Montenegro became an independent Republic in June 2006 and is actively working towards accession to the European Union. The government has demonstrated its determination to realize its tourist potential for the long term benefit of the country's economy and its people. The World Travel and Tourism Council currently ranks Montenegro third among the fastest growing tourist destinations in the world.

 

• Currently the number of tourists visiting Montenegro is increasing at a rate of 17% per year and it is one of the top 10 holiday destinations in the world.
• By 2014 Montenegro is expected to become the fastest growing tourist destination in the world.
• Since 2000 the economy has been growing steadily at 3.1% and inflation has remained below 4.5%.
• The land laws of Montenegro give foreign investors equal status with Montenegrin investors, with full deeds and title to land and real estate.
• The Montenegro government plans to turn Montenegro into a first class destination for discerning tourists rather than a budget holiday hotspot for those seeking a cheap getaway.
• Montenegro is beautiful and rich in culture, history and natural wonders and property is still relatively affordable.
• In 2001 the government created a 'Tourist Masterplan' which maps out the long-term national strategy up to 2020. In bays up and down the coast, new marinas and resorts are planned that will incorporate million dollar luxury golf courses and hotel complexes.
• Over 80 tour operators from more than 15 countries, including 6 in the UK organize holidays to Montenegro.
• Government backed tourism - the Government of Montenegro has introduced legislation to support and encourage investment, which includes a Free Trade Zone status for suitable foreign investments, repatriation of earnings and residency rights.
• The Montenegro government made capital investments into construction and manufacturing of an estimated €42.8 million in 2004. By 2014 this amount is set to reach €121.2 million.
• Funds are being invested by the EU - the ERBD Bank invested €11 billion in 2003 into airports.
• In 2004, the World Travel and Tourism Council, a trade group of business leaders, highlighted Montenegro as the 'fastest growing travel and tourism economy in the world'.
• Montenegro is actively pursuing membership of the World Trade Organisation and it is working with the European Commission to get a Stabilization and Association agreement in place as a step on the way to accession to full EU membership.
• Property is already in demand especially from the Russians, the British and the Irish following on from independence from Serbia in June 2006 and a stable economic and political climate.
• The property buying process has improved and is relatively straightforward when buying off-plan.
• Careful planning has helped Montenegro to limit the number of developments and avoid building the type of concrete jungle that has appeared in other countries.

 

 

The Economy

Montenegro has adopted the euro as its currency and it is steadily becoming more economically and politically stable.

Until several years ago, Montenegro was a country whose economy was based on nationalized, publicly owned principles which were inefficient and cumbersome and the government decided to begin the process of privatizing the economy. The necessary legislation was adopted and the results have proved successful. An estimated 50% of the economy has now been privatized with the banking sector, business enterprises and hotels leading the way. The government is also seeking to diversify the country's economy away from commodities towards added value production in food processing, aluminium, steel and textiles. In November 2004 the US under secretary for economic, business and agricultural affairs stated at a conference in Belgrade:

"There is no reason why. Montenegro cannot achieve the same success we have seen in other countries, such as the Czech republic, Poland and Hungary"

In 2001, Montenegro's democratic government unveiled a tourism plan with targets for 2020. The main thrust of the plan is to open up Montenegro's hotel and tourism industry to the free market and to set a framework to ensure careful planning of developments on the coast. In 2004 the Montenegrin Ministry of Tourism worked with the World Travel and Tourism Council to produce a report with recommendations on policies that will "optimize the potential benefits of travel and tourism in Montenegro and ensure longer-term sustainable development across all levels of the economy".

In 2004 the Montenegrin government invested €42.8 million in tourism and this is projected to increase to €121.2 million by 2014, over a fifth of total government investment. The European Bank for Re-construction and Development (ERBD) and the European Investment Bank (EIB) are underwriting major investment in airports and railways, highways and waterways, such as the €23 million modernisation of Montenegro's international airports at Podgorica and Tivat provided jointly by the EBRD and the EIB. The EBRD has committed €810 million to over 40 projects* and mobilized an additional €963 million* with partners from the public and private sector. The EIB, EU and other investors have co-financed projects worth around €290 million.**

 

*Source - European Bank for Reconstruction and Development

** Source Economic Development and Reconstruction in South East Europe