Montenegro’s tourism inspection campaign resulted in approximately €7.92 million in financial penalties, following the detection of around 8,220 irregularities across seven coastal municipalities. Authorities carried out nearly 14,930 inspections, targeting undeclared commercial activities, tax violations, unlicensed tourism businesses and illegal trading.
The coordinated campaign involved market, tax, labour, sanitary, tourism and food-safety inspection services, with support from other authorities where necessary.
According to government figures, inspectors issued 14,694 penalty notices, imposed 660 prohibition orders, sealed 253 business premises and submitted 34 requests for judicial misdemeanour proceedings. The penalties represent amounts imposed during the campaign and do not necessarily correspond to funds already collected by the state.
Inspection Operations Target Retail and Tourism Businesses
The inspections covered hotels, restaurants, retail outlets, tourist services and other commercial activities throughout the coastal region. The campaign was coordinated by a government body responsible for inspection activities, chaired by Minister without Portfolio, who reported the enforcement results.
Authorities also increased inspection activity compared with the previous summer season, while the total value of financial penalties approximately doubled.
Among the most significant operations was an investigation into suspected counterfeit merchandise in Kotor. Retailers were found using storage facilities to distribute products bearing the trademarks of major international brands. The wider campaign resulted in the seizure of merchandise valued at approximately €2 million, through coordinated operations involving market inspectors and police.
The Kotor case demonstrated that commercial activities involving potentially counterfeit goods were not limited to conventional retail premises, with warehouses and other facilities also used for sales and distribution.
Unregistered Activities and Fiscal Violations
Inspectors identified businesses operating without registration, hotels lacking the required authorisations and commercial establishments using irregular cash-register arrangements.
Some operators were found using systems or procedures that could conceal turnover from official fiscal records. The enforcement campaign therefore covered suspected tax evasion, unlawful commercial activity and intellectual property violations, in addition to administrative and licensing irregularities.
Implications for Competition and Public Revenue
The scale of detected violations has implications for tax collection and competition within Montenegro’s tourism economy. Businesses complying with tax, employment and licensing requirements face operating costs that can be avoided by companies conducting undeclared activities.
Stronger enforcement can help address these differences and improve competitive conditions, although inspection requirements also create additional administrative obligations for legitimate businesses. The approximately 8,220 recorded irregularities indicate shortcomings in regulatory compliance but do not, by themselves, establish the overall size of Montenegro’s informal economy or the value of undeclared sales. For public authorities, the longer-term challenge involves maintaining regular supervision beyond seasonal campaigns, supported by electronic fiscalisation, improved data exchange between institutions and effective collection of imposed penalties.
