Montenegro’s Government has approved a draft Law on Tourism and Hospitality that expands tourism regulation beyond licensing of hotels, agencies and restaurants by introducing broader rules for destination management, regional development and digitalisation. The bill was approved on 18 June 2026 and remains subject to parliamentary procedure. It introduces principles related to local community quality of life, protection of intangible heritage, tourism diversification, destination resilience and digital technology use.
The proposed legislation establishes the concept of “tourism regions” as integrated areas combining tourism resources, infrastructure and services that are planned, managed and promoted together.
Tourism Regions Become Part of Sector Planning
The draft law introduces a framework based on managing destinations as interconnected systems rather than focusing only on individual tourism facilities. The proposed model recognises that accommodation, transport infrastructure, cultural resources and local communities jointly shape a tourism product.
The approach is intended to improve coordination between state institutions, municipalities, tourism organisations and private-sector operators. A single hotel, regardless of its category or investment value, cannot independently resolve challenges related to traffic, water supply, waste management, beach infrastructure or labour availability, all of which influence the performance of tourism businesses.
Northern Tourism Development Included in New Framework
The tourism-region model is particularly relevant for Montenegro’s efforts to expand beyond seasonal coastal tourism and increase investment in mountain, rural, wellness and nature-based tourism. The draft law incorporates regional diversification as a principle, while implementation would require alignment with infrastructure development, including roads, wastewater systems, electricity networks, spatial planning documents and destination promotion activities.
The municipality of Kolašin illustrates the infrastructure challenges linked to tourism growth. Increased hotel and residential investment has expanded accommodation capacity faster than parts of local infrastructure. While investors can construct buildings, they cannot independently provide all required public infrastructure, including roads, sewer connections and other municipal services.
Coastal Areas Face Capacity and Seasonal Pressures
The coastal tourism sector faces different challenges, including high concentration of visitors, seasonal congestion and the relationship between visitor numbers and residents’ quality of life. The proposed legislation introduces principles that allow these issues to be considered within tourism planning rather than measuring sector performance only through higher arrival numbers.
Digital Systems and Private Accommodation Regulation
The draft law also addresses the growing role of digital platforms in tourism. Montenegro has a significant private accommodation market consisting of apartments, rooms and holiday homes, with some units formally registered and others operating outside established tourism and tax systems. Digital booking platforms have increased the international visibility of private accommodation while reducing the traditional role of physical travel agencies.
The proposed digital approach is expected to be connected with systems including the Central Tourism Register, guest registration mechanisms, local tourist tax administration and platform data. A more developed registration system could help distinguish between small-scale family accommodation providers and professional operators managing larger numbers of rental units.
Family and Rural Tourism Activities Covered by New Rules
The proposal includes provisions allowing close family members to participate in providing tourism services. The measure is intended to reduce administrative barriers for small family businesses, particularly in rural areas where tourism can provide additional income. At the same time, the framework should prevent larger commercial accommodation providers from using family-based arrangements to avoid employment, safety or tax obligations.
Tourism Agency Rules Adjusted to Corporate Terminology
The draft legislation also updates terminology for tourism operators and agencies. Among the changes is the replacement of the previous concept of an agency “exposure office” with the term branch, bringing sector terminology closer to company law.
Although technical in nature, such changes affect areas including licensing, registration procedures and liability arrangements.
Investors Seek Clearer Planning and Infrastructure Responsibilities
For major hotel and tourism investors, key considerations remain related to regulatory predictability. Investors require clarity on whether a location belongs to a viable tourism region, whether planned capacity and classification comply with spatial planning documents, which institutions are responsible for connecting infrastructure and how environmental requirements affect development possibilities.
Environmental rules are expected to remain closely linked with tourism planning. Montenegro’s planned Natura 2000 network, marine protection measures and national park regulations will influence the development of resorts, marinas, ski facilities and access infrastructure.
The draft law introduces a broader tourism management approach based on integrated destinations, with implementation depending on whether tourism regions become operational planning units supported by data, infrastructure priorities and defined responsibilities.
