Montenegro recorded 2.5 million international arrivals in commercial accommodation in 2024, broadly unchanged from the previous year, while tourism receipts fell 3.1% to €1.5 billion, according to the OECD’s latest country review. The decline in receipts despite stable visitor numbers points to a lower level of revenue per tourist or a change in the spending mix.
Tourism accounted for 54.6% of Montenegro’s service exports in 2024, making the sector a major source of concentration within the economy.
Foreign Markets Dominate Tourism Demand
Montenegro’s domestic tourism market provides limited protection when international demand weakens. Residents of Montenegro accounted for only 3.9% of overnight stays in 2024. Visitors from neighbouring and eastern European countries represented a substantial share of foreign overnight stays. Tourists from Serbia accounted for 23.5%, followed by Russia at 18.3% and Bosnia and Herzegovina at 8.4%. This concentration leaves tourism exposed to changes in air connectivity, visa requirements, household incomes and geopolitical conditions.
Higher-End Hotel Capacity Expands
Montenegro has significantly upgraded its hotel stock since 2012. During that period, the country opened 38 five-star hotels with approximately 5,560 beds and 155 four-star properties with around 17,400 beds. More than half of Montenegro’s hotels are now classified as four- or five-star properties, compared with less than one-quarter in 2012.
Tax incentives contributed to the development of higher-category accommodation. Investors in luxury properties have benefited from import VAT exemptions, reductions in real estate tax and, in some cases, relief from municipal land charges. The measures have strengthened Montenegro’s position in the high-end Adriatic tourism market and attracted international hotel brands.
Tourism Development Extends Beyond the Coast
The government’s Tourism Development Strategy for 2022–2025 identified extending the tourism season, increasing visitor spending and distributing tourism more evenly across Montenegro as objectives. Measures highlighted by the OECD include energy-efficiency support for hotels, grants of up to €20,000 for rural and household accommodation, and investment in northern tourism attractions and ski centres.
Projects in the north include the Žarski, Cmiljača and Štedim–Hajla ski resorts, modernisation of Kolašin 1600 and Savin Kuk, and development of Đalovića Cave, together with new road and utility infrastructure. The northern programme is intended to support investment and employment outside the coastal tourism economy and increase the role of year-round mountain tourism. The projects also require commercial and environmental assessment. Winter tourism infrastructure involves significant costs, while rising temperatures affect the economics of ski development at lower altitudes.
Digital System Targets Tourism Data
Montenegro adopted a new Tourist Information System in July 2025. The system is intended to automate tourist registration, improve data collection and identify unregistered accommodation. The country’s large informal rental market has affected tax collection, destination management and the measurement of visitor numbers. A functioning digital registration system would provide information for public revenue collection and tourism policy.
Infrastructure and Seasonal Pressures
The expansion of higher-category accommodation does not by itself address pressure on roads, water and waste systems, shortages of skilled workers or the concentration of tourism activity in coastal municipalities and the summer season.
Hotel classifications also do not determine how much tourist spending remains within Montenegro’s domestic economy. The OECD review describes Montenegro as having restored tourism volumes while significantly improving its accommodation stock. Tourism receipts, however, declined in 2024 despite broadly stable international arrivals. Future tourism development therefore includes extending the season, increasing spending per visitor and expanding activity beyond the coast while managing the infrastructure pressures associated with tourism growth.
