While Montenegro officially positions tourism as a key pillar of development, the reality reveals a different picture—disjointed policies, unpredictable fiscal decisions, and neglected infrastructure are pushing even the most resilient investors to their limits. Šajo Group, led by Žarko Rakčević, stands out with the largest net profit in the sector and control over 3,500 hotel beds, yet its success feels more like an exception than the result of systematic support.
Rakčević expressed both pride and frustration in an interview: they transformed neglected properties into four-star hotels, opened doors to European markets, and extended the tourist season—but encountered a wall of inconsistent laws, sudden tax hikes, and lack of strategic vision.
He stressed that if tourism is truly a priority, it must be reflected in concrete actions rather than improvisations that undermine competitiveness.
Rakčević highlighted Šajo Group’s achievements: rescuing struggling companies, upgrading them to four-star status, and generating a net profit of over €9 million in 2024, paying the highest corporate tax in the country accordingly. Their portfolio includes notable properties such as Pearl Beach Resort, Monte Mare in Čanj, Hotel Vile Oliva in Petrovac, Hotel Montenegrina in Rafailovići, and Crnogorska Kuća in Podgorica.
Regarding the Pearl Beach Resort, which features 670 rooms and apartments on over 10 hectares, Rakčević noted it as the second-largest resort in Montenegro after Slovenska Plaza. The group recently added the adjacent Hotel Niš, closed for 14 years, with plans for thorough renovation and classification as a four-star hotel, enhancing local tourism capacity.
Despite successes, Rakčević warned that Montenegro needs predictable and consistent policies to truly prioritize tourism. Sudden decisions like increasing VAT on accommodation services from 7% to 15%, without public debate, damage planning and international contracts and weaken competitiveness.
He identified poor air connectivity and inadequate infrastructure as major problems, citing long travel times from Tivat Airport to hotels and low hotel capacity relative to total accommodation compared to countries like Croatia and Spain. Moreover, recent legal changes removing the special status of four-star hotels as public-interest facilities increase fees and discourage investment.
Rakčević emphasized the need for Montenegro to decide whether tourism will be the foundation of development or remain just an empty phrase in official documents. If the former, policies must be stable, supportive, and long-term—investors seek neither privileges nor favors, but a stable and logical business environment.
Finally, Rakčević welcomed the recent rescue of the “Dr Simo Milošević” Institute from bankruptcy, highlighting its crucial role in health tourism and social policy. As a minority shareholder, Šajo Group contributed significantly to its survival. However, he expressed concern over delays in restructuring and urged for faster implementation to restore the institute’s status as a leading regional and European health tourism center.
