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The rise of Montenegro tourism [eTuboNews] - What Can Maldives Learn?

By Hazel Heyer l Special to eTN

Montenegro is showing the world that size does not matter in succeeding in tourism. This small Mediterranean destination is poised to become one of the world's fastest growing tourism markets.

The newest independent nation in the world, Montenegro, is showing its commitment to making a name in the tourism as swiftly as it possibly can. Montenegro tourism leaders have begun to share some of the unique opportunities available in this Mediterranean warm water basin.

Montenegro is among world’s smallest nations, but its tourism sector has been deemed one of the world’s fastest growing. Recently cited as such by the World Travel and Tourism Council (WTTC), the country is committed to becoming an innovator and a model for creative long-term goals for developing tourism. Part of the mission is attracting numerous international investors who actively participate in Montenegro’s innovative approach.

“Montenegro is unique in many respects, and this uniqueness is becoming a powerful magnet for both vacationers and quality investors alike,” Montenegrin Tourism Minister Pedrag Nenezic said. “Our challenge is to assure that we manage growth in a way that both preserve the very charms the visitors and investors have enjoyed, while fostering a dynamic business environment that support smart, sustainable investments.”

According to the 2007 Travel and Tourism Economic Research (sponsored by the WTTC), the world’s high performers - defined as countries set to grow fastest over the decades to come – have Montenegro, China and India topping the list. Montenegro has consistently appeared in the top three positions over the last four years, consolidating growth year on year. Its strong foothold, in terms of performance, is underscored by a sustained expansion in the travel industry as a result of focused strategic development and targeted investment.

Montenegro has posted the world’s fastest growing travel demand in 2007 at 21 percent of total demand; between 2008 and 2017 at 10.1 percent per annum. It is expected to generate US $859 million of economic activity in 2007 growing to $2.394 billion by 2017.

Situated on the shores of the Mediterranean, just 200 miles east of southern Italy, its mild climate and breath-taking scenery has made it one of the hottest destinations in the world for visitors looking for sun-tanning and white-water rafting in the morning, mountain-climbing in the afternoon and exploring cobble-stoned streets of ancient towns at night. Montenegro’s terrain ranges from dramatic mountains, to the second deepest canyon in the world after the Grand Canyon, to miles of long sandy beaches and southernmost European fjords surrounded by black peaks.

Increased investments are pouring into the tourism economy. The Montenegrin government is divesting exceptional real estate assets through a process designed to guarantee investors excellent returns on long-term investments. Developments comply with sustainability principles and the preservation of the country’s unique appeal.

Tourism is expected to contribute 10.7 percent or US$282.1 million to the GDP in 2007, rising in nominal terms to US$807.9 million at 16.1 percent by 2017. Contribution to tourism economy will rise from 20.7 percent or US$548.9 million to 27.1 percent or US$1.324 billion in the same period, said the WTTC.

The destination has completed the long-term lease of the Sveti Stefan complex, a 15th century island/ fishing village to Amanresorts of Singapore. The island and associated coastal assets are being rejuvenated and transformed into a world-class resort. The transaction showed certain openness to developer’s innovative approaches, in which the concept blends unique opportunities with stakeholders’ participation in long-haul growth. The Montenegrin government remains open to a range of transaction structures and approaches, and to facilitating deals congruent with the overall objective of the leisure tourism portfolio.

Indeed, the government has taken the lead in making sure the infrastructure is in place, in order to support numerous investments. Over half a billion dollars have been invested in the new, state-of-the-art airports, roads, and other superstructures over the last few years.

Foreign investors have responded well bringing with them over US$700 million of foreign direct investments in the tourism product of Montenegro within the last couple of years. Sustainable tourism is at the heart of this small country’s mega-tourism plans. “Though sustainability can mean many things to many people, to Montenegro it means projects that are appropriate to the setting, that in no way impair the precious gift of our natural beauty, that meet a market need and that create net benefits ecologically and socially,” Minister Nenezic added. “Not only do we believe that it is possible, we are working with our development partners to make it happen.”

Tourism generates 29,000 jobs for Montenegrins. This is 18.7 percent of total employment, on one in every 5.3 jobs. The WTTC expects that by 2017, tourism jobs will rise to 43,000 or 25 percent of total, i.e. one for every four Montenegrins working.