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Montenegro

Montenegro is in a tourist slump: Sveti Stefan is collapsing, the season is late

July 21, 2025, 14:46 Aleksandra Mudreša, DW
Photo: Unsplash / JinHui CHEN
Sveti Stefan
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Saint Stephen, the symbol of Montenegrin tourism, is closed to visitors even on its 65th anniversary, while tourism workers warn that the season is weak, despite official data on a large number of tourists

Although it was once a symbol of Montenegrin tourism, the city-hotel Sveti Stefan is celebrating its 65th birthday without guests. While officials record more than 130.000 tourists in the country, the tourism sector says that the season is below expectations and that the peak is still to be expected, writes Aleksandar Mudreš for DW.

The once fashionable resort and the pride of Montenegro's tourist offer has been gaping empty since 2021. The padlock was placed after the tenant, the company "Adriatic properties", and the government could not agree on the terms and conditions for using the island and beaches for all tourists, not just hotel guests. The dispute, which weighs one hundred million euros, is before the arbitration court in London, and the closing arguments are scheduled for the end of July.

Budva parliament member Đorđe Zenović told DW that Sveti Stefan, which has been locked for years, is a symbol of the hopelessness in which Montenegro finds itself as a tourist destination.

"Perhaps the moment of long-term leasing of this natural and cultural pearl in the Mediterranean was the beginning of the decline of Budva and Montenegro as a great tourist potential," says Zenović. Due to lack of use, the hotel "is falling into disrepair" and, according to tourism expert Miško Radjenović, it may meet the end of the trial in an even worse state.

"Perhaps an out-of-court settlement should be organized as soon as possible so that the hotel is ready for the next season. If Sveti Stefan was open, perhaps, in addition to numerous world figures, Jeff Bezos would also get married at the popular Svec," Rađenović told DW.

Novak Djokovic didn't help either

At the beginning of February this year, the most successful tennis player in history, Novak Djokovic, tried to help to remove the padlock from the Sveti Stefan city hotel. After talking with Prime Minister Milojko Spajić, Djokovic told "Vijesti" that he would use his name and influence to resolve the problem between the Government and the tenant.

The global ambassador of the "Aman" company clarified that they held "initial talks" and were informed "about everything", stressing that he is trying to work for the "general interest" of Montenegro and that he hopes that a solution to the problem will be "on the horizon" very soon...

As "great" a season as it could have been

According to data from the National Tourist Organization and local tourist organizations, over 130 guests are currently staying in Montenegro. The Ministry of Tourism says that it is evident that collective accommodation, according to reports from Booking, recorded an increase of four percent compared to last year and 16-17 percent compared to 2019, which is marked as a record season.

A long-time restaurateur from Petrovac, Ilija Armenko, told DW that the fact that about 130 guests stay in Montenegro, and that there are about 500 beds, speaks volumes about the season.

"In the 1990s, Montenegro recorded ten million overnight stays, now it does not exceed one and a half million. We are now talking about the demise of tourism. We must look each other in the eye," Armenko told DW.

Expected in Budva

The season in Budva is at a satisfactory level, according to the local tourist organization. Despite the official statistics, some representatives of the tourism industry are not satisfied because they had higher expectations.

"The participation of the municipality of Budva in the total tourist traffic in Montenegro for the period January-May is 40% in arrivals and 43% in overnight stays. According to the preliminary data of the Administration for Statistics of Montenegro - Monstat, 167.331 arrivals and 470.162 overnight stays of guests were recorded in collective accommodation in Budva for the first five months.

Comparing with the same period last year, there was a 2% increase in arrivals, while a 4% drop in overnight stays was recorded. The majority of guests are from Germany, Serbia, France, the United Kingdom, Israel, Turkey, Albania, China, Austria and Croatia," points out TO Budva director Ana Vujošević.

Did Montenegro lose the battle with the region?

Increasing taxes in the tourism sector, the lack of a clear strategy to attract guests, reliance on circumstances that affected competing tourist destinations, excessive urbanization to the extent of construction lobbies, not citizens and tourists, pricing policy, "ad hoc" bad and reckless moves by local and state authorities, lack of basic road and city infrastructure - these are just some of the reasons why Montenegro has come to this situation, Zenović points out.

"On the other hand, Albania did everything the opposite of us and reached all the world maps for its natural beauty, well-arranged resorts, high-quality and affordable accommodation offer and original gastronomic offer. To the extent that they threatened Croatia as well and recorded unstoppable growth in all parameters. This season may be weaker according to forecasts and expectations, but according to how much and how we worked - excellent", says Zenović and concludes that he is afraid of what kind of seasons await us in the coming years if the consciousness of those who they decide "not to change radically" and if we do not understand that Montenegro is not the only country with seas, mountains and lakes.

Tags:

Montenegro Tourism Summer vacation The ministry of tourism
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