Visit-Montenegro.com : Tourist Season in Montenegro: a Failure or the Beginning of a New Era

Podgorica – Summer season in Montenegro is most definitely characterized by much smaller crowds then it has been the case during the previous years. The question of whether we are experiencing a failure of a season or the beginning of a new era – remains opened.

Djukanovic’s administration claims the second answer is the right one.

Official data, which had been presented to “Vijesti” by a government official show that 292,490 tourists stayed in Montenegro between 1 January and 1 July, which is by 12 percent higher than it has been the case during the same period in 2007.

Number of overnight stays had been 1,565,191, which marks an increase of 19,3 percent. During the same period, number of domestic tourists had increased by 23 percent, while the number of those from abroad has risen by nine percent.

In the period between January and July, incomes from tourism, calculated in accordance with methodology of the Central Bank, had been Euro 94,9 Million, which is an increase of 23 percent in comparison to the same period last year.

During the same period, VAT-revenue had increased by 37 percent and came up to Euro 58,6 Million, which confirms that the incomes had risen faster than the figures related to the number of visitors.

Number of vehicles which passed through Sozine tunnel between 1 January and 1 July had been 950,267, which is an increase of seven percent, while the incomes came up to Euro 3,56 Million or 6,6 percent more.

379,700 vehicles went across border crossings, which is a rise by 19 percent, while the number of boats which sailed into Montenegro increased by 30 percent, with arrival of 3,128 boats.

Number of airline passengers had increased by 12 percent to reach the figure of 445,000, while the number of flights increased by 17 percent or 4,350 flights.

Railway traffic had also increased by 61 percent, with registered 140,106 passengers.

Incomes from the eco-tax, which had been charged at border crossings since 15 June and during the registration of vehicles, came up to Euro 2,1 million. Foreigners have paid Euro 1,83 Million from this amount.

Data for the month of July would be available only at the beginning of August and they might be able to provide an even better outlook for Montenegrin tourism.

Government sources have told “Vijesti” that the statistics presented above are just one of the indicators that the season is progressing in accordance with the plans and agreed policy. It is noted that certain “overcrowding” is “present only in the grey zone.”

According to the official data, number of registered tourists is by two percent lower. It is estimated that the number of those who are not registered has dropped for at least 10 percent.

Although the government officials refuse to phrase it that way, but the point is that the so called “tomato tourists”, who are mostly from Serbia, have now mostly disappeared.

“The essence is that the guiding principle is to manage the demand. This means that the number of guests in the period before and after the season should increase, while the height of the season should be with the optimal number of guests. Meaning, the figure which would not put too much pressure to the infrastructure (roads, electricity, water supply) and environment.

During the Mayday holidays, we had around 8,000 tourists in Montenegro, which is two times more than it had been over the same period last year. Number of guests in the season is on the anticipated level, while the number after its’ ending would be higher than it had been over the earlier years.

Selling of arrangements is underway. Additional assets are Madonna’s concert, Car Fair, Infofest and similar events”, government sources say.

These sources point that the increase of revenues, regardless of the number of tourists, which is now the case, presents one of the instruments to go a step closer to the elite tourism.

“Elite tourism, which it the goal, is not here yet. In fact, high-quality tourism, which includes high quality in each segment, is a strategic goal.

As all other destinations, Montenegro will always have possibilities for those who do not have much money, on the level of three-star-hotels, also including full quality of services.

Elite services will increase more and more, and they will rely to yachting, gulf, luxurious accommodation on the coast and in the mountains, high-quality infrastructure, but also cleaner environment and air.

A huge progress had been achieved over the last seven to eight years. And, by 2010, Montenegro will be much closer to achieving that goal”, government sources say, adding that the number of tourists would be equal as it had been over the past years, only that they would be distributed more equally across the whole year than it had been the case before.

“Use of hotel capacities is good and that is the most important issue. Huge crowds of visitors during the height of the seasons mostly had to do with the grey economy, which is when the quality is at stake.

This market had now been regulated to a certain extent and the results are far better than they had been in the past, as the season now lasts much longer.

The fact that number of guests in certain hotels might be a bit lower had been compensated with higher prices. Market is the best regulator,” government sources say, insisting that the opening of new hotels and services, which is scheduled to take place next year, would add quality to Montenegrin tourism and financial gains.

Although the government is satisfied and they find that this season is in accordance with their plans, and although the use of capacities in hotels is acceptable, one may note there are certainly those who are not satisfied this summer.

Obvious absence of “tomato tourists” had impact on the poorest providers of private accommodation in Montenegro. That is, all those who could provide cheap accommodation, owners of kiosks, bars and restaurants with lower quality of services,etc. Their decent incomes mostly had to do with the crowds created by numerous tourists who had visited Montenegro over the past years.

The reason for smaller number of visitors could be found in high prices, introduction of the eco-tax for vehicles, ban on foreign food, etc.

Number of Guests Smaller as the Prices are Much Higher than is the Quality

High prices in Montenegrin tourist-offer would, most probably, not be the problem if they were followed by the corresponding quality.

Disharmony between the prices and the quality is, most certainly, one the reasons why the number of guests this year is lower, regardless of government claims that everything was in perfect order.

Elite tourism is out of the question at this point, as it needs much more hotels and tourist complexes with minimum five stars. Such hotels, in Montenegro, can now be counted with the fingers of one hand.

Question also arises as to whether categorization of hotels in Montenegro had been conducted in line with the international standards. There are, obviously, many hotels which are visibly not in line with the level of services their category requires.

For instance, only hotels “Splendid” and “Vila Montenegro” have five stars in Montenegro. Hotel “Forza Mare” in Kotor, which will also have five stars, had been opened only recently.

Magazine “Explorer”, which is issued by the Ministry for Tourism and Environmental Protection, reads that four-stars hotels include: Maestral, Astoria, Queen of Montenegro, Blue star, Montenegro, Mediteran, Sajo, Belvi Ibero star at Budva’s Riviera; Amffora, Cattaro, Palazzo Radomiri, Splendido, Vardar, Conte in Kotor; Princess in Bar; Vila Royal in Tivat; Vila Aleksandar, Jadranska straža, Perla, Regina, Hunguest hotels Sun Resort, Xanadu and RR in Herceg Novi ...

Even if all these hotels with four and five stars, which we have on the coast, in the north and in Podgorica, really meet the requirements of their respective categories, it is not sufficient for the elite tourism. These are insufficient capacities. These hotels also do not posses services and other facilities required by guests who can pay more.

(24 July 2008)

By: Zdravko VUČINIĆ