Montenegro’s tourism industry is facing significant challenges, according to Rade Ratković, Dean of the Faculty of Business and Tourism. He pointed out that, unlike neighboring countries like Albania and Croatia, Montenegro has failed to adequately manage its tourism sector and transportation infrastructure. As a result, tourists often have to rely on airports in Tirana or Dubrovnik instead of local ones, which significantly affects tourism development.
Ratković criticized the increase in VAT, which he argued discourages tourism. He explained that the lack of tax incentives for the sector and the introduction of higher taxes are making Montenegro less competitive compared to other Mediterranean countries. Furthermore, the country’s tourism product is not matching the prices charged, with structural problems such as over-reliance on non-commercial accommodations (e.g., secondary apartments), which represent over 70% of the accommodation sector, while hotels and similar commercial establishments contribute less than 10%.
Additionally, Ratković stressed that Montenegro’s coastal tourism is unsustainable by European standards, with inadequate infrastructure and severe traffic problems. He also criticized the closure of the national airline in 2020, which has left the country with limited air transport options, negatively affecting tourism. The country’s tourism is fragmented and lacks strategic planning, with no major incentives like tax breaks, favorable loans, or well-managed destination planning.
Ratković concluded by stating that Montenegro’s tourism is slowly deteriorating, with a growing dominance of non-commercial accommodations, especially from Russian, Serbian and Ukrainian investors. He warned that tourism is being overshadowed by the real estate business, which could result in the decline of one of the country’s most important sectors.
