Montenegro’s tourism sector is entering the peak summer period with stronger visitor flows, expanded airline connections and increased activity in coastal destinations, while businesses face higher operating costs, labour shortages and concerns over maintaining service quality as prices rise.
Early indicators point to solid demand, but the sector’s performance will depend on the ability of tourism operators to balance higher costs with visitor expectations regarding value and quality.
May data show strong international and coastal demand
According to official data, collective accommodation establishments recorded 169,877 tourist arrivals and 506,256 overnight stays in May. Foreign visitors accounted for 86.3 per cent of total overnight stays, confirming the importance of international markets for Montenegro’s tourism sector.
Coastal municipalities generated 88.2 per cent of overnight stays, showing that tourism activity remains concentrated along the Adriatic coast. Local tourism reports from the beginning of the peak season have also indicated increased demand. Herceg Novi recorded around 23,600 guests, with visitors from Serbia and Bosnia and Herzegovina among the largest groups. In northern Montenegro, Berane reported year-to-date growth in both arrivals and overnight stays, indicating increased activity beyond traditional coastal destinations.
Air connectivity expands ahead of peak season
Montenegro’s international air links continue to develop, with Iberia’s Madrid–Tivat route reported as the 23rd new route announced for the 2026 summer season. Additional airline connections are expected to improve access from Western European markets and reduce dependence on regional road travel.
Transport indicators also show strong movement of visitors. More than half of passengers recorded at Podgorica’s main bus station were foreign travellers, according to local reporting. Available indicators provide only partial insight into overall tourism performance, as municipalities, border crossings, airports and transport companies record different categories of activity. Private accommodation data are also not always captured immediately. The first consolidated national figures from MONSTAT for June are scheduled for release on 30 July.
Higher prices increase pressure on tourism competitiveness
The sector’s focus is increasingly shifting from visitor numbers alone to issues such as visitor spending, average length of stay and service quality. Prices in accommodation and restaurants have continued to increase. In June, the restaurant and accommodation category rose by 3.3 per cent month on month, while food prices increased by 1 per cent.
A further increase in fuel costs is scheduled from 21 July, when diesel prices are expected to rise to €1.81 per litre. The higher fuel cost will affect tour operators, taxi companies, bus operators, delivery businesses, hotels, restaurants and other companies dependent on road transport.
Infrastructure and workforce challenges remain
Higher prices can be supported when accompanied by stronger services, reliable infrastructure and a distinctive tourism offer. During the peak months of July and August, businesses continue to face challenges including road congestion, limited parking capacity, crowded beaches, waste-management issues and uneven service standards.
Tourism companies are also dealing with shortages of trained workers, which can affect consistency of service delivery. Montenegro competes with destinations including Croatia, Greece, Italy, Albania and Turkey, some of which have larger transport networks, more diversified accommodation capacity, stronger destination management systems or lower prices.
Diversification and domestic supply chains remain priorities
Montenegro’s tourism sector includes assets such as the coastline, mountain areas, national parks, cultural heritage and luxury developments, while expansion of tourism products beyond the traditional summer beach season remains a development area. Potential year-round tourism segments include health and wellness tourism, conferences, cultural travel, gastronomy, hiking, cycling, sailing and nature-based tourism.
Strengthening links between tourism companies and domestic suppliers is also identified as an important factor, as hotels and resorts currently import significant quantities of food, beverages, equipment, furnishings and technology. Increasing purchases from Montenegrin farms, food processors, transport companies and service providers would retain a larger share of tourism revenue within the domestic economy.
New tourism legislation to address market regulation
The proposed new Tourism and Hospitality Law aims to simplify licensing procedures, strengthen consumer protection, align Montenegro with European package-travel regulations and increase controls on unregistered accommodation and informal market activity. The impact of the legislation will depend on enforcement, as unregistered operators currently compete with businesses that pay taxes, register employees and comply with safety requirements. For tourism companies, key indicators of the 2026 season will include revenue per room, direct booking levels, operating margins, length of stay and guest satisfaction, in addition to overall arrival numbers.
