InFocus Montenegro 2016 by cmcpresentation

MONTENEGRO 2016

Diplomacy&Commerce

BUSINESS OVERVIEW

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The greenest of the green

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Montenegro was declared an ecological state in 1992 and is the only of its kind in the world.

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Wet wet wet

Crkvice are a village in Montenegro with the most annual precipitation in Europe. - 03 -

Zig Zag River

Bojana River is the only river in the world that, because of the terrain, runs both upstream and downstream! - 04 -

The small is sometimes the first

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The first inter-city bus service in Europe was introduced between the Montenegrin towns of Podgorica and Cetinje, at the time of King Nikola.

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Famous prosciutto

The most famous Montenegrin export product is njeguška pršuta (prosciutto from Njeguši). - 06 -

The urban legend is in fact true

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Montenegro is among the first in the world when it comes to the use of mobile phones per capita. Every resident has more or less - two mobile phones!. - 07 -

Green and blue paradise Skadar Lake is a geographical phenomenon, having some 40 islands and islets. - 08 -

The most beautiful in the times of Hercule Poirot

Bečići beach, located near Budva, was declared the most beautiful beach in Europe in 1935 in Paris.

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CONTENTS MONTENEGRO 2016

Diplomacy&Commerce

IGITAL SOCIETY AS AN OPPORTUNITY FOR ALL 10 DCITIZENS

Professor VUJICA LAZOVIĆ, PhD, Deputy Prime Minister and Minister of Information Society and Telecommunications

14 WE ARE BUILDING OUR EUROPEAN FUTURE OUND STRATEGIC BASIS FOR EXCELLENT 18 SRESULTS

VLADIMIR KAVARIĆ, Economy Minister in Montenegrin Government

BRANIMIR GVOZDENOVIĆ, Minister of Tourism and Sustainable Development

22 IMPROVING BUSINESS ENVIRONMENT 25 SAFETY, COMMITMENT AND QUALITY SERVICES TIMULATING AND SUSTAINING FINANCIAL 26 SSTABILITY

VELIMIR MIJUŠKOVIĆ, President of Montenegrin Chamber of Economy

NIKOLA VASILJEVIĆ, Montenegro Country Manager of Gebrüder Weiss (GW)

MILOJICA DAKIĆ, Governor of the Central Bank of Montenegro

E HAVE A WINNING COMBINATION FOR ALL 28 WSHAREHOLDERS

MILOŠ JOVANOVIĆ, Director of Montenegro Investment Promotion Agency (MIPA)

30 SYNONYM FOR EXCEPTIONAL DISTRIBUTION 32 RESPONSIBLE TOWARDS CLIENTS AND SOCIETY 36 WHAT IS THE MONTENEGRIN ECONOMY TODAY? 39 LEADING CRUISE DESTINATION 40 WORLD'S FIRST ”GREEN COUNTRY” ORE THAN TWENTY YEARS OF SUCCESSFUL 43 MOPERATIONS S PRESS + D.O.O. PODGORICA

NEREGELIA

Economy

Luka Kotor

Investment

Komercijalna Bank AD Budva

44 FIRST IN LINE 46 BETWEEN THE MOUNTAINS AND THE SEA EM OF THE MEDITERRANEAN ON THE COAST OF 49 GMONTENEGRO 50 THE WILD BEAUTY Montenegro’s EU accession

Culture

Porto Montenegro Tourism

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Professor

VUJICA LAZOVIĆ PhD, Deputy Prime Minister and Minister of Information Society and Telecommunications

INTERVIEW

DIGITAL SOCIETY AS AN OPPORTUNITY FOR ALL CITIZENS Apart from FDIs, solid tourism and large-scale infrastructure projects, Montenegro is very committed to building information society and telecommunication resources in supoort of the existing platforms and platforms for development of new opportunities for inclusive social development

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number of development projects which Montenegro has launched in tourism, energy and agriculture are the foundation of the future economic growth and creation of new jobs. Development of information society, primarily based on ubiquitous availabillity of the broadband Internet complements these aspirations and is considered the bedrock for building of digital economy and further growth of the GDP – says Vujica Lazović, Deputy

Prime Minister and Minister of Information Society and Telecommunications.

Which key factors have contributed the most to the Montenegrin economic development which is much more prounounced than those in the region and Europe? - In 2015, Montenegrin economy grew by 3.2% which, although lower than expected, was one of the highest growth rates in the region, surpassing the 1.7% growth in Euro-

zone and 3.1% in the world. The generators of the Montenegrin economic growth are FDIs which went up by 75% and loans which triggered the upwards trend following the perpetual decline since the onset of the global economic crisis. As far as the economic sectors go, tourism and complementary sectors and electricity production had the biggest influence.

How satisfied are you with the current state of the ongoing, large-scale development projects in Montenegro? - Considering the unstable political situation in Europe and the world and its possible effect on the willigness of investors to invest, we are more than happy with the implementation of development projects in Montenegro. Most of them are being implemented according to plan. I am mainly referring to the ongoing projects like construction of resorts in LuĹĄtica and Kumor, laying of the submarine power transmission cable, and construction of several big fourand five-star hotels. Although, construction of the motorway did not start in late 2015, we completed the pre-construction work and commenced with building the priority segment in early 2016. We are going to sign contracts stipulating construction of the second block of the thermoelectric power plant in Pljevlje soon. Although, investments in agricultural capacities and production are not individually high, they are conducive to development and very important for boosting the overall processing industry and tourism. They also complement tourism well. Personally, I would like to see more projects being implemented, particularly those that create new jobs and engage production capacities whether directly or indirectly thus changing the structure of the Montenegrin economy in the direction of lesser dependence on suitable weather.

Why are the negotiations about construction of the second block in the Pljevlja thermoelectric power plant so demanding? - This project has several complex aspects. During the planning and preparatory phases, a whole set of documents had to be drawn that stipulate legal, technical and economic elements. Additionally, such a big project needs cooperation on several levels and it is supported by the Montenegrin and Czech governments through the Intergovernmental Agreement that will be signed soon. Considering that Montenegrin Electric Enterprise will be the investor, securing the funding that the company doesn't have at the moment while trying to negotiate a good loan deal is especially challenging. We all know just how restrictive banks are, so a

Pljevlja coal mine and its further development is also going to be challenging considering that coal is the biggest expense in electricity production.

CONSIDERING THE UNSTABLE POLITICAL SITUATION IN EUROPE AND THE WORLD AND ITS POSSIBLE EFFECT ON THE WILLIGNESS OF INVESTORS TO INVEST, WE ARE MORE THAN HAPPY WITH THE IMPLEMENTATION OF DEVELOPMENT PROJECTS IN MONTENEGRO

How much do the plans to build information society fit into the overall development plans of Montenegro?

lot of additional details had to be provided in order to facilitate the decision making process. Furthermore, the Feasibility Study was quite cautious in order to create the prerequisites for the banks to grant funding as soon as possible which means that the construction will be carried out with realistic resources and funding costs. Negotiation teams also had a lot of work to adjust technical specification while being mindful of the technological advancement, environmental standards, energy efficiency and profitability of the project. Investing in the

- Broadband infrastructure is the basis for development of information society in Montenegro. Investing in this segment is a must, as is the joint effort of all involved parties, the state and the operators in order to make fast broadband Internet universally available in Montenegro. As shown by extensive research, without adequate infrastructure there is no impetus for development of digital economy and, in turn, no essential growth of the national GDP which is a result of direct investments in broadband. This is also the reason why we have lofty goals in this segment which we are obliged to accomplish by the Digital Agenda for Europe. Additionally, as a tourist destination, Montenegro has been working on other Internet access projects like Wireless Montenegro which provides free WiFi for citizens and tourists in public locations. This makes us more competitive in a segment that is very important considering that, today, Internet is a basic human need. With this Internet access as the foundation and digital

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creating a favourable development environment. There is nothing local and restrictive about digital economy any more and I believe that real development will ensue when Montenegrin businesses become aware of this. Also, we have numerous other tasks which, to the biggest extent, depend on the state like development of e-governance, e-healthcare, digital inclusion of marginalised groups and especially e-education, which is a big bite to chew. I would also like to highlight development of human capital. In this new document, we have tried to demonstrate that people and ideas are crucial for development of digital economy. On one hand, we need experts, and, on the other, advanced users / citizens. Our plan is to do everything in our power to create an environment conducive to development of both digital skills.

How satisfied are you with development of the telecommunications sector and what are the biggest challenges in the following period?

economy as its superstructure, our plan is to make Montenegro an open, digital society where all societal groups can profit from using modern technology.

What are the Ministry of Information Society and Telecommunication's ambitions by 2020 in this context? - Our ambitions are fully covered in a new strategic document called „The Development Strategy for Information Society in Montenegro by 2020“ and are divided into programme segments and goals. This is a third strategy of this type which is also a natural continuation of the action plans of previous strategies. In this strategy, we are mindful of the achieved development while having an ambitious and comprehensive view of the future. The general framework – infrastructure, security and digital economy – is the backbone of our plans. In that context, we can say that we are firmly committed to creating an advanced infrastructure and a safe national IT environment supported by the administrative and institutional capacities, as well as to building digital economy on this foundation through e-segments that we have defined

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WITH INTERNET ACCESS AS THE FOUNDATION AND DIGITAL ECONOMY AS ITS SUPERSTRUCTURE, OUR PLAN IS TO MAKE MONTENEGRO AN OPEN, DIGITAL SOCIETY WHERE ALL SOCIETAL GROUPS CAN PROFIT FROM USING MODERN TECHNOLOGY in the document. SMEs are fundamental for economic development, and we are at the very beginning when it comes to focusing on start-up and spin-off companies. Since we are still not satisfied with the level of utilisation of the Internet and technology by businesses, this is going to be our biggest task in the digital economy segment. On their part, businesses simply have to recognise the benefits and it is up to us to make this happen, both through education and

- Montenegro has achieved an enviable level of telecommunications development and, considering numerous solutions that are regularly applied, our country is the regional leader. The ICT sector in Montenegro is well-developed and competitive in the regional environment primarily thanks to having strong telecommunications operators supported by foreign capital. The socalled C (communications) segment in ICT is one of the driving forces behind the Montenegrin development with the annual turnover of €300 million. Access to broadband Internet enables both citizens and companies to communicate and produce in a much faster and more efficient way. It is exceptionally important for Montenegro to direct its efforts to faster development of electronic communications network and services, to create conditions for a healthy market competition, to secure profitability and implementation of new technology and services in this sector and to apply international standards and principles. Montenegro has recognized the importance of information-communication technologies for the country’s development while giving a lot of attention to the ICT sector and treating it as the priority in its development plans. Development of the ICT infrastructure, e-services and promoting IC technologies are at the forefront. The laws that regulate this segment have been harmonised with the relevant EU laws which created the main prerequisites for development of the ICT sector. There has been a lot of mindful and committed work on creating the best possible environment for development of telecommunica-

tions market which resulted in the very fast development of this sector in our country. Our challenge for the immediate future is to make sure that Montenegro becomes a highly developed information society in which the level of IT application will be tantamount to that in the EU. This will be achieved if we accomplish the results set out in the Digital Agenda for Europe which is the first of the seven key initiatives stipulated in the Europe 2020 Strategy.

How capable is Montenegro when it comes to educating enough experts in these two very challenging areas? - Montenegro's capacity in this area is currently very limited. There are several study programmes for IT engineers both at state and private universities but they cover only a fraction of market needs. The study programmes are too diverse, inconsistent and scattered, and do not follow education trends in this field. This was especially highlighted in the new strategic document. Also, there is a problem with the curricula in elementary and high schools which are outdated because IT subjects are taught too late in education, they are optional, there isn't enough of them and they are not adequately devised. Handling this problem involves several stakeholders especially now, when the need for IT is simply implied in developed economies, when its inclusion in the curriculum has been growing and when computer programming is something pupils learn about every day.

domain, which is a sort of a Montenegrin online amassador in the world, and its differentiation from the growing numer of the top level domains, is based on personalised approach to Internet users. By actively promoting the .ME domain, i.e. by directly approaching Internet users, we have created

THE ICT SECTOR IN MONTENEGRO IS WELL-DEVELOPED AND COMPETITIVE IN THE REGIONAL ENVIRONMENT PRIMARILY THANKS TO HAVING STRONG TELECOMMUNICATIONS OPERATORS SUPPORTED BY FOREIGN CAPITAL

a strong base of the .ME users. This kind of promotion has primarily an educational character where, by demonstrating good examples from using the .ME domain, we have created a basis for new domain content. Also, such approach has shifted the entire domain industry towards a more humane approach in the digital world. We are promoting the .ME domain as the means that will help end users to present their uniqueness in the digital world. In this way, the .ME domain has positioned itself as the most personal domain and we are confident that it will continue to be so regardless of the ever growing competition. Apart from the personalised interaction with Internet users or one-on-one marketing, our Development Programme has resulted in cooperation with online giants like Facebook, Yahoo, Wordpress, Universal Pictures, Google, The New York Times, AliBaba, Naver and others which only enhances our credibility based on which the .ME domain will continue to generate growth on the global market.

Along with the 10th anniversary of Montenegro's independence, you also celebrated the 8th anniversary of the .ME domain. What needs to be done in order to sustain the appeal of this domain which is a sort of a Montenegrin national ambassador? - At this moment, the global domain market is the market of perfect competition. Thanks to the launch of ICANN's gTLD programme in October 2013, there are now 1,051 generic top-level domains (gTLD) and, if they manage to maintain the pace, another 349 gTL domains will be made available which brings the total number to 1,400 new generic domains on the global market. If we add to this the 253 country code Top Level Domains (ccTLD) and 22 generic domains that existed before the ICANN launched 1,400 gTLDs, we can say that have met all the prerequisites for implementing the model of the perfect / complete market competition. In this environment, a lot of effort needs to be invested in order to sustain the attractiveness of any domain, both generic and country code Top Level Domains. The positioning strategy for the .ME

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VLADIMIR KAVARIÄ&#x2020; Economy Minister in Montenegrin Government

For over a decade, the Montenegrin government has been working on creating an environment conducive to investors both through economic policies in the country and, as of recently, through active participation in infrastructure projects that will link the Western Balkan countries and the region to the rest of Europe INTERVIEW

WE ARE BUILDING OUR EUROPEAN FUTURE

ounding off the preparatory process of oil and gas exploration on the Montenegrin seabed is just one of the large-scale projects that the Montenegrin government and the Ministry of Economy have been working on which can contribute to the country's economic development. Additionally, there are many activities carried out by the government ministries on improving the business climate and creating new opportunities for investors â&#x20AC;&#x201C; says Vladimir Kravaric, Economy Minister in the Montenegrin government.

The Paris-Balkans Summit took place this month within the framework of the Berlin Process. Could you rate for us the economic cooperation between the Balkan countries in this context? - The West Balkan countries connecting pri-

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TRANS-BALKAN CORRIDOR IS THE FIRST PROJECT APPROVED IN VIENNA. THIS PROJECT BECOMES OPERATIONAL ONCE THE RELEVANT AGREEMENT IS SIGNED AND I THINK THAT, WITH THIS PROJECT, MONTENEGRO HAS DEMONSTRATED ITS SERIOUSNESS AND COMMITMENT TO A PROCESS LIKE THE BERLIN ONE

marily to each other and then to the European Union is done for very strong political and economic reasons. The main reason is the necessity to fill the real physical and infrastructural void which prevents us from being truly connected. The idea of the West Balkan countries connecting between each other emerged in 2014 following the meeting in Berlin and continued in Vienna in 2015 and in Paris this year. It is very commendable that the regional countries have recognised the importance of this project and, in that respect, have been actively participating in suggesting concrete projects that would result in infrastructural networking. Good transport links are crucial for the sales of goods and services that are produced or are going to be produced in Montenegro. Good energy links are also necessary for future investments in the energy

sector, as well as for free flow of energy through Montenegro which would benefit our country both financially and strategically. The Trans-Balkan Corridor is the first project approved in Vienna. This project becomes operational once the relevant agreement is signed and I think that, with this project, Montenegro has demonstrated its seriousness and commitment to a process like the Berlin one.

A financial agreement stipulating construction of the Trans-Balkan Electricity Corridor was signed in Lastva Grbaljska recently, as a result of the West Balkan / Berlin initiative. What does this mean for the Montenegrin economy and for overall energy sector? The Trans-Balkan Electricity Corridor, i.e. the power transmission grid that will connect Montenegro and Serbia and, a later stage, Bosnia and Herzegovina too, is a project of enormous importance for the energy sector and the overall Montenegrin economy. Furthermore, the project has a regional and European importance because it entails boosting the Montenegrin infrastructure surrounding the submarine energy cable that will stretch to Italy and construction of power lines between Montenegro and Serbia. In this way, Montenegro will become the hub of energy stream in this part of the world. The project will also completely change the perspectives of other neighbouring countries considering the opportunities for connecting to the Western Europe via Montenegro. The project of constructing the aformentioned submarine cable stretching to Italy will make sense and reach its full potential only if the Trans-Balkan Electricity Corridor project is implemented. The project's value stands at €127 million. With the help of the Montenegrin government, the Montenegrin Power Transmission System (CGES) has secured a loan from the EBRD and the German development bank KfW. The recently signed agreement stipulates co-financing of the loan from a €25-million-donation. This is the first project that has been approved in Vienna which had been initiated through the Berlin Process and based on the idea of integrating the Western Balkan countries.

The Ionian-Adriatic gas pipeline (IAP) is another project that received the EU's support via the Western Balkan Investment Framework. How far along is this project? - At a ministerial meeting with the representatives of Croatia, Bosnia and Herzegovina and Albania which took place in Montenegro recently, the involved parties

agreed to form an operational task force in charge of developing the Ionian-Adriatic gas pipeline with HQ in Montenegro as soon as possible. I am happy that the IAP project is getting new regional and general dynamics because we reached a detailed agreement at the meeting to put together a project management unit which would be based in Montenegro and which would com-

of Economy was given a €550,000 grant to draft the Master Gas System Installation Plan for Montenegro. The plan will give an overview of the current situation in the Montenegrin gas market, as well as list institutional measures that have to be devised at the ministerial level and by the bodies that regulate this segment.

What phase is the Montenegrin seabed oil and gas exploration projects at?

- The Montenegrin National Parliament made the last step in terms of the project's implementation by adopting the draft agreement on oil and gas exploration on the Montenegrin seabed thus giving its approval to the consortium made of Italian company ENI and Russian company Novatek to obtain concessions for oil and gas exploration. This is a green light for the agreement with the Italian-Russian consortium to be signed after which the companies that were given the concessions are allowed to conduct exploration on four assigned segments. Also, the government has recently approved the draft agreement for two exploration blocks with the Greek company Energean Oil & Gas and the document will now have to go through the same parliamentary procedure just like the Ital-

prise of the representatives of the ministries and gas transmission system operators from Croatia, Albania, Montenegro and Bosnia and Herzegovina. Let me remind you that following the 10th Call for Proposals within the Western Balkan Investment Framework the Ministry

ian-Russian consortium. It is important to mention that, if oil is found, Montenegro will benefit greatly from that which is a legal guarantee. The Law on Hydrocarbons stipulates formation of a hydrocarbon fund that will receive a part of the money that the state will collect from the profit tax paid by

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the companies. Out of the total revenue, the Fund will receive 85% and the state budget 15%. Then there is the Law on Taxation of Upstream Hydrocarbon Industry which stipulates that 54% of the collected profit tax paid the companies from their upstream operations and equipment and 9% of the collected dividend tax (on capital gains) will also end up in the state budget. The revenue and capital gains from the tax on upstream operations and related equipment are considered the direct revenue for the state of Montenegro. It is also worth mentioning that all the exploration operations will be carried out in line with the highest environmental standards.

Which areas still lack investments and what is government doing to boost these investments? - For over a decade, the Montenegrin government has been working on creating an environment conductive to investors starting with the tax policy all the way to the comprehensive legal framework that regulates the right to own, the freedom to trade and the freedom of capital flow. In terms of the sectors suitable for investments, tourism, energy, transport and agriculture are the most competitive ones apart from the emerging industries like IT. Through various projects like development of business zones

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and incentives for direct investments, the Montenegrin government is creating a competitive business environment. The business zone project has been implemented since 2012 and, at this moment, nine Montenegrin business zones of local interest are open to investments. Also, by the end of this year,

BY THE END OF THIS YEAR, THE MINISTRY OF ECONOMY WILL HAVE STARTED DEVELOPING BUSINESS ZONES OF STRATEGIC INTEREST AND, BY DOING SO, CREATE ANOTHER MECHANISM FOR ATTRACTING LARGE INVESTORS the Ministry of Economy will have started developing business zones of strategic interest and, by doing so, create another mechanism for attracting large investors who are strategically important for the country's economic development. It is also important to mention that foreign investors in Montenegro have the same treatment as

the national ones, i.e. they can invest under same conditions as domestic investors.

Like many European countries, Montenegro has also embarked on a branding process. What awaits you in this process? - In line with the global trends, the Montenegrin government has embarked on the process of national branding with the successful processes of accession to the EU and NATO greatly benefitting the branding process. Considering all the advantages that Montenegro has, we believe that branding our country is one of the ways to round off what our country has to offer and thus valorise its values and boost its image with the goal of raising its visibility and recognisability in the world. In this way, we are going to raise the competitiveness of our economy on foreign markets. The first step in this process, which we have already made, is choosing the design of Montenegro's national brand or its hallmark. This hallmark should appear on as many Montenegrin products as possible which are known for their quality, as well as become a part of the insignia of successful sports clubs, companies etc. By doing so, the foreign countries will associate the hallmark with Montenegro which, in the end, would result in many economic, social, and political benefits for the country.

BRANIMIR GVOZDENOVIĆ Minister of Tourism and Sustainable Development

By recognising our potential and our weaknesses, we have managed to build a sound strategic basis, which, along with the country's numerous natural attractions and our sense of direction, obviously provide wind in our sails INTERVIEW

SOUND STRATEGIC BASIS FOR EXCELLENT RESULTS

ncreasing our tourism revenue from €222 million in 2005 to €800 million in 2015 is a big feat indeed. We started with a good foundation – the Tourism Development Strategy – which was written in cooperation with German experts. At a later date, the Ministry also drafted the Tourism Reform Agenda, in which we highlighted some of the key areas like improving infrastructure, our very unique tourist offer, as a year-round tourist destination, increasing accessibility, developing accommodation with special emphasis on luxury, and developing unique tourist products and special types of tourism – says Branislav Gvozdenović, Montenegrin Tourism and Sustainable Development Minister.

What were the crucial factors contributing to Montenegro quadrupling its tourism revenue in the last ten years?

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- When you are working on several goals at once, it is only natural to expect that you cannot accomplish them all at the same time. However, we did make a lot of progress and that's the most important thing. We are very pleased to announce the great results we achieved in flight connections. Last year we were connected to 76 destina-

OUR GOVERNMENT IS VERY SERIOUS ABOUT PROVIDING INCENTIVES FOR INVESTORS, BECAUSE IF WE DON'T APPEAL TO THEM SOMEONE ELSE DEFINITELY WILL

tions with low-cost airlines like WizzAir, EasyJet and Ryanair flying here. Also last year, we opened 21 catering facilities and created a series of incentives for hotel investors. The number of visitors to our national parks grew by 30%. A substantial number of cruisers sailed into Montenegro and this year we expect a record-breaking number of 500,000 passengers. In terms of investments, I would like to remind you that we started the new millennium with investments of only €10 million. Since then, FDIs in energy, tourism, banking, agriculture and industry have been growing continuously. In 2000, we had €10 million worth of investments, in 2009 €1.2 billion and, in the period from 2007 to 2015, €5.5 billion. Today we are implementing important investment projects with renowned tourism and hotel brands such as Orascom (Luštica Bay project, worth €1.1

billion), Amanresorts (St. Stefan and Kraljičina Plaža hotels, worth approximately €100 million), Adriatic Marinas – Porto Montenegro (€420 million), One & Only (Porto Novi project, worth €650 million), Qatary Diar (€250 million) and Hilton Hotels (€44 million). Of course there is still a lot to be done, but in my mind the key to everything is setting an ambitious and achievable goal in line with your own needs. I am a firm believer in “If one does not know to which port one is sailing, no wind is favourable”. By recognising our potential and our weaknesses, we have managed to build a sound strategic basis, which, along with the country's numerous natural attractions and our sense of direction, obviously gave us wind in our sails.

What does promoting the elite tourism concept entail and how challenging is it in terms of government policy? - Focusing on high quality tourism first and foremost requires the state to create an environment conducive to such investments and to sufficiently improve its administrative and other capacities in order to provide adequate support to investments worth several hundred million or even several billion. Our government is very serious about providing incentives for investors, because if we don't appeal to them someone else definitely will. We have been working on improving the administration to be much faster and more efficient and, essentially, to have enough capacity to protect the state's interests in every segment of investment implementation. Investments are bound to encounter problems at some stage if the entire system is unable to support them whilst also protecting its own interests. When it comes to Montenegro, there were several destinations that positioned themselves as good entertainment places, like the town of Budva, even before we decided to focus on elite tourism. There are also destinations that have a cultural and historic value, like Kotor, Tivat and the entire Boka Bay, those that have potential for nudist tourism and nature-orientated tourism, like Ada Bojana, national parks, religious or cultural tourism destinations and many other locations that appeal to tourists who want to enjoy nature, culture and history, while having an affordable holiday. It is our obligation to cater to this diversity and tie all of this together, while promoting it as versatile yet complementary tourism potential. Judging by our results, I can say with confidence that we have succeeded in that.

What do you expect from tourism development in the next ten years and what

prerequisites have to be met in order for development goals to be achieved? - As the World Travel & Tourism Council projects, the annual growth of tourism investments in the next ten years will be around 8.2%. This brings us to the amount of almost €595 million in 2025, which is almost half of the total investments. In 2015, tourism's share of the national GDP was approximately 22%. By 2026 this share is projected to be 30%, or €1.5 billion.

IT IS OUR OBLIGATION TO CATER TO THIS DIVERSITY AND TIE ALL OF THIS TOGETHER, WHILE PROMOTING IT AS VERSATILE YET COMPLEMENTARY TOURISM POTENTIAL

The projections have shown that, in 2015 alone, tourism directly absorbed 17,500 jobs, i.e. 7.9% of the total number of workers which, compared to 2006, is a 40% rise in the number of jobs in tourism. According to the Council’s projections, direct employment in tourism will exceed 60% by 2026. We have been working a lot on infrastructure in the north of the country, where the potential is still not sufficiently utilised. Our activities are also geared towards creating a competitive environment with a view to improving the availability of high quality tourist capacities. In the next 10 years we plan to open 76 hotels, with the state helping us to find cheaper financial resources for construction. I believe that

these plans are realistic, provided that we continue to be fully applied to our strategic guidelines and the goals I mentioned earlier.

What are your plans regarding the expanding of tourism capacities, diversifying the tourist offer and engaging other sectors, like agriculture, in the overall tourist offer? - Economic and demographic trends and innovations in tourism all affect changes in tourist supply and demand. International tourists are now more interested in authenticity. They want to holiday more interactively and experience everything more freely while getting to know both the cultural and everyday life of the destinations they visit. We have noticed a declining trend in the number of so-called sunbathe and swim tourists. No country in the world should allow itself to base its tourist offer on that alone. Positive trends have been recorded in so-called MICE (Meetings, Incentives, Conferences, and Events) tourism, as well as nature- and culture-orientated tourism and nautical tourism. This gives us a good indication of which tourism branches to develop more. Our priorities are working on opening more marinas and ports, promoting MICE tourism, providing better management and increasing our offer in national parks and ethno-villages, developing tourism in the north and cooperating with international companies that are experienced in valorisation of protected tourist sites. We have traditional production of healthy, organic food, for which there is growing demand. This gives us an opportunity to position our catering facilities as being really special. Our strategic documents stipulate two segments – tourism and agriculture – as the basis for economic development. We are aware of the potential that developing this type of tourism creates and we are working on its promotion. Quite a few hotels already offer healthy, organic food, considering that some of our products – like wine, clean mountain spring water, honey and olives – are already considered high quality brands. In order to increase the share that these domestic products have in our tourism offer, we have been organising meetings between hotel and restaurant owners, on the one side, and producers of local products, on the other. We have also put together a team of experts tasked with bringing agriculture and tourism closer together, and we use every single opportunity to send our experts on international study tours in order for them to learn from the experiences of other countries that have already developed this kind of tourism. Furthermore, we are currently working on creating incen-

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Jadran

into a tourist destination in a certain country. Tourism experts often cite the multiplication theory, where one euro spent by a foreign tourist in one year multiplies itself to €3.2 in the “bloodstream” of the national economy. If we consider the overall growth trend in the number of tourists and overnight stays in Montenegro, as well as the development of certain tourism projects and growing nautical tourism, which is usually linked to wealthier tourists, our expectations are high, particularly regarding the growth of tourism revenue and its positive influence on the overall economy.

What challenges are posed by the opening of the environmental protection chapter in accession negotiations with the EU and what are your long-term plans in this area?

tives for producers of traditional food. In terms of accommodation, streamlining our regulations to facilitate the construction of hotels and turning housing units into hotel units have resulted in more hotels being built. I have already mentioned our plan to open 76 hotels in the next 10 years. If we consider the fact that, last year alone we opened 21 facilities with the majority of them being luxurious, I believe this speaks volumes about how realistic our plans are for the next decade, in terms of building new hotels.

ALL DEVELOPMENT PLANS HAVE TO BE HARMONISED WITH THE LIMITATIONS STATED IN THIS ANALYTICAL DOCUMENTATION

- This is one of the most challenging chapters, both from the standpoint of regulation which needs to be compliant and from the financial standpoint. In the last three and a half years of the EU integration process we have adopted 29 laws compliant with EU regulations, 96 bylaws and over 10 strategies that regulate sector-based environmental protection policies. Our priority in the following period is to improve the administration’s capacities necessary for negotiating successfully with the EU. Of course, one of the main challenges regarding environmental protection policy in the coming period is finding safe and stable funding required for its implementation. The estimates from the draft

How much additional revenue and new jobs does one euro from tourism generate and what are your future expectations in this regard? - Apart from direct effects, there are also indirect effects of tourism development which are equally important. The size of these effects can been seen in the context of the fact that tourism is one of the leading branches in our economy. When we look at the effects that tourism has on the overall economy, it is important to mention that they don't depend solely on tourist spending, but also on the value of imports relating to catering and to tourist needs. In that respect, we have been working on satisfying tourist requirements from our own resources as much as possible. Although the amount of money that domestic tourists spend here does not differ that much to our population's spending, the money that foreign tourists spend in Montenegro has a multiplying effect on our economy, because we are talking about foreign national revenue spilling Perast

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Old Town of Kotor

National Approximation Strategy show that we have to invest €1.4 billion in this area. We have been working a lot on identifying the direction in which we need to go when it comes to securing these funds. We have also been exerting a lot of effort to better utilise the funds we received from the World Bank for eliminating so-called “environmental black spots”. We expect a lot from the establishing of the NATURA 2000 Environmental Network project, which started recently. In 2015 we achieved the greatest progress so far in terms of dealing with climate change by adopting the

IN 2015 WE ACHIEVED THE GREATEST PROGRESS SO FAR IN TERMS OF DEALING WITH CLIMATE CHANGE BY ADOPTING THE NATIONAL CLIMATE CHANGE STRATEGY National Climate Change Strategy. We are also currently drafting the Sustainable Development Strategy. One of the key goals that we are going to accomplish by 2021 is providing waste water infrastructure for every inch of our coastline. Environmental protection is a very important segment for us. We need to do a lot in this area and we are very conscious of that, primarily because it is important for our citizens. I am confident that results in

this area will coincide with the progress we make in EU accession negotiations.

How much are your environmental protection plans harmonised with Montenegro's other development plans, like exploring undersea oil and gas deposits? - We are trying to ensure that all projects implemented in this relatively small, but resource-rich area have environmental protection aspects included in their develop-

ment plans. In this respect, I would like to mention the Luštica Bay project. This is a tourist town that is being built together with Egyptian company Orascom Development Holding, which is the leader in developing integrated towns in Europe, the Middle East and North Africa, and is known for constructing many environmentally friendly towns. Twenty five years ago, Orascom built the eco-sustainable town of El Gouna in the middle of the Egyptian desert. El Gouna is the recipient of the UN's Global Green Town award for their environmental accomplishments. When it comes to Montenegro, the Luštica Bay project is the first registered LEED housing project in Europe which, in translation, means that during construction the developers have to adhere to the highest environmental standards and apply sustainable systems in the town’s functioning. Regarding oil and gas, I will just repeat what I have been saying all along – all projects, especially those implemented in biologically valuable and environmentally sensitive marine eco-systems like the Adriatic Sea, do affect the environment to a certain degree. Hence, it is vital to draft very comprehensive oil and gas project documentation that will assess the environmental impact that these projects will have and conduct vulnerability analysis of the marine eco-system. All development plans have to be harmonised with the limitations stated in this analytical documentation, because this is the only way such projects can be implemented in a maximally controlled environment.

Tara rafting

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VELIMIR MIJUŠKOVIĆ President of Montenegrin Chamber of Economy

INTERVIEW

IMPROVING

The work on national development projects, primarily transportation and other infrastructure, which properly reflect the commitment of a country to development, is very important

BUSINESS ENVIRONMENT

fter the meeting of the Prime Ministers of the Western Balkans with the German Chancellor in August 2014, then the last year’s summit in Vienna, as its follow-up, it is obvious that the Western Balkans is recognized as the Region, whose progress and development are very important for further prosperity of Europe, said Velimir Mijušković, the President of CEM.

What do you expect from the new summit of the Western Balkans leaders in Paris and in your opinion in which areas is the greatest interest of Montenegro in regional networking? - Following the meeting of the Prime Ministers of the Western Balkans with the German

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Chancellor in August 2014, then the last year’s summit in Vienna, and this year’s summit in Paris, it is obvious that the Western Balkans is recognized as the Region, whose

THE CHAMBER OF ECONOMY OF MONTENEGRO ORGANIZE THE REGIONAL CONFERENCE IN BUDVA IN OCTOBER WHICH IS ALSO TO FOCUS ON THE BERLIN PROCESS

progress and development are very important for further prosperity of Europe. Let us remember the joint message of the ministers of foreign affairs of Germany and Austria, who on the eve of the Vienna Summit said that the EU was incomplete without the Western Balkans. Similar messages were heard in Paris as well. Now it is our responsibility to draw advantages from their perception and in order to achieve this we need to be committed to quality and comprehensive mutual economic networking. Since the support of the EU is very important to reach this goal, the Western Balkans and Montenegro, as its part, have very high expectations of the Summit in Paris. The Summit focused on: infrastructure in general (discussing the priority projects

identified at the Summit in Vienna, defining new list and carrying out “soft measures“) energy sector, transport (first of all the content of the Transport Community Treaty), means for the implementation of projects and Regional Youth Cooperation Office. Montenegro was very active in the previous period when it comes to commitment to the activities established through the Berlin process and it is very certain that we will continue to follow this direction. It is encouraging that due to the new circumstances i.e. as a result of Brexit, the Western Balkans will not be relegated to a position of second importance when it comes to attention and commitment of the European Union. Certainly, one of the greatest challenges regarding the preparation of the Western Balkans countries for the EU lies in restructuring economies to be market-oriented and driven by export and investments rather than import and consumption. This message was sent from the Summit. Construction and connecting the transport and energy infrastructure are the core of the EC efforts to strengthen the integration among the Western Balkans countries. This means that focus should be on investments in establishing and improving the transport and energy infrastructure in order to strengthen the competitiveness in the Region The Chamber of Economy of Montenegro took an active part in the session of the Summit related to the economy. As the follow-up of this, we will organize the regional conference in Budva in October which is to focus on the Berlin process, as announced in Paris, emphasizing its importance.

According to the opinion of your Chamber, what should be the Government’s priorities in order to maintain relatively very high economic growth in Montenegro? - In the forthcoming period, Montenegrin Government needs to remain committed to improving the business environment. The entire Region, including Montenegro, especially recognizes foreign direct investment as an important prerequisite for achieving growth. Therefore, everyone in the region should strive to offer the best conditions, so it is imperative to be more competitive. I believe that the successes of previous investments and experience of those who have extended the business in Montenegro are good predispositions for new, future investments. On the other hand this is important not only because of the foreign, but local investors as well. Each well planned investment entails a series of multiple effects within both the economic and social spheres. In my opinion, the Government and local authorities should be committed to "reviv-

ferent case scenarios for the possible situations and that the initiated and future activities will be successfully carried out for the benefit of everyone. The quality of infrastructure is the key factor for the development of the national economy. The realization of such big state projects primarily entails fiscal risk. If on the other hand we have the undeniable fact that these projects are the basis of development then it is justified. It is true that we have conflicting opinions on these issues, but this is neither the first nor the last issue which divides political and other structures in Montenegro. Therefore, I hope that it will not stop the realization of the current and all future development projects.

WE HAVE RECORDED THE DYNAMIC GROWTH AT AN AVERAGE RATE OF 3.2%, WHICH IS HIGHER THAN THE AVERAGE GROWTH OF 1.4% IN THE REGION AS WELL AS THE EUROPEAN AVERAGE

What do the Chamber analyses show on the state of Montenegrin economy? Which industries do provide best business results and to what extent has the economic growth been spread?

ing" business zones, which is a necessary prerequisite to balanced regional and even overall development. Montenegro follows this direction and the results will then be quickly identified and noticeable.

In this context, do you see the great infrastructure projects as the engine of the future growth or the burden to fiscal stability as well? - Each serious and big infrastructure project carries a certain level of risk. I believe that the Government has carefully analyzed all elements of the Agreement, prepared dif-

THE CHAMBER OF ECONOMY OF MONTENEGRO HAS RECENTLY PREPARED AN ANALYSIS "ECONOMY OF MONTENEGRO 20062015", WHICH COVERS TRENDS IN THE PERIOD AFTER THE RESTORATION OF THE INDEPENDENCE

- The Chamber of Economy of Montenegro has recently prepared an analysis "Economy of Montenegro 2006-2015", which covers trends in the period after the restoration of the independence. In this period, significant progress has been made in many areas. We have recorded the dynamic growth at an average rate of 3.2%, which is higher than the average growth of 1.4% in the region as well as the European average, which was at the level of 1%. In comparison to 2006, GDP in 2015 increased by 67%, primarily due to the high inflow of foreign direct investments and revenue growth in the service sector. The share of service in the formation of GDP is increasing, while the share of the manufacturing sectors has stabilized at 10-12%. The real sector is characterized by the growth of small and medium enterprises, which increased by 19% in comparison to 2006. In the ten-year period, the share of total industrial production recorded a decrease in GDP due to the decline in production of basic metals, while some sectors of the manufacturing industry showed a slight recovery. Agriculture and food industry had positive results in the primary and manufacturing production. But the insufficient connection of agriculture with tourism demand prevents greater placement of agricultural products in the domestic market. Although the results in the forestry sector have shown positive trends and a higher volume of production, there are still not enough processing capacities for a higher level of finalization. Strong growth in the construction sector, enhanced by increased investment activities, was stopped during the crisis, after which it recorded positive trends again. In 2015, the largest volume of completed construction works was record-

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of doing business in Montenegro and in which areas should the business environment be improved? - The advantages include acceptable legal and economic environment for investors, rather liberal economic and other conditions for entrepreneurship, stimulating tax system, the euro as the currency etc. However, most of them complain about the slow administration, often overlapping jurisdictions, non-uniform interpretation of regulations, labour supply which is inadequate to the demand, etc. Therefore it is evident that we need to work harder on improvement of the business environment.

How does the Chamber contribute to the improvement of the legislative framework and practices? To what extent is its voice heard by the holders of public policies?

ed and we expect even better results in the future thanks to the arranged investments. The tourism sector achieved positive results in all parameters and in 2015 compared to a decade earlier, the number of tourists increased by 78.9%, the number of overnight stays by 86.9% and achieved revenues increased three times. Also, the trade sector has recorded a steady growth and the greatest volume of traffic was recorded in 2015. The high dependence on import and low level of export are vulnerable sides of the domestic economy, and a consequence of the lack of competitiveness of domestic production. However, the constant growth of total services surplus substantially covers the high deficit in foreign trade exchange, which led to a reduction in share of the deficit of goods and services in GDP and reduction of the current deficit in the payments balance.

In which areas should the additional efforts be made in order to increase the competitiveness of Montenegrin economy? - Competitiveness is set as a significant problem of our economy, as well as all the economies in the region, and we are aware that reaching a certain level of national economic competitiveness is a requirement for the presence and existence on the single European market. Our companies need to keep up with competitors from highly developed countries in terms of acquiring new knowledge, innovation, transfer of ad-

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vanced technologies, introduction of standards in business etc. All this should be accompanied by adequate labour force which can "carry" these changes. Of course, this should imply a dynamic investment assuming the availa-

IT IS NECESSARY TO ATTRACT INVESTORS WHO WILL ADEQUATELY AND PROPERLY VALORISE DOMESTIC RESOURCE POTENTIALS AND THUS CONTRIBUTE TO THEIR SUSTAINABLE USE

bility of funds, such the economy in the EU has. Otherwise, the development and strengthening the competitiveness at the micro and macro level will hardly lead to good results. Therefore, all future investments need to be put into the function of raising the level of competitiveness to the utmost degree. It is necessary to attract investors who will adequately and properly valorise domestic resource potentials and thus contribute to their sustainable use.

What do domestic and foreign entrepreneurs recognize as the main advantages

- The Chamber as a natural partner to the Government is involved in the activities of its many bodies and councils whose work focuses on regulatory reform, creation of regulations etc, which is confirmed by acknowledging attitudes and voice of the economy. Since we represent the economy as a whole, we bear a special responsibility for the economic development of the country as well, and it's comprehensive and joint work of both the Government and the economy. It is natural that the economy expects from the executive authority to solve all problems faster, and therefore I have to say that we are not always satisfied with the dynamics, but at the same time we are aware that some solutions must be carefully selected, which certainly requires time. Systemic matters do not change overnight anywhere, not even in Montenegro. But there were also occasions when the state tried to bring some legislation faster than it was realistic and the results were bad. In addition to the Government, the Parliament of Montenegro and local self-governments should also be committed to these tasks as well, taking into account that the general interest is at the top of the priority list when making decisions.

How can Montenegro improve its capacities in labour market and education? - As particularly important, the Chamber identified activities on increasing the level of professional competence, i.e. possessing knowledge and skills of the staff which the economy needs, since the economy is becoming to emphasise this as an obstacle to increasing the competitiveness and adequate response to the challenges of the open market. A key task in this section is to link economic and educational system in order to create the human resources necessary to the economy, which we will be committed to in the forthcoming period.

CORPORATE

Safety, Commitment and Quality Services GW's policy is based on providing unique, tailor-made solutions that are devised in accordance with the specific requests of each client

NIKOLA VASILJEVIĆ Montenegro Country Manager of Gebrüder Weiss (GW)

ur strategy is founded on crucial values like independence, sustainability, commitment and quality of services. We are charging towards the future together with our clients while focusing on progress and innovative ideas. Our plan is to have longterm presence on the Montenegrin market and our goal is to widen our client base that will recognise the said qualities as a comparative advantage of Gebrüder Weiss over other logistic services providers.

How important is for the region, in which Gebrüder Weiss succesfully operates, to network together in terms of freight forwarding and logistic solutions? - The region networking together in the area of trade relations is exceptionally important for GW since, apart from the EU, our most important trade partners are the countries in this region. It is also important to mention Montenegro’s integration into the Trans-European Transport Network which will be realised through two motorways – Adriatic-Ionian and Bar-Boljare, the Port of Bar, the Bar-Belgrade railroad, airports in Podgorica and Tivat and the Tirana-Podgorica-Sarajevo road, as planned. Better infrastructure and better connectivity of Montenegro with Europe will certainly contribute to improved trading relations which is going to reflect well on our business too in terms of providing freight forwarding & logistic services.

the mentality, and the fact that today's West Balkan countries used to be one back in the day, implies a tighter cooperation between the regional states. Although the situation during the civil war in the 1990s broke off the communication and connection between the countries in the region, economic interest is something that re-connected this area thus demonstrating that connectivity and effortless functioning are the only possible recipe for any successful business story.

WE WANT OUR CLIENTS TO BE SATISFIED WITH OUR SERVICES AND PRODUCTS AND IT IS OUR CONSCIOUS CHOICE USE THE SOLUTIONS THAT ARE RESOURCE-FRIENDLY By opening a branch office in Montenegro, Gebrüder Weiss has broadened the cargo network System Alliance Europe. What does this mean in practice? - The leading freight forwarding companies in Europe have recognized the advantages that stem from forming an association of freight forwarding & logistics companies as a way of raising the standard and the quality of their services. GW is one of the founders of System Alliance Europe which goal is

to improve quality standards by introducing clearly defined rules in regular processes. By joining this network, GW Montenegro is now doing business just like in any other European country which resulted in GW being recognised as a safe partner which provides high quality services.

Which services do you provide to your clients in Montenegro and would you like to single out some of the companies and clients you have been cooperating with? - We provide the following services to our clients in Montenegro - road transport – GW groupage transport, full truck load (FTL) and less than truck load (LTL); goods storage; sea freight – full container load (FCL) and less than container load (LCL); air transport, assistance with custom clearance in Montenegro; national distribution; and additional insurance coverage of transported goods. We would like to single out the following clients from a huge number of companies we have been cooperating with for years Hilti, Wurth, Bemax, Cerovo, Calgo MN, Mass Gintas Partners and others. Global corporations like HP, Siemens, Le Grand and Philips, with which we have been collaborating globally, deliver their goods to their business partners in Montenegro on a daily basis thanks to the GW network. By doing so, they get the same quality of services just like in any other country in which we do business directly or through our partners.

How important is regionalisation in terms of interlinking the operations executed in the entire Western Balkan area? - The very geographical position of the Western Balkans, the same language and

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MILOJICA DAKIĆ Governor of the Central Bank of Montenegro

The central bank's independence is the main prerequisite for the successful implementation of its policies

INTERVIEW

STIMULATING AND SUSTAINING FINANCIAL STABILITY

armonising regulations that come under the jurisdiction of the Central Bank with the legal framework of the EU and ECB further promotes the principle of independence and secures full compliance with this legacy. In the previous period, the Central Bank of Montenegro contributed significantly to sustaining macroeconomic stability – says Milojica Dakić, Governor of the Central Bank of Montenegro.

What are the key challenges to managing monetary policy in Montenegro today? - Stimulating and sustaining financial stability is the main goal of the Central Bank of Montenegro (CBM). In order to accomplish this goal, the CBM has been constantly exercising control over financial risks in banks – namely credit, market, liquidity and interest rate

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risks. By using regulations that are mostly compliant with European standards in order to prevent these risks from appearing, the CBM has managed to maintain the stability of the financial system. Credit risk remains the most important risk in the system, al-

HARMONISING THE REGULATION THAT COMES UNDER THE CENTRAL BANK'S JURISDICTION WITH THE LEGAL FRAMEWORK OF THE EU AND ECB FURTHER PROMOTES THE PRINCIPLE OF INDEPENDENCE

though non-performing loans (NPLs) have been on a downtrend and reached the record low. The same goes for high interest rates, despite the fact that bank interest rates have been dropping constantly.

Is the Montenegrin banking system still appealing to new banks that want to come to this market? - There are 15 banks and six micro-finance institutions operating in the Montenegrin banking system. Some banks were quite interested in entering the Montenegrin market in 2014 and 2015. In the past two years we got three new banks with the majority foreign capital. The most important reason for their interest is the high growth of the Montenegrin economy, an inflation rate that is somewhat lower than the EU’s targeted inflation rate, increase in all branches of the real sector and the pro-

nounced growth of monetary parameters. When it comes to FDI influx, which was 75% higher in 2015 than in 2014, Montenegro is the regional leader. The World Bank ranked Montenegro 7th on the Doing Business list, based on criteria defined by the banking system.

Do you think that the better economic situation in the country has led to lower interest rates on retail and corporate loans, and what changes do you expect to happen policy-wise? - Lending interest rates have been continuously trending downward since September 2014. Compared to the same period last year, interest rates on new loans are 1.39% lower. Actually, interest rates are at their lowest level ever. The good economic situation in the country certainly contributed to this, as did tougher competition with the new banks coming here, a more diverse range of banking products and the CBM recommending that banks reduce their interest rates. In the following period, we expect banks to have very cheap funding sources, and we primarily mean deposits, as the most important source of funding. This and high liquidity of the banks will be the main factors in reducing interest rates and increasing credit activity.

payment system is also the deputy chief negotiator. Following the opening of Chapter 17 – Economic and Monetary Policy – the CBM passed a Decision on Bank Reserve Requirements to be Held with the Central Bank of Montenegro, which cancels the possibility of banks to hold a part of their reserve requirement in T-bills issued by the Government of Montenegro. This decision shall be applied as of 1 January 2017. We

In which way is the Central Bank contributing to the country's EU integration process and what requirements does the bank need to fulfil on the basis of negotiations regarding Chapter 17 – “Economic and Monetary Policy”? - The CBM is actively involved in Montenegro's negotiations with the EU. Around 45 of our employees are participating in the work of the country`s negotiation teams. The CBM plays the central role in negotiations on four chapters within the CBM`s jurisdiction and it is participating in negotiations on 10 other chapters. The CBM’s Vice Governor in charge of financial stability and

In collaboration with the European Commission, you recently started compiling a monthly survey, asking the Montenegrin corporate sector about their views on the country's economic situation. Could you briefly tell us what expectations the business sector has in terms of the country's economic dynamics this year? - In collaboration with the European Commission (EC), the CBM has been conducting research into doing business and spending since 2012. In 2016 we signed a new five-year-agreement stipulating the continuation of mutual cooperation between the EC and CBM. The latest available data from April 2016 shows that Montenegro has progressed at the monthly level. At the annual level, Montenegro has recorded significant growth in all sectors. According to the latest research that CBM conducts regularly for the purpose of drafting quarterly and annual Price Stability Reports, of all surveyed companies, 47% plan to increase their activities in 2016, another 47% plan to maintain the current level of activities, while only six per cent project decline. Moreover, 58% of surveyed companies plan to make new investments next year. Based on this data alone, we can conclude that Montenegrin businesses expect an increase in their activities in 2016.

THE WORLD BANK RANKED MONTENEGRO 7th ON THE DOING BUSINESS LIST, BASED ON CRITERIA DEFINED BY THE BANKING SYSTEM

You said recently that the share of non-performing loans in the banking system has reduced. How? - NPLs are at their lowest level for the past five years, and their share is currently 12% of all approved loans. The declining trend of NPLs is continuing, with Montenegro having the lowest share of NPLs in the region. Banks have managed to settle some of their claims; some claims have been transferred to their parent banks and their factoring companies, while some loans have been restructured. Owing to its regulatory solutions, the CBM contributed to the treatment of this risk at the individual bank level rather than being perceived as a systemic risk.

and funded using IPA funds. The CBM has also prepared an action plan for the implementation of relevant recommendations.

have also sent a draft Law Amending the Law on the Central Bank of Montenegro to the European Commission for review, thus fully complying with the EU requirement in terms of our central bank independence. Regarding activities on harmonising Montenegrin laws with the EU's Acquis Communautaire, last year we worked on the Law on Foreign Current and Capital Transactions. We have also sent a draft Law Amending the Law on the Central Bank of Montenegro to the European Commission for review, thus fully complying with the EU requirement in terms of our central bank independence. Regarding activities on harmonising Montenegrin laws with the EU's Acquis Communautaire, last year we worked on the Law on Foreign Current and Capital Transactions. Last year we also completed the ECB project called “Needs Analysis for the Central Bank of Montenegro”, which was supported by the European Commission

The Central Bank of Montenegro recently promoted a jubilee coin marking ten years of Montenegrin independence. How important was the central bank’s independence in the last decade for the country's economic stability? - The Central Bank's independence is the main prerequisite for the successful implementation of its policies. This principle is incorporated into almost all of the Central Bank's activities and is additionally reinforced with the EU integration process. Harmonising the regulation that comes under the Central Bank's jurisdiction with the legal framework of the EU and ECB further promotes the principle of independence and secures full compliance with this legacy. The Central Bank of Montenegro contributed considerably to sustaining macroeconomic stability in the previous period. Although the peculiarity of our monetary system limits opportunities for the application of the standard monetary policy instruments, the independence of the Central Bank of Montenegro has substantially contributed to the successful implementation of prudent measures in maintaining financial stability.

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MILOŠ JOVANOVIĆ Director of Montenegro Investment Promotion Agency (MIPA)

Source: www.humansofmontenegro.com

Clear European orientation, comparative advantages in tourism, agriculture and energy, and a government that closely listens to the needs of the business community make a winning combination thanks to which Montenegro has become the champion in attracting foreign direct investments (FDIs) in the region. INTERVIEW

WE HAVE A WINNING COMBINATION FOR ALL SHAREHOLDERS

he Montenegrin government and Montenegro Investment Promotion Agency (MIPA) have been continuously investing effort, each within their own scope of work, into making the country's business environment as appealing as possible to foreign investors. As a result, not only did Montenegro become the leader in attracting FDIs in this part of Europe but the country also didn't feel negative consequences of global trends on its FDI influx.

How satisfied are you with the FDI influx so far and what are your projections for this and next year? - After regaining its independence, Montenegro has recorded a signficant growth of FDI and is the leading regional country in this respect. The Montenegrin government's commitment to a strong economic,

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democratic and pro-European development has created a favourable investment environment where investors from over 100 countries have recognised our country as one of the most attractive investment destinations in this part of Europe. This is confirmed by €6.6 billion of FDIs in the last 10 years which is very important considering

MONTENEGRO IS RECOGNISED FOR ITS TOURIST POTENTIAL AND IS OFTEN REFERRED TO AS MONTE CARLO OF SOUTHEAST EUROPE

the size of the Montenegrin economy. The global economic crisis did somewhat slow down this growing trend of foreign direct investments but, because of its size, Montenegro's recovery was much faster compared to other countries. So, in 2015, FDIs grew by 75% while the net FDI per capita stood at almost €1,000. Taking into account Montenegro's development in the context of the European and Euro-Atlantic integration processes, we expect this trend to continue in 2016 as seen in the Q1 data. From 1st January to 1st May, 2016, the total FDI influx in Montenegro stood at €250 million out of which €85 million came from Norway alone.

In the last ten years, which economic sectors in Montenegro were the most appealing to investors and from which countries investors usually come from?

- As a country which based its growth strategy on tourism, energy and agriculture, which we think are of crucialnational importance, it is safe to presume that these sectors attracted the biggest FDIs. Montenegro is recognised for its tourist potential and is often referred to as Monte Carlo of Southeast Europe. Some of the most reputable foreign investors have acknowledged this including Peter Munk, whose investment project Porto Montenegro is one of the most successful stories in Montenegro's tourism segment. Of course, we should also mention other projects like Lustica Bay, Portonovi One and Only, Aman Resorts and many other. Currently, we have ongoing investments in developing projects worth over â&#x201A;Ź3 billion on the Montenegrin coast alone. After the government granted incentives and tax exemptions for investments in tourism in 2013, the number of issued building permits for luxury hotels went up by almost 120%. Based on the latest 2016 report compiled by the World Travel and Tourism Council (WTTC), tourism's direct and indirect contribution to the Montenegrin GDP in 2015 amounted to â&#x201A;Ź794.8 million which is 22.1% of the national GDP.

tional cooperation with its neighbouring countries within the scope of its work. The Agency has recently signed a Cooperation Memorandum with FIPA, Bosnia and Herzegovina's investment promotion agency. We are planning to do the same with respective agencies in Albania, Kosovo, Croatia, and the newly established Development Agency of Serbia.

Considering that Montenegrin economy is not an economy of scale, what is its

ACCORDING TO FOREIGN INVESTORS, THE GOVERNMENT DOES UNDERSTAND THEIR NEEDS BUT, IN SOME AREAS LIKE LABOUR LEGISLATION, THE EXPECTED PROGRESS STILL DIDN'T NOT HAPPEN.

What experiences did the existing investors in Montenegro have so far and what challenges they had to overcome? - It is the positive experiences of investors who have already invested their capital in Montenegro that give us assurance that this positive trend will continue. The Foreign Investors Council in Montenegro has 34 members which have over 8,000 employees in Montenegro. Based on the opinions of foreign investors, the government does understand their needs and is open to dialogue but, in some areas like labour legislation, the expected progress still didn't not happen. Also, there are administrative obstacles in place, we need to improve what our workforce has to offer and our infrastructure.

Could you elaborate on Montengro's plans for developing business zones? - In cooperation with Montenegrin municipalities, the Ministry of Economy has gathered information about the potential for developing business zones. These zones could greatly contribute to economic development of our municipalities and boost em-

What is Montenegro doing on promoting its investment potential? - Through its strategic goals related to the European and Euro-Atlantic integration, Montenegro has sent a positive signal to foreign investors that the country has progressed a lot; economically, legally and politically. The government's current policy is very conducive to business and investment climate since the integration processes will draw in the investors from Western Europe and thus raise the competitiveness of our economy. As one of the ways for promoting our investment potentials, the Montenegrin government has authorised our Agency not only to promote Montenegro as an investment destination on its behalf but also to promote the specific sectors and investment projects too.

Which regional initiatives for attracting investors does MIPA participate in? - As a goverment agency, MIPA has been closely following and implementing policies and strategies devised by the Montenegrin government. One of them is certainly a better regional connectivity and cooperation towards the mutual goal of joining the EU. On this road, institutional frameworks of individual countries will become more solid while the intergovernmental cooperaton between Western Balkan countries will be raised to a higher level. Concurrently, MIPA is committed to developing institu-

biggest appeal factor for investors? - Bearing in mind that Montenegro cannot develop into an economy of scale, the country has decided to focus on its comparative advantages â&#x20AC;&#x201C; tourism, agriculture and energy. As a result, the Montenegrin government included these three segments into Montenegro's strategic development points in the following period. Montenegro's additional advantages over other countries in the region include a favourable tax policy, the government that listents intently to business community, continous simplification of administrative procedures, foreign investors receiving the same treatment as national ones and positive experiences of existing investors who are already doing business in Montenegro.

ployment. The analysis of individual areas is ongoing. Also, the plan is to conduct a comprehensive analysis of business zones which includes photographing them, making drafts, doing the orthophoto imagery and similar.

How involved are municipalities in creating favourable investment conditions and what is your cooperation with them like? - So far, this cooperation has been good and MIPA will continue developing the cooperation with the local self-governments especially in sectors like tourism, energy and agriculture. Accordingly, we are focusing on municiplaities which development index is lower than 75 and these are mostly the municipalities located in the northern part of Montenegro.

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CORPORATE

S PRESS + D.O.O. PODGORICA

Synonym for Exceptional Distribution Leading companies are known both for itheir business success and know-how, as well as by the way in which they do business. The main operational principles of the S Press + Company is raising the quality of our services, developing distribution infrastructure and having satisfied clients that trust us

ompany S Press + d.o.o. from Podgorica is one of the biggest distributors in Montenegro and owing to its wide range of services in distribution of different products and goods, and high technical standards, the company has earned the right to call itself distribution leader in Montenegro. As a distributor of all kinds of print media, tobacco products of the globally renowned tobacco companies and consumer goods, S Press + d.o.o. is expected to provide the biggest possible coverage with its retail shops that sell the aforementioned goods. Direct production distribution is carried out in over 1,700 retail units which is also the highest number of retail units that any distribution company in Montenegro has. Leading companies are known both for itheir business success and know-how, as well as by the way in which they do business. The main operational principles of the S Press + Company is raising the quality of our services, developing distribution infrastructure and having satisfied clients that trust us. S Press + is devoted to development and training of its employees via industry seminars and courses for implementation of quality systems which are the best way to improve our business system. By doing so, we are bolstering the corporate brand that is S Press + and accomplishing great results. Today, the business of S Press + comprises of:

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• Distribution of tobacco products manufactured by: Rovinj Tobacco Factory, Japan Tobacco International, Bulgartabac Holding, Sarajevo Tobacco Factory, Udbina Tobacco Factory, Monus Tobacco Company. • Distribution of consumer goods: PATA, Paluani, San Benedetto, Indaco, Aquarius, the Tuzla Saltworks, Vori and many other. • Distribution of all kinds of print media and stickers from the PANINI and TOPPS collections.

CARING ABOUT OUR PARTNERS AND EMPLOYEES, THE COMPANY'S STABLE DEVELOPMENT, PROFIT GROWTH AND ITS ACTIVE CONTRIBUTION AND SUPPORT TO DEVELOPMENT OF LOCAL COMMUNITIES ARE OUR BASIC POSTULATES

The strength that fuels us lies in the fact that we have managed to secure the leading position in Montenegero thanks to our hard work and effort that we have invested in securing the best possible market share while providing quality professional distribution services to our business partners. Caring about our partners and employees, the company's stable development, profit growth and its active contribution and support to development of local communities are our basic postulates. We think that only in this way we can be sure that we are constantly going to move forward while remaining the synonym for exceptional distribution.

CORPORATE

NEREGELIA

Responsible Towards Clients and Society Today, Neregelia is one of the leading distributors in Montenegro, cooperating with 20 principals including companies like Procter&Gamble, Philip Morris, Sanofi, Mondelez, Neoplanta, Vitalia, Sebapharma, Mars, SC Johnson, Reckitt Benckiser, Actavis and others

eregelia d.o.o. was founded in 2000 as a company which core activity was trading in consumer goods. The same year, the company became an official distributor for Procter&Gamble. In 2001, Neregelia signed a distribution agreement with Kraft Foods, and, in 2002, it started distributing for Wrigley. Four years later, Neregelia moved into its own business premises and started distributing SSL’s products. As of 2009, the company’s portfolio also includes Neoplanta’s meat products. In 2011, Neregelia started distributing Vitalia’s products and various pharmaceutical products in Montenegro. Today, Neregelia is one of the leading distributors in Montenegro, cooperating with 20 principals including companies like Procter&Gamble, Philip Morris, Sanofi, Mondelez, Neoplanta, Vitalia, Sebapharma, Mars, SC Johnson, Reckitt Benckiser, Actavis and others. Neregelia’s HQ and distribution centre are located in Donja Gorica, in Podgorica. The company currently has around 170 employees. Neregelia operates under Nelt Group, organizational system which connects 12 companies from 7 European and African countries. The following companies operate under Nelt Group - Nelt Co (Serbia), Nelt d.o.o. (Bosnia & Herzegovina), Nelt ST (Macedonia), Neoplanta (Serbia), Corner Shop (Serbia), Banim Reklame (Serbia), Javna skladišta Subotica (Serbia), Tako Lako Shop (Serbia), Nelt Angola, Nelt Zambia and Nelt Mozambique. Nelt Group has almost 4,000

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employees, and, in 2015, its turnover was over €700 million. Closely following in the biggest distribution and logistics trends, in 2015, Neregelia started to implement the SAP business system with the goal of boosting efficiency in financial management, controlling, human resources, procurement, stocks, sales and reporting. When it comes to storage operations, the company is one of the regional leaders

WHEN IT COMES TO STORAGE OPERATIONS, THE COMPANY IS ONE OF THE REGIONAL LEADERS WITH THE IMPLEMENTED PICK TO VOICE TECHNOLOGY with the implemented Pick to Voice technology. The system is based on voice-controlled commissioning of goods and enables warehouse staff to dedicate themselves fully to the goods separation process without having to deal with documents or manual terminals. This technology signficiantly improves overall productivity and safety in warehouse processes, as it also increases commissioning accuracy. Neregelia has confirmed its quality by implementing the ISO 9001:2008 standard in terms of QMS and having a certified quality management system in place.

The company has also successfully completed the re-certification check with the view of complying with the HACCP food safety requirements. Late last year, following the inspection from the certification body Montenegrin Medicines and Medical Devices Agency (MMMDA), Neregelia was awarded with the Good Distributive Practice (GDP) certificate. The certificate confirms that the company has met all the requirements in terms of organisational structure, employee training, adhering to relevant regulation, and complying with internationally recognised standards, procedures and document management in the company’s pharmaceutical segment. Neregelia is the third pharmaceutical distributor in Montenegro to have been given this certificate. With the view of providing opportunities for young people to adequately prepare for their future careers after graduation, Neregelia has been cooperating with the educational sector primarily through concluding strategic agreements with the Faculty of Economics and Pharmaceutical Faculty in Podgorica, as well as through participating in career-orientated events organised by student associations in Montenegro. According to survey conducted among students in 2014 by the Blue Coach Company, Neregelia stands for the third best company in Montenegro to work for. The reasons for this were the training and development opportunities in the company itself, team activities and employee benefits.

CORPORATE

NIKŠIĆKI MLIN AD, NIKŠIĆ

New Glow of Tradition AGROGLOBE

ikšićki mlin AD was founded in 1951 and thanks to its majority shareholder – the Agroglobe Company from Novi Sad which is one of the leading wheat traders in Serbia and the region. Today, Nikšićki Mlin is the most modern mill in the region which grinds and processes 200 tonnes of wheat a day to into high quality flour-based products. The Nikšićki mlin also has a whole wheat facility which produces all types of whole wheat flour. Founded in Nikšić in 1951, the mill lost its old glory during the period of transition into market economy until, in 2008, one of the leading wheat trading companies in Serbia and the region - the Agroglobe Company from Novi Sad – acquired it. Since then, and thanks to the huge investments in modernizing the company’s HQ and facilities as well as the construction of a brand new mill and a 1,500-square-metre warehouse, Nikšićki mlin has been conquering new markets. Today, Nikšićki mlin supplies all large bakeries and retail chains in Montenegro, as it also exports substantial quantities of its products to Albania, Kosovo, Macedonia and Bosnia & Herzegovina.

office: 040 231-811,

040operational 231-808, The new mill, which računovodstvo: became040 231-810, 040 231-812. in 2012, is strategically komercijala: important for the office@niksickimlin.com municipality of Nikšić and for Montenegro. racunovodstvo@niksickimlin.com komercijala@niksickimlin.com Since the new mill can cover 80% of the domestic market's needs, the state is never going to encounter problems with the supply of this basic foodstuff. High product quality, substantial ex-

At the same time, and with the goal of ensuring constantly high quality of products, the internal laboratory has been completely modernised because it is this laboratory that tests the quality of final products following the technological process.

THE MANAGEMENT OF NIKŠIĆKI MLIN HAS BEEN ALWAYS FOCUSED ON THE QUALITY OF THE COMPANY’S PRODUCTS port potential and creation of 50 new jobs make the privatisation of Nikšićki mlin one of the more successful privatisations in Montenegro. The management of Nikšićki mlin has been always focused on the quality of the company’s products thus the decision to implement the HACCP food safety management system and the ISO 22000 standard.

office: +382 040 231-811, 040 231-808, sales department: +382 040 231-812 office@niksickimlin.com komercijala@niksickimlin.com

AD ”FABRIKA STOČNE HRANE” SPUŽ - DANILOVGRAD

The First Montenegrin Feed Factory

abrika stočne hrane Spuž near the town of Danilovgrad is one of the best in the region and the leading feed factory in Montenegro. The factory is the latest investment of Nikšićki mlin which partnered up with the Agromont Company d.o.o., the proprietor of the laying hen farm in Martinići. High-quality, affordable feed mixtures have already found their way to buyers in Montenegro and the neighbouring countries.

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Nikšićki mlin investing in the Fabrika stočne hrane Spuž near Danilovgrad, along with the owner of the laying hen farm in Martinići, the Agromont Company d.o.o., is the best example of an investment made by a domestic company which benefits both the buyers and the country's economy. This unique feed factory in Montenegro was opened in Spuž near Danilovgrad in May and it supplies the Montenegrin market with the best quality complete feed mix-

tures, supplementary feed mixtures, vitamin & mineral premixes suitable for all kinds of domestic animals and tailor-made mixtures. Thanks to the high quality and affordability of its products, the factory already has clients outside Montenegro (for instance, in Albania), and, in the future, it also plans to export to Bosnia & Herzegovina, Croatia and Kosovo. Thanks to the complementarity between the business activities of Nikšićki

AGROMONT D.O.O. NIKŠIĆ

From Family Farm to Market Leader tekarna Bank, as well as a great support from the Nikšić and Danilovgrad local authorities, Agromont acquired a farm in Martinići which, before the acquisition, had been operating under a number of more or less successful companies for many years and which reconstruction and modernisation requires huge investments. So far, a total of €3.5 million has been invested in the farm's reconstruction and boosting its capacity. The farm comprises of

uilding on the knowledge and tradition of his parents, the proprietor of the Agromont Company has transformed it into the leading producer and supplier of eggs of the major retail chains and hotels on the Montenegrin coast. Furthermore, Agromont supplies feed to the largest registered laying hen family farms. The company is also co-owner of the Fabrika stočne hrane Spuž. The farm of the Jokić family, who has been in agriculture and cattle breeding for decades, grew into the Jokić Farm in 1993 and subsequently into the Agromont Company which has been engaged in poultry farming and egg sales since 2003. Additionally, the company also sells a variety of concentrates and feed for domestic an-

mlin and Agromont, production of feed, eggs in Martinići, and flour from Nikšićki mlin, as well as the sales of flour and wheat at Spuž mill are now conjoint. As a result, the need to import these products

imals, as well as laying hens, broiler chicks, and mineral fertilizers. „We have managed to turn a small family farm into a recognizable name and a brand“, says Božidar Jokić, the proprietor and Executive Director of Agromont. In late 2014, and with the help from the Investment Development Fond and Hipo-

TOTAL OF €3.5 MILLION HAS BEEN INVESTED IN THE FARM'S RECONSTRUCTION AND BOOSTING ITS CAPACITY

is now officially reduced, the domestic production and export have increased and 20 new jobs have been created. This contemporary feed factory is equipped in line with the European standards

a total of six farms with invidual capacity of 25,000 laying hens. Owing to constant investments and acquisition of the latest equipment, their capacity has been increased to over 200,000 laying hens. “AGROMONT” doo Nikšić Farma Martinići, +382 68 868 280 +382 40 253 164 agromontnk@t-com.me

and it implements the HACCP and ISO 22000 standards thus guaranteeing food safety. The new factory emerged following an over €2-million-investment in modernisation of the old factory which was dormant for five years. The modernisation was carried out by a reputable Slovenian company Mlinostroj which is the leader in equipment production, while some of the equipment was imported from Italy. The Montenegrin government, the Ministry of Agriculture and local authorities fully supported this investment. Before the factory was opened, Montenegro was the only regional country that had to import feed. AD Fabrika stočne hrane Spuž, Danilovgrad +382 20 818 850 www.facebook.com/fshspuz

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ECONOMY

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ŽIKICA MILOŠEVIĆ

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In ancient times Montenegro could have been described as a place that was “off the beaten track” for trains and horses, but “on the main highway” for ships

owever, those days are long gone. Nowadays air transport is king and only people from Montenegro’s neighbourhood, like Serbia or Bosnia, care about continental connections. When everyone can reach any place with a plane, and when the first ports in the Adriatic Sea, after the Otranto Strait, are located in Montenegro (of course, not to forget Italy and Albania), it seems that the old definition of Montenegro as a place “off

the beaten track” (which, as we already mentioned, helped preserved the proud Montenegrin tribes as independent in the wild mountains) has little to do with reality. Montenegro lies between Serbia and the Adriatic Sea, between Bosnia-Herzegovina and Albania, with only a narrow strip touching Croatia, due to the long Venetian rule and the Venetian obsession of holding coastal areas and avoiding the interior. But this Venetian obsession also profoundly affected the Montenegrin mentality, since the richest areas lie firmly in the form Venetian

THE COMMON MYTH WAS THAT “MONTENEGRO WOULD BE AS RICH AS MONACO IF IT WAS INDEPENDENT”

possessions, stretching from Herceg Novi all the way to the outskirts of the municipality of Bar. These areas are marked by quite a different mentality, which is more “Italianised”, with more Venetian loanwords and the mixture of Orthodox and Catholic populations, architecture and customs. These are the areas, with the “crown jewel” of Budva, “the Queen of the Mediterranean”, one of the towns with the longest history in Europe, dating back to the Greek myths. Montenegro’s mountains fall straight into the Adriatic, which led Lord Byron to declare that Montenegro was “the most beautiful merging of land and sea”. Funnily enough, Montenegro is quite graphically described in the U.S. media, like The New York Times, as “a country with a population of about 670,000; a country roughly the size of Connecticut”, and Connecticut is, of course, symbolic of a tiny state. This is quite unbelievable in the European environment too, since quite a few countries are actually smaller than Montenegro – such as Malta

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or Cyprus. All of the others that are smaller than Montenegro are in fact microstates, like Andorra, Monaco etc. Therefore, the common myth was that “Montenegro would be as rich as Monaco if it was independent”. Of course, it is easy to say but it is quite difficult to develop the hinterland. As such, different strategies must be devised for the development of different parts of Montenegro. If the littoral (the historic area of Bar and Ulcinj) can be equated to the rest of the ex-Venetian and ex-Austrian possessions in coastal areas, then the flat fields of Zeta look more like southern France, and the North could be developed with the same type of projects as Switzerland or Austria, since the agriculture and the habits of the inhabitants roughly equate to those of Alpine Europe. And, of course, the infrastructure of the North has to be developed more extensively, since this area was always a never-ending source of emigration to neighbouring countries. The main problem of the coastal area now is to maintain sustainable growth and avoid the “Spanish scenario”, with the overurbanisation of coastal regions that is a tough challenge, given that there is such high demand and so little land in Montenegro, as opposed to neighbouring Croatia or Albania. The metropolitan region of Podgorica turned into a really big and urban city, rapidly losing its small-town mentality, thus turning into a real national capital. Capital? Wait, Montenegro is one of two countries that have two capital cities, the other being the Netherlands. Yes, The Hague and Amsterdam. Cetinje and Podgorica are the two capital cities in the smallest country in the Balkans, and it is quite complicated to translate this into English from the native language.

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IT SEEMS THAT IN THIS CRAZY AND SHAKING WORLD MONTENEGRO STILL PLAYS QUITE A STABLE GAME. ALL THE DOORS ARE OPEN, ESPECIALLY IN ECONOMIC TERMS, AND THIS PROMISES MORE INVESTMENTS AND COOPERATION IN THE FUTURE

Let us examine some facts, in conclusion. The GDP of Montenegro totals some $10.436 billion in total, which equates to $16,654 per capita. This places it “in the middle”, ranked 74th. And what is not “in the middle”? Gini coefficient! It is quite low, meaning that the level of 26.2 represents a fairly equal society. And equal societies are usually quite safe, which is in turn good for tourism and investments. The Human Development Index (HDI) is very high, some 0.802, which once again represents a good place for living, and therefore investing. The real source of wealth in the last few years is – the country’s internet code! It is “.me”. Although it was not the preferred choice for Montenegrins, with all of the obvious ones having already been taken (.cg was taken by the Congo; .mn was assigned to Mongolia and .mo for Macau) what could be better than .me? Call.me? Love.me? Now you get it. And, of course, the fact that the name of the country is also a very common Italian, Spanish and Portuguese surname really helped. I noticed in Brazil – while living there and explaining with pride my Montenegrin “Highland” heritage – that everybody knew someone with that name and they were deeply surprised that there was a country with the same name. Still not picturesque enough? Well, imagine a country named Petrovich somewhere far away. As one Montenegrin politician said some 20 years ago, Montenegro has to open the Skadar door and the Dubrovnik door, while not closing any other in the process. It seems that in this crazy and shaking world Montenegro still plays quite a stable game. All the doors are open, especially in economic terms, and this promises more investments and cooperation in the future.

he Port of Kotor is one of the leading cruise destinations in the Adriatic and a safe haven for many passengers, yachts and cruise ships. The Port has successfully implemented Quality Management System (QMS) and Environmental Management System (EMS), in line with ISO 9001 and ISO 14001 standards. By implementing the Integrated Management System (IMS), the Port of Kotor has demonstrated its commitment to constantly improving the quality of its services and complying with the relevant environmental requirements and standards. All of this gains further importance when one considers the location and historic significance of the town of Kotor. The fact that the Port of Kotor is the fourth biggest port in terms of ship rotation and the fourth biggest destination in terms of the number of passengers visiting the Adriatic has led to an increased number of companies arriving to do business in Kotornyear-on-year. The latest companies to have either visited or announced visits to the port in this cruise season include AIDA Cruises, Viking Cruises and Celestial Cruises. The arrival in the Port of Kotor of the Queen Victoria, a majestic ship worth $570 million, is yet more proof of the port’s high level of security and safety, both on location and in the entire marine area, as recognised by the leading cruise companies that have already booked berths in the Port of Kotor for docking their ships in 2017 and 2018. An online survey published in Cruise Re-

views showed that the Port of Kotor is considered a high-standard port. The Port of Kotor A.D. is also a Golden Partner of CLIA, an organisation which brings together over 60 cruise companies from all over the world and is considered the umbrella association of the cruise industry, with a lot of authority in decision-making and the industry’s global policies.

BY IMPLEMENTING THE INTEGRATED MANAGEMENT SYSTEM (IMS), THE PORT OF KOTOR HAS DEMONSTRATED ITS COMMITMENT TO CONSTANTLY IMPROVING THE QUALITY OF ITS SERVICES AND COMPLYING WITH RELEVANT ENVIRONMENTAL REQUIREMENTS AND STANDARDS The Montenegrin Ministry of Sustainable Development and Tourism played host to the UNWTO’s Conference on Destination Management in the Mediterranean, entitled “Quality: the Key Driver for Success in the

Mediterranean Destinations”, held in June 2015. The Conference was attended by the WTO’s Secretary General, who presented the organisation’s operational concept. The Port of Kotor A.D. is one of three Montenegrin companies to have signed the GLOBAL CODE OF ETHICS FOR TOURISM, thereby officially becoming a UNWTO member. Based on research and analysis conducted by global organisation Business Initiative Directions and the criteria laid out in the QC100 Total Quality Management Model, the ISAQ’s Nomination Committee awarded the Port of Kotor A.D. the ISAQ – International Star of Quality. Moreover, following an official request issued by the Port of Kotor A.D., the Montenegrin Ministry of Defence issued the Port with the NATO Commercial and Governmental Entity Code (NCAGE). This code will enable the port to present its services under the Ministry of Defence and will secure entry into the NATO Master Catalogue of References. Receiving NCAGE is an excellent reference for the port’s regular civilian business partners. The Port’s improved system and market positioning should be viewed in the context of the announced establishment of the Adriatic Brand, which implies networking between cruise destinations in Italy, Slovenia, Croatia, Albania, Greece and Montenegro. Certain indicators have shown that this market consolidation will facilitate even better positioning for the Port of Kotor and quite possibly result in it gaining the leading role in the Adriatic.

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CORPORATE

Leading Cruise Destination

INVESTMENT

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ŽIKICA MILOŠEVIĆ

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Photo: TO Budva

Montenegro is small, coastal and mountainous. It is an Adriatic country that is not rich in fertile soil and is filled with rocky terrain. It lacked many mines or intensive agriculture at all, so what was the solution for the smallest member of the former Yugoslav federation?

ack in the old days it was not much better at all. The coastal areas were modestly developed under Venetian and Austrian rule, but the Kingdom of Montenegro was left to its own devices in this respect, because the Ottomans avoided the country’s rocky heartland. As a relatively small principality and later, after 1910, as a kingdom, Montenegro only took its first steps towards becoming an industrial economy at the turn of the 20th century, but then it was really too late for that in a way. The causes for this relative delay can be found in the small population, lack of raw materials, underdeveloped transport network and comparatively low rate of investment. However, this delay in industrialisation had its positive effects in that Montenegro survived as a specific ecological oasis. This would later lead to it being proclaimed the world’s “First Ecological State”, which marked a sharp and definitive U-turn towards the non-industrial economy, unless really needed.

However, there were some significant projects during the first period of industrialisation of Montenegro. The Nikšićka Brewery was the first brewery in Montenegro and it remains famous in the region even today. There were also some wood mills and an oil refinery, since oil became very important during the dawn of the motor era. Elec-

TIVAT'S PORTO MONTENEGRO AND BUDVA'S DUKLEY GARDENS ARE GREAT EXAMPLES OF GREAT INVESTMENTS, BOTH OF WHICH ARE NOW HOSTING TOP AND ELITE TOURISTS FROM THE UK, RUSSIA AND THE EU.

tricity power plants all of a sudden became necessary, but this short period of the Montenegrin Industrial Revolution was abruptly curtailed by the Balkan Wars and World War I. Still there was not much change, as salt works and tobacco factories, like in the rest of the Mediterranean, also became inextricably linked to Montenegro. But some strange decisions were made during the Socialist era, like making Soviet-style urban centres (primarily Podgorica). Thus Montenegro experienced a period of rapid urbanisation and industrialisation. An industrial sector was developed based on electricity generation, steel and aluminium production, coal mining, forestry and wood processing, textiles and tobacco manufacture, while trade, international shipping and particularly tourism had become increasingly important by the late 1980s. Formerly the least visited coastal republic, it bloomed once again and during the 1920s and ‘30s was the favourite destination for the Royal family and Czechoslovakian tourists.

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And now? Today it is deeply in transition, and deeply service-orientated. We can say that everything Montenegro is doing now is deeply rooted in the 1990s. The huge crisis, wars and post-war environment, coupled with economic sanctions, all influenced the downfall of industry. During 1993 some two thirds of the Montenegrin population lived below the poverty line. Montenegro could not produce much, so it turned towards services, tourism and trade. The financial losses caused by the adverse effects of the UN sanctions on the overall economy of Montenegro are estimated at approximately $6.39 billion, though almost all former Socialist countries suffered a similar fate. Trade became dominant, due to the country’s favourable geographical position. In the 21st century, the Montenegrin economy became increasingly orientated towards tourism, with the ultimate objective of becoming the destination of choice for high-end tourists. Infrastructure was built to cater for such an eventuality and the banking sector improved, with a tendency of investment in all service sectors. Efforts have been exerted to attract foreign investors into greenfield investments in tourism, as well as in large infrastructure projects, both of which are needed to facilitate the development of tourism. Two such examples are Tivat's Porto Montenegro and Dukley Gardens in Budva, both of which are now hosting top and elite tourists from the

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UK, Russia and the EU. However, from the 2008 crisis onwards, greenfield investments have been hit hard and are now somewhat shaken by the sanctions imposed on Russia. And there is always a winner in an overall negative course of events: Montenegro, Greece, Italy and Croatia became the great winners of the insurgencies in the Muslim world. Now,

THE MONTENEGRIN ECONOMY BECAME INCREASINGLY ORIENTATED TOWARDS TOURISM, WITH THE ULTIMATE OBJECTIVE OF BECOMING THE DESTINATION OF CHOICE FOR HIGH-END TOURISTS

with Egypt, Tunisia and Turkey suffering from terror attacks, Montenegro has once again redefined itself as a safe destination for tourists, although really big greenfield investments (such as the development of Velika Plaža, Ada Bojana, Buljarica, Jaz Beach and the construction of the Bel-

grade–Bar Motorway and new power plants) may be postponed. The recession is also having a strong negative impact on the Podgorica Aluminium Plant, the biggest single contributor to the country’s GDP and a major exporter. However, if nothing else, Montenegro has preserved its wild beauty. The major area of unutilised arable agricultural land (0.80 hectares of agricultural land and 0.29 hectares of arable land per capita) represents an opportunity to be taken advantage of, since the country has an excellent climate for certain types of fruits and vegetables. Some people from America told me that there were no tastier tomatoes than those grown in Montenegro, Serbia and Croatia. This is a real chance. Interestingly, when it comes to Montenegro’s trade partners, Serbia, Croatia, Bosnia-Herzegovina, Greece and Hungary are the most prominent partners in both export and import, but Montenegro wants to stay clean and to steer clear of heavy industries. Services and tourism, hotels and marinas, represent the strategic plan. One national website states: “Montenegro has proved to be a safe, politically stable and economically viable state with the potential to grow rapidly. About 500km from Rome, 1,500km from Paris and Berlin, and about 2,000km from Moscow, Montenegro lies on the Balkan Peninsula in the very heart of Europe.” Well, if you didn’t think of it in that way, perhaps you should.

CORPORATE

More than Twenty Years of Successful Operations As a member of the Komercijalna Bank Group AD Belgrade, Komercijalna Bank AD Budva has been succesfully operating in Montenegro for over twenty years

ecognised as a reliable and stable bank with a long tradition of successful operations, over the years Komercijalna Bank Budva has managed to build close relations with its clients which are based on trust, partnership, protecting their interests and sincerity. The bank uses the latest banking technology and has very competent staff while providing highly professional quality services that are tailor made to the clients' needs. The bank's portfolio of 48,000 satisfied

clients is the best testament to the quality of its operations that are carried out via its HQ in Budva and branch offices in Podgori-

THE BANK PROVIDES HIGHLY PROFESSIONAL QUALITY SERVICES THAT ARE TAILOR MADE TO THE CLIENTS' NEEDS

ca, NikĹĄiÄ&#x2021;, Tivat, Bijelo Polje, Budva, Bar, Podgorica, Kotor and Herceg Novi. Many sponsorships and charity campaigns that have been implemented by the bank and its staff, rewarding the most talented and most successful elementary school pupils with the annual Growing Up Together award, and providing support to the development of the local community make Komercijalna Bank AD Budva one of the most socially responsible companies in Montenegro.

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MONTENEGRO’S EU ACCESSION

FIRST IN LINE Of all of the countries in Eastern Europe, it is quite clear that Montenegro is the best potential candidate and will be the first to enter the EU – of course, when the EU redefines itself after Brexit and finds its strategic interest in Eastward Expansion once again, as it did in 2004

n fact, some analysis suggests that Montenegro is actually the only country that will enter the EU, since all the others have a significant problem: Serbia, Georgia, Ukraine, Moldova and Azerbaijan all have the same problem: breakaway regions; they don’t control their entire territory. Armenia, Belarus and

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Russia are already in the Eurasian Union, and therefore have no interest whatsoever. Macedonia has terrible problems with its constitutional name - problems that are unlikely to change any time soon, which leaves only Turkey, Bosnia-Herzegovina, Albania and Montenegro. With a troubled Turkey at odds with Europe –

“joining the EU in the year 3000”, as David Cameron bluntly put it – and a somewhat dysfunctional Bosnia, that leaves only two real candidates: Montenegro and Albania. And of those two the former Yugoslav republic is less troubled by internal problems. The State Union of Serbia & Montenegro began the European Union Accession process in November 2005, when negotiations on a Stabilisation and Association Agreement began. In May 2006 Montenegro voted for independence in a referendum and the State Union of Serbia & Montenegro was disbanded. Serbia continued with the existing negotiations, while separate negotiations were launched with Montenegro in September 2006. The Agreement was initialled on 15th March 2007 and officially signed on 15th October that same year. In 2010, the Commission issued a favourable opinion on Montenegro's application, identifying seven key priorities that would need to be addressed in order for negotiations to begin, and the Council of the European Union granted the country candidate status. In December 2011 the Council launched the accession process, with a view to opening negotiations in June 2012. Accession negotiations with Montenegro formally began on 29th June 2012. The troubles along the way are far less prominent than in, say,

ucation & Culture already having been closed successfully. The missing chapters yet to be opened include: Free Movement of Goods, Freedom of Movement For Workers, the Right of Establishment & Freedom to Provide Services, Regional Policy & Coordination of Structural Instruments, the Judiciary & Fundamental Rights, Justice, Freedom & Security, Environment & Climate Change and Institutions, while it is quite strange that the only chapter described by the EU as “totally incompatible with the acquis” is Environment & Climate Change, despite Montenegro having been the world’s only ecological state for almost 25 years. “Me 4 EU, EU 4 me” is the official slogan of the campaign and it is so far working pretty well.

MONTENEGRO IS DOING FAR BETTER THAN THE REST OF THE “BUNCH”, IT IS EXPERIENCING ECOLOGICAL, JUDICIAL AND CRIME-RELATED PROBLEMS

Serbia, but nevertheless the EU says that Montenegro must intensify its efforts to consolidate the rule of law, fight organised crime and corruption, and protect freedom of expression. Moreover, although Montenegro is doing far better than the rest of the “bunch”, it is experiencing ecological, judicial and crime-related problems that may hinder its bid. Montenegro signed an agreement with the Bulgarian government in December 2007 according to which Bulgaria will assist Montenegro with its Euro-Atlantic and EU integration for the following three years. The first positive signs came on 19th December 2009, when Montenegrin citizens became visa-free Schengen travellers. Montenegro has so far opened 24 of 35 Accession Chapters since 2012, with the chapters covering Science & Research and Ed-

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CULTURE

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ŽIKICA MILOŠEVIĆ

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It was more than two decades ago that Bajaga, a Serbian singer who also has Montenegrin roots, sang the famous song “Montenegro”, which includes the lyrics: “I am talking to you, that hidden place, between the mountains and the sea”. And somehow that defines everything in this tiny country that is so sharply divided by geography and, therefore, by mentality and customs

CONNECTING BOTH WORLDS Montenegrin culture is thus about the mountains and the sea, about everything betwixt and between, about both of them, both discordant and harmonious. Well, much like Scotland, with its Highlands and its developed South, with Glasgow and Edinburgh; with its stubbornness and it clans; its constant wish for independence and conflicting desire to be part of something bigger. Thus, we can say that Montenegro is both the North and the South; both Dinaric Alpine and Mediterranean; both Italianised and Turkified; both Slavic and Latin; both Christian and Islamic. In fact, this magical place that has produced the culture of Montenegro is as pluralistic and diverse as its history and geographical position suggest. Montenegro's culture has drawn influenc-

es mainly from Ancient Rome, Christianity, Islam, the Byzantine Empire, the Serbian Empire, the Ottoman Empire, the Venetian Republic, Austria-Hungary and Yugoslavia. In fact, all of the states Montenegro was a part of and all the specificity of the Montenegrin state when it was independent.

MONTENEGRINS ARE OFTEN AN EMBODIMENT OF SOMETHING AND A MOCKERY OF THE SAME THING, ALL AT THE SAME TIME. AND THAT IS WHAT MAKES THEM SO CHARMING, THEY SAY

HUMANITY AND BRAVERY Who hasn’t heard about the ethical ideal of Čojstvo i Junaštvo, which can be roughly translated as “Humanity and Bravery”? If you are puzzled by this, you’re probably asking what that could that be... The inevitable answer is that “humanity” is protecting others from yourself, while bravery is protecting yourself from others. This ethical concept is a result of Montenegro's centuries long warrior history; it is the unwritten code of chivalry that stipulates that to deserve true respect from the people a person must display the virtues of integrity, dignity, humility, self-sacrifice for a just cause, respect for others and righteousness along with bravery. In the old days of battle, this resulted in Montenegrins fighting to the death, as being captured was considered the greatest shame. There is an old

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CUISINE Once again, as defined by geography, Montenegrin cuisine could be sharply divided into two parts: the traditional dishes of Montenegro's heartland and its Adriatic coastal area have a distinctively Italian flavour, as shown in the bread-making style, the way meat is cured and dried, cheese making, wines and spirits, the style of making soups and stews (čorba), polenta, stuffed peppers, meatballs, priganice (fritters), raštan etc. On the other hand, if we move closer to the hinterland we are confronted by lots of Turkish and Levantine influences, which crossed into Montenegro mainly via Albania and Serbia from Turkey, and which represent the legacy of another major empire: sarma (rolled pickled cabbage leaves stuffed with mincemeat and rice), moussaka, kebabs, baklava etc. – dished that could easily be found in Islamic-influenced parts of the coastal region, like Stari Bar or Ulcinj. Of course, the southern coastal area has lots of fish dishes to offer, while the sheep-breeding, cow-breeding and goat-breeding snowy north has something very different. It is said that only one other tiny Mediterranean country that is also geographically and religiously diverse can provide such diversity and abundance

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MONTENEGRINS ARE OFTEN THE EMBODIMENT OF SOMETHING AND A MOCKERY OF THE SAME THING, ALL AT THE SAME TIME

in everything. A morning on the snowy mountain and an afternoon sunbathing and swimming in the sea? Of course ... in Montenegro! That is why it is so special. And of course we did not forget its Levantine counterpart, which is Lebanon.

ARTISTIC, NOT ARTY As with all the “genuine” parts of the world, Montenegrins are not artificial. Their art varies from singing in “klapas” in the

Photo: TO Budva

story that Montenegrins could not accept the surrender of an enemy on the grounds that they ran out of ammunition, so the Montenegrin soldiers would lend some ammo to the enemy in order to prolong the battle. After a few days the enemy surrendered once again, and the Montenegrins got the answer they wanted: “Yes, we surrendered because you were braver, not because we have no ammo.” Montenegro is a long way from any battle now, but the code of humanity and bravery is said to be deeply rooted in everyone.

coastal region, which is a very Mediterranean custom, and there is also an abundance of painters and other artists in the Montenegrin littoral, while the north is traditionally more inclined to telling stories. And, like in every clan-based and traditional society, these stories are a form of poetry. It is very often close to the old Viking and Celtic custom of telling heroic sagas of some old heroes in thousands of verses. Some say that the gusle (a single-stringed instrument played with a bow) is basically a Celtic instrument, while others suggest that it originated in Central Asia. However, Montenegrin decasyllable rhyming is typical. The Mountain Wreath, written in the Montenegrin vernacular, presents the central point of Montenegrin culture, for many even surpassing the Bible in terms of importance! Some great writers originated from Montenegro and the art of telling good stories, either in poetic, epic or prosaic form, is well preserved in Montenegro. Moreover, the cinematography of Yugoslavia and other countries was enriched by films made by Montenegrin authors. Dušan Vukotić was the first Yugoslav Oscar winner (in the short animated film category in 1961). The other typical feature of Montenegrin cinematography or actors is the omnipresent humour, often in the form of self-mockery. This is something you can notice almost everywhere in Montenegro: all the people are somehow mocking themselves, but at the same times showing pride in being what they are. Montenegrins are often the embodiment of something and a mockery of the same thing, all at the same time. And that is what makes them so charming, they say, and not only the fact that they are among the tallest people in the world. Or that is what we Montenegrins would like to think, with a view to Milla Jovovich, who is one of us.

Gem of the Mediterranean on the coast of Montenegro The leading home-port for superyachts and luxurious marina village, Porto Montenegro, continues to charm travellers from all over the world, and is one of the favourite anchorages of those sailing the Mediterranean

THIS SUMMER, FUN AWAITS AT THE PMYC POOL! Members of the Porto Montenegro Yacht Club, international nautical clientele, residents of the village and their guests can spend this summer enjoying the PMYC, featuring the trademark 64-meter infinity pool, with elegantly placed deck chairs, beach beds and canopy beds, which can accommodate 188 guests. The PMYC pool was chosen as one of the most beautiful pools in the world this summer by the renowned magazine ‘Hero & Leander’, and it is no surprise that this hot-spot, towering over the sea, is the perfect location for the aficionados of swimming, refreshing cocktails, fine dining and exquisite service. All visitors can try the specialties of Mediterranean cuisine at De Gustibus restaurant – perfectly positioned, with a view of the sunset above the pool. This summer Platinum nightclub will bring a sophisticated dimension of nightlife and entertainment this summer – as the only Montenegrin member of the prestigious association of international luxurious restaurants and clubs – The World’s Finest Clubs. For the second year in a row, the Platinum clubbing experience from the point of view of aesthetics and production, has been on par with the clubs of Ibiza or Cannes.

charm; One, which offers the finest Mediterranean cuisine with a glass of champagne and the most expensive view in the country -Jetty 1, home of the largest yacht berths and superyachts, Mitsu – probably the best sushi on the entire Adriatic, and the newly opened, sophisticated conceptual Lebanese restaurant Byblos, offering a new dimension of gastronomic experiences – ‘zesty mezze’, juicy appetizers, marinated dishes and snacks with aromatic herbs and spices. This summer’s novelty is the concept bakery

BREAD, offering gluten-free specialties, healthy smoothies, and an excellent selection of French pastry, which shows that healthy food can also be extremely tasty. This year again we have the signatureice cream on the coast – Moritz Eis, and the popular bar The Clubhouse has a new location in Ksenija Residences, on the Pine Tivat promenade.

TOPPING THE LIST OF INTERNATIONAL MARINAS The Porto Montenegro superyacht marina is topping the list of ten new exclusive international marinas, compiled by the international portal Yachting Pages. The fact that after the completion of the second stage of construction, Porto Montenegro Marina can accommodate even the largest yachts in the world, up to 250 metres long, shows Montenegro’s ability to compete with the well-established Mediterranean chic marinas such as Porto Cervo in Italy or Puerto Banus in Spain. The impressive visitor list of the second Myba Pop-Up Superyacht event, which has positioned Porto Montenegro on the ‘international nautical stage and communication platform for brokers’, will include the most well-known names in the international yachting and charter industries.

GASTRONOMIC EXPERIENCE PROMENADE This year, more than ever, Porto Montenegro is offering many different gastronomic experiences to satisfy those with the most refined taste. Enjoy fine dining in one of the proven, cult restaurants – Al Posto Giusto, which has become the favourite place to enjoy Italian specialties and take selfies, owing to the restaurant’s recognizable, rustic

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PORTO MONTENEGRO

TOURISM

THE WILD BEAUTY

ell, it may be quite complicated sometimes in Montenegro, since it possesses a tiny stretch of the coastline, but certainly in the era when places like Sardinia, Corsica, or Portugal are gaining popularity, Montenegro is in the first row and it is jumping the waggon readily!

SUITED FOR EVERYONE Montenegro has rich architectural and cultural heritage, diversity of landscapes and climates, and well-preserved natural environment. Naturally well-suited for development of all kinds of tourism, Montenegro is now, presumably, focused on becoming an elite tourist destination, trying to distance itself from the mass tourism. The insurgencies in the Muslim world which eventually hit even Turkey, but in the beginning, striking Egypt and Tunisia, made Mon-

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One of the campaigns for Montenegrin tourism was named exactly like this: The Wild Beauty. Now the people tend to try to find cleaner, wilder place, untouched by the flood of people

tenegro, as a bi-religious country (Bar and Ulcinj especially are well-suited for the Muslim tourists), a perfect destination for everyone! You are a Russian or an Ukrainian and you want to feel like home in the Orthodox country? No problem! You are a Kosovo Albanian and want your language, your customs? You hit Ulicinj. If you want more Western and Italian influences, you hit

IT IS QUITE AMAYING THAT SUCH A TINY COUNTRY CAN GIVE SO MANY OPPOSING AND WONDERFUL CULTURAL AND ARCHITECTURAL OPPORTUNITIES

Bocca di Cattaro, or Boka Kotorska. It is quite amaying that such a tiny country can give so many opposing and wonderful cultural and architectural opportunities.

NUMBERS TALK Montenegro is considered one of the fastest-growing tourist destinations. In 2007, over a million tourists visited Montenegro, making some 7.3 million overnight stays (23% increase, compared to 2006). This accounted for some 480 million euros in tourism revenue in 2007 (39% increase, compared to previous year. In 2014 tourism realised 1.5 million arrivals. Most people still come from Serbia, about 325 thousand people, closely followed by Russia with 318 thousand, Bosnia-Herzegovina with 92 thousand, a and Ukraine with 65 thousand. This is the â&#x20AC;&#x153;classical Big Fourâ&#x20AC;? for Montenegro, and what is particularly interesting,

here follow some EU countries, like Poland with 50 thousand, unexpected France, 41 thousand, Italy with 34 thousand (oh, they just hop over the sea to see the wilder neighbour!), Germany with 33 thousand and expectedly Belarus with 31 thousand visitors. If we take into account total tourist arrivals from the independence until today, we can see the constant grow. In 2006, there was less than a million visitors, and in 2007 the number jumped over 1 million for the first time, steadily adding some 20 to 50 thousand each year, with the greatest increase in 2011, when 110 thousand people visited Montenegro more than a year before. And it is not enough, since 2015 was a record year, with 1.713 million visitors, almost doubling the figure from 2006. Well, that is really something.

ALL IN SERVICE OF TOURISM Almost all economic activities in Montenegro are directed towards facilitating the development of tourism. Recent building of now famous Porto Montenegro in somehow forgotten Tivat, added value to the whole coast. There are problems, of course, like in every successful stories, the obstacles on the way. The biggest problem of Montenegrin tourism is “inadequate infrastructure, most notably the obsolete road network and difficulties with water and electricity supply in the coastal area. For that reason, a main investment of the government is building new roads and reconstruction of the current road infrastructure.”, reports say.

THE MAIN POINTS OF INTEREST This notable coastal region is of primary interest to tourists in Montenegro. The Montenegrin Adriatic coast is 295 km long, with 72 km of beaches, and with many well-preserved ancient old towns. Let us

see some of them! Budva has the moste extensive history. A famous ancient myth says that Budva was founded by Cadmus, a son of the Phoenician king Agenor. Now Budva represents the hub of Monenegrin tourism, with plenty of beaches like Jaz, Slovenska Plaža or Mogren and well preserved Venetian-influenced Old

MONTENEGRO HAS RICH ARCHITECTURAL AND CULTURAL HERITAGE, DIVERSITY OF LANDSCAPES AND CLIMATES, AND WELL-PRESERVED NATURAL ENVIRONMENT

Town. It is believed that the first tourists arrived back in 1923, attracted by the divine natural resources, such as the warm sea and sun, and an array of beaches at the foothill of imposing mountains. Sea Dance Festival recently added more “spice” to the tourist offering. Sveti Stefan is, of course, one big attraction by itself, now the whole town turned into a closed hotel. As in every good story, there is a derby and a rivalry. And in the case of Montenegro tourism, it is the eternal rivalry of Budva and Herceg-Novi. It is like The Beatles and The Stones. This town was even in the Russian Empire for a year! Many tourists flock towards Novi, and the lovers of Boka are very specific. The lovers of Kotor and Perast are always inclined less to beaches and sun, but more towards urban fun and nice old cities as a photographical background. Those hitting Bar were really less numerous before the Russian tourist refurbished the glory of this place. Funny enough, there are two Bars, the old one and the new one, and they cannot be more different. Stari Bar, the old one, is on the hill, with a fortress which is abandoned, and with predominantly Muslim air about it. The new town in close to the sea and predominantly Christian. And to be more fussy, there are three Bars in fact. Did you know that the very name Bar, similar to the name Bari, on the other side of the Adriatic, in Italy, is one and the same? and the originally two Bars were called “Bari”, with the Eastern one renamed “Antibari” or “Antivari”, to reflect that is “on the other side” – “Anti-Bari” meaning “Bari-Across”. Ulcinj could be even more interesting, with famous flat sands called Velika Plaža and Ada Bojana, immediately on the frontier with Albania. With most of the inhabitants billingual (the other language being Albanian), it is a focal point for the tourists from

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Albania, Western Macedonia and Kosovo alike. The name of the town with a splendid fortress magnificently set over the bay, in Italian is Dulcigno, derived from “Dulce”, meaning “Sweet”. The story goes as Miguel de Cervantes was captured in Ulcinj and kept in the Dulcigno Fortress after Spanish-Ottoman battle. Deeply contemplating in the custody, he presumably got the idea for a poetic novel, with a grotesque hero who later gave name to the adjective “Quixotic”. Yes, and his love was named upon the fortress of Dulcigno. It is Dulcinea, of course! The New York Times ranked the Ulcinj South Coast region of Montenegro, as among the "Top 31 Places to Go in 2010" as part of a worldwide ranking of tourism destinations. And Montenegro is not all about the sea and the summer tourism. The northern region is the centre of Montenegrin mountain tourism. It has ski resorts, and is

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popular for its untouched nature. The entire area of Durmitor mountain and the Tara river canyon is protected as a national park, and listed with UNESCO world heritage sites. Ostrog Monastery is an important pilgrimage site, both for Christians and Muslims, and the relics of St. Basil (Vasilije) of Ostrog are said to have healing powers! And its architecture, as being carved into a

THE MONTENEGRIN ADRIATIC COAST IS 295 KM LONG, WITH 72 KM OF BEACHES, AND WITH MANY WELL-PRESERVED ANCIENT OLD TOWNS. LET US SEE SOME OF THEM! spectacular cliff, is equally amazing. Podgorica has Doclea ruins and Nikšić has its fortress, while Cetinje, the tiniest of all, has the most of it: the historical capital of Montenegro has churches, palaces, the famous Cetinje Monastery with the hand of St John the Baptist kept inside as a stunning

relic, and nearby Mount Lovćen, the national park and Petar II Petrović-Njegoš's Mausoleum afford breathtaking views of the surrounding country. Skadar Lake is picturesque with many islands and churches, with water flowers and splendid mountains around, it in fact one of the most beautiful lakes in Europe and definitely one of the most stunning views in Montenegro. Montenegro might be the tiniest country in the Balkans, but it is definitely one of the most beautiful and attractive ones, and Serbia can be only too grateful that the beauties of Montenegro are so close.

Turistički kompleks ‘’Slovenska plaža’’ u stilu malog originalnog mediteranskog grada, raznolikog sadržaja, njegovanih zelenih parkova sa malim mediteranskim đardinima predstavlja svojevrsni brend Hotelske grupe ‘’Budvanska rivijera’’ u čijem sastavu posluje i grada Budve. Preko tri decenije prisustva na turističkom tržištu, impresivna veličina, originalna mediteranska arhitektura bijele fasade i plavih škura, plijeni ogromnu pažnju. Savršena pozicija Turističkog naselja čijih 10 vila se nalaze nadomak pjeskovite istoimene plaže, na samo 500m udaljeno od Starog grada Budve, čini dodatnu atraktivnu komponentu, a bogata I duga tradicija čini da se gosti iznova vraćaju. Danas nakon potpune adaptacije Slovenska plaža osvaja novim kvalitetom ponude. Turističko naselje u svom sastavu raspolaže sa 1016 smještajnih

jedinica u kategoriji 3+*** i 4*. Na 16 hektara zelene površine raspoređeno je preko 200 vrsta raznovrsnog bilja, što ponudu resorta čini zaista jedinstvenom. Pomak u kvalitetu ponude pratila je i implementacija savremenih Evropskih standard. Tako je Slovenska plaža nosilac standard ISO 22000 i Eco label sertifikata. Dobitnik je Wild beauty award nagrade za najljepši lokalitet kao i zlatne medalje za kvalitet i jedinstvenu zelenu oazu. Hotelska grupa Budvanska rivijera www.hgbudvanskarivijera.com 00382 33 451 654 reservations@budvanskarivijera.co.me

Hotel Palas u kategoriji 4+****

U Petrovcu, na samoj obali mora, nalazi se hotel Palas u kategoriji 4+****. Sa 171 smještajnom jedinicom, od kojih je 90 soba sa pogledom na more, pored udobnosti moderno redizajniranih soba, hotel gostima pruža potpuni ugođaj opuštenog ljetovanja. Palas u svojoj ponudi ima otvoreni i zatvoreni bazen, wellness centar površine 300 kvadrata koji raspolaže sa finskom saunom, turiskim kupatilom, slanom sobom, whirpool i tuševima doživljaja. Za aktivan odmor na raspolaganju je gym sala sa savremenom opremom, različite masaže, kao i tereni za mini golf, stoni tenis,

poligon za boćanje. Hotel posjeduje wifi uslugu. U okviru hotela poznatog po dobrom servisu, nalazi se ekskluzivni restoran, kongresna sala, francuska terasa i terasa sa pogledom na pučinu. U ovoj godini hotel je nominovan za prestižnu svjetsku nagradu World Luxury Hotel Awards. Hotelska grupa Budvanska rivijera www.hgbudvanskarivijera.com 00382 33 421 100 reservations@budvanskarivijera.co.me

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Turistički kompleks ‘’Slovenska plaža’’

LUKSUZNI STAMBENO-POSLOVNI KOMPLEKS WEST 65

GRAD OZBILJNE REPUTACIJE KVALITET BEZ POGOVORA OD PODA DO PLAFONA, BEZ OBZIRA DA LI STE SE ODLUČILI ZA MANJI STANČIĆ, DVOSOBNI ILI TROSOBNI APARTMAN ILI LUKSUZNI PENTHAUS

WEST 65 se nalazi blizu reke Save, nadomak starog Beograda i u sebi spaja stare vrednosti i zahteve modernog života. Elegantni stambeno-poslovni kompleks se pruža na 3 hektara, obuhvata 500 stambenih i 100 poslovnih jedinica. Sastoji se od 11 zgrada sa po 6 spratova i spratom sa luksuznim penthausima, a svaki stan ima svoje parking mesto u podzemnoj garaži iz koje direktno, liftom, stižete u svoj životni prostor. Ove godine investitor “PSP Farman” je započeo izgradnju novih 100 stanova jer je od 250 izgrađenih luksuznih apartmana useljeno već 230. Stambeno-poslovni kompleks West 65 integriše starogradsku eleganciju sa luksuznim pogodnostima koje su neophodne savremenom životnom stilu. Ukoliko ste u potrazi za novim luksuznim stanom, naš savet je da ako možete-ne čekate. Trenutno je u WEST-u 65 na raspolaganju dvadesetak stanova različite kvadrature, od 40 do 150 m2. Ukoliko morate da sačekate da postanete vlasnik jednog od stotinu stanova koji su u izgradnji a cenite:

UDOBNOST KVALITET UŠTEDU ENERGIJE SIGURNOST (OBEZBEÐEN KOMPLEKS) POČNITE DA ŠTEDITE, VREDI! Vaš stan je u

West 65! UZMITE KLJUČ SVOG ŽIVOTA U RUKE I STAVITE TAČKU NA POČETAK!

Omladinskih brigada 86 11070 Novi Beograd www.west65.rs 54

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A LUXURY BUSINESS AND RESIDENTIAL COMPLEX WEST 65

CITY OF SERIOUS REPUTATION THE UNDENIABLE QUALITY FLOOR-TO-CEILING, WHETHER YOU ARE BUYING A SMALLER APARTMENT, A TWO- OR THREE-BEDROOM APARTMENT OR A LUXURY PENTHOUSE

WEST 65 is located near the river Sava, close to downtown Belgrade, and is a fusion of old values and demands of modern living. This elegant business and residential complex spans 3 hectares of land, and comprises of 500 residential and 100 business units. There are eleven buildings in total, each 6-storey-tall plus a luxury apartment storey. Every apartment has its designated parking space in the underground garage from which you can go directly to your apartment via a lift. At the beginning of this year, real estate developer PSP Farman has begun building 100 new apartments because, out of the 250 existing luxury apartments, 230 were already sold. The West 65 business and residential complex fuses the old-school elegance with luxury amenities required for modern lifestyle. If you are searching for a new, luxury apartment, we would advise you not to wait if you can. There are around 20 available apartments at WEST 65 which size ranges from 40 to 150m2. If you have to wait to become the owner of one of a hundred apartments that are under construction and you appreciate:

COMFORT QUALITY ENERGY PRESERVATION SAFETY (SECURE COMPLEX) START SAVING BECAUSE IT IS WORTH IT!

Your apartment is in

West 65!

TAKE THE KEYS TO YOUR LIFE INTO YOUR OWN HANDS AND BE DECISIVE TO BEGIN!

Omladinskih brigada 86 11070 Novi Beograd www.west65.rs MONTENEGRO 2016

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