Apartment owners from Serbia and Russia renting illegally

#RadeRatković #Apartments #Foreigners


It is estimated that half of the touristic turnover is done withing grey economic zone in weekend apartments and houses. However, as it was said to Pobjeda by the Dean of the Faculty for business and toruism in Bidva, prof. dr. Rade Ratkovic, owners of the real estate are predominantly foreigners, mostly from Serbia and Russia, who mostly don’t report that they’re renting their apartments.

“Most of the local people live poorly, similar like the people on the north. During the real estate boom many of them sold a lot of real estate at good prices, spent their money recklessly, they bought apartments and houses for themselves and now are again at some sort of begining, just without property. Some of the corrupt administratuion probably have some illegal income too”, said Ratkovic.

As he emphasized, local population and seasonal workers work for cheap pay in private sector.

“Entrepreneurs have to be registered, inspection is usually all over these people. Local population has very little room for grey zone in business. Among the businessmen at least half of them live at continental parts. Problem is not with local businessmen, but with unregistered room dealers, street and beach sales people who are predominantly from inner country or countries of the region”, said Ratkovic.

As the general director of the Directorate for touristic development and standards Olivera Brajovic said, grey zone has been for some time one of the biggest challenges that the economy is facing, especially in service sector, trade, construction and tourism.

She reminded that grey economy is a business barrier, mostly because of unfair competition and lowering competitiveness of companies that are operating legally, and with regard to this the government formed a Commission for prevention of grey economy.

Source: Cafe Del Montenegro