The EcoVillage Shas project in Ulcinj, spearheaded by Eagle Hills Montenegro in partnership with local development entities, is positioned as a large-scale eco-tourism destination integrating hospitality, residential, wellness, cultural and recreational components. Its potential economic impact can be assessed across phases — construction, early operations, and mature operations — with material implications for employment, regional GDP, tourism receipts, and public revenues.
At the outset, the project is expected to require substantial capital investment over a multiyear development cycle. Preliminary planning guidance suggests that the initial design, permitting and site preparation phase could span 12 months, followed by an anticipated 24–30 months of phased construction. While Eagle Hills has not publicly disclosed full CAPEX, comparable eco-tourism and mixed-use destination projects of similar scale in the Mediterranean typically involve €150–€350 million total investment across land development, infrastructure, buildings, utilities and community amenities. For analytical purposes, this analysis models three scenarios:
- A Base Case with €180 million total CAPEX
- an Upside Case with €250 million total CAPEX, and
- a High Commitment Case with €320 million total CAPEX.
Employment and labour income effects
During the construction phase, EcoVillage Shas is expected to generate substantial job creation. Construction labour intensity for large tourism complexes averages 8–12 direct jobs per €1 million of invested CAPEX in the building and civil works segments. Under these multipliers, the Base Case CAPEX of €180 million would support approximately 1,440–2,160 direct construction jobs, with additional indirect employment in materials supply, logistics, engineering services, and professional support functions. With indirect multipliers of 1.6–2.0 common in large tourism infrastructure investment, total employment associated with construction activity could range between 2,300 and 4,300 full-time equivalent job-years across the build-out period.
In the Upside Case (€250 million CAPEX), direct construction employment may reach 2,000–3,000 jobs, with a total labour impact (direct + indirect) in the 3,200–5,200 job-years range. The High Commitment Case (€320 million CAPEX) would proportionally increase these figures to 2,560–3,840 direct jobs and 4,100–6,700 total job-years.
Ongoing operational employment will also be significant. EcoVillage Shas is planned to include mixed accommodation products, wellness and spa facilities, food and beverage venues, cultural interpretation centres, guided outdoor activities, and ancillary services such as transportation and property management. Operating tourism destinations of similar scale in coastal and nature-centric regions typically support 150–250 permanent direct jobs per €100 million of operating revenue. Assuming EcoVillage Shas reaches a mature annual operating revenue of €60 million–€95 million (reflecting room revenue, F&B, activities and ancillary services), this could support 900–2,375 direct operational jobs once fully established, with broader indirect employment in local supply chains and services totaling 1,600–3,800 jobs in the regional economy.
Tourism receipts and spending multipliers
Tourist arrivals and spending patterns will be a core driver of EcoVillage Shas’s economic footprint. Montenegro’s tourism sector posted record international passenger traffic in 2025, exceeding 3.0 million passengers, while tourism revenues accounted for an estimated €2.7–€3.0 billion nationally. EcoVillage Shas aims to capture premium and experiential demand segments rather than mass budget tourism alone. Assuming the project attracts 60,000–110,000 incremental visitors annually who spend an average of €150–€230 per person per night over a typical 4.5–6.0 night stay, annual incremental tourism receipts linked to EcoVillage Shas could be €40 million–€150 million once mature. This reflects both accommodation revenue and ancillary local spending on activities, dining, cultural experiences and transportation.
Using tourism spending multipliers typical for small open economies (often 1.6–2.0 for direct + indirect + induced effects), total economic impact from visitor spending could range from €64 million to €300 million per year in gross value added terms across the regional and national economy, depending on visitor volume, length of stay, and spending patterns.
Fiscal effects and public revenue implications
Fiscal revenue contributions from EcoVillage Shas arise from several channels: VAT on tourism services and goods, payroll and social contributions from employment, property taxes, and tourism-related fees. Montenegro’s VAT rate on hotel and tourism services stands at 21 percent (standard rate), while payroll taxes and social contributions collectively add roughly 17–21 percent to employer labour costs in aggregate. With projected annual operating revenues of €60–€95 million, VAT receipts alone could contribute €12.6–€19.9 million per annum, while payroll and social contributions on direct employment (estimated at 900–2,375 jobs) could add €8–€18 million per year in direct fiscal income. When indirect employment and ancillary tax flows are considered, total annual fiscal contribution could reach €25–€55 millionat maturity.
These figures are proportionally larger in Upside and High Commitment scenarios, as higher visitor volumes and richer spending patterns increase taxable bases.
Regional economic development, infrastructure and multiplier effects
Beyond direct economic metrics, EcoVillage Shas is expected to have structural impacts on Ulcinj and the broader coastal economy. Infrastructure improvements associated with the project — including access roads, utilities, telecommunications and public spaces — can raise the investment appeal of adjacent districts. If linked with complementary public investment in transport connectivity (e.g., regional road upgrades, airport capacity enhancements) and environmental management initiatives (coastal protection, watershed conservation), the project may catalyse further tourism-oriented private investment. Dynamically, this can contribute to expanded off-season tourism, improved labour retention locally, and diversification into wellness, cultural and experiential tourism niches adjacent to traditional sun-sea tourism.
Multiplier effects from wage income can reinforce domestic consumption. Assuming average direct annual wages of €12,000–€16,500 for operational roles and €18,000–€26,000 for management and specialised positions, total annual direct wage payroll could range from €18–€39 million in the Base Case operating scenario, supporting additional consumption and aggregate demand in the regional economy.
Risk factors and sensitivity considerations
Economic projections are contingent on several risk factors, including:
- Timing of infrastructure delivery (storage facilities, utilities, access roads)
- Macro stability and exchange rate conditions (given Montenegro’s euroised economy)
- Tourism demand elasticity to global economic cycles
- Cost inflation in construction inputs, where materials and skilled labour costs in Montenegro have shown 4–7 percent annual increases
- Regulatory and permitting timelines for environmental and land use approvals, particularly given heightened scrutiny for eco-tourism projects
Scenario analysis allows adjustment for conservative and optimistic outcomes. In more conservative models (lower visitation, shorter stays, extended build-out), annual operating contributions and employment impacts remain positive but at the lower end of the ranges noted above. In more optimistic scenarios — reflecting stronger market reception, premium pricing and expanded service offerings — the upper ranges of employment, fiscal impact and tourism receipts are more likely.
Integrative economic footprint
Integrating these elements, the EcoVillage Shas project presents a complex but material economic engagement with Montenegro’s tourism and real estate economy. Over a 10-year horizon, cumulative direct and indirect value added could total €1.1–€2.2 billion, while cumulative fiscal receipts may exceed €220–€450 million, assuming stable operating performance and policy continuity. Employment effects will be felt both in short-term construction cycles and in sustained operational roles that enhance local labour market participation.
By articulating jobs, receipts, fiscal flows, infrastructure synergies and multiplier effects, this expanded economic profile provides a substantive foundation for investor assessment, project valuation and comparative benchmarking against similar tourism-oriented real estate developments in the Adriatic and Mediterranean regions.
