A compromise that is not detrimental to the public interest

The initiative to return Sveti Stefan to state ownership, which brings together locals and residents of Budva, said that they support any good-intentioned dialogue between the contracting parties to resolve the long-standing dispute regarding the exclusive Montenegrin resort, but with a clear condition, full respect for the Constitution, the laws of Montenegro and international standards.

They pointed out to "Vijesti" that compromise must not be at the expense of the public interest, and they emphasize the importance of truly involving the local community in making decisions regarding this area of ​​exceptional importance.

The government and the company "Adriatik Properties", which is the lessee of the "Sveti Stefan" hotel and "Villa Miločer", signed a Settlement Agreement on Thursday, which stipulates that the two parties, within seven days of the signing, will notify the Court of Arbitration in London by means of a joint submission of their withdrawal from the arbitration proceedings, while "Sveti Stefan" and "Villa Miločer" will reopen in June after four years.

“Adriatic Properties”, owned by a Greek businessman Petros Statis, has been keeping the city-hotel “Sveti Stefan” and “Vila Miločer” closed for the fourth year, while the construction of the “Queen's Beach” hotel has been suspended since the start of the arbitration dispute in 2021. Hotel operator “Aman” refuses to open the complex without an agreement on the regime of use of Queen's Beach and the trails in Miločer Park, citing the safety and privacy of guests as a key condition.

"We welcome any good-faith agreement between the contracting parties regarding the resolution of disagreements over "Sveti Stefan" and "Miločer". Such an agreement also implies that the Constitution and laws of Montenegro, as well as relevant international conventions, are fully respected. If this is lacking, then it is better not to conclude any agreements to the detriment of the state and citizens and their rights. The involvement of the local community is important, but not fictitious but real. Such involvement implies that "Sveti Stefan" is open in winter, and not just in summer, so it would be good to agree on something like that, as there were earlier hints of it," they told "Vijesti" from this civic initiative.

It is crucial, they pointed out, to stop any further planned construction in Miločerski Park, as well as on the plateau in front of "Sveti Stefan" where the demolition of the summer theater is planned to make way for the construction of new facilities.

"In this sense, it is necessary to repeal the current planning documentation that is not adequately harmonized with other laws and regulations as well as higher-level plans. Accordingly, it is very important to protect Miločer Park as a cultural asset, or a protected area, in accordance with the law. The process began in 2021, but for some reason it has been stalling for a long time and there has been no progress. We also expect that part of the beaches in Miločer will be open to the public, not just to locals. It is not fair that tourists who come here do not have the opportunity to swim on Miločer, while watching us locals, the hosts, how we swim - while they cannot. This is not hospitable on our part, above all. The approach to "Sveti Stefan" as a cultural asset of national importance must be adequate and harmonized with international conventions and standards. There is potential for an agreement, we just need to show good will to respect the laws of this country and established moral norms and customs, and there should be no problems. As for apartments for sale in Miločer, the relevant opinion on this will be given by the Council our Local Communities, with whom we cooperate closely," the Initiative says.

"Vijesti" has been unofficially confirmed by sources familiar with the negotiations that the Settlement Agreement stipulates that the Queen's Beach during the peak summer season will be exclusively for guests of the hotel, and the lessee can rent part of the furniture at a price he establishes. On the hotel's western Sveti Stefan and Velika Miločer beaches (King's Beach), there will be ten sets of deck chairs that locals will be able to use free of charge, while part of the furniture will be available for rent at a price determined by the lessee. On the eastern Sveti Stefan beach, there will also be ten sets free of charge for locals, and the rest can be rented. The paths through Miločer Park remain public and accessible to all citizens and visitors.

The contract extended the lease of "Sveti Stefan" and "Vila Miločer" until the end of January 2054.

"Given that the hotels "Sveti Stefan" and "Vila Miločer" did not operate in the period from 2021 to 2025, or a period of five years, and that "Adriatic" paid the agreed rent for part of that period, the two parties agreed to annex the contracts that will extend its duration for an additional period of five years until 31 January 2054. Since the lessee paid all quarterly rents under both lease agreements for 2021 and 2022, as well as for the first two quarters of 2023, and that the hotels did not operate during that period, the Government and the lessee agreed that these rents would be compensated for with the first two and a half years of the lease extension, or that "Adriatic" would be exempt from paying all quarterly rents for 2050 and 2051, as well as the first two quarterly rents for 2052 as compensation," the source explained. "Vijesti", adding that the Government will pay the costs of the arbitration proceedings for the "Budvanska Riviera".

The opening of "Sveti Stefan" is important for Budva's tourist offer

The Municipality of Budva welcomes the achievement of a settlement between the Government of Montenegro and the company "Adriatic Properties", which represents an important step towards the reopening of the hotel complex "Sveti Stefan" and "Villa Miločer".

"We believe it is extremely important that one of the most recognizable symbols of Montenegrin tourism will be back in operation, because the presence of the Aman brand further confirms the reputation of Budva and Montenegro as a luxurious and prestigious tourist destination. The opening of Sveti Stefan has multiple significance, both for the improvement of the tourist offer and for the local economy, new jobs and the extension of the tourist season," the mayor of Budva told "Vijesti". Nikola Jovanovic.

We particularly highlight as an important segment of the agreement, as he pointed out, the decision to stop further construction in Miločerski Park, thus protecting the area from excessive urbanization, while the already built capacities will be put into the function of tourism, for the benefit of the local community and the destination as a whole.

"The Municipality of Budva remains committed to cooperating with all partners to ensure that this project contributes to sustainable development and the long-term interests of the citizens of Budva and Montenegro," said Jovanović.