Montenegro’s tourism sector is increasingly moving toward a model focused on higher visitor spending, with Tivat and the Bay of Kotor becoming key areas where premium hospitality, marina operations, real estate and branded tourism developments are changing the structure of the coastal market.
National tourism indicators show the importance of this transition. Travel exports accounted for 54.6% of Montenegro’s service exports in 2024, while tourism revenue reached an estimated €1.5 billion, down 3.1% compared with 2023. During 2024, Montenegro recorded 2.5 million international tourists in commercial accommodation, generating around 15.0 million overnight stays. Domestic tourism accounted for 3.9% of commercial accommodation nights.
The largest international source markets were Serbia with 18.4%, Bosnia and Herzegovina with 8.5%, and Russia with 8.1% of tourist arrivals.
Premium tourism developments reshape coastal economy
The structure of Montenegro’s tourism demand demonstrates both the strength of its international market presence and its exposure to external factors, including air connectivity, regional purchasing power and geopolitical changes.
The Bay of Kotor premium tourism cluster is creating opportunities to increase the economic value generated by each visitor. Guests staying in branded hotels and using additional services such as marinas, restaurants, wellness facilities, retail outlets, private transfers and excursions contribute more broadly to the domestic economy compared with visitors focused mainly on accommodation.
Luštica Bay combines international capital and state participation
Luštica Bay is among the most significant examples of Montenegro’s integrated tourism development model. The resort includes The Chedi Hotel, four beaches, more than 30 retail outlets, sports facilities and a marina village.
The project is managed through Luštica Development, a joint venture in which Orascom Development Holding owns 90% and the Government of Montenegro holds 10%. This ownership structure connects foreign investment capital with state participation in a long-term tourism asset rather than a conventional residential development.
Tivat projects expand marina, hospitality and lifestyle offer
In Tivat, Porto Montenegro transformed a former naval-industrial zone into an international marina and mixed-use destination. The development introduced a model combining luxury hospitality, residential real estate, retail and marina activities.
The addition of Boka Place and the SIRO wellness concept expanded the tourism offer toward fitness, wellness, longer stays and branded lifestyle services. In the Herceg Novi area, Portonovi and One&Only Portonovi have strengthened Montenegro’s position in the ultra-premium hospitality segment. Together, these projects demonstrate a shift from traditional coastal tourism toward a model integrating real estate, hotels, marina revenues, wellness services, retail and international brands.
Infrastructure remains key challenge for tourism growth
Despite the expansion of premium projects, they cannot independently support the entire national tourism economy. Montenegro continues to require improvements in infrastructure, airport capacity, water systems, waste management, workforce housing and year-round events.
Luxury hospitality developments also increase expectations among visitors, requiring efficient transport connections, reliable airport access, clean public areas, effective border procedures and trained service workers.
Different regions develop separate tourism models
The Bay of Kotor model is also being considered in the context of wider tourism development across Montenegro, with different destinations focusing on their own market segments. The Bay of Kotor is positioned around wellness and nautical tourism, while Podgorica focuses on conference and city tourism. Kolašin and Žabljak are developing mountain and active tourism, while Cetinje and Kotor remain focused on cultural tourism.
More price-sensitive coastal areas continue to target family tourism markets. Montenegro’s premium tourism cluster is already established through major coastal investments. The focus ahead is on expanding the wider economic contribution of these developments through higher wages, stronger local suppliers, improved food sourcing, professional services, year-round employment and increased fiscal revenues from tourism activity.
