Government's incentives and Investment and Development Fund's loan support in tourism presented earlier today

Podgorica, Montenegro (22 July 2015) – Montenegro’s current policies and development strategies recognise tourism as a key economic sector and prerequisite for dynamic development and GDP growth in the following period, said Minister of Tourism and Sustainable Development Branimir Gvozdenovic addressing today’s prese incentives and loan support to be provided by the Montenegro government and Investment and Development Fund in the field of tourism.

"Stimulating measures, aimed at developing new tourist facilities, will be implemented by the Government of Montenegro and result in the construction of dozens of high-class hotel facilities of various types and capacities over the next 10-year period," Minister Gvozdenović underlined. He reiterated that the planning documentation that will enable the construction of 130 high-class hotels has been already completed.

"The amendments to the Law on Spatial Planning and Construction abolishes utility contribution payment for the construction of 4 and 5 star hotels, and the amendments to the Law on Property Tax provides for the reduction of annual property tax of up to 30% for 4-star hotels and up to 70% for 5-star hotel.

Furthermore, the amendments to the Law on Value Added Tax abolishes the obligation to pay import VAT for the delivery of products and services for the construction of 5-stars hotels, he explained, adding that the Government of Montenegro has adopted the Decree on Fostering Direct Investments in order to improve the business environment and facilitate faster economic growth.

Secretary of the Secretariat for Development Projects Biserka Dragićević pointed out that according to the decree funds can used by both domestic and foreign economic entities for the purposes of financing investment projects, creating new jobs and boosting economic and regional development of Montenegro.

"The funds will be invested in the construction of 3 and more star hotels in the local governments which level of development is lower than 75% of the average development index in Montenegro, thus encouraging investment and increasing employment in northern Montenegro.

In line with the decree, the funds for investment promotion will be awarded on the basis of the public invitation for investment projects with a minimum value of EUR 500,000 which also create at least 20 new jobs within three years from the date of the conclusion of the contract. The public invitation was called on 1 July 2015," Ms Dragićević pointed out.