Government of Montenegro: Illegal yacht rental on the Montenegrin coast will be sanctioned without exception

In a coordinated action to combat illegal yacht rental, known as "Black Charter", a total of 30 inspections were carried out, 12 irregularities were identified and a total of almost 23 thousand euro fines were imposed, the Government announced.

The action began on June 10th at the initiative of the president of the Coordination Body for Harmonization and Monitoring of Inspections, Milutin Butorović.

"The tourism inspection, tax inspection and navigation safety inspection participated in the joint action, with the aim of combating the grey economy and establishing equal business conditions for all entities operating in accordance with the law," the statement said.

During the campaign, a total of 30 inspections were carried out. 13 irregularities were identified, 12 misdemeanor orders were issued, while in two cases, notices were issued to eliminate the observed deficiencies. The total amount of fines imposed was almost 23 thousand euros.

"It is particularly important to emphasize that the aforementioned amount of monetary sanctions is the result of the discovery of illegal business, i.e. activities that took place in the gray zone and outside the legally prescribed obligations. This once again confirms the determination of the competent authorities to oppose illegal work and protect the interests of all business entities that operate legally," the statement said.

During the conduct of inspections and the collection of operational information, the acting inspectors came to know that there are a large number of luxury yachts being illegally rented out in the waters of the Bay of Kotor.

"According to the information collected, reservations for certain vessels are made via a contact phone number registered in London, which further indicates the need to intensify inter-institutional cooperation and further monitor possible forms of cross-border and illegal business in this area," the Government said.

According to available market data, daily rental prices for luxury yachts range from approximately three thousand to as much as 22 thousand euros per day, depending on the type and category of vessel.

"Given the amount of revenue generated, the illegal conduct of this activity causes multiple damages to the state, which, based on uncalculated and unpaid tax liabilities, remains deprived of significant budget revenues. At the same time, unfair competition additionally endangers economic entities that operate in accordance with the law and regularly settle their fiscal obligations," the Government explained.

The "Black Charter" campaign will continue in the coming period, with a special focus on combating the gray economy in the field of vessel rental, improving fiscal discipline and strengthening navigation safety. The competent authorities will continue with increased controls and take all legally prescribed measures against entities that operate contrary to applicable regulations.

"At the same time, we are calling on all supervised entities that carry out the activity of renting vessels and providing services at sea to bring their operations into line with applicable regulations and register the activities they perform," the statement said.

The goal of the competent institutions, as they concluded, is not repression, but the establishment of a lawful business environment in which all business entities will have equal working conditions and the opportunity to carry out their activities unhindered, safely and in accordance with the law.