Joint and coordinated action, a clear vision and institutional stability are necessary for the valorization of the full tourism potential of Montenegro, is the conclusion of the conference New Days of Better Tourism, organized by the Chamber of Commerce (PKCG) in cooperation with the tourism industry.
Conference participants called on the Government to begin implementing the proposed reforms, ensure institutional stability in tourism, and establish public-private dialogue as a permanent development management mechanism.
"The conference conveyed that joint action of all segments of the system is crucial, because without coordination, a clear vision and institutional stability, Montenegro cannot utilize its full tourism potential," the Chamber of Commerce and Industry of Montenegro announced.
During two days of work, after a detailed exchange of views and analysis of systemic challenges, conclusions were defined as priority measures necessary for the reform of the tourism sector.
It is proposed to the Government to conclude and include it in the planning documents for the next year, in order to ensure sustainable, high-quality and competitive development of tourism.
The conclusions were presented by the President of the Board of the Association for Tourism and Hospitality of the Chamber of Commerce and Industry of Montenegro, Ranko Jovović.
As stated, tourism, as one of the strategic branches of Montenegro's development, is entering a key phase of development that entails modern management, clear policies, a new legislative framework and functional destination management.
The previous development model, based predominantly on the expansion of real estate and residential (real estate) tourism, has proven to be unsustainable in the long term and has fundamentally jeopardized the competitiveness of classic, especially holiday tourism.
Structural weaknesses, including an unfavorable accommodation capacity structure and low occupancy rates, insufficient market diversification, and an inefficient destination management system, prevent the full valorization of the country's tourism resources.
"The existing growth model does not ensure long-term sustainability, competitiveness and stability. Tourism development policy is not aligned with the carrying capacity of the area and natural resources, which leads to overdevelopment, coastal degradation and loss of authenticity of destinations," the conclusions state.
The conference concluded that sustainable tourism management is a strategic priority and requires a new legislative framework. The conference participants assessed that the existing legislative framework does not provide a basis for a modern destination management system.
"A systemic challenge is the lack of a reliable register of all accommodation capacities, which would be linked to the fiscal and tax system. Inadequate data and the unavailability of official data in real time prevent the drawing of valid conclusions and development guidelines for defining tourism policy, strategy and marketing plan," the conclusions state.
Starting from reliable records of all accommodation capacities, it is proposed to adopt the Law on Sustainable Tourism Management, reform the destination management system, with the establishment of a national organization for destination management, as well as local structures with a clear division of responsibilities and a sustainable financing model.
It is also necessary to establish a balance between centralized and decentralized management, with stronger national coordination and greater operational powers for local communities.
"Without a stable management model, Montenegro cannot adequately plan development, invest in product quality, or compete with destinations that already have a consolidated destination management system," the document states.
The conclusion of the conference is that the new Tourism Development Strategy must be a visionary document with a ten-year horizon.
"Existing strategic documents are not sufficiently aligned with modern trends in a way that integrates the principles of sustainability, digitalization, premium tourism and regional balance (coast - continent). Therefore, it is necessary to adopt a new Tourism Development Strategy that will define the targeted accommodation structure, the type of tourism that Montenegro wants, development priorities by region and the way in which quantity will be shifted to quality," the document adds.
Also, conference participants concluded that destination marketing must be professionalized, digitalized and strategically consistent.
"The marketing strategy developed by THR in 2019 can still be used as a quality basis, but requires refinement in line with global trends, digital tools and premium destination positioning. It is proposed to establish a model of marketing cooperation between the National Tourism Organization, local tourism organizations, the private sector and airlines, including a permanent body for the coordination of international marketing activities," the conclusions state.
The conclusion is that we should continue working on improving Montenegro's air accessibility, strategically plan cooperation with low-cost carriers, introduce routes of public interest, and establish direct air connections between Montenegro and important source markets.
"The issue of valorization of Podgorica and Tivat airports, or the Government's final decision on airport concessions, is also of great importance for the tourism sector. Airport infrastructure is underdeveloped. Tivat and Podgorica airports must increase their capacities, as well as the number and frequency of air connections to key source markets, and the inoperability of Tivat airport when it comes to night flying is also a challenge," the document adds.
The conference also concluded that premium tourism is a key development direction for increasing competitiveness, and that tax policy must be a development instrument, not an obstacle to business.
"The tourism product is one of the price-sensitive products, which requires careful long-term planning, without the possibility of ad hoc solutions. To this end, it is necessary to review the VAT rate on tourism services and other fiscal burdens, introduce stimulating tax measures for the hotel sector, organized tourism services and sustainable investments, and reduce the shadow economy," the conclusions state.
One of the conclusions is that beaches, as a strategic resource, require long-term and sustainable management.
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