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Growth in Tourism

 

  • The Word Travel and Tourism Council released its 2007 Top Ten List of Travel & Tourism economies, showing that, for the 3rd year in a row, Montenegro is expected to experience the fastest growth in the demand for Travel & Tourism between 2008-2117.  It forecasts that Montenegro will experience an annualised real growth rate of 10.1% each year – one of the highest predicted, versus a forecast worldwide growth of 4.5% for travel and tourism.

  • Tourism has risen over 17% per annum and today amounts to almost 15% of GDP (expected to surge to 21% or €626.6m in value by 2014)

  • The WTTC has also named Montenegro as one of their top ten countries achieving the fastest growth of Travel & Tourism Economy and Industry GDP over the next ten years.

  • Named the jewel of the Adriatic – an area of untouched natural beauty.

  • 180 miles of coastline and 11 Blue Flag beaches

Improving Infrastructure

  • Montenegro Airlines growth from 16,000 passengers in 1997 to 500,000 passengers for 2007.

  • Tivat international airport expanded with a new wing of 10,000 square feet now added means it can cope with a capacity of 1,380 passengers per hour.

  • Budva has a new international sea port shortly to be opened and there will be customs lines open to Italy.

Politics / Economy

  • A stable political system and economy

  • Since 2003 Montenegro has used the euro as its official currency, making the integration of banking systems and money transfers much more effective

  • Montenegro is seeking to join the EU

  • The World Bank has already invested euro 600 million in Montenegro

  • The government in Montenegro has committed to invest in the region of euro 200 million into roads and tourism in the coastal areas.

Buoyant Property Market

  • On the basis of tourism growth alone, property prices are expected to triple during 2008-2117.

  • Neighbouring Croatia (Dubrovnik – a 15-minute drive up the coast) is priced at euro 4,000+/sqm – Montenegro is still two thirds of that price, so has plenty of potential capital growth. It is considered to be about four years behind Croatia in terms of development 

  • Coastal property prices rose 40% in 12 months (Source: Daily Mail 11.8.06)

Favourable Tax Regime

  • National treatment of foreign investors

  • Potentially no capital gains tax

  • Stamp duty is low, at 2% and legal fees of around 0.5-1%

  • VAT: 17% and 7%

  • Income tax: 0%-24%

  • Purchase Tax: 2% (paid to the Cadastre)

Accessibility

  • By air it is about 2 hours 40 minutes direct flight time from London to either of the two international airports: Podgorica and Tivat or Dubrovnik, in Croatia, which is just over the border and a short drive from the border of Montenegro, (approximately 30 minutes to Herceg Novi and 60 minutes to Kotor)

  • The national carrier Montenegro Airlines operates scheduled flights to the two international airports of Podgorica and Tivat, as do British Airways and JatAirways, (although these tend to be indirect flights currently)

  • It is believed Ryanair will start flying into the international airport at Tivat in the near future.

  • Croatia Airlines, Malev Hungarian Airlines fly to Dubrovnik and these tend to be more direct flights and are therefore quicker.