural events, most of them are either ongoing, planned for implementation throughout the year, or involve projections without a guarantee of execution. Many infrastructure activities, such as the arrangement of promenades, the construction of roads or the adaptation of tourist points, have been announced to be “partially completed” or “the work will be suspended during the season and resumed later”.
"Analyzing the information provided, the expectations are that this year's tourist season will be good and that this will be reflected in an increase in tourist traffic and tourism revenue," the plan states.
"Vijesti" did not receive an answer from the Ministry of Tourism when asked what the assessment that there will be an increase in tourist traffic and income from tourism is based on.
NTO budget among the lowest in Europe
While all tourist destinations are struggling to attract as many guests as possible, the Government is harming the promotion of tourism, and has symbolically reduced this year's budget of the National Tourism Organization (NTO), while cutting back on the NTO's designated revenues over a longer period of time.
"The total budget for 2025 is 3.185.311,55 euros, while last year's budget was 3.165.721,36 euros, and there are no major deviations in the amount. In accordance with the legal framework governing this area, a part of the total earmarked revenues, which include the tourist tax, tourist tax and membership fees, should be allocated to the NTO of Montenegro. However, unlike local tourist organizations that receive their share of earmarked funds directly and in full, earmarked funds for the NTO are allocated through the Law on the Budget of Montenegro, and in part. In this way, from the very beginning, a smaller budget is allocated to the NTO compared to the part of earmarked funds that it is entitled to by law. This means that this year, a 25,6% smaller budget has been allocated to the NTO compared to the earmarked revenues generated last year, which it is entitled to by law. According to last year's research conducted at the international level, the NTO was among the three organizations in Europe with "with the lowest budget of the 29 national tourism organizations included in the research," the NTO told "Vijesti".
Ministry without concrete answers
The Ministry of Tourism did not provide any answers to a number of specific questions regarding the organization and challenges of the upcoming summer tourist season, but instead sent a general overview of the activities it is implementing and plans related to the development of the tourist offer. "The news asked - which specific problems from the previous season have been eliminated, which key problems have not been solved and why (lack of seasonal workers, inspectors, border police officers, infrastructure), how the shortage of seasonal workers in the hospitality and tourism industry is planned to be resolved this year, and when it comes to congestion at border crossings, will the number of police officers be increased and is there an agreement with neighboring countries on faster flow, based on what and which analyses are higher income and turnover from tourism expected, what is written in the preparation plan for this year's summer season and what are the expectations for the upcoming season.
Instead of responding, the Ministry of Tourism states that preparations for the season are taking place continuously, and one of the key mechanisms is the Coordination Body for Monitoring and Preparing Tourist Seasons, chaired by the Minister of Tourism. Simonida KordićAs they state, "the session of the Coordination Body was held on March 18th of this year, and was attended by representatives of all departments at the state and local levels and institutions that directly influence the quality of the tourism product."
"In order to increase the number of source markets, thereby reducing dependence on a certain number of markets from which people traditionally come to Montenegro, this year, at the initiative of the Ministry of Tourism, the Government timely adopted decisions on the introduction of a temporary visa-free regime for the period from March 1 to November 1 for citizens of Uzbekistan, Kazakhstan, Armenia, Egypt, as well as for residents of the United Arab Emirates. In order to improve the air accessibility of Montenegro, in cooperation with the Airports of Montenegro (ACG) and the Ministry of Transport, efforts are being made to open new routes. According to previous announcements from airlines, 45 routes are expected to be launched in Podgorica, and 60 in Tivat. It is important to point out that during the upcoming summer season, cooperation is being established for the first time with the Spanish low-cost airline 'Vueling', which will connect Tivat and Barcelona, in the period from July 1 to October 25 of the current year, three times a week. When it comes to new air routes in In Podgorica, the national airline announced the opening of routes to Prague and Baku, then the Podgorica-Bahrain route of the airline 'Gulf air', as well as flights to and from Brno and Tbilisi. The airline 'Wizz Air' planned a 10 percent increase in traffic for the upcoming season, or 150-200 rotations more than before...", they state.
On the topic of traffic jams during the summer season, they state that they are considering introducing a "transit tax" that would redirect vehicles to the Nikšić-Podgorica route, in order to relieve the burden on coastal roads:
"The working team to determine the possibility of introducing a transit tax has begun work and, in addition to the extensive task ahead of it, will make additional efforts to ensure that, if the prerequisites for this exist, the implementation of the transit tax is realized for this year's tourist season."
The Ministry recalls the development of panoramic routes and the continuation of work on promoting year-round tourism, including rural tourism, hiking & biking, activities in national parks and in rural households.
"The development goal, from the tourism aspect, is for Montenegro to be a sustainable tourist destination with an offer for all 365 days of the year, which also ensures its 'resilience' to various crisis events. In this sense, intensive activities are being undertaken towards further diversification of the tourist offer by combining urban and rural products, with an emphasis on year-round offer and the north of Montenegro. Through diversification, Montenegro's tourist product will overcome the limits of the 'sun and sea' offer, which would ultimately result in an extension of the tourist season and balanced regional development, reducing pressure on the coast, while respecting the principles of sustainable development of the destination."
The response also states that the Program of Incentive Measures in the Field of Tourism for 2025 is in the process and will include seven support measures, including the organization of events, improvement of rural offerings, digitalization, development of MICE tourism, partnerships with tour operators, and joint marketing campaigns for air arrivals.
Higher VAT "a very risky move"
When asked which specific problems from the previous season were resolved, the Tourism Committee of the Chamber of Commerce of Montenegro (PKCG) stated that the Government timely made a decision to temporarily lift visas for the period from March to November for important markets for Montenegro. They emphasize that the issue of visa liberalization is important for the tourism industry.
They state that Montenegro as a tourist destination is burdened by problems that require a strategic approach, and that tourism professionals indicate that the success of the tourist season is particularly affected by challenges such as the gray economy, lack of skilled labor and easy employment of seasonal workers, utility and transport infrastructure, air accessibility of the destination, an uncertain business environment, reduced investor confidence...
"For this season, a challenge is also the delay in the tender procedure for the lease of bathing areas, which may lead to a situation where bathing areas will not be ready for the start of the tourist season," warned the PKCG.
They did not clearly answer the question of how they plan to solve the shortage of seasonal workers in the hospitality and tourism industry this year. Instead, the Chamber of Commerce and Industry of Montenegro pointed to a series of systemic and long-term measures, such as the modernization of educational programs, strengthening dual and vocational education, promoting shortage professions among young people, and introducing flexible models of training and retraining. They also proposed the possibility of tax breaks for employers who employ people under 30, as well as further simplifying procedures for employing foreigners.
When asked whether lower prices in tourism are expected this year compared to the previous one, the Chamber of Commerce and Industry of Montenegro pointed to fiscal changes that could affect price formation, particularly referring to the increase in the VAT rate.
"The additional burden in the form of an increase in the VAT rate for tourism services from 7 to 15 percent, which came into effect on January 1, 2025, may adversely affect the competitiveness of the Montenegrin offer, especially considering the competition in the region where these rates are significantly lower. We do not yet have precise data on the extent to which this fiscal increase will negatively affect the tourism industry, but it is obvious that it will. Increasing the price of any product by 114 is a very risky move, especially if it is known that the tourism product is one of the price-sensitive products, which requires careful long-term planning, without the possibility of ad hoc solutions," the PKCG emphasized.
The Chamber of Commerce and Industry of Montenegro believes that the abolition of tax breaks for the construction of high-class hotels, which previously stimulated the development of quality offer in our country, may slow down investments in high-quality accommodation, which is necessary to extend the season and attract high-paying guests.
"Montenegro has many comparative advantages as a tourist destination, from natural beauty, diversity of tourist offer, high standard of categorization in all areas, exceptional wealth of cultural and historical heritage, presence in almost all segments of the tourist product, however, if we do not develop the accessibility of the destination and solve other infrastructure problems, all of the listed advantages may be jeopardized," said the PKCG, adding that the necessity of better air connectivity has been pointed out for a long time in order to increase the number of foreign tourists, and that it is necessary to opt for the concept of airport development as one of the most significant resources with an immeasurable impact on the development of the destination.
The Chamber of Commerce and Industry of Montenegro says that the tourism sector is still burdened by numerous challenges and if Montenegro wants to preserve its position on the tourism map and keep up with competition in the region, it is necessary to review the current fiscal measures in the sector, improve promotion, but also work additionally on extending the season through diversification of the offer, improving air accessibility and road infrastructure, as well as overcoming chronic challenges, such as problems with cleanliness, noise, the grey economy and lack of personnel.
"The Government's priority should be activities to establish a partnership with the economy, as well as a stimulating environment for new investments in tourism as a strategic development branch of the economy. Successful and quality management of a tourist destination is a prerequisite for the successful implementation of tourist seasons, and all this requires a clear vision, the competitiveness of our tourist offer and strengthening cooperation between the private and public sectors."
Crowds at the terminal also due to waiting for the concession decision
During last year's tourist season, passengers at the airports in Podgorica and Tivat faced huge crowds at the terminals and difficult procedures for passing through checkpoints. The Airports of Montenegro (ACG) management then recommended that passengers arrive at the airport up to two hours early because "there are limitations in the quality of service that are directly conditioned by the state of the infrastructure."
Judging by ACG's response to "Vijesti"'s question about what was done to avoid such a situation, it is certain that this year will be similar, because only technical and organizational adjustments have been announced, while systemic solutions are lacking.
"Given that the decision on a possible concession was postponed several times in a short period of time, we have found ourselves in a situation where we have to work with what we have with minimal adaptations that are not financially demanding, because it is not rational to invest millions if there is a possibility that that money will eventually go to someone else. In order to reduce certain and expected crowds, we have started working on relocating the arrival gate in Podgorica to expand departures to that area, which will give passengers more space while waiting to board their flight. Preparations are also underway to open a third security control lane to speed up the flow of passengers from the public to the sterile zone. In addition, the car rental counters will be moved from the airport building in front of it, which will give us additional space for passengers and visitors. The information desk has been moved from a central position, which has given us more space for forming lines for passengers who, after registration, need to go through: access, customs, passport and security control. At the same time, we are expanding the commercial parking lot, which will give us 80 new parking spaces," said ACG.
The state-owned company emphasizes that they successfully implemented the most important undertaking in Tivat by animating more than 150 new seasonal employees for the first time this season, whose training started at the beginning of the year so that they would enter the season ready to serve passengers, luggage, and aircraft.
"In addition, Tivat Airport plans to close the canopy in arrivals, which will allow passengers to wait in an air-conditioned area to enter the country, which has not been the case so far. There are also plans to install a canopy in Terminal 2 in the smoking area, which will increase the capacity of the departure gate."
The plan for preparing for this year's summer tourist season lists the relocation of the arrivals zone at Podgorica airport as an ACG activity. The state-owned company admits that this work will not be completed by the start of the "peak" months of the summer season.
"When it comes to the arrivals adaptation plan (phase I), the preparation of the necessary technical documentation is underway to carry out the necessary works and to announce the procurement for the selection of the contractor, which is nearing completion. The intention is to increase the space for receiving arriving passengers, which will require the relocation of the passport control position to a new location. Bearing in mind that this reorganization affects the work of other entities, the preparation of the technical documentation has been prolonged. On this occasion, the ACG will request an official opinion from the Civil Aviation Agency and the Border Police in order to possibly amend it and, if necessary, complete it. This will be followed by the procedure for amending the PJN for 2025, the announcement of the public procurement procedure, the selection of the contractor, the fulfillment of the conditions for introducing the contractor into the job, as well as the execution of the works themselves. Due to all the above circumstances, it is not certain that the plan will be implemented by the beginning of the 'peak' months of the season."
They are still "intensively" looking for parking solutions
The Public Company for the Management of National Parks (NP) has not resolved the issue of the lack of parking spaces at the toll gates to Black Lake and Biograd Lake and in Virpazar for several years.
(NP) say that the management of parking spaces in the territory of the Municipality of Žabljak was taken over by the local administration, which formed the company "Pakring servis Žabljak" and took over the regulation of parking issues as of July 1 last year.
When asked whether the lack of parking at the toll plaza at Crno Jezero has been resolved, the NP did not provide a precise answer.
"The problem of traffic congestion that exists during the season on the road from the city to the toll booth of the Durmitor National Park was recognized as a challenge in the previous period. After the Municipality of Žabljak took over the management of the parking area, the employees of this company also regulate and control the number of vehicles moving towards the toll booth in the field depending on the number of free parking spaces. In this regard, the relief of traffic on this road route is also noticeable. As one of the challenges in the previous period, we recognized the transportation of visitors by tourist buses to the checkpoint itself. In order to relieve this location and increase the level of visitor safety, buses stop at the Durmitor National Park Visitor Center, and parking is also provided at the Soa Hotel, from where the Durmitor National Park organizes the transportation of visitors by tourist trains to the park entrance. Organizing the transportation by tourist train has greatly relieved the road to the Black Lake and during the past year has met with positive reactions from foreign tourists and domestic visitors who used this form of transportation."
The state-owned company has not built a parking space in the Biogradska gora National Park on Kraljevo kol, for which they said in April last year that they were "intensively looking for a solution".
"Adjusting previously developed project documentation to the new Eurocodes, as it became obsolete, also affected other activities related to the preparation of parking spaces at Kraljevo kolo. Namely, the previous project planned a parking lot that, according to the current legal procedure, cannot be set up/built in this area. The Capital Projects Directorate was responsible for the preparation of the project documentation and its implementation. Also, according to the new program of temporary facilities for the Biogradska gora National Park 2025-2029, a temporary parking lot is planned at Kraljevo kolo. The work on the arrangement and preparation of the parking lot does not include asphalting, concreting and activities that may endanger the space, but rather refers to marking the parking space, installing bollards and possibly ramps. The arrangement of parking spaces in national parks must be in accordance with ambient values, must not endanger or affect the biodiversity of the NP, and these activities must be preceded by analyses and obtaining permits for spatial arrangement in accordance with the law."
Virpazar will welcome tourists this summer season without new parking spaces for buses and cars. cars, which the JNP announced for the beginning of last year. The reason for this is that the program of temporary facilities for the NP "Skadar Lake", as this state-owned enterprise told "Vijesti", ceased to be valid on the last day of last year, so they are waiting for the adoption of a new one.
The Ministry of Spatial Planning, Urbanism and State Property told "Vijesti" that the program of temporary facilities is in the phase of collecting opinions from institutions. After receiving opinions, if necessary, the program will be corrected and published on the official website of the Ministry.
Priority airlines "stuck" in the Parliament
ACG could not specify whether the public service obligation (PSO) airlines will be specified by the start of this summer season. They explained that this depends on the adoption of the law that is in the parliamentary procedure.
"We emphasize that there are all the prerequisites and justifications to implement the introduction of PSO flights as soon as possible. ACG is ready when the time comes to provide a complete and quality service to the selected airline," the state-owned company emphasized.
ACG expects around 45 airlines to be active in Podgorica during the summer season. New routes at Podgorica Airport are Prague (Air Montenegro), Brno (Air Montenegro), Baku (Air Montenegro), Cairo (Petroleum Air Services) - charter and Madrid (Iberia) - charter.
"More than 50 airlines will be active in Tivat. The new routes are Barcelona (Vueling), Salzburg (Smartwings) - charter, Rzeszow (SkyUp MT) - charter and Katowice (Air Montenegro and SkyUp MT) - charter," ACG said.
The state-owned company said that they expect a record three million passengers this year and that, along with opening new lines, they have retained their current partners and further improved cooperation with them.
"For example, with Wizz Air in Podgorica we will have 10 percent growth, or nearly 100 rotations more than before. Despite the grounding of part of the fleet due to technical reasons, which reduced traffic even at airports where it has aircraft based (Belgrade, Skopje...), Wizz Air did not reduce traffic volume in Podgorica alone. In Tivat, we also focused on existing partners and extended the period during which they fly to and from Montenegro. Thus, the largest British low-cost carrier, EasyJet, announced that it will operate from six destinations to Tivat, five of which will be in the period from April to the end of October. Jet2.com also announced rotations with three destinations from April to October. This means that Montenegro has the potential for a season that lasts seven months, not just three months," ACG said.
Tourist train from Bar to Kolašin operates from April 5th
The Railway Transport Company (ŽPCG) said that an agency train on the Bar-Kolašin route began operating on April 5th.
"This year, we have seen increased interest from domestic and foreign travel agencies in organizing rail travel, especially on one of the most attractive sections of the Bar-Kolašin railway. This route, recognized for its exceptional landscapes and impressive engineering solutions, is increasingly becoming an indispensable part of Montenegro's tourist offer. As of April 5, agency train traffic began on the Bar-Kolašin route, which runs along the route of the daily fast train departing at 9 a.m. from Bar. These trains are organized with rolling stock owned by ŽPCG depending on the requests and orders of agencies, so they operate on days when a certain agency has ordered the engagement of a special train," explained ŽPCG.
This state-owned company said that so far, travel agency announcements have been confirmed up until the end of October, which, they claim, speaks to continued interest and growing demand for this type of travel.
"In addition to special, so-called agency trains, ŽPCG also offers the possibility of organized group travel on regular lines, which further adapts to the needs of organizers and passengers."
In international traffic this year, as they stated, a seasonal daily train is planned that will operate on the Bar-Subotica-Bar route, in the period from June 13 to September 14.
NTO boasts about campaign results
The National Tourism Organization (NTO) states that they have prepared a proposal for incentive measures for the 2025/2026 tourist season, which they are awaiting adoption, and which, in addition to a support measure for the improvement of organized air arrivals through a joint campaign with tour operators, includes two new measures.
"One relates to the allocation of money for the organization of study visits to Montenegro for tour operators and travel agencies from source markets, while the other measure relates to partnerships with tour operators and travel agencies in the promotion of Montenegro as a tourist destination through joint promotional activities."
The NTO said that in order to increase tourist traffic, it continuously implements promotional campaigns in originating markets, with a special focus on improving cooperation with tour operators. As an example, they point out last year's marketing campaign with the British tour operator Jet2holidays, which achieved a reach of 25 million and led to the introduction of new and increased existing airline routes.
"Given the number of passengers who booked Jet2 flights to Montenegro from the UK, the total contribution of the campaign to GDP is estimated at around 2,9 million euros, and according to tour operators' announcements, their capacities for the summer of 2025 have increased by 9% compared to the previous year. As part of the campaign last year, we also had a show dedicated to Montenegro on BBC TV and online channels called 'The Travel Show Montenegro', which has around 70 million viewers on BBC Channel News on a weekly basis. These campaigns and similar marketing activities contributed to an increase in the number of tourists from the UK market of 25% compared to 2023 and a growth of 38% compared to 2019," claim the NTO.
From Tivat to Jaz an hour and a half
It is a kind of irony that all participants in the two-day ESG summit in Tivat, dedicated to sustainable development and investments, were greeted by kilometer-long lines at the entrance to the city, dust, unfinished infrastructure, and chaos.
This was told to "Vijesti" by one of the participants in last week's forum.
"It is really difficult to explain to citizens, and it will be even more difficult to tourists who will visit our country in the coming months, that the road between Budva and Tivat takes an hour and a half and that there is no end in sight to the works. If we continue to reconstruct roads before each season and approach our most important economic sector in this frivolous way - perhaps it would be more honest to simply give up on tourism. Completely unacceptable and incomprehensible," she said.
"VIjesti" wrote in mid-March that due to works on the new boulevard, access to the terminal building of the Tivat airport has been extremely difficult for several months, which is causing dissatisfaction among passengers, but also problems for employees, as well as skepticism in the management of the Airport of Montenegro regarding the pace at which works are being carried out on this section, which is the most critical for the operation of the airport.
Unofficially, ACG said at the time that an unacceptably small number of workers and machines were being employed daily on the section where, according to the project, the construction of a large roundabout and a three-way intersection should be completed so that cars and buses could approach the terminal building without hindrance, and its immediate surroundings should be somewhat tidied up before the start of the summer IATA and tourist season.
The reconstruction of the existing Adriatic Highway on this stretch into a boulevard is being carried out over a length of 16 kilometers. The works officially began in January 2024 and are planned to be completed in two years.
In mid-March, the Traffic Administration did not provide a precise answer to the question of the current percentage of completion of the works on the section from the airport to the Kotor roundabout, which, from the point of view of the needs of the citizens of Tivat, Kotor, Krtol and Luštica, and the entire local tourism industry, is the top priority before the start of the tourist season.
Ramp to Durmitor in Šavnik
How to get to Durmitor and Žabljak without waiting for hours is a question that still plagues tourists who want to visit the leading mountain tourist center in the country. The first "blockade" is on the main road Plužine - Jasenovo Polje, where traffic is suspended for all types of vehicles every day, except Sundays, from 10 am to 12 pm and from 13 pm to 15 pm.
The next "ramp" is in Šavnik, where the opposition blocks the road every day due to the re-election of Jugoslav Jakić (DPS) as mayor.
During the blockade, kilometer-long queues formed at the beginning of April, and it's hard to imagine how long they will be in July and August if the opposition doesn't "raise the barricade".
Bonus video:
