Montenegro is considering a substantial increase in the statutory tourist accommodation tax, with a parliamentary proposal setting a new range of €1 to €3 per person per night, compared with the current €0.10 to €1.
Municipalities Would Set Local Rates
Under the proposal, municipalities would be authorised to determine their own rates within the new statutory range. If the maximum rate were applied, the ceiling would rise threefold, increasing accommodation costs for hotel and private-rental guests, particularly for families and visitors staying for longer periods.
The initiative comes as Montenegro seeks additional revenue for tourism infrastructure, destination management and promotion following several years of strong visitor growth.
Tourism Revenue Allocation
Under the existing distribution system, 80% of accommodation-tax revenue is allocated to local tourism organisations, while the remaining 20% goes to the national tourism organisation Supporters of the proposal argue that the current maximum rate has remained unchanged since 2015 and no longer corresponds to inflation or the costs associated with tourism infrastructure and promotion.
Municipalities including Budva, Kotor, Tivat, Herceg Novi and Ulcinj could generate additional seasonal revenue if higher rates are introduced.
Different Effects Across Accommodation Categories
The financial effect would vary depending on the type of accommodation. A nightly charge of €2 to €3 would represent a relatively small additional cost for guests at luxury hotels, while it could have a greater impact on budget accommodation, family travel and longer stays. Private accommodation providers could also face greater pressure to register guests and accurately report overnight stays if the levy becomes more financially significant.
Proposal Still Awaiting Adoption
The measure remains a parliamentary proposal and has not yet been adopted For Montenegro’s tourism industry, the policy choice involves generating additional revenue from visitor volumes while avoiding costs that could affect price competitiveness against Croatia, Albania, Greece and other Mediterranean destinations. The proposal identifies tourism infrastructure, destination management and the visitor experience as areas connected to the additional revenue.
