August 2011
Expert’s opinion: Montenegro - Expectation for summer season 2011
The image of ‘wild beauty’ that is promoted attracts a lot of people who are interested in active vacations and in vacations in nature, in mountain areas and in national parks. This year, a special effort has been made to interest young people in the ‘After Beach Parties’ festival. This will be held for a period of one month, starting from July 15th, and will take place on 10 Montenegrin beaches. Some of the most famous names in the regional and world DJ scenes will perform at these events. Numerous festivals, carnivals and other events that take place throughout the entire country will also contribute to providing a full and interesting experience for tourists. Under the motto, “only boredom is forbidden”, tourists will be encouraged to engage in different activities. A calendar of events is available at the National Tourist Organization’s web site:
www.montenegro.travel
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Today Montenegro is recognized as the world’s fastest growing tourist destination, both because of the growth of tourism within the GDP along with an evident increase in employment in the tourism industry, and because of the level of investment in tourist facilities in relation to the total amount of investments made. According to WTTC research (World Tourism & Travel Council), over the next 10 years Montenegro will become the fastest growing tourist country, taking into account the increase in tourism within the total GDP along with the increase in employment in this industry. It is predicted that, by 2021, tourism and other related industries will account for 36.3% of the GDP. In absolute figures, the total revenue from tourism, as estimated by this institution, will reach €1.9 billion by 2021. The number of people employed in tourism, in relation to the total number of employed persons, will grow from the present figure of 13.9% by one third, and will amount to 62,000. The increased level of investment in tourism, in relation to the total level of investment in the country,
In terms of actual revenue, this is projected to be in the region of €645 million. In order to promote the tourist season this year, the Montenegro National Tourist Organization, in cooperation with the tourist industry, has carried out intensive promotional activities both in international and regional markets. A campaign based on the promotion of an integrated tourist offer was promoted in international markets.
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Regarding regional promotions, this year the campaign with CTU has been continued. This relates to affordable package arrangements in private and hotel accommodation, especially out of the season. We expect a further increase in the number of arrivals from the most important and eminent markets. During the first five months this year, the highest growth was recorded in the number of German tourists, where there was an increase of almost 50%. The highest number of tourists came from the European Union, and almost 8,000 of them were French.
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Last year, in an analysis regarding potential in area of the active holiday market, six significant eminent markets were studied: Germany, France, the Netherlands, Poland, Russia and Sweden. The purpose of this analysis was to get qualitative information for further product development and for carrying out high-quality promotions. Data was obtained about the size of these markets, their active tourism potential, their tourist characteristics, and about how much they would be willing to spend on active holidays in Montenegro. Analyses were also carried out on sale channels and methods of promotion. Today, as approximately €2 billion is about to be invested in tourist projects, Montenegro is one of the first countries in the world to speak about investment in tourism on a per capita basis. According to official statistical data, last year Montenegro was visited by 1.26 million tourists. This was about 5% more than the recorded number of tourists during the same period in 2009, when 7.96 million overnight stays were recorded. Revenue from tourism accounted for €635 million or 5% more than in 2009. Regarding the
situation in the tourist market this year, an increase of 3% to 5% in overnight stays is expected. In terms of total revenue, this is projected to be worth approximately €654 million. Montenegro offers a diverse range of tourist activities. The goal now is for all service sectors to provide high quality services, and for prices to be carefully tailored. After suffering the effects caused by the recent global crisis, we are more careful about the money, especially with funds set aside for holidays. It is therefore important to maintain the image of a destination that has a high quality-service ratio. The market, this year, will almost certainly remain resistant to those who try to test the purchasing power of tourists. Serious tourist operators are well aware of this and therefore their pre-season, main season and post-season bookings are all much better. Now, those for whom tourism is just a secondary industry need to pass the test. This includes the people who only carry out tourism activities during the summer months. Prices are tailored on the basis of the category of the offer, while the out-ofseason program is adjusted to meet the various preferences of tourists. For a 7 day holiday in 2011, tourists will have the opportunity to choose, starting from exclusive hotels, restaurants and beaches, to quality accommodation in local households, for promotional price of €77 per day.
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will increase from 16.4% to 50.8% during the next decade. This year we expect to see an increase in the number of overnight stays from 3% to 5%.
Prepared by:
Mr. Saša Radović , Managing Director of the National Tourism Organization (NTO)
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