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HORWATH HTL ZAGREB PUBLISHED THE IMPACT ANALYSIS OF TOURIST ACCOMMODATION ON THE MONTENEGRIN STATE AND LOCAL COMMUNITIES ECONOMY
Second Festival of investments and real estate was held in Budva, on November 09, 2010. It focused on developing the real estate sector in the countries of Southeast Europe. In addition to organizing numerous presentations and performances by key stakeholders from politics and economy, the aim of the festival was a gathering of potential investors.
Within the Festival, main Panel discussion with the topic “Incentive measure program for development of hotel complexes and attracting hotel investors and renown world hotel brands“ was organized in which ministers and representatives of the leading companies and local communities have participated. The project of Horwath HTL Zagreb "Impact Analysis of Tourist Accommodation on the Montenegrin State and Local Communities Economy" served as the base of the panel.
Minister of Physical Planning and Environment of Montenegro, Mr. Branimir Gvozdenovic, said that the analysis of Horwath HTL Zagreb significantly contributed to the creation of defined measures aiming to foster and facilitate the process of encouraging investments in upscale hotel properties in Montenegro. Should be implemented in a manner that significantly facilitates the development of hotel resources, these measures will contribute significantly to growth of GDP and employment in Montenegro.
Analysis of Horwath HTL Zagreb has indicated that the hotel industry, because of its effects on extending the season, employment, income levels and investment, is economically the most important part of the tourism industry which is a key economic sector in Montenegro. Therefore, further development of hotels should encourage construction of the sustainable upscale hotels, with different facilities which will allow year-round business, and thus higher employment.
By 2020, Montenegro is supposed to have around 250,000 beds, primarily as a result of increasing number of hotels of higher standards and increased share of hotel accommodation in total accommodation - from today’s 13.2% to over 35%.
Also, the utility charges for building sites were highlighted as a significant obstacle for investors because of the way of calculation, schedule and payment process. Therefore, in order to achieve the expected increase in the contribution of tourism to GDP in Montenegro, with the current 730 million Euros to 1,792 million Euros in 2019, series of different measures were presented on the panel discussion with special focus on reducing the amount of utility charges for building sites for hotels, providing state and municipal land for free for development of hotels and lowering property taxes.