Tourism

The tourism industry in Montenegro is experiencing massive development which started during the 1960s. Although its rise was put on halt by an earthquake that hit the country on April 15, 1979 which eventually destroyed a large number of hotels in the Montenegrin coastal region, innovations were quickly planned and the restoration of new and improved structures began almost immediately.

The reconstruction was completed 8 years after the earthquake struck Montenegro and was mainly due to the aid from republics and provinces of the former Yugoslavia. This was followed by a period of business stabilization until 1991. The turn of the 20th century proved to be a period of regression due to isolation of the State Union of Serbia and Montenegro, dragging also Montenegro’s tourism industry which lasted until the end of the last century. Slow transitions and privatization also took place with the span of time, which is now reaching its final stages.

Due to numerous reconstructions and synchronized activities of Montenegro’s tourism industry over the last few years, the Ministry of Tourism and the National Tourism Organization, as well as the Government Policies of Reintegration of Montenegro saw vital signs of the country’s revitalization, particularly focusing on its tourism and hotel industry. Also visible are good indications of its re-growth, but on qualitatively new grounds.

Montenegro also received assistance from the German Government: a new and current approach for its tourism development – The Master Plan for Tourism Development which was adopted in 2001 that includes a new marketing tactics as well as representation projects for the development of the country’s top tourism locations. As based on the practicalities of the Master Plan for Tourism Development, as well as the development studies for other services, a new Spatial Plan for Montenegro is on the verge of creation, which will generate conditions for the effective planning of tourism development, focusing first on the local level.

Also, the Montenegrin Ministry of Tourism established a series of tourism laws, which includes regulations on the classification and categorization of accommodation facilities, tailored to European standards. Regulations on Value Added Tax are also taking place in order to introduce reduced and selective rates for the tourism and hotel industry. The Ministry also pioneered a Strategy of Sustainable Mountain Tourism Development and a Wellness Strategy, while the local Government of Montenegro accepted a meticulous spatial plan for Montenegro’s marine domain. In line with this, the first private faculty for higher education in tourism and hotel industry was also initiated

Due to the development of these new and positive trends for Montenegro’s tourism industry, an evident increase in tourism night’s volume, approximately 15% in total and 32% in total volume in 2004 is the result of the tour’s operator’s return to the newly reconstructed hotels and the continuation of tourism season extension in 2005. Preliminary arrangements were made for the establishment of reputable international hotel management companies, like those of Aman Resort for the lease of “Sveti Stefan” hotels, which in turn can be a good sign for attracting major investors to the country of Montenegro.

Montenegro’s Ministry of Tourism also launched two capital projects: the Satellite Account of tourism expenditures with the WTTC and the Montenegrin Hotel Industry Survey, which was in accordance to the USALI system performed by the Faculty for Tourism, Hospitality and Trade Management in Bar and Horwath International, Horwath Consulting Zagreb. Both projects represent the implementation of international standards in the area of analytical information, allowing international comparison by key figures, which is also one of the most indispensable requirements for the development of an efficient macro and micro economic tourism management.