The Ulcinj hinterland, particularly the Velika Plaža area, presents a significant opportunity for the development of Montenegro’s coastal tourism sector. Despite its potential, this region remains one of the least monetized areas along the Montenegrin coast. Spanning approximately 13 kilometers of uninterrupted sandy beach, Velika Plaža attracts a considerable number of seasonal visitors but fails to capitalize on this influx effectively.
The tourism landscape in this area is characterized by short stays and a price-sensitive clientele, with average visitor durations ranging from 2 to 4 nights. Daily spending by tourists is estimated between €80 and €110. However, local retention rates hover around 55 to 60 percent, largely due to the prevalence of informal accommodations and a fragmented service sector that limits overall economic benefit.
Employment within the tourism sector in Ulcinj is notably seasonal and unstable. During peak summer months, net monthly wages can reach between €900 and €1,200; however, these figures plummet during the off-season, leading to income instability and increased migration pressures as locals seek opportunities elsewhere.
Municipal revenue experiences significant spikes during the summer months but lacks sustainability throughout the year. The primary challenge facing this region is not a lack of demand but rather issues related to planning and governance. The absence of clear zoning regulations and inadequate infrastructure investment means that potential growth could become a liability rather than an asset for local communities.
To transform Velika Plaža into a more lucrative destination, targeted capital expenditure (CAPEX) ranging from €25 million to €40 million is recommended. Investments in wastewater management, access roads, and public spaces could facilitate a shift towards longer tourist stays, increased daily spending, and the development of structured eco-sports tourism. Such changes could significantly enhance both fiscal stability and employment prospects in the region.
