Montenegro’s tourism struggles despite EU accession progress and regional demand
Montenegro's tourism sector faces challenges despite its strategic EU accession progress. While the country welcomes a significant number of tourists from Serbia and Russia, EU visitors remain scarce. Recent events highlight both opportunities and obstacles in Montenegro's economic landscape.
Montenegro's tourism sector has seen a five percent drop in overnight stays in 2024, despite a quarter of bookings coming from Serbia and another quarter from Russia. Meanwhile, EU visitors make up only a small percentage. Herceg Novi, however, enjoyed a robust tourist season, with visitors lingering until late October.
The country's economic progress is evident in its EU accession talks, which could conclude by 2026. Yet, GDP per capita remains less than a third of the EU average, reflecting the challenges Montenegro faces. Car prices, though relatively moderate at about 7.2% lower than the EU average, may still pose a barrier to some.
Tensions have risen due to an influx of wealthy foreigners, including Serbs, Russians, and Ukrainians, causing friction with the local Turkish community. Meanwhile, mafia gang shootouts persist, casting a shadow over the country's stability.
The Chinese-built highway, refinanced by European banks with additional EU loans and grants totaling €350 million, stands as a symbol of Montenegro's international partnerships. Despite criticism of a mega-tourism project in Ulcinj, the EU closed the chapter on public procurement standards in June 2025. However, Sveti Stefan, a premium hotel on a rocky island, has missed its fifth consecutive season due to a legal dispute with the state.
Montenegro's tourism sector faces headwinds, despite robust interest from certain markets. Economic progress is evident, but challenges remain, including tensions among communities and ongoing disputes in key sectors. As Montenegro inches closer to EU accession, addressing these issues will be crucial for sustainable growth.
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