As Montenegro gears up for the summer season, the tourism industry is witnessing a significant shift in air travel capacity that could potentially enhance visitor numbers. However, the sector continues to grapple with the challenge of converting increased arrivals into profitable outcomes.
In 2025, Montenegro welcomed approximately 2.73 million tourist arrivals and recorded 15.37 million overnight stays. Notably, foreign visitors accounted for 95.8 percent of these overnight stays, with seaside resorts being the primary destination, representing 92.6 percent of total stays. Key markets contributing to this influx included Serbia, Russia, Bosnia and Herzegovina, Germany, Turkey, Ukraine, and the UK.
However, early indicators for 2026 suggest a decline in tourism activity. According to the Financial Stability Council of Montenegro, tourist arrivals fell by 1.3 percent year-on-year in the first quarter, with overnight stays decreasing by 2.6 percent. The month of April showed some recovery with 107,939 arrivals and 278,906 overnight stays, where foreign tourists made up 86.3 percent of overnight stays. The coastal regions remained dominant, accounting for 86.6 percent of total overnight stays in April.
A key development that may bolster tourism is Wizz Air’s establishment of a base in Podgorica on 30 March 2026. The airline has introduced two Airbus A321neo aircraft and announced 17 new routes, which could add around one million additional seats throughout 2026. This initiative is projected to create 80 direct jobs and support approximately 700 indirect jobs within the region.
This increase in air capacity is expected to diversify source markets and extend the tourist season beyond the traditional summer peak. It also aims to enhance Podgorica’s role in attracting visitors, which has historically been overshadowed by coastal destinations.
Despite these positive developments in air travel, the tourism sector faces significant hurdles related to profitability. Rising operational costs—such as increased labor expenses and utility bills—combined with a more price-sensitive consumer base are pressuring margins. In May, consumer prices rose by 3.6 percent, with the accommodation and restaurant sector experiencing a month-on-month increase of 1.6 percent, marking the highest rise among major consumer price index categories.
The outlook for the second half of 2026 appears cautiously optimistic but selective. While stronger visitor numbers are anticipated during the summer season due to new flight routes and coastal demand, it remains uncertain whether overnight stays and visitor spending will keep pace with increased seat capacity. Although low-cost airline travelers can fill hotel rooms, they may not generate the high margins typically associated with luxury accommodations.
The most successful entities are expected to be established coastal hotels that can offer shoulder-season packages and those that effectively link air travel with inland attractions such as mountains or cultural experiences. Conversely, mid-market accommodations that lack differentiation may struggle due to higher operational costs without sufficient pricing power.
The forecast for tourist overnight stays in H2 2026 suggests they will remain flat to modestly positive, with potential for growth if new air capacity translates into longer visitor stays. While revenue growth may outpace volume growth, pressure on profit margins is likely to persist.
Montenegro has opportunities to expand its tourism sector in 2026; however, achieving sustainable growth that is less seasonal and more profitable remains a complex challenge.
