Montenegro Expects Investment Surge in Tourism


News
12 Mar 15

Montenegro Expects Investment Surge in Tourism

Montenegro expects at least 250 million euro of foreign investment in tourism, mainly in large projects on the coast whose construction already started in 2014.

Dusica Tomovic
BIRN

Podgorica

The Montenegrin government has great expectations of foreign investment in tourism this year, as development projects started in 2014 undergo expansion.

The government’s programme of economic reforms in tourism, which BIRN has seen, expects more than 250 million euro in tourist-related investment in 2015.

The expected inflow of cash relates mainly to the luxury coastal resort of Porto Montenegro and Lustica in the resort town of Tivat and Portonovi near the town of Herceg Novi.

The Qatar state investment fund, Qatari Diar, which has began construction of a resort worth 250 million euro on the coast, will invest around 30 million this year in preparatory work on the Blue Horizon complex.

Sales of several hotels in Podgorica and on the coast are expected to bring the government more than 20 million euro.

Millions are to be invested in two winter resort in the towns of Kolasin and Zabljak in the north.

Presenting the country’s investment potential at Stuttgart’s Business Forum on Wednesday, Prime Minister Milo Djukanovic said Montenegro had been among the top countries in the world when it comes to attracting direct foreign investment in recent years.

“Past investments came from over 100 countries. For years, Montenegro has been at the top of European economies in terms of direct foreign investment in relation to the population,” Djukanovic said.

“Translated into specific figures, the net inflow of foreign investments in the last ten years was more than 5 billion euro,” the Prime Minister added.

While tourism is clearly booming in the country, the Montenegrin Central Bank in December warned of problems.

The big budget deficit was hampering capacities to develop high-end tourism and attract more foreign investors, it said.

Poor transport infrastructure, a shortage of parking lots, heavy traffic jams in summer and problems with waste management and the water supply were key issues, the bank said.

Source: Balkan Insight (Montenegro)