The downward trend in tourism turnover from last year continued in the first quarter of this year, as collective accommodation recorded a decrease in the number of overnight stays of four percent or about 11 thousand, according to data from the Statistical Office Monstat.
The decline in the number of overnight stays occurred even though there were officially more tourists in this category, that is, it increased from 122 to 129 thousand, or by about five percent. This shows that tourists are staying in Montenegro for shorter periods of time.
Montenegro earned 1,46 billion euros from tourism last year, which is 3,6 percent less than in 2023. This was the first official decline in tourism in 20 years, excluding the 2020 coronavirus pandemic.
Last year, the number of overnight stays in collective accommodation was 80 thousand higher than in 2023, but in private accommodation there was a decrease in the number of overnight stays by about 900 thousand. Now, in three months, we have a decrease in overnight stays in collective accommodation, while there is still no official data on the number of overnight stays in private accommodation.
Last year, the average tourist stayed in Montenegro for six days, and in 2023, for 6,3 days, which affected the decline in the number of overnight stays and thus income, as the Central Bank calculates income from tourism at 94 euros per overnight stay. In the period January-March last year, the average tourist spent 2,45 overnight stays, and this year, 2,2 overnight stays.
In the first three months of this year, the number of overnight stays in six coastal municipalities decreased by 10 percent compared to the same period last year, or from 207 thousand to 187 thousand overnight stays this year. The number of tourists in this region also decreased from 79,8 thousand in the first quarter of last year to 78,2 thousand this year. When considering the average consumption of tourists, hotels and other forms of collective accommodation on the coast experienced a decrease in revenue of about two million euros in this period.
Monstat presents data on the number and overnight stays of tourists in the categories of coastal municipalities, mountain towns, the capital and other municipalities. In the capital, the number of overnight stays in the first quarter amounted to 55 thousand and was two and a half thousand more than last year, in mountain towns it increased from 21 to 29 thousand, and in the category of other municipalities (less important in terms of tourism) the number of overnight stays increased from 16,5 to 17,2 thousand. In other words, the number of overnight stays increased in all parts of Montenegro except on the coast, where a large decline was recorded.
According to municipalities, the largest drop in the number of overnight stays in collective accommodation in these three months was recorded in Herceg Novi. Last year, there were 60 thousand overnight stays in this city in the first quarter, and now there are 44 thousand, which is a drop of 44 percent.
During this period, there was a decline in the number of overnight stays by tourists from the European continent. They had 200 thousand overnight stays in these three months last year, and now they have 178 thousand. The number of overnight stays from non-European markets increased from 26,7 to 42,1 thousand in the comparable period.
By country of origin, the biggest drop in overnight stays was among guests from Germany. They had 22,3 overnight stays in the first three months of last year, and now 13,2 overnight stays in the same period. At the same time, the number of overnight stays by tourists from China increased from nine to 15,5.
The Chamber of Commerce's Tourism and Hospitality Committee announced at the end of February that they were concerned about the decline in tourism revenues, that this industry was suffering the consequences of wrong decisions, and that urgent measures must be taken to prevent this downward trend from continuing.
"The fact that for the first time since the restoration of independence, excluding the year of the pandemic, tourism revenues are decreasing compared to the previous year indicates that tourism, as a strategic economic sector in our country, is suffering the consequences of wrong moves in creating the tourist offer, the lack of a long-term plan and vision for development and its incomplete implementation, both at the state and local levels," the Chamber of Commerce and Industry of Montenegro announced.
President of the Tourism Committee of the Chamber of Commerce and Industry of Montenegro Ranko Jovovic He said then that the increase in the VAT rate on accommodation from 7 to 15 percent, which came into effect on January 1, will significantly affect the competitiveness of Montenegrin tourism in the coming period.
"It is of great importance to carefully consider the impact that the business environment can have on the operations of tourism businesses, and especially on the set strategic goal of attracting investors. When Montenegro is fighting for every investment, it is necessary not only to maintain incentives and benefits, but also to extend them to the entire economy and all investments in the economy, especially those that employ a large number of workers," said Jovović.
Kordić: There is no negative trend
Ministry of tourism Simonida Kordić Two days ago, she said in parliament that there is no negative trend in tourism and that the situation improved in April, although there is no official data yet.
She answered this in response to a question from a DPS MP. Nikola Rakočević What will the ministry do about the decline in tourism in 2024, for the first time in 20 years, as well as in response to a question from a SD MP? Branislav Nenezić.
Kordić stated that the decline in 2024 compared to 2023 was due to the fact that in 2023 there was a significant increase in the number of overnight stays of tourists from Russia who came to Montenegro after the war in Ukraine, and that in 2024 their number as tourists officially decreased because they returned to Russia or became permanent residents.
She also said that the number of tourists increased by 4,4 percent in the first quarter. However, she did not state that the number of overnight stays had actually decreased significantly.
She also said that according to data from the National Tourism Organization, the number of tourists increased in April, and that at the beginning of May it was 66 percent higher than on the same day in 2019.
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