Thematic Cabinet Session Emphasises Successful Tourism Season and Fiscal Sustainability

The Montenegrin Cabinet held a thematic session on Tourism, chaired by Prime Minister Dritan Abazović. The session was attended by Cabinet members, directors of administrative bodies, and state-owned companies. In his opening statement, Prime Minister Abazović emphasised the Government's efforts to promote Montenegro as a green destination. He assessed that the tourist season is progressing very well, with the pre-season exceeding all expectations, and the main season surpassing the visitor numbers of 2019 while significantly improving revenues. Compared to the same period last year, the number of visitors has increased by 20%. The Prime Minister particularly highlighted that tourism, as our most significant economic sector, is currently ensuring complete fiscal sustainability for Montenegro, which means generating sufficient revenue to meet all needs without any issues. He expressed his satisfaction that visits to the northern region have significantly improved, indicating a desired diversification.

Minister of Economic Development and Tourism Goran Đurović emphasised the creation of a year-round tourism season based on diversifying and enriching offerings for various target groups, especially high-spending tourists. He stated that Montenegro aims to be branded as a responsible and sustainable destination, adopting innovative solutions, digitalization, and eco-friendly tourism trends. According to the latest official data published by Monstat, the number of tourists in all types of accommodations during the first five months increased by 53% compared to 2022 and 24% compared to 2019, totaling 575,447 tourists. Additionally, the National Tourist Organisation reported that on this day, Montenegro hosted 171,410 tourists, slightly surpassing 2019 and showing a 20% increase compared to 2022. The current visitors come from various countries, indicating Montenegro's appeal as an attractive destination not only in the region but also in Europe and worldwide.

Minister of Finance Aleksandar Damjanović revealed that the revenue from VAT increased by 10%, while the collection of other revenues has even better results. While praising the Government's measures against the shadow economy, particularly in the tourism sector, he urged institutions and citizens to exhibit responsibility and contribute to strengthening tax compliance. Damjanović stated that the Government's efforts have laid the foundation for sustainable public finances, as evidenced by the country entering this year with deposits of about 40 million euros and borrowing only 100 million out of the permitted 600 million for the current year. This demonstrates that Montenegro is gradually becoming a sustainable system with robust measures to combat the shadow economy.

Director of Public Enterprise Morsko Dobro Mladen Mikijelj reported excellent business results for the Kamenari-Lepetane ferry line. Since the start of ferry transport (5 May 2023), the revenue has exceeded 2.1 million euros, with approximately 1.2 million euros generated in July alone. With monthly expenses not exceeding 200,000 euros, the net profit for July alone reached one million euros, five times more than the annual revenue in previous years.

The National Tourist Organisation announced that the collection of tourist taxes has exceeded 5 million euros, representing a 47% increase compared to the same period last year. Encouraging data from the European Travel Commission revealed that Montenegro has consistently ranked among the top five destinations for over a year. In their latest quarterly report published on 11 July, Montenegro was hailed as a rapidly growing European destination, leading the increase in tourist numbers compared to 2019.

Minister of the Interior Filip Adžić informed that over five million passengers and approximately 1.5 million vehicles entered Montenegro through border crossings, representing an increase of 1,085,000 passengers and 245,000 vehicles compared to the previous year. He acknowledged the challenges posed by the fire season and assured that competent authorities are doing everything in their power to be prepared.

National Parks of Montenegro also reported excellent results, with 308,000 visitors recorded in national parks until 23 July, a 61% increase compared to the same period last year, surpassing the record-breaking year of 2019, with 235,000 visitors. The total revenue from this sector amounted to 1,361,895 euros.

The tourism sector in Montenegro continues to flourish, as evidenced by the impressive performance of both airports and the national carrier. Data from the airports shows a remarkable growth rate of approximately 38% at both locations. Furthermore, the national airline expects a substantial increase in the number of passengers, projecting a growth rate of 40% by the end of the year, with over 500,000 passengers anticipated. These positive trends are also expected to result in a revenue increase of about 50%, reaching up to 52 million euros, with an estimated profit of two million euros.

Additionally, companies under majority ownership of the state have also achieved commendable results. Notably, HG "Budvanska rivijera," HTP Ulcinjska rivijera, and Ski resorts of Montenegro have recorded impressive performances, contributing to the overall success of the tourism sector in the country.

These achievements are a testament to Montenegro's growing popularity as a premier travel destination and showcase the Government's efforts in promoting tourism and ensuring sustainable economic growth.

Transportation data revealed significant increases in road traffic, with a 38% increase in the number of vehicles passing through the Sozina Tunnel compared to the previous year. Additionally, 2,157,601 vehicles traveled on the motorway in 12 months, resulting in toll revenues of 8,749,820 euros.

The Port of Kotor registered 250 cruise ship arrivals this year and expects 450 by the end of the year, with over half a million passengers. Financially, this year is set to be a record year as the Port of Kotor has regained pilotage authority. The port has invested approximately 1,300,000 euros in the reconstruction of the marina over the past year, increasing its capacity by approximately 300%.

The thematic session also discussed matters relating to general security, inspection results, electricity supply, road reconstruction and construction progress, as well as the shortage of labour in the tourism sector and the labour market's status.