Radulović: The current management destroyed the Budva Riviera, where did the millions invested in room renovations end up?

The absence of a clear tourism development strategy and the stepmotherly attitude of the Government of Montenegro towards the most important economic sector are also visible in the example of the Budvanska Rivijera Hotel Group, which is recording poor financial results, claims Andrea Radulović, a member of the Democratic Party of Socialists (DPS) in the Budva Municipal Assembly (MA).

She assessed that the current management of the Budva Riviera, despite high incomes which, as she says, reach several thousand euros per month, lacks knowledge, ability or vision, and wonders whether citizens, as the real owners of state property, have received quality that corresponds to the millions invested.

"Despite warnings from the tourism industry that have been going on for years now that Montenegro does not have a defined direction for tourism development, the state government is taking no action, as a result of which we are witnessing a decline in profits, rising indebtedness, increased financing costs and a decrease in cash reserves. Instead of creating a stable and predictable business environment, encouraging investments and partnerships between the state and the economy, the Government is directly jeopardizing the competitiveness of the tourism sector with its arbitrary decisions," Radulović said in a press release.

The DPS councilor said that the incompetence of the Budvanska Riviera management is a direct consequence of the news, which could be read throughout 2025, about poor occupancy rates, prices that were more reminiscent of union resorts than the leading hotel company in the country, official vehicles that ended up in private use, as well as politically motivated personnel purges that took place along party lines.

She points out that, as she says, the disarray in that company is also evidenced by the fact that at the beginning of the 2025 summer season, Budva Riviera was forced to open a new profile on the Booking platform, after having a rating of around 6 and a large number of negative guest comments in previous years.

"However, the new beginning did not bring any significant progress, so by the end of the season the rating only reached around 7," she also states.

That the problems in business are much deeper than what can be seen through the meager financial reports, adds Radulović, is illustrated by the fact that in certain periods of the last season more food was prepared for the needs of employees than for guests on the à la carte menu. However, in her opinion, the issue of investments deserves the most attention.

"According to available data, around 14 million euros were invested in the reconstruction and improvement of capacities, of which as much as 10 million were provided through credit. If this amount is related to approximately 300 reconstructed accommodation units, it comes to the fact that on average around 42.000 euros were invested in each room. So, 42.000 was spent on renovating the rooms, which after the expensive work were full of damp, mold, fallen plaster, raised parquet, etc. Therefore, the logical question arises whether the citizens, as the real owners of state property, received quality that corresponds to the millions of euros invested, and since it is obvious that they did not - where is the money?" asks the DPS councilor.

The ignorance and negligence of the management, she adds, is also evidenced by the fact that Cypress Square was not put into operation during the entire summer season despite its potential to enrich the offer, extend guests' stays, and generate additional income.

"Tourism is not just one economic sector. Tourism is the foundation of the Montenegrin economy, the generator of the largest part of income and the source of livelihood for tens of thousands of families. Therefore, it is high time for the state to stop treating tourism as an inexhaustible resource and to finally offer a serious development strategy, a stable investment framework and full transparency in the management of state-owned companies and public money. In the end, when a company that aspires to be the leader of Montenegrin hotel tourism records negative results, it should be a red alert for the Government, which is obliged to answer the citizens' question of where every euro spent is, what are the effects of millions of investments and who bears responsibility for the ruination of the Budva Riviera," concluded Radulović.