Montenegro’s southern region continues to attract investment in tourism, hotels, real estate and related services, while infrastructure constraints, labour shortages and limited coastal land are increasing pressure on the development model. These issues will be discussed at the TBM Business Talks – Southern Region conference, at the Splendid Hotel in Bečići. The event will bring together companies, banks, municipalities and economic specialists and include an analysis of 2025 financial results of businesses operating in southern Montenegro.
Coastal Investment and Tourism
The coast remains Montenegro’s main destination for foreign capital, with major developments including Porto Montenegro, Luštica Bay, Portonovi and the expanding hotel and residential market in Budva. International hotel operators, marinas and premium residential projects have increased investment and employment while creating demand for local suppliers, property management, financial services and transport. Kerzner International operates One&Only Portonovi and SIRO Porto Montenegro, while Porto Montenegro’s Regent hotel is expected to move from IHG to Kerzner’s Rare Finds collection, although the transition has not been officially confirmed. About €1.48 billion in foreign tourism revenue was generated in 2025. Tourism remains highly seasonal and relies heavily on private accommodation, while hotels represent a relatively small share of total capacity.
Infrastructure and Connectivity
Infrastructure is under increasing pressure. Congestion between Budva, Kotor, Tivat and Herceg Novi, limited water supplies, wastewater capacity and waste-management systems affect residents and tourism operators. Peak-season travel between some coastal centres can take several hours, while the incomplete transport network also affects labour mobility and business logistics. The proposed Budva bypass and wider Adriatic-Ionian transport connections are therefore relevant to the investment environment. Air connectivity is another constraint, with Tivat and Podgorica airports facing terminal and seasonal-capacity pressures. Interest in modernising Airports of Montenegro has increased among foreign groups and local entrepreneurs.
The Port of Bar offers an alternative growth channel through logistics, freight transport, regional trade and industrial services. Better rail and road links with Serbia and Central Europe could strengthen its role and reduce the coast’s dependence on tourism and property.
Labour and Financing
Labour shortages are affecting hotels, restaurants, retailers and construction companies, which increasingly rely on imported seasonal workers. High coastal housing costs also make recruitment more difficult. Potential EU membership could further increase labour mobility toward higher-paid European markets, increasing the importance of productivity, training and longer employment contracts.
Montenegro’s banking sector is liquid and well capitalised, with domestic lenders significantly exposed to property, tourism and household consumption. NLB Banka, general sponsor of the TOP Business Montenegro platform, is among the institutions financing companies and households in the coastal economy. Lenders are increasingly assessing construction permits, environmental approvals, infrastructure access, presales, operator agreements and recurring cash flow, rather than relying only on land values.
Environmental Requirements and Local Value
Environmental requirements have also expanded. Hotels, tourist villages, marinas, golf courses and commercial buildings above 1,000 square metres can enter environmental screening, while coastal works that alter the shoreline may face additional scrutiny. The conference will also address the distribution of economic value between investors and local communities. Greater participation by Montenegrin food producers, contractors, maintenance companies, transport operators and professional services could retain more tourism and investment spending within the domestic economy. The TBM programme will include a panel on investment, growth and sustainable development, presentations from southern Montenegro companies and the TBM Awards 2026.
