Tourism revenues and overnight stays in Montenegro are expected to continue declining in 2024, marking the first drop after many years, according to Dragan Ivančević, member of the Tourism Committee of the Chamber of Commerce.
Ivančević attributes this trend largely to poor cooperation between the tourism industry and government authorities, which has weakened the country’s competitive position against rivals like Albania. He pointed out that Albania offers more capacity, better quality destinations, and more attractive prices, making it difficult for Montenegro to compete—especially after recent government measures that have hurt the sector.
A key issue is the increase of VAT on accommodation from 7% to 15%, which has made Montenegro’s tourism offer less competitive. Hoteliers are struggling to absorb these costs without raising prices, threatening their sustainability and competitiveness.
Ivančević warned that if the VAT remains at the current rate, prices will have to rise further, worsening the situation. He also highlighted deteriorating infrastructure and environmental concerns, such as poorly maintained beaches and wild garbage dumps near popular excursion sites, which endanger the country’s reputation for quality coastal tourism.
He stressed the urgent need for the government to acknowledge these problems and take radical measures to prevent a long-term decline in tourism.
Furthermore, Ivančević criticized plans to introduce a seven-hour working day in tourism, arguing it would worsen labor shortages, as the sector already struggles to find qualified staff. The lack of training for middle and lower-level tourism workers has compounded this problem.
Regarding beach management, he noted that tenders for beach concessions were delayed and should have been issued earlier, with contracts finalized well before the tourist season to ensure beaches were ready by May 1. Currently, many contracts remain unsigned, and beach maintenance is incomplete.
In summary, Ivančević calls for urgent government action to improve cooperation, reduce VAT on accommodation, enhance infrastructure, protect the environment, and address labor shortages to secure the future of Montenegro’s tourism industry.
