NewsCombatting the shadow economy: Challenges and solutions in Montenegro's tourism sector

Combatting the shadow economy: Challenges and solutions in Montenegro’s tourism sector

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Tourism and Hospitality Chamber of the Montenegrin Chamber of Economy (PKCG) President Ranko Jovović has brought attention to the significant problem of the shadow economy, which poses unfair competition and threatens the stability of the tourism sector. He emphasized the urgency of regulating and legitimizing private accommodations. Despite positive forecasts for the upcoming season, he urged for simplified procedures for obtaining permits for seasonal workers.

Key concerns

Jovović stressed the detrimental impact of the shadow economy on public finances, fiscal stability, and business integrity. This phenomenon, prevalent in various tourism sectors, includes unregistered activities, undeclared workers, and irregular wage practices. He advocated for the formalization of private accommodations to unlock their potential, proposing simplified registration processes and lump-sum tax arrangements for small providers.

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Addressing tourism sector challenges

While tourism is deemed strategic, it faces numerous challenges, including noise pollution, skilled labor shortages, infrastructure inadequacies and construction disruptions during peak seasons. Municipalities need proactive waste management plans, and beach cleanliness reports to ensure optimal conditions. Infrastructure projects should align with tourist seasons to minimize disruptions.

Infrastructure and connectivity improvements

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Immediate action is needed to expedite the opening of key transit routes and complete infrastructure projects to avoid inconveniencing tourists. Jovović recommended the implementation of mobile document readers at borders and coordination with neighboring regions to divert transit passengers. He emphasized the importance of enhancing Podgorica and Tivat airports to bolster connectivity.

Extending the tourism season

Efforts to extend the tourism season are vital for sustainability. Jovović highlighted initiatives such as the Kolašin 1600 ski resort and emphasized the need to invest in mountain tourism destinations. Collaboration between the private and public sectors is crucial to address challenges and enhance competitiveness.

In conclusion, Jovović reiterated appeals to authorities for streamlined procedures, improved infrastructure, and regulatory reforms to support Montenegro’s tourism industry.

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