This year’s summer season in Montenegro appears to be slightly less favorable compared to last year, with ongoing issues such as poor air connectivity and the need for infrastructure investments still prominent. According to guests on the program “Okvir,” there has been a good synergy between the relevant ministries and the tourism sector, raising hopes for improvements in the upcoming season, provided politics doesn’t interfere.
Žarko Radulović from the Montenegrin Tourist Association (CTU) noted that the season has been challenging, with little promise despite the ongoing post-season.
“It has been a difficult and unpredictable year. The pre-season was exceptionally poor, primarily due to Montenegro’s inadequate air connectivity with Europe. We experienced the shortest peak season ever, lasting only 30 days. I would be happy if we could match last year’s financial performance,” Radulović stated.
Olivera Blagojević from the Ministry of Tourism mentioned that while the post-season looks promising, statistics indicate both gains and losses.
“In collective accommodation, we see a 1.23% increase compared to last year, with an overall rise in overnight stays of about 3.8%. However, total accommodation shows a slight decline of 1.16% year-over-year. Overall, the first eight months of this year have been 1.5% worse compared to last year,” Blagojević explained.
She emphasized the importance of improving air connectivity and the necessity for infrastructure upgrades, particularly at airports capable of handling a larger volume of flights.
Democratic Party member and member of the Tourism Committee, Momčilo Leković, expressed a more optimistic view of the season. Data indicates that, as of August, over two million tourists were registered in both individual and collective accommodations, reaching 99% of last year’s numbers and 97% of 2019 figures.
“In terms of overnight stays, we had 12 million, which is 94% of the same period last year, reflecting a 4.6% increase compared to 2019. These figures suggest we are on par with last season. The pre-season was better, and it seems the post-season will also perform well,” Leković noted.
Data from Airports of Montenegro indicates that nearly 2.5 million passengers were served from January to October 6, marking a 16% increase compared to the same period in 2023, and a 7% rise compared to the record year of 2019. While there is potential for growth, geopolitical issues and inflation in both Montenegro and Europe remain concerns.
Petar Golubović, Director of the Center for Research and Development in Tourism, highlighted the need to focus on revenue. He pointed out that collective accommodations—hotels, hostels and camps—are performing well, but serious attention is needed for the dominant individual accommodation sector.
“In the Budva Riviera, for instance, private accommodation represents 84% of the market, with only 14-16% being collective or hotel-based. This is problematic as we need to base our tourism on four- and five-star hotels to attract high-paying tourists,” Golubović explained.
Future connectivity plans
Marijana Stanić from the Ministry of Transport mentioned ongoing projects aimed at improving Montenegro’s connectivity. She expressed disappointment over a previous government decision regarding low-cost airline subsidies that negatively impacted air travel options.
“We are working on introducing new routes, including Madrid, while maintaining flights to Izmir and Ankara during the winter season. We are negotiating additional routes to Portugal,” Stanić stated.
She acknowledged the importance of a national airline and plans for fleet renewal, expressing concerns about past decisions regarding Montenegro Airlines.
Radulović emphasized the crucial nature of air connectivity, noting that the issue with low-cost carriers is linked to a €1.50 fee per passenger, which becomes significant when multiplied by the number of passengers.
“Ryanair may not return soon, but Wizz Air and EasyJet are likely to come back. There has been good synergy between the airport and the ministry, and I commend the appointment of a new director at Airports of Montenegro, Roko Tolić. The ministry’s involvement is promising, providing hope for improvement,” Radulović remarked.
However, he pointed out that the current state of airports, technologically dated, poses challenges.
“There is goodwill and potential for improvement, but laws, regulations, and public procurement processes might delay these efforts. I suggest forming a team to coordinate the procurement and implementation of new equipment, aiming to complete this by March before the next season. My concern is that politics could disrupt this process,” Radulović cautioned.
He opposed the idea of privatizing Airports of Montenegro, arguing that such decisions should come after improving traffic, not during a downturn.
The question of concession
Golubović questioned the logic behind privatizing assets like airports, which could be revitalized quickly and become profitable for the state. He noted similar concerns regarding beach concessions.
Stanić confirmed that the government has not abandoned plans to privatize Airports of Montenegro and is moving forward with the second phase of the tender process.
“There are three companies remaining, and we hope to have a report on bidders by early next year. However, it’s not critical if the state retains control of the airports; we’ll see what offers arise,” Stanić added.
Leković emphasized that all decisions should prioritize national interests, and with the current government expected to last until 2027, ministry officials can focus on their work, which will likely yield positive results.
Blagojević also addressed the potential increase in VAT within the tourism sector, indicating that the minister excluded stakeholder input during that decision. She acknowledged that this could have repercussions for hotel operations.
Comparing tourism with Albania
Golubović compared Montenegro’s tourism performance with Albania’s over the past 20 years, noting that while Albania saw half a million arrivals in 2005, it reached 8.5 million recently. In 2022, Montenegro recorded 2.2 million international arrivals, compared to Albania’s 7.5 million.
“Albania ranked among the top four global destinations for arrival growth in 2023. In August alone, Albania achieved 2.16 million international arrivals, while Montenegro recorded 2.13 million in the first eight months. This indicates that Albania generates in a month what we do in eight months, highlighting their effectiveness as a tourist destination,” Golubović remarked.
Blagojević concluded by stating that Albania should not be viewed as competition, but rather as a motivation for improvement.
