The Government has approved the Draft Law on Tourism and Hospitality

The Government of Montenegro today adopted the Draft Law on Tourism, which, as announced, introduces new principles that represent the starting point for further development and improvement of the quality of services in the field of tourism and hospitality.

The statement states that the Proposal, among other things, introduces principles related to the preservation of the quality of life of the local community and intangible heritage, regional diversification, as well as the resilience and safety of tourist destinations.

Among the principles within the Proposal are the encouragement of the use of digital technologies and innovations in the development, promotion and improvement of the tourism offer.

"The term tourist region is defined as a spatially defined entity with a recognizable tourist offer, which includes natural, cultural, historical and other resources, infrastructure and services, in which tourism is planned, developed, managed and promoted with the aim of meeting the needs of tourists and improving the quality of life of the local population, and represents a spatial entity valued in terms of market and tourism," the Government statement says.

As it is added, in relation to the current Law, the term "branch office" of a travel agency has been replaced by the term subsidiary in order to comply with the Law on Business Companies.

"The draft law prescribes conditions relating to the amount of security funds, as well as the guarantee in case of damage, the guarantee in case of insolvency, its scope and efficiency," the Government said.

As announced, one of the most significant innovations in the Bill is the clear diversification of travel agencies, according to the type of services they provide, namely: in the field of outbound and inbound tourism (travel organizer for outbound and inbound tourism), which must have an A license.

Inbound tourism agencies (travel organizers for inbound tourism) must have a B license, while outbound tourism agencies (travel organizers for outbound tourism) must have a C license.

The Draft Law also recognizes an agency that is an intermediary (sub-agent), that is, sells package deals, and which must have a D license.

"The Destination Management Company (DMC) travel agency has also been recognized. The DMC travel agency label can only be used by a travel agency that has been approved and awarded that label by the Ministry, which has not been the practice so far," the statement said.

It is added that special attention is paid to the development of rural tourism.

"The proposed text of the law provides more liberal conditions for providers of household and rural household services, so that now these services can be provided by immediate family members (owners of real estate, i.e. holders of agricultural holdings) and third parties, under the conditions prescribed by this law," the Government pointed out.

In terms of European Union (EU) directives, the Bill provides, as they stated, the protection of service users through detailed rights of travelers to information from the package travel contract and linked travel arrangement, but also through the obligations of the travel agency in terms of providing other basic information before the start of the trip.

Protection of service users is also provided through the conclusion of a contract on a tourist package arrangement.

"The discussion emphasized that when drafting the text of the new law, care was taken to prioritize the removal of business barriers and unnecessary administration, as well as to align the competence of state and local government bodies in undertaking administrative activities and implementing procedures with the principles of expediency, efficiency and economy," the statement said.

At today's Government session, the Decision on the Content of the Free Zone Operation Report was adopted, which determines the content of the report that the free zone operator submits to the Government of Montenegro, through the Ministry of Economic Development.

"Its adoption stems from the need for consistent implementation of the new Law on Free Zones, which improves the legal framework for the establishment, management, supervision and termination of free zones in Montenegro," the Government said.

As they explained, the adoption of the new Decision ensures the harmonization of the bylaw with the applicable law, a clear and unique structure of the Report on the Operation of the Free Zone, improvement of the transparency of free zone operations, and more efficient monitoring and supervision of their work.

"The decision is aligned with the general principles and standards of the EU in the field of customs operations, free zone management, business transparency, digital surveillance of goods flows and risk management, thus contributing to the fulfillment of Montenegro's obligations in the EU accession process, especially within the framework of negotiating chapter 29 - Customs Union," the statement said.

The Government today also adopted a Review of Progress in the Implementation of the Statement of Commitment of Montenegro to the Implementation of the Sustainable Development Goals.

As announced by the Government, the document was developed to assess Montenegro's progress in implementing the Sustainable Development Goals after the adoption of the Statement of Commitment in 2023, identify achieved results and challenges, and define areas where additional measures and investments are needed.

"The review covers the situation in the period from January 01, 2023 to December 31, 2025 in areas recognized as priorities: social protection, health, education, gender equality, human rights, employment, green transition, and institutional and financial framework for sustainable development," the statement said.

The Government said that the document, among other things, emphasizes that significant progress has been made in the reporting period in the implementation of goals in the areas of poverty reduction, children's rights, health, and the labor market.

"The strong reduction in the rate of severe material and social deprivation is particularly noteworthy (from 24,0% to 11,0% overall, or from 27,9% to 14,3% among children in the period 2021–2024)," the statement said.

As it is added, social transfers play a key role in alleviating poverty, with a visible effect on reducing the risk rate.

"The normative and strategic framework has been improved, with significant planned investments in the social and child protection system. In healthcare, preventive programs have been strengthened, HPV vaccination coverage has increased, and screening programs have been improved, while the labor market has recorded an increase in employment (56,4 percent in 2024) and a decrease in the NEET rate (persons who are not in education, employment, or training) of young people to 14,2 percent," the statement said.

The government noted that progress has also been made in the deinstitutionalization process, with an increase in the share of children in foster families. At the same time, key challenges relate to the slower than planned reduction in the poverty risk rate, pronounced regional disparities, and high dependence on social transfers.

"In healthcare, there are problems of insufficient immunization coverage (especially MMR1), limited coverage of screening programs, as well as a lack of reliable data," the statement said.

As it is added, low citizen response and limited resources for promotional activities are evident.

"The gender gap in the labor market remains pronounced, with a need for greater inclusion of vulnerable groups, while progress in women's economic empowerment is limited," the statement said.