Žabljak, situated at an altitude of over 1,450 meters, is the highest urban settlement in the Balkans and the tourism capital of the Durmitor highlands. Its dramatic landscapes — carved by glaciers, shaped by limestone formations, and surrounded by dense forests — form one of the most extraordinary natural environments in Europe. Durmitor National Park, a UNESCO World Heritage site, makes Žabljak a natural magnet for adventure tourism, mountain sports, and eco-tourism.
Žabljak’s economy is overwhelmingly tied to tourism. Winter sports — skiing, snowboarding, cross-country skiing — attract visitors from across the region. The Savin Kuk ski centre, though smaller than Kolašin’s resort, offers high-quality slopes, stunning views and significant potential for future expansion. Investments in new lifts, snowmaking systems, hotels and chalets would unlock even greater tourism value.
Summer tourism is even more important. Durmitor’s Black Lake, glacial valleys, canyons, mountain peaks and plateaus draw hikers, mountaineers, climbers, cyclists and nature enthusiasts. The Tara River canyon — one of the deepest in Europe — is a global destination for rafting and adventure sports. Thousands of tourists visit Žabljak each year to experience its outdoor activities, making summer tourism the backbone of the municipality’s economy.
Hospitality defines local business culture. Private accommodation, apartments, mountain lodges, boutique hotels and chalets generate most of Žabljak’s income. Restaurants and traditional inns serve local cuisine based on dairy, lamb, potatoes, trout, and mountain herbs. The service sector is expanding, though workforce shortages are increasingly visible.
The construction sector is active, driven by tourism demand. Property development includes new apartments, luxury chalets and hotel expansions. Investors from Montenegro, Serbia, Western Europe and the regional diaspora are purchasing properties as vacation homes or rental investments. This investment cycle stimulates construction, local trades, and SME activity, but also raises concerns about unregulated building, land use and environmental protection.
Agriculture plays a smaller but meaningful role. Livestock farming, dairy production and potato cultivation are common in surrounding villages. Traditional Durmitor products — cheeses, kajmak, smoked meat, honey — add value to tourism and contribute to local livelihoods. With better branding and certification, Žabljak could build a strong premium-food identity linked to its high-altitude environment.
Infrastructure remains both a challenge and a constraint. Road access from Mojkovac, Pljevlja and Šavnik is functional but requires continuous upgrading. Electricity, water supply and waste management face pressure during peak tourism months. Winter conditions further complicate infrastructure maintenance. To sustain long-term growth, Žabljak must invest in modern utilities, renewable energy solutions, improved road safety and better public services.
Environmental protection is essential. Durmitor’s ecosystems are fragile, and tourism growth must be balanced with conservation. Overdevelopment would undermine the very assets that make Žabljak attractive. Strict planning, sustainable tourism strategies and improved monitoring of construction are necessary.
Despite constraints, Žabljak remains one of Montenegro’s most valuable tourism assets and a key component of the national tourism strategy. Its long-term future lies in expanding high-quality accommodation, developing year-round activities, improving ski infrastructure, enhancing environmental management, and positioning Durmitor as a premium global mountain destination.
