The Kotor–Lovćen cable car carried more than 430,000 passengers in 2025, with visitor numbers increasing again in 2026 and approximately 95% of users coming from abroad. The project also generated €603,919.99 in concession revenue for the state from its 2025 results.
€20 Million Investment Under 30-Year Concession
The cable car began commercial operations on 14 August 2023 after several earlier attempts to develop the project failed. The final structure established a 30-year concession between the Montenegrin government and a consortium involving Novi Volvox, later associated with XEnergy, and Italian manufacturer Leitner. The concessionaire committed approximately €20 million in investment. Under the agreement, the state receives 15% of net profit generated by the cable car and related facilities.
The 2025 concession payment of €603,919.99 corresponds to a profit base of slightly more than €4 million, based on the contractual 15% formula. Under Montenegro’s local-government financing rules, 70% of concession revenues are transferred to municipalities covered by the concession. Approximately 85.9% of the concession area is in Kotor and 14.1% in Cetinje. Based on the 2025 payment, this represents roughly €423,000 for local allocation, including approximately €363,000 for Kotor and €60,000 for Cetinje.
Foreign Tourists Dominate Demand
The cable-car operation and its tenants employ around 300 people, most of them locally. The wider economic activity also includes restaurants, retail businesses, transport operators, tour companies and suppliers. Foreign visitors account for around 95% of users in 2026, with tourists from the United Kingdom representing about 40%. Visitors from the United States are also becoming more prominent, while Israel, Germany, the Netherlands, Turkey and France are among other significant markets. Montenegro recorded 2.73 million tourist arrivals and 15.37 million overnight stays in 2025. Foreign visitors accounted for 95.8% of overnight stays, while 92.6% of total nights were concentrated in seaside destinations.
Cable Car Links Coastal and Mountain Tourism
The approximately 3.9-kilometre route connects Dub near Kotor with Kuk on Lovćen, overcoming an elevation difference of more than 1,300 metres. The journey takes around 11 minutes. The installation has 48 gondolas and capacity of up to 1,200 passengers per hour. The connection allows visitors staying in the coastal tourism zone to reach Lovćen without a lengthy road journey, creating a combined Kotor–Lovćen excursion.
This is particularly relevant to cruise tourism. Montenegro recorded 496 foreign cruise-ship visits carrying 630,236 passengers in 2025, with Kotor representing the country’s principal cruise destination. The cable car provides an additional excursion option combining transport, panoramic views, food, attractions, retail and potential onward travel towards Njeguši and Cetinje.
Additional Attractions Increase Visitor Spending
The upper-station complex has expanded beyond the cable-car ride. The site includes Montenegro’s longest alpine coaster, while the 2026 season added the Falcon Flyer and Aerobar. The Aerobar raises visitors approximately 35 metres above the site, adding another paid attraction and extending visitor activity around the upper station.
Lovćen–Cetinje Extension Under Development
The government is also advancing plans for the Lovćen–Cetinje cable-car section, reviving the broader concept of connecting Kotor, Lovćen and Montenegro’s historic capital.
The procurement process for design and construction has an estimated value of approximately €49.56 million excluding VAT, while the government has previously cited a wider investment requirement of around €60 million. The extension would connect the existing Kotor–Lovćen route with Cetinje and could create a longer tourism corridor linking the coast, Lovćen and the historic capital. Cetinje currently receives a smaller share of Montenegro’s tourism traffic than major coastal destinations including Budva, Kotor and Herceg Novi.
Tourism Infrastructure Faces Capacity Pressures
The expansion of the cable-car network comes alongside continuing pressure on the Bay of Kotor from seasonal road congestion, cruise traffic, excursion buses and summer tourism. The lower cable-car station still depends on road access, while increasing visitor activity on Lovćen creates requirements for managing traffic, waste, construction and commercial development within the national park. The wider tourism model also remains heavily concentrated on the coast. Montenegro’s existing visitor numbers mean that increasing economic value from existing tourists, rather than relying solely on higher arrivals, remains linked to developing additional experiences outside the main coastal centres.
The Kotor–Lovćen cable car has combined an approximately €20 million private investment, a 30-year concession, more than 430,000 passengers in 2025, around 300 jobs, predominantly foreign visitors and a €603,920 concession payment into a single tourism infrastructure project. The planned Lovćen–Cetinje extension, estimated at roughly €49.56 million excluding VAT, would expand that infrastructure beyond the existing Kotor–Lovćen connection.
