Budva’s summer season is showing signs of underperformance, with hospitality businesses reporting a 20% drop in revenue compared to last year. Restaurant owners in the Old Town attribute the decline to several factors, including the recent designation of the area as a “quiet zone,” which has significantly reduced foot traffic and customer retention, especially in venues that rely on music.
Some bars near the Old Town report even steeper drops—up to 40%—as visitors no longer stay as long. Although the pre-season was strong, business started weakening in July, and future trends remain uncertain. Ongoing construction on the Tivat–Jaz boulevard, regional instability, and rising VAT on food have also contributed to the situation.
Private accommodation in the Old Town is struggling, with many beds empty even during peak season. Property owners cite noise issues from nightlife, poor regulation enforcement, and chaotic development as major concerns. They also point to problems like broken infrastructure, traffic access limitations, and unregulated late-night noise that discourage quality tourism.
Local stakeholders emphasize the need for better labor policies, simplified procedures for hiring foreign workers, and more structured planning for Budva’s tourism offer. There is still strong tourist interest in Montenegro, but industry leaders argue that meaningful improvements are needed to meet expectations and sustain long-term growth.
