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Country Highlights

Montenegro: Impact of Tourism Industry on the Economy

The tourism industry has a significant impact on Montenegro’s economy, contributing around 22% of its GDP and creating revenue of between EUR 1.1 billion and EUR 1.3 billion. The sector’s value is forecast to grow to $9.5 trillion, reaching 9.2% of the global economy. Tourism directly and indirectly creates around 36,000 jobs, accounting for a fifth of all employment in the country.

Tourism has experienced rapid growth in Montenegro over the past decade and now represents over 20% of GDP. The country attracts over 2 million visitors annually to its pristine Adriatic coastline, historic towns and mountainous national parks.

Coastal destinations like Budva and Kotor in Montenegro are the most visited areas, filled with beaches, yachting marinas and Mediterranean-style accommodation. Winter tourism is also developing thanks to ski resorts in the northern mountains.

Cruise ship arrivals have surged, injecting significant revenues. However, overdependence on seasonality and coastal hotspots makes Montenegro tourism vulnerable. Diversifying attractions countrywide could help address this.

The sector has spurred investment and job creation in hospitality, retail, transport and construction. But shortages of skilled labor and accommodation indicate the need for workforce training and sustainable development of Montenegro.

However—the economy’s heavy reliance on tourism makes it vulnerable to external factors, such as the COVID-19 pandemic, which led to a major slump in economic growth due to a 77.9% drop in tourist arrivals in the first eight months of the year. The concentration of summer visits leaves the national economy very vulnerable to climate change, which is predicted to result in decreases in coastal tourism in Southern Europe. Despite these challenges, Montenegro is working to develop a broader tourist industry based on its scenic beauty, cultural tourism, and geographic diversity, including mountains, seacoast, and lakes. The government is also planning to become a center for business and convention meetings, and representatives hope to shift a greater percentage of the tourist trade away from the coast.

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Featured Reports

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