InFocus Montenegro

Montenegro 2018

HEADING IN THE RIGHT DIRECTION H.E. BRANISLAV MIĆUNOVIĆ

Montenegrin Ambassador to Serbia

DRAGICA SEKULIĆ

Economy Minister in the Montenegrin government

PAVLE RADULOVIĆ

Minister of Sustainable Development and Tourism of Montenegro

WELLPORT

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IN LAST TWO DECADES, SERVING COMPLEX QUEEN OF RELATIONS BETWEEN CUSTOMER ČIKOM MONTENEGRO OTMAR MICHAELER TWO COUNTRIES HAVE DOO DEMANDS Chief Executive Officer CEO of Falkensteiner Čikom DOO NEVER BEEN BETTER Michaeler Tourism Group - FMTG H.E.BRANISLAV MIĆUNOVIĆ Montenegrin Ambassador to Serbia SERVICE AT THE SUPERIOR QUALITY HIGHEST LEVEL AND DESIGN FURTHER REFORMS SAVO ICEVIC PG-Pak Country Manager, Gebrüder Weiss AND MORE Montenegro INVESTMENTS FIVE STAR ALLURE DRAGICA SEKULIĆ DREAM HOME. PALAZZI KOTOR Economy Minister in the Montenegrin government DOWN-TO-EARTH BAY HOTEL CELEBRATES INVESTMENT OPENING THOUGHTFUL POLICY Luštica Bay Allure Palazzi GIVES RESULTS ONGOING TRANSITION PAVLE RADULOVIĆ OLIVES LEAVE Minister of Sustainable Development and Economy Tourism of Montenegro HISTORY FIRST IN DELIVERY OF Tradition WE ARE HEADING IN PREMIUM SEGMENT THE RIGHT DIRECTION VEHICLES TOURISM IS IN OUR VLASTIMIR GOLUBOVIĆ BLOOD

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President of the Chamber of Economy of Montenegro

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Ljetopis Automotive D.O.O.

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NATURAL PARTNERS, WE EXERCISE COMPLEMENTARY RESPONSIBLE POLICY ECONOMIES

RADOJE ŽUGIĆ

Governer of the Central Bank of Montenegro

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CONSTANT GROWTH AND PORTFOLIO DEVELOPMENT PROKOPIJE PERIĆ CEO, Plus doo

Economic cooperation

MLADEN FRANOVIĆ Director of TO Budva

TOURIST DESTINATION 52 UNIQUE FATMIR GJEKA

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Director of the Ulcinj Tourist Board

ALUBOND U.S.A. FR A2 - THE SAFEST ACP IN THE WORLD!

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CEO of Alubond Europe d.o.o. and Globeclad d.o.o.

AMS Osiguranje

DIJANA LJUBIŠA

AMS OSIGURANJE – PART OF THE PERFECT HOLIDAY

Special thanks to

EMBASSY OF MONTENEGRO IN BELGRADE

Editor in Chief

ŽIKICA MILOŠEVIĆ

zikica.milosevic@color.rs Magazine director

RUŽA RISTANOVIĆ

ruza.ristanovic@color.rs

Director

ROBERT ČOBAN

robert.coban@color.rs Editorial manager

TANJA BANKOVIĆ

tanja.bankovic@color.rs

Art director

ILIJA PETROVIĆ INDIGOCHILD

indigochild.ilija@gmail.com Sales manager

NATAŠA NEŠIĆ

Sales manager

Sales manager

jovana.markovic@color.rs

PR&Event support Nord Communications

JOVANA MARKOVIĆ

Sales manager

DRAGANA RADOVIĆ

dragana.radovic@color.rs

natasa.nesic@color.rs

VANJA KOVAČEV

vanja.communications@gmail.com Translation and lecture

SNEŽANA RAKIĆ

”Color Media Communications” LTD, 21132 Petrovaradin, Štrosmajerova 3 TIN 107871532 • Matriculation number 20887303 · Phone: +381 21 4897 100 • Fax: +381 21 4897 126 Office: Vase Čarapića 3/IV/38, Belgrade • 011 4044 960

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THE CHEDI LUĹ TICA BAY Imagine a holiday home designed with sophistication; luxuriously crafted and equipped to deliver the legendary Chedi experience.

As part of The Chedi LuĹĄtica Bay hotel complex, the Chedi Residences are an astute choice, combining both holiday home and investment opportunity.

EXPLORE IN STYLE

INDULGE IN STYLE

REJUVENATE IN STYLE

ROMANCE IN STYLE

TEE-OFF IN STYLEE

For details on condominium investment programme, please email us at info@lusticabay.com

THE CHEDI LUÅ TICA BAY MONTENEGRO TIVAT 85323 RADOVICI T +382 (77) 200 100 F +382 (77) 200 105 info@chedilusticabay.com

www.chedilusticabay.com

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CRUISING

Montenegro is a gulet cruise destination hit in 2017.

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FJORDS AS WELL!?

The Boka Bay is the southernmost fjord in the world.

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EUROPE’S BEAUTIFUL CHILD

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Montenegro is one of the newest countries in the world having declared its independence on 3rd June 2006.

THE BLACK MOUNTAIN Montenegro got its name meaning ‘Black Mountain’ from the dark forest that covers the land.

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SEA, SEA, AND MORE SEA!

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There are over 290 km of unspoilt coastline.

LIGHTS, CAMERA, MONTENEGRO!

Montenegro’s cinematic landscape has lent itself well to the big screen; Brothers Bloom, November Man Casino Royale and the Dark of the Sun, starring Brad Pitt.

TASTY AND NATURAL

Montenegro prides itself on storming traditional food combined from Italian, Turkish, and Greek cuisine.

08 THE NEVERENDING BEACH “Velika plaza” in Ulcinj (12.5 km) is one of the longest sand beaches in Europe.

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Photos by Visit-Montenegro.com

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FOREWORD

IN LAST TWO DECADES, RELATIONS BETWEEN TWO COUNTRIES HAVE NEVER BEEN BETTER Regional cooperation, as one of the pillars of Montenegro's foreign policy, is also in the focus of our diplomatic activities

H.E. BRANISLAV MIĆUNOVIĆ Montenegrin Ambassador to Serbia

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ontenegro will continue to give a strong contribution to bolstering regional ties and a more dynamic involvement of the region in the EU through multilateral mechanisms that respect the needs of all countries in the region, the improvement

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of regional infrastructure, greater mobility of young people and resolution of bilateral issues.

It gives me a great pleasure to address all the diplomats and readers of magazine Diplomacy & Commerce magazine, which is intended for the diplomatic and business

community in Serbia, on the occasion of celebration of the Statehood Day of Montenegro on 13th July.

This year, Montenegro can proudly summarize the significant results and successes it has achieved both in terms of the foreign policy, as well as on the internal and

regional level. Montenegro, a country that is a synonym for harmonious coexistence of different nations, religions and cultures, and the regional leader in the process of European integration, is increasingly becomes a state of the full-fledged democratic capacity and European identity.

This year, in June, we marked the anniversary of our membership in the North Atlantic Treaty Organization, which is undoubtedly a significant step towards meeting the security standards, and boosting the stability and security of the Western Balkan region, while, at the same time, encouraging further democratization and economic progress. Montenegro is participating in the two-day NATO Summit in Brussels, and has just taken part in the Summit of the Heads of the six West Balkan governments held in London within the framework of the Berlin Process, thus continually confirming its commitment to the regional and Euro-Atlantic integration process. We are also working hard on promoting the bilateral political, economic and cultural relations, primarily with the EU and NATO countries, but also with other European countries, the countries of the Mediterranean basin and the most influential members of the international community, while gradually building the European system of values based on the rule of law as a key prerequisite for economic and social development and prosperity.

We are also focusing our diplomatic activities on regional cooperation, as one of the pillars of Montenegro's foreign policy.

Our country will continue to give a strong contribution to bolstering regional ties and a more dynamic involvement of the region in the EU through multilateral mechanisms that respect the needs of all countries in the

region, the improvement of regional infrastructure, greater mobility of young people and resolution of bilateral issues. One of the key infrastructure projects, the so-called "blue motorway" or the Adriatic-Ionian road - has been incorporated into the agenda of European transatlantic corridors that will be financed by the European Commission, which is undoubtedly an important step for Montenegro, its citizens, investors, the economy and the European future.

THIS YEAR, THE MONTENEGRIN ECONOMY HAS RECORDED IMPRESSIVE PROGRESS IN ALMOST ALL SECTORS, WITH A GROWTH RATE THAT IS AMONG THE HIGHEST NOT ONLY IN THE REGION, BUT ALSO IN EUROPE This year, the Montenegrin economy has recorded impressive progress in almost all sectors, with a growth rate that is among the highest not only in the region, but also in Europe. New jobs were created, Montenegro's has an excellent reputation in the international financial market, and the country is one of the most attractive tourist and investment destinations.

I am pleased to say that, year-on-year, Montenegro and Serbia have been building an increasingly better and more content-rich political dialogue while maintaining

regular communication at the highest level.

These relationships are further strengthened by common European goals, regional context and mutual commitment to cooperation in these areas. Numerous meetings of top officials, the continuity of the communication between inter-state institutions, bilateral political consultations and expert-level meetings of representatives of the two states just validate the conclusions of our meetings – namely, the relations between the two countries have never been better in the last two decades. The enlargement policy and the European integration process, as a common priority for both Montenegro and Serbia, give us numerous opportunities for bolstering the cooperation and engaging in joint action. There is, of course, a great potential for further improvement of the economic cooperation between the two countries through the implementation of capital projects, the reconstruction of the Belgrade-Bar railroad and the construction of the motorway on the same route, which would facilitate the full utilization of the capacities for the economic cooperation between the two economies, the valorization of mutual tourism potentials and an increase in external trade.

I would like to use this opportunity to thank our friend, Serbia, where I am the Head of the Montenegrin diplomatic mission, the EU and NATO members, and all our neighbours and partners for their support on this challenging path that is integration, and to wish that we continue to nurture and promote values such as peace, freedom, multiculturality and democracy in the spirit of our multi-ethnic and multi-confessional Montenegro.

LONG LIVE MONTENEGRO! DA JE VJEÄŒNA CRNA GORA!

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FURTHER REFORMS AND MORE INVESTMENTS Through regional economic and infrastructural networking we contribute to bigger trade, investments, and the mobility of the workforce, thus bringing Montenegro closer to the European Union

INTERVIEW

DRAGICA SEKULIĆ

Economy Minister in the Montenegrin government

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oreign direct investments are an important driving force behind the development of the Montenegrin economy, considering that, with the undertaken measures of fiscal consolidation, they significantly contribute to the stability of public finances. In addition to tourism, which is certainly the most developed branch of Montenegro's economy, energy, infrastructure and agriculture are also sectors with a significant investment potential.

What are your expectations from the Western Balkan Summit in Vienna? What will be Montenegro's position in terms of the the economic topics to be discussed at the Summit?

— Our expectations from the summit, and generally from the Berlin Initiative, are big, hence we are planning joint activities and projects, just like our neighbours are doing so. Each meeting is a sign of the readiness of the Western Balkan region to work consciously and expeditiously on the better networking agenda. Also, each meeting additionally raises the awareness that, above all, our networking and subsequently, our connecting with the EU, will

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lead to an increase in the competitiveness of each of the regional countries, while facilitating the growth of our economies and employment.

The meeting in Vienna is an opportunity to discuss development of small and medium enterprises, the multi-annual Action Plan for Regional Economic Space in the Western Balkans, as well as digitization. Our position, when this process is in

MONTENEGRO WILL CONTINUE TO IMPLEMENT ECONOMIC REFORMS AND INCREASE INVESTMENTS IN ENERGY AND TRANSPORT question, is well-known - through regional economic and infrastructural networking we contribute to bigger trade, investments, and the mobility of the workforce, thus bringing Montenegro closer to the

European Union. Accordingly, Montenegro will continue with its activities on implementing economic reforms and increasing investments in the field of energy and transport.

To what extent is it possible to see the influence of the Berlin Process on infrastructural integration in the region?

What are the tangible results of this process from Montenegro's perspective?

— Montenegro can proudly say that the first infrastructure project, supported under the framework of the Berlin Process, is a project that is implemented on its territory - the Transbalkan Electric Power Corridor - section Montenegro, for which the EU allocated EUR 25 million in grants in 2015 through the Western Balkan Investment Framework. The total value of the project is EUR 127 million. In addition to energy, last year Montenegro received a EUR 16 million grant under the Agreement on the Transport Community for four transport projects.

So, the results of this process are already tangible, but we should not stop there. This is just the beginning of the economic and infrastructural revival of

our region, and we expect the European Union's full support for our initiatives in the future.

How beneficial are large-scale infrastructure projects for Montenegro's macroeconomic stability? How long will it take to implement the fiscal consolidation measures?

— The total FDI influx in 2017 stood at around EUR 650 million. We are currently implementing important infrastructure projects in the segments of energy, transport and tourism, and each investment means a positive impact on our economic growth, higher employment, higher quality of service and higher living standard.

Additionally, for the better part, the direction of the further economic development of Montenegro is determined by the ongoing implementation of fiscal consolidation measures, according to which Montenegro should generate the budget surplus in 2020, which is the deadline by which the measures should be implemented. The results of the implemented measures are visible - Montenegro has managed to maintain a competitive tax environment, and our results are recognized by the most important international institutions that assess progress in bolstering the country's macroeconomic stability, better credit rating and competitiveness, and GDP growth.

Last year, this growth was 4.4%, while the growth in the first quarter of this year stood at 4.5% and represents the third biggest growth rate in Europe for the observed period.

How appealing is Montenegro to foreign investors who do not invest in tourism?

What are the sectors in which you want to see bigger FDI? — In addition to tourism, which is certainly the most developed branch of Montenegro's economy, energy, infrastructure and agriculture are also sectors with a significant investment potential. The mentioned sectors are important for our economy precisely because it was the domestic business people who recognized these sectors as providing opportunities for a successful business, but also because tourism, energy and infrastructure are the most attractive areas to foreign investors.

support programmes for both domestic and foreign companies considering that foreign investors in our country have the same treatment as the Montenegrin ones. This year alone, we are implementing a total of 10 programmes for which we launch periodical public. Through these calls we offer companies grants such as allocation of incentive funds for new jobs, exemption from payment of certain taxes, or covering between 50% and 70% of the eligible costs in procurement of equipment, implementation of innovative activities and so on, depending on the programme itself.

THE MINISTRY OF ECONOMY HAS BEEN CONTINUOUSLY IMPLEMENTING SUPPORT PROGRAMME FOR DOMESTIC BUT FOREIGN COMPANIES

What kind of help does Montenegro need with digital transformation?

— You have to understand that digital transformation is a multi-dimensional process that must be harmonized and performed continuously. The prerequisite for digital transformation is clearly set strategic goals that must be the priority of every modern government, and we must work together and on a daily basis on its implementation.

Help in all segments of digitization is more than welcome. Priorities have already been recognized and identified, and as projects of fundamental importance for social and economic development, they have earned their place in the recently published Digital Agenda for the Western Balkans.

The most important segments that the European Commission will support are - development of broadband Internet access, development of e-government, e-procurement and e-healthcare, online safety and digital skills. This assistance will be realized initially through technical assistance for drafting of projects and feasi-

We are currently implementing several large-scale tourism projects such as the projects in Luštica and Kumobir. In terms of transport, we are implementing the most important infrastructure project which is the motorway, while in the energy sector, there are a few important projects that are nearly completed such as the submarine cable between Montenegro and Italy and the wind farm on Možura. We also have an ongoing tender for the construction of a large solar power plant on land.

Furthermore, the Ministry of Economy has been continuously implementing

DIGITAL

THE PREREQUISITE FOR DIGITAL TRANSFORMATION IS CLEARLY SET STRATEGIC GOALS THAT MUST BE THE PRIORITY OF EVERY MODERN GOVERNMENT MONTENEGRO 2018

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bility studies, and then through financial support for the implementation of selected projects.

We also expect the support for the regional start-up community in terms of its inclusion in the Startup Europe ecosystem which will improve their visibility and provide additional promotion, while at the same time, the start-up community will gain access to all relevant information, platforms and events. The plans is also to support research and innovation programmes, as well as involve our regulatory authorities in the work done by the European regulatory associations.

Given that the Government has management rights, and now a significant share in Elektroprivreda Crne Gore (EPCG), what development priorities are you going to set for company?

— In the upcoming period, we will focus on the additional elaboration and implementation of the EPCG's three-year investment plan, with a special focus on the implementation of projects in Pljevlja that is ecological restoration of the existing block and heating, with a special emphasis on and renewed interest in construction of large hydroelectric power plants. In addition to the ongoing reconstruction and modernization projects in the three existing plants, EPCG is working hard on creating the conditions for boosting its production capacities and new power facilities, with the goal of better positioning in the regional electricity market. Also, EPCG will focus on the significant investments in the power distribution network, in order to ensure a safer and more stable supply for end users.

How much is the ecological restoration of the first block of the Plevlja thermal plant in line with the obligations that Montenegro has under Chapter 27?

— The ecological restoration of the thermal plant in Pljevlja is fully in line with the obligations and directives concerning industrial emissions, as stated in Chapter 27 Environment and Climate Change. EPCG has already embarked onto this process by choosing the German company Steag Energy Services GmbH for the elaboration of the preliminary project for the ecological restoration of the Pljevlja Thermal Plant.

Having such a renowned German company in Montenegro is a serious guarantee that the planned restoration of the first block of

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IN THE UPCOMING PERIOD, WE WILL FOCUS ON THE ADDITIONAL ELABORATION AND IMPLEMENTATION OF THE EPCG'S THREE-YEAR INVESTMENT PLAN in TP Pljevlja will be carried out in accordance with the latest standards and technologies, which, in turn, will ensure the stable and safe operation of the thermal power plant in the next few decades. The plan is to complete the restoration no later than 2022, after which this plant will operate in accordance with the requirements stated in the Directive on Industrial Emissions 2010/75 EU.

Why did you decide to merge the Pljevlja coal mine (RUP) with Elektroprivreda Crne Gore (EPCG)? How is this merger going to affect the profitability of EPCG and its attractiveness to potential new partners?

— The decision for EPCG to take over the shares of Coal Mine Pljevlja is, first and

foremost, a responsible one that is in the best interest of both companies and its employees, as well as the state. Merging two companies is the most logical solution, not only from a technological but also from a financial aspect.

The economic rationale of the entire process is more than clear – it is sufficient to mention that the value of just one annual invoice that EPCG pays to RUP is EUR 35 million euros, which is bigger than the entire amount of EUR 30 million which EPCG spent on purchasing a stake in RUP. The merger of two companies significantly reduces the production cost that EPCG had to bear when purchasing coal, and thus it will increas its profitability. In addition, EPCG has much higher investment capital than RUP, which is why it is also possible to invest in RUP when it operates under EPCG, which further leads production growth and creation of new jobs.

Having RUP under its roof, EPCG is now a more stable and independent company with a comprehensive operational range – from coal exploitation to producing electricity. Foreign companies have expressed interest in EPCG and this interest was very high from the moment A2A decided to sell its share in EPCG. I am confident that this interest can only grow in the future.

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THOUGHTFUL POLICY GIVES RESULTS INTERVIEW

PAVLE RADULOVIĆ

Minister of Sustainable Development and Tourism of Montenegro

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ear on year, Montenegro is becoming increasingly closer to its goal of becoming a year-round tourist destination. Investors have recognized the potential of the country, which is reflected in the increase in the number of tourist facilities both on the coast and inland, as seen in the fact that the spatial planning documentation has been completed, which will lead to the construction of another 130 hotels, 4- and 5-star ones. We have talked to Pavle Radulović, Minister of Sustainable Development and Tourism of Montenegro, about tourism and incentives that the government provides to further develop this branch.

How would you rate the results of this year's tourist season so far?

— The results, as they are at the moment, in this part of the season, point to another very successful tourist year and the continued growth in this sector. Diverse, high quality tourist offer, improved transport connectivity of Montenegro and other European and worldwide countries, and the good pricing policy in terms of accommodation are some of the factors that have contributed to the good start of the tourist

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Montenegro's strategic goal in tourism is to become a high-quality, all-year-around tourist destination. We are pleased to see that investors share our vision and strategic goal, but also recognize the efforts made by the Government of Montenegro on providing the most favourable conditions for investments and tourism business

season. According to the statistical data we dispose of, from the beginning of the year we have recorded a 20% growth in the collective accommodation, relative to the same period of the previous year. The beginning of the year and the winter season were very successful, and we had a great weather in the pre-season which meant more tourists during the May holidays. I am glad that we can already see the higher booking figures for post-season compared to last year. We are constantly working on improving our tourist offer, building new

CURRENTLY, TOURISM ACCOUNTS FOR AROUND 23% OF MONTENEGRO'S GROSS DOMESTIC PRODUCT, AND WE EXPECT THAT, IN THE NEXT 10 YEARS, FOR TOURISM TO HAVE AROUND 30% IN THE COUNTRY'S GDP

accommodation capacities and bolstering our transport infrastructure, hence, we are confident that the results generated this year will exceed the last year’s ones.

Which months and which segments of the Montenegrin tourist offer are most popular off-season?

— Montenegro is becoming an increasingly popular destination during the off season, which is, among other things, the result of work done developing our sun and seabased offers. The ski season and the New Year's holiday season are attracting an increasing number of tourists. In the winter period, Kolašin and Žabljak are extremely popular resorts, while during the New Year's holidays, those are the coastline towns which now traditionally organize New Year Eve’s parties featuring regional music stars. Also, April, May, September and October are becoming increasingly interesting to tourists because of the beautiful weather and the opportunities to see natural beauties on the coast and in the northern region. National parks and the Bay of Kotor are the most interesting to tourists during that period. Numerous events, concerts and conferences organ-

ized off-season also significantly contribute to the heightened interest of tourists to visit our country in this period. What really excites us is the trends that continue to be very stable year-on-year, which is the best proof that we are becoming a year-round destination. Namely, we have noted an increase in the number of tourists in collective accommodation in each comparative month during and after the summer and winter tourist season from 2016 to date.

Which are the most interesting destinations according to tourism investors today, what type of facilities do they usually build and how much do these projects contribute to the diversification of Montenegro's tourism offer?

— Montenegro's strategic goal in tourism is to become a high-quality, all-year tourist destination, and one of the main factors for achieving this goal is quality accommodation and hotels that are opened throughout the year. We are pleased to see that investors share our vision and strategic goal, but also recognize the efforts made by the Government of Montenegro on providing the most favourable conditions for investments and tourism business. This resulted in the opening of 33 new hotels in 2017, out of which 22 have 4 and more stars. Also, several high-class hotels have already been opened this year, and adding to this the hotels that are yet to be opened, Montenegro will get another 880 accommodation units, in the 4 and 5 star category. The Montenegrin Government continues to work on improving the investment environment through several significant incentive measures. A special purpose spatial plan for the coastal area, which foresees a ban on the construction of housing capacities in a 1km

radius from the sea, with the view of stimulating hotel construction, has been submitted to our national parliament and is expected to be adopted soon. Also, the spatial planning documentation has been completed, which will lead to the construction of another 130 hotels, 4- and 5-star ones.

MANY PRIVATE COMPANIES ARE SIGNIFICANTLY CONTRIBUTING TO BRANDING AND POSITIONING OF MONTENEGRO AS THE PREFERRED TOURIST DESTINATION THROUGH THEIR CAMPAIGNS The new Law on Tourism and Hospitality Industry envisages a reduction of the annual real estate tax to 30% for 4-star hotels and up to 70% for 5-star hotels located in the priority tourism areas.

Import VAT on the products and services relating to the construction of a 5 and more stars hotel has been abolished. Also, VAT is reduced to 7% for all tourist services in 5-star hotels in the south and in the 4 and 5 star hotels in the north.

How much does 1 euro invested in tourism return through other related activities?

— Tourism and related activities are often very intertwined, so it is difficult to accu-

rately determine the figure. However, it is clear that as the number of tourists and their purchasing power increase, the return on investment in tourism is also increasing.

For the same reason, the development of tourism brings an increase in revenues and related activities. We are working very seriously on linking tourism and agriculture, through marketing domestic produce to tourists, but also through agro-tourism clusters and rural households, which provide catering services to tourists.

Considering there is an enormous number of possibilities for tourists today, how difficult is it to focus their attention on Montenegro? How complex is branding in tourism and how many people today are working on it?

— Global tourists do not need to pay attention to Montenegro, because the attention of the world tourist community is already focused on our country as one of the fastest growing tourist destinations in Europe. Of course, the competition is enormous in the global tourism market and considerable attention is paid to branding and promotion. Our Ministry and the national and local tourism boards are committed to promoting Montenegro on emitting markets that are significant for our country. The branding is done through several promotional platforms, primarily by participating in important international trade fairs, media and advertisements in the media, and through organizing promotional events, in cooperation with strategic partners and the tourism industry.

Special attention is paid to online promotion, particularly the one in social media, and we have specialized communication with certain emissive markets.

OFF SEASON

MONTENEGRO IS BECOMING AN INCREASINGLY POPULAR DESTINATION DURING THE OFF SEASON, WHICH IS, AMONG OTHER THINGS, THE RESULT OF WORK DONE DEVELOPING OUR SUN AND SEA-BASED OFFERS MONTENEGRO 2018

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Montenegro is due to open Chapter 27 this year. How ready are you for this?

— Montenegro is absolutely ready to enter into negotiations with the European Commission on one of the most complex chapters in the accession negotiations. The National Strategy for Chapter 27 defines a precise plan for the implementation of the EU Acquis in the field of environment and climate change, and our negotiating position, in which this plan has been presented to the smallest details, has been fully harmonized with the European Commission.

During 2017, all 28 EU member states assessed that Montenegro was ready to start negotiations under this chapter. It is also very important that the European Commission has developed a Common Position for Chapter 27, which is now being presented to the EU Member States.

Which segments of this chapter are you going to focus on in the coming period?

— Taking into account the experiences of the countries from the earlier accession periods and the complexity of Chapter 27, it is clear that fulfilling obligations is a longterm and a rather demanding process that goes beyond the projected date of entry into the EU. Therefore, we have identified several priorities - primarily air pollution, wastewater, waste management and remediation of industrial pollution, as well as comprehensive nature protection.

Projects in the aforementioned areas are already being realized and their completion is planned soon because of our obligations stemming from Chapter 27, and because we have to improve the quality of life of our citizens. We believe that we have a huge responsibility to secure environmental quality for present and future generations in Montenegro, and Chapter 27 will help us to improve this quality and raise it to a higher level. Working on the infrastructure in waste and wastewater management, remediation of existing unregulated landfills and remediation of industrial waste at certain locations are all very important.

Is Montenegro administratively prepared to attract money from funds dedicated to environmental protection?

— Montenegro is ready to open Chapter 27, and therefore to attract more money from environmental funds. Montenegro needs about 1.4 billion euros by 2035 for

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WE HAVE IDENTIFIED SEVERAL PRIORITIES - PRIMARILY AIR POLLUTION, WASTEWATER, WASTE MANAGEMENT AND REMEDIATION OF INDUSTRIAL POLLUTION, AS WELL AS COMPREHENSIVE NATURE PROTECTION this purpose, which means that the provision of these funds is planned over a longer period of time. In addition to state and municipal budgets, European funds and grants will be among the main factors contributing to securing the financial structure for this chapter. The IPA instrument is also very important, and through its membership in the EU, Montenegro will become a beneficiary of structural funds, which are much bigger than the currently available IPA funds. We are also working on setting up an Eco-Fund, which should be an important mechanism for collecting funds

and directing them towards environmental programmes and projects. We don’t view these financial investments as an expense, but a long-term investment in environmental protection and improving the quality of life of the Montenegrin citizens.

To what extent are companies in Montenegro willing to accept the principles of circular economy?

— I think that the Montenegrin society is moving towards circular economy. Certain companies and institutions already operate in line with these principles and recognize the importance of sustainability. Certainly, this is a long-term process and we expect more and more companies to turn to this type of economy. The market certainly already dictates trends and demands sustainability in business, which Montenegrin companies will have to adapt to. I have no doubt that, through education and participation in foreign markets, our companies will develop business models that will enable them and the economy to achieve long-term sustainability and better quality of business and life for all citizens in Montenegro. The Ministry of Sustainable Development and Tourism actively participates in education and in raising awareness about circular economy through the United Nations programme, UNIDO.

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WE ARE HEADING IN THE RIGHT DIRECTION I firmly believe that, in order to accomplish dynamic growth in the following period, policy creators will not secure stability of public finances through increase in taxes and excise, but rather through the implementation of measures relating to widening the tax base, combating shadow economy and reforming public administration

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he Chamber of Economy of Montenegro has been playing an active role in the state’s integration processes since their very beginning. Numerous meetings organized by the Chamber of Economy have presented the opportunities and challenges stemming from membership in NATO and the EU. The Chamber’s members have been actively participating in task forces that are engaged in accession negotiations with the European Union. Such an active position of the Chamber was confirmed late last year by the adoption of the Law on the Chamber of Economy, which stipulates that the Chamber of Economy provides decision makers with its opinion on the regulations affecting the economic system and economic policy.

How would you rate the macroeconomic situation in Montenegro today?

— The macroeconomic developments in Montenegro are characterized by the increase in the majority of indicators - gross domestic product, employment, wages, volume of services and foreign investment growth.

In 2017, the Montenegrin economy

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INTERVIEW

VLASTIMIR GOLUBOVIĆ

President of the Chamber of Economy of Montenegro

grew at a rate of 4.4%, with positive trends continuing this year too. This is supported by the data on industrial production growth in Q1 which shows a 39.3% hike, as well as the 36.2% production growth in the forestry sector of and in services sectors construction, tourism and commerce.

The construction of transport and energy infrastructure, especially the priority segments of the Bar - Boljare motorway, generated a 46.8% increase in construction activity in the first quarter of this year, while investments in the tourism sector are continually improving the quality of tourist offer, resulting in an increase in the number of tourists and

INVESTMENTS IN THE TOURISM SECTOR ARE CONTINUALLY IMPROVING THE QUALITY OF TOURIST OFFER, RESULTING IN AN INCREASE IN THE NUMBER OF TOURISTS

overnight stays, thus contributing to the increase of tourism revenues.

External trade is characterized by a continuous deficit. The high import dependence of the Montenegrin economy is a result of a narrow production base, strong correlations between imports of goods and tourism, a significant share that imported raw materials have in exported goods, and the implementation of large infrastructure projects that are a significant driving force behind import. However, thanks to revenue generated by the services sector, primarily tourism, as well as revenues from direct foreign investments (the total value of foreign direct investments in Montenegro, made in 2017, amounted to EUR 649.2 million), which continuously show growth, successfully alleviating the foreign trade deficit on the current account of the balance of payments.

What impact did the fiscal stabilization have on economic growth and what are your expectations in the upcoming period in terms of austerity measures, including an increase in certain taxes and excises?

— The high level of public debt and budget

deficit in Montenegro in previous years, and the need for stabilization of public finances, have created the need for the implementation of fiscal consolidation measures.

Positive results are confirmed by the data which shows that in the first quarter of 2018, compared to the same period in 2017, revenues from value added tax increased by 12.7%, contributions by 10.3% and income tax for legal entities by 25.1%, as a result of growing economic activity, as well as fiscal consolidation measures such as the increase in the standard VAT rate by 2 percentage points and settlement of liabilities based on reprogramming of owed taxes.

The economic activity indicators point to the fact that in the previous year, the fiscal stabilization measures did not slow down economic growth, with the Montenegrin economy recording the higher than projected growth.

Are you satisfied with the business environment? Does he favor the growth of investment and private business?

— The business environment has been significantly improved. In support of this claim, the data shows that from 2006 onwards, Montenegro has attracted 8.45 billion euros worth of investments from over 130 countries worldwide. There are renowned world brands in Montenegro, especially in tourism. The ongoing projects are valued at over 4 billion euros.

In this year's World Bank report on the ease of doing business, Montenegro occupies the 42nd place out of 190 ranked countries, which a jump by nine places compared to the previous year. Bearing in mind the fact that companies in the private sector are contributing to the ranking in

this report, it is evident that Montenegro continues to make progress with regard to the business environment.

The fact that Montenegro has a competitive tax system, with the lowest profit tax rate of 9%, and that the country has been a full-fledged NATO member since 2017, make Montenegro an attractive destination for investment and development of private business.

WITH THE GOAL OF STIMULATING ENTREPRENEURSHIP AND ESTABLISHMENT OF NEW COMPANIES, MONTENEGRO'S INVESTMENT DEVELOPMENT FUND OFFERS SPECIAL FINANCIAL SUPPORT PROGRAMMES All countries in the region, including Montenegro, attach great importance to foreign investments. Does the Montenegrin government have enough understanding and resources to encourage the development of domestic private businesses in an appropriate way?

— Foreign and domestic investors in Montenegro have equal treatment. In order to attract investments, the Government has devised a number of incentive measures in the last few years.

Thus, in accordance with the Regula-

tion on Fostering Direct Investment, the incentives for investors range from €3,000 to €10,000 per each new job created for investment projects that are implemented in the production and service sector.

There are special benefits for companies that operate in business zones that represent a unique entity in the area managed by a local government. These zones have partial or full infrastructure and, apart from location and infrastructure, they provide potential investors with additional tax and administrative incentives on local and state (such as exemption from paying contributions on wages, exemption from personal income tax, exemption or reduction of municipal utility charges and land development fees, with real estate tax rates also reduced).

With the goal of stimulating entrepreneurship and establishment of new companies, Montenegro's Investment Development Fund offers special financial support programmes such as entrepreneurship development programme, start-up programme for beginners in business, and a programme for young people in business which stipulates favourable interest rates, with a grace period up to 4 years and a payment period of up to 12 years.

Before you became the Chamber’s President, you were the Chamber’s Assembly Chairman in two terms, and a member of its Managing Board. What is your view of the changes in the economic environment in Montenegro that are happening during the EU pre-accession process and following the country joining NATO? — By participating in the work done by the highest bodies of the Chamber, the influence that this oldest business association

SOLUTION

THE CHAMBER CONTRIBUTES TO THE CREATION OF THE BEST SOLUTIONS FOR THE MONTENEGRIN ECONOMY MONTENEGRO 2018

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ties, regardless of their categorization, and the abolition or redefinition of fiscalities (taxes, fees, charges) at the local level, as well as their harmonization between local self-governments.

How willing is the government to listen to advice from business community?

— The Chamber of Economy is a business association of all Montenegrin companies and as such, unifies and articulates their requirements towards decision-makers. The Chamber has been nurturing very good relations with the Government in continuity. To corroborate this, I would like to mention the traditional annual meetings with the Prime Minister and ministers in the Chamber of Economy, where our association presents the annual business analysis and gives an opportunity to business people to highlight the challenges they face through directly communicating with the Government representatives.

has on improving the business environment for its members, which is realized through a partnership with decision-makers at the state and local level, became very evident to me.

My term as the President of the Chamber of Economy and a member of its Managing Board was marked by the economic development thanks to which Montenegro positioned itself as the most prosperous state in the Western Balkans, a NATO member and the first candidate for joining the European Union. The Chamber has given and continues to give a remarkable contribution.

Significant economic opportunities have been created for Montenegro by entering NATO, in addition to security benefits. Joining the Alliance gives us the opportunity to increase trade and foreign investments, which, along with the improvement in the country's credit rating, is a prerequisite for bolstering the competitiveness of the national economy. Montenegrin companies that codified their products in accordance with the Alliance’s requirements have gained access to a significant market.

What are the biggest challenges in the private sector today and what recommendations did you give to the government relating to changing public policies?

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THE DATA SHOWS THAT FROM 2006 ONWARDS, MONTENEGRO HAS ATTRACTED 8.45 BILLION EUROS WORTH OF INVESTMENTS FROM OVER 130 COUNTRIES WORLDWIDE — The most common barriers that business people point to are numerous, quite high taxes, local fees, high labour costs, i.e. salary contributions, shadow economy, unfair competition, insolvency and inability to collect receivables, problems relating to insufficient labour flexibility, and the discrepancy between education and labour market needs.

We can conclude from the aforementioned that bolstering the competitiveness of the domestic economy can contribute to changes in tax policy by expanding the tax base, on one side and reducing the tax burden on business, on the other side, especially reducing the contribution to employee salaries, introducing a lower VAT rate in all catering and tourist facili-

You are known in Montenegro, and especially in its business community, as a successful manager of several companies from various economy sectors. Based on your experience, could you tell us how capable is the Montenegrin economy to withstand the competition in Europe should the country join the EU in 2025?

— Although we do realize that there are many areas in which it is necessary to improve the competitiveness of our companies, it is obvious that the economy is increasingly progressing in meeting the prerequisites for a successful performance in this common, highly demanding market that is the European Union. One of many positive examples of this is the Montenegrin food producers which have received European export numbers to sell their products in the market that has 500 million potential buyers.

In the coming period, one of the most important tasks for our economy will be the implementation of international quality standards, which is a condition we need to fulfill in order to sell our products in the EU market. Also, it is necessary for many of our companies to directly participate in the education of the future workforce through partnering with educational institutions in the dual education system. The Montenegrin Chamber of Economy continuously supports both processes and contributes to their realization with its activities.

INTERVIEW

RADOJE ŽUGIĆ

Governer of the Central Bank of Montenegro

WE EXERCISE RESPONSIBLE POLICY

The results achieved in the fiscal area are encouraging. Namely, budget revenues are increasing, thanks to the implemented fiscal consolidation measures, while economic activity is growing

T

he good results, achieved by the Government of Montenegro through fiscal consolidation and the responsible policy exercised by the Central Bank of Montenegro (CBM), are the basis for the stable macroeconomic environment in the country. I think that we, in the CBM, have created a good basis for significantly mitigating the effects of a future, potential crisis, including limiting the growth of non-performing loans. Reducing the public debt to fit the framework of the Maastricht criteria is one of the key objectives of the Government in the fiscal policy segment. The 2018-2020 Public Debt Strategy 2018-2020 defines the activities that should result in the reduction of public debt to below 60% of the GDP by the end of 2020, said Radoje Žugić Governor of the Central Bank of Montenegro.

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What effects could the normalization of the monetary policy of the European Central Bank have on Montenegro's ability to regularly finance public debt?

— Following the adoption of fiscal consolidation measures and their implementation, the risks to public debt financing have

BUDGET REVENUES ARE INCREASING, THANKS TO THE IMPLEMENTED FISCAL CONSOLIDATION MEASURES, WHILE ECONOMIC ACTIVITY IS GROWING

been significantly reduced. Also, owing to the recent issuance of Eurobonds, the Government secured a large part of the funds needed for public debt financing for this and next year, and at the same time, cut back on costs of financing.

However, developments in the international environment have had a great impact on the indicators in our system, including the public debt. The normalization of the ECB's monetary policy could lead to an increase in interest rates, which would further increase the costs of settling the public debt. Bearing in mind that economic growth in the eurozone countries is still insufficiently strong, and taking into account the numerous other vulnerabilities that European economies are struggling with, we hope that the ECB, should it decide to start normalizing its mone-

tary policy, will implement these measures in a very mild and gradual manner, so it becomes unlikely for a significant increase in interest rates to occur in the near future.

Do you think that the Montenegrin government is doing well in implementing the austerity policy and reducing the risk of over-indebtedness?

— Reducing the public debt to fit the framework of the Maastricht criteria is one of the key objectives of the Government in the fiscal policy segment. The 2018-2020 Public Debt Strategy 2018-2020 defines the activities that should result in the reduction of public debt to below 60% of the GDP by the end of 2020.

So far, the results achieved in the fiscal area are encouraging. Namely, budget revenues are increasing, thanks to the implemented fiscal consolidation measures, while economic activity is growing. If the optimization of expenditures, their control and combating shadow economy continue it is realistic to expect the reduction of existing indebtedness and, consequently, the reduction of the risk of over-indebtedness.

How able is the banking sector withstand external and potential shocks in the domestic market?

— The banking sector in Montenegro, as part of the overall financial system, is subject to the influence of external and internal factors. The effects, in the case of Montenegro, can be particularly heightened due to the small and, consequently, open economy. However, the impact of potential shocks on the banking sector has been significantly reduced relative to the

TODAY, MONTENEGRIN BANKS ARE WELL CAPITALIZED, HIGHLY LIQUID AND WITH SIGNIFICANTLY REDUCED VULNERABILITIES COMPARED TO THE PREVIOUS PERIOD

period from several years ago, thanks to the positive trends in the most important indicators of banks' operations.

How much has the reduced share of NPL in the banking sector affected the recovery of economic activities? How ready are companies for new borrowing?

— The strong investment cycle and the achieved economic growth have certainly affected the recovery of the real sector, and hence the ability of companies to pay off their financial liabilities including bank loans. This further improved client ratings, which prompted banks to bolster their credit support directed at the economy.

We want to highlight the activities and measures that we carried out in the previous period, which contributed to reduction in the number of NPL. First, we asked banks to prepare a three-year NPL strategy which implementation is continuously monitored and supervised. We then amended the regulation related to voluntary restructuring of debts, in order to facilitate the recovery of debtors and positively influence economy's liquidity. The results

MONTENEGRO 2018

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Montenegro. This implies an adequate risk assessment when granting loans, including an accurate estimate of the expected cash flow from which the bank's claim can be settled. Furthermore, the experience with unrealistic assessments of the collateral that serves as security for payment of the loan has indicated that we need to make significant improvements in that segment too, in terms of improving the reality of assessments, applying the best international practices and standards in this field, as well as their more frequent implementation.

Regardless of the crisis stemming from the high number of non-performing loans, CBM is continuously working on improv-

WE ARE ALSO CURRENTLY WORKING HARD ON COMPLETELY MODIFYING THE REGULATORY FRAMEWORK of implementing the amended regulation are extremely good. At the system level, starting from mid-last year, 42 restructuring contracts were signed, worth approximately 21.5 million euros. In the forthcoming period, we expect to see the realization of the restructuring agreements which value would be significantly higher.

The share of non-performing loans (NPL) in total loans has decreased significantly in the previous period. Namely, it fell from 25% in 2011 to the current 7.09%.

To what extent does the issue of insolvency burden the economy and can this problem be solved systematically? — Illiquidity has been one of the key vulnerabilities of our economy for a long time and it is difficult to find a short-term solution for it. Rather, the system must work on creating as many opportunities as possible for boosting the real sector's revenues, primarily through improving productivity and competitiveness. At the same time, we need to further work on improving the business environment and reducing business obstacles, with the aim connecting the domestic market to the international one even more. In this way, economic activity will increase, and with the posi-

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tive outlook for the economic growth, the banking sector will also have a stronger incentive to lend to the economy.

Which lessons did the CBM and the banking sector learn from the accumulation of NPLs in the past and how much can the risk assessment tools, which were implemented in the meantime, guarantee that there there won't be such a swift growth in the number of NPLs in the future? — The impact of the global economic and financial crisis has led to a decline in economic activity in Montenegro, while negatively affecting almost all sectors, and especially the share that non-performing loans had in total loans. The high number of non-performing loans was the result of expansive growth of approved loans, accompanied by liberal credit policies of banks, i.e. bad credit risk assessments when granting loans in the past and unfavorable business conditions.

As one of the lessons that banks have learned from the problems they have faced in the past is the need to improve the risk management function they are exposed to in their operations, including credit risk, as the dominant risk for banks operating in

ing the quality of banking supervision, primarily through improving the staffing and other professional capacities and the regulatory framework. In that sense, we continuously invest in our supervisors in terms of improving their existing knowledge and acquiring new ones. We are also currently working hard on completely modifying the regulatory framework, with the view of adopting the Basel III standards and creating the prerequisites for an even more efficient execution of the supervisory role.

On what parameters do you base your expectations that the interest rates in 2018 will be even lower and to what extent has your projection come true so far? — Interest rates have been continously declining over the past few years. As for the next period, the interest rate fluctuations will depend on the measures implemented by the European Central Bank, or rather on whether the period of "relaxed" monetary policy will end.

I think that we can expect a slight decline in interest rates this year, even if there is a the ECB continues to exercise its strict monetary policy.

CORPORATE

WARM YOUR HOME!

Coal Mine AD Pljevlja has the solutions to all your problems!

COAL MINE AD PLJEVLJA

C

oal Mine AD Pljevlja started its first serious steps in the production activity in 1952, as a "Coal Research and Production Company - Pljevlja, and today it is the largest economic entity in the municipality of Pljevlja and one of the most important economic collectives in Montenegro. Together with Elektroprivreda Crne Gore, the main energy system of Montenegro, and therefore its industrial and economic base, is created here.

With a long tradition of 66 years, Pljevlja coal is classified according to its characteristics as mild-lignite high quality, which is confirmed by the certificate obtained from the Institute of Mining and Metallurgy Bor. The total humidity range is 30-36%, and the lower thermal value is free of moisture and ash 20-28 MJ / kg. It is ideal for individual fireboxes due to the lower heating intervals, and is also used

for industry. We are without competition in terms of quality in our area.

Granulation available at Separation: small (0-40mm), cube (40-80mm), piece (80-350mm) and walnut (2040mm). Our product has a low sulfur content, as well as low ash content and moisture, a high point of ash solubility and a small percentage of slag.

Prices of our product, for retail, depending on granulation, range from 29.25 to 48, 27 € / t without VAT. For the heat value of small coal of 10. 500 KJ / kg we have especially favorable prices of 29, 25 € / t, while the price of this as-

NO COMPETITION

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sortment in other cases can not be less than 2,784 € / GJ. By purchasing our product, all the costs of selling to the border are born by the seller. We are able to deliver FCO Pljevlja FCO FCO loaded cargo, Prijepolje wagon and FCO buyer's warehouse.

We have quality guarantees according to the manufacturer's declaration and quality certificate, with favorable price policy in relation to the competition and simplified customs procedure when selling, while coal delivery is organized in two shifts. In addition to this, at a very reasonable price we also offer transport services at the level of Montenegro and the region. We offer special benefits to interested buyers for larger amounts of coal!

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MONTENEGRO 2018

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CORPORATE

CONSTANT GROWTH AND PORTFOLIO DEVELOPMENT PROKOPIJE PERIĆ CEO, Plus doo

W

e have expanded and bolsterd the existing high quality portfolio that Plus d.o.o. already has to include additional brands in 2018, such as PAGO fruit juices from Austria, LA TRAPPE beer from the Netherlands, and Tekmar protein bars from Slovakia.

We are continuing to expand and implement our ambitious plans in order to become the No 1. in the market.

The Montenegrin market is smaller compared to the countries of the region, but more complex. What are the key benefits of this market and what are your plans for it?

— Compared to the markets in the region, Montenegro's market is much smaller, but it's incomparably more complex, as you said. Domestic consumers and tourists who visit Montenegro have very high expectations especially in terms of the quality of products they buy on a daily basis. Distribution is extremely demanding taking into account the geography of Montenegro as well as the tourist season, which greatly stretches the logistics capacities to the very maximum. If you fail to sell today, it's difficult to make up for it tomorrow,

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The plans we had devised for 2017 were based on the success achieved in 2016, and were therefore extremely ambitious.

Regardless, we have accomplished everything we had planned

especially if we are talking about consumer goods.

A product portfolio that is imported to and sold in the Montegrin market has to be precisely planned and analyzed because there is already a fairly wide range of products in each segment in Montenegro. Our priority is high quality premium brands quickly acquired regular and loyal consumer following.

We have expanded and bolsterd the existing high quality portfolio that Plus d.o.o. already has to include additional brands in 2018, such as PAGO fruit juices from Austria, LA TRAPPE beer from the Netherlands, and Tekmar protein bars from Slovakia.

You achieved a remarkable growth in 2016. What are the results for 2017?

GOAL

YEARS OF WORK, DEDICATION AND DESIRE HAVE BROUGHT US TO OUR ULTIMATE GOAL - TO BECOME THE ABSOLUTE LEADER BY MID-2019

What are the plans for the current year and where do you expect the biggest growth?

— The plans we had devised for 2017 were based on the success achieved in 2016, and were therefore extremely ambitious. It gives me great pride to say we have accomplished everything we had planned regardless of the changed market situation, namely the increase in excise in 2017. JTI has continued to boost its market share too, so, in 2017, according to the official report compiled

by AC Nielsen, we had a 23.4% share which represents an increase of 3 percentage points in 12 months. Bearing in mind the stability of the market position of tobacco companies and the changes that took place during 2017, this is a remarkable success. Years of work, dedication and desire have brought us to our ultimate goal - to become the absolute leader by mid-2019, as I had previously said. By the end of June 2018, JTI's market share ma already reached 28.3%, so I am confident that our ambitions are realistic.

I would also like to point out that we have fullfilled f L'Oreal and Essity's expectations, and after the acquisition of their previous dealer, we achieved an in-

crease of over 5% at the year-end. This showed us that no matter how big the brand is, there is always the possibility of growth with high quality distribution and market coverage.

We expect our HORECA division to record the biggest growth, especially in the coffee segment, primarily thanks to the long-standing contracts we have with the strategically important clients in Montenegro. I expect that, by the end of this year, we will become the number one company in terms of the the quantity of the sold espresso coffee, which is mostly owing to the premium brand HAUSBRANT, of which we are an importer and distributor.

You cooperate with international clients and your portfolio keeps expanding. What industrial branches are you following and how do you coordinate your strategies and plans?

— Our partners, with whom we have been working, are accustomed to the transparency of our business. We have an extremely open relationship with every business partner and together we create strategies that we are implementing. We have a very large commercial team which monitors everything that is happening on the market and listens to the needs of consumers. Then we collect all this information, share it with our partners, incorporate our market experience and their expertise in it, and when you do that, success is guaranteed. We have the honour and privilege to work with large companies, from which we have learned a lot, as their representatives relay to us their extensive experience and knowledge that we need.

How much does the economic pro-

gress in the country and the arrival of an elite clientele affect the supply and placement of your products?

— Opening luxury facilities definitely influences the arrival of clientele who is ready to spend more, which is very important to us and considering our company's strategy, we are focusing on premium quality products. All of this requires additional efforts in understanding the needs of these consumers, but we are here to listen intently and meet the market demands.

What sets your company apart from your competitors?

DIFFERENCE

FOR US, AS A COMPANY, EMPLOYEES ARE THE ONES WHO ALWAYS MAKE THE BIGGEST DIFFERENCE COMPARED TO OUR COMPETITORS — Plus d.o.o. has an extremely wide range of products which we offer in the market. What sets us apart from our competition currently is our expansion to the healthy food segment that is becoming increasingly interesting for consumers. However, for us as a company, employees are the ones who always make the biggest difference compared to our competitors. Today, if you have enough financial resources, you can build up-to-date logistics facilities and purchase the latest car models.

However, the most important thing is that you have to have a sufficient number of motivated and professional people who actually make up the core

of your company. Constant investment in employee development is one of our priorities and we will allocate more and more resources to this purpose in the future. I am particularly proud of the courage and commitment of all our employees, so I am confident that in this part, we will be far ahead of everyone for a long time.

Montenegro has made remarkable progress in its EU accession bid and is a NATO member. How much does the current economic environment affect domestic companies?

— Montenegro joining NATO is an exceptionally important step which gives the country both internal and external security. On the other hand, NATO membership leads to investments so. As a result of the country joining this alliance, we are definitely going to have more investments because security also brings new investments. We are actively involved in all programmes aimed at removing business obstacles, so we are giving our contribution to creating a better business environment that will enable us to grow more efficiently. Perhaps, as a domestic company, I would rather prefer the state to treat domestic companies more favourably than foreign investors, but we completely understand the government’s position because, as we approach the EU membership, we cannot expect to have a preferential treatment compared to foreign investors. In any case, and regardless of this, I deeply believe that the arrival of foreign companies and investors can only benefit all business entities because they form a chain that brings benefits to all, especially when it comes to creating new jobs in Montenegro.

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CORPORATE

SERVING COMPLEX CUSTOMER DEMANDS

ČIKOM DOO

The mission of ČIKOM doo in not just that simply follows informatics innovations in this region, but to become its significant creator and moderator

Č

IKOM doo has been a part of the regional market of Montenegro for 25years, with over 50 employees, mostly university graduated electrical engineers. It is a middle-market firm which enables them to react quickly to complex customer demands and it is recognizable for the quality of technical solutions and equipment in Enterprise segments of IT systems.

The mission of Company in not just that simply follow informatics innovations in these region, but to become its significant creator and moderator. Different informatics profiles, scientific approach, accumulated knowledge and experience, following the world standards and very tight cooperation with users are the guarantee of ČIKOM business philosophy success – INFORMATICS WITH HUMAN FACE. Company has been implemented a quality management system SRPS ISO 9001 in field of design and software development , computer engineering , consulting, sales and maintenance of IT equipment and services.

Also there have been implemented Information technology - Service management system ISO 20000 and Information security management SYSTEM ISO 27001 related to same field. ČIKOM doo owns laboratory and education test center for post installation trainings arranged for Enterprise customers.

Below is list of partnership with common vendors established by ČIKOM doo

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• GOLD Microsoft Certified Partner, • EMC Authorized Reseller and Authorized Service Partner for Montenegro • H P GOLD Partner with server and storage specializations • HP Silver ServiceOne Enterprise Delivery Partner and Authorized Service Center • C isco Systems Premier Certified Partner • Checkpoint bronze partner • ASI-Accredited Systems Integrator of Allied Telesis • Symantec Silver Partner and Authorized Technical Assistance Partner • V Mware VIP Enterprise solution Partner • VUE Pearson Testing Centre • ECDL Authorized testing center ČIKOM doo has implemented more than 200 projects in Montenegro in cooperation with partners from Montenegro University, local partners and partners from region.

List of relevant projects - eDMS (Electronic Document Management system) for Government Montenegro based on the EMC Documen-

SERVING

WE ARE NOT JUST SELLING THE EQUIPMENT AND SERVICES; WE SERVE NEEDS, CREATIVITY AND PROFESSIONAL AFFIRMATION OF CUSTOMERS

tum platform - On-line Meetings Government of Montenegro (Electronic Meetings) - E-government solution for municipalities in Montenegro (Podgorica, Bar, Pljevlja, Herceg Novi, Kotor, Budva, etc) - Implementation of Data center for EPCG national energy company based on EMC HW solution - Implementation of the new data center infrastructure for Port of Adria based on HPE, Cisco, Checkpoint equipment - Delivery and installation HW platform for New Billing system of Crnogorski Telekom based on EMC storage and HPE server equipment - Ministry of Finance – Tax administration delivery and implementation HPE and Cisco solutions for DATA center - G overnment of Montenegro Infrastructure Services based on Microsoft technologies - M ail system of State Bodies implemented within new .me domain - MIPNET of Telekom of Montenegro – MPLS (multiservice network, one of the most sophisticated in Balkans), active participation in this project.

- Telekom of Montenegro (MAN Podgorica – 29 locations connected in Podgorica).

MONTENEGRO 2018

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CORPORATE

SERVICE AT THE HIGHEST LEVEL

SAVO ICEVIC

Country Manager, Gebrüder Weiss Montenegro Our clients are large companies with world renome, with whom we organise yearly cooperations, and who believe that we will find the best and most efficient solutions for them

G

ebruder Weiss has been successfully operating in Montenegro for seven years, basing its business on fast and efficient solutions, accuracy and precision of the business, professionalism and quality of service at the highest level. We are constantly increasing the number of satisfied clients, which is the biggest proof that our branch goes in the right direction.

What services does Gebrüder Weiss Montenegro provide to clients?

— Gebruder Weiss is an international company engaged in international transport and logistics solutions, ie by providing services to clients concerning: transport, storage, delivery of

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goods, customs procedures, etc. The company was founded in 1473 and has over 150 branches worldwide. This is a company that is focused on clients and their needs by providing them with the best and most efficient solutions.

Gebruder Weiss provides all kinds of possible transport: road, ship and air transport, and also performs all types of customer advocacy in front of customs authorities as well as all types of logistics solutions at the local level.

The basic postulates of Gebruder Weiss's business are: fast and efficient solutions, accuracy and precision, professionalism and quality of service at the highest level. Gebruder Weiss Montenegro was founded in 2011 and successfully operates following these company postulates for 7 years in Montenegro.

What makes GW Montenegro's services stand out from the competition?

— As I have already mentioned basic company postulates and business principles around the world, they guarantee a service at the highest level.

The success of this company is visible both on the world and at the local level.

The trust of our long-standing clients proves this. Large companies with world renown are our clients who use our ser-

vices, with whom we are achieving the cooperation that has been agreed upon, who believe that we will find the best and most efficient solutions for them.

Gebruder Weiss is paying great attention to the principles of good and fair business, with the maximum effort, which is recognized by clients, so the results are visible. Our professional way of business enables us to constantly increase the number of clients.

MARKET

WE CONSTANTLY RAISE THE QUALITY SCALE. WE BELIEVE THAT THIS IS THE ONLY WAY FOR THE MARKET TO DEVELOP Where is the location of Gebrüder Weiss Montenegro within the development plans of the South Region of the company?

— Gebruder Weiss company recognized the Montenegrin market as a market with high potential, and one that is very interesting, providing opportunities for business and development of the

company. There are many clients in the Montenegrin market who have the need to use our services. The correctness of such a decision has been shown through the results that the company generates with the increase in business, which we note each year.

Our development plans are: constant business growth as well as increased market share while maintaining the level of services at the highest level. We have branches in every country in the South region. This means that our name is recognizable in each of these countries and our affiliates together provide clients with the security and efficiency of their business. Our affiliates cooperate with each other and provide great opportunities for our customers.

How satisfied are you with the results of the business in the past year and what are your expectations for this year?

— Last year she was very successful.

The trend of business growth continued in 2017, which we expect in this year as well. We are constantly increasing the number of satisfied clients, we note a positive feedback, which is the biggest proof that our branch is going in the right direction. All this gives us additional motivation for work, further advocacy and design of the best solutions for clients.

We know and show that, when a client entrusts us to do business for him, he does not have to think about safety, transport efficiency or the best solution for the job. We are here and in this way, when clients are convinced of our work, they remain faithful to us and give us their trust again.

ate with significant clients and big companies, and we have plans for the future.

We believe that there are no obstacles for professional and fair business.

How do you assess the potential of the Montenegrin market for business development in your industry?

— Our vision for Montenegro has been centred on several important moments from the beginning: the market with potential, the construction of the Bar-Boljara highway, the use of the potential of the Port of Bar, the construction of a better road infrastructure and a general view of Montenegro as a transit zone that would enable good business.

Our estimates were precise, and although the Montenegrin market is small and there are obstacles to work, we managed to get through.

We give an example with our business, and our vision allows us to look at the development of the market and adapt to it. Montenegro offers many opportunities, but of course it takes both patience and hard work to see the results. Let's take Luke Bar for example.

PLAN

SO FAR, WE ARE AMONG THE LEADING COMPANIES IN MONTENEGRO IN THIS BRANCH, AND THE PLAN IS FURTHER DEVELOPMENT

We recognize the potential, but investments are needed to make it full capacity, as a very important port in the Adriatic Sea. When this is done, then we will be a partner who will be able to use this potential properly. Our goals are set and we believe that Montenegro will also achieve development that will give us the opportunity to show all our possibilities.

What are your long-term plans in this market?

— As noted, we have our long-term plans in line with the vision we have and the development of the Montenegrin market. We are planning to continue to increase the number of clients, to achieve cooperation with existing clients and to remain at the highest level, and also to expand the branch itself in terms of people and capacities. We are constantly growing, which is an indicator of the quality of our work. We are sometimes limited by the very characteristics of the market, but we believe that the development of Montenegro in this respect will be of benefit and satisfaction. We provide all the services which we provide globally, and in Montenegro there are no restrictions. For now, we are among the leading companies in this industry, and we plan to develop further.

We believe that in this way we not only increase the quality of our services to our clients, but also contribute to creating a healthy competitive climate on the market, as we constantly raise the quality scale. We believe that this is the only way for the market to develop.

How much of your workload and number of services has increased in the last seven years?

— When we started work, 2011 we had a vision. We started to realize it in accordance with the company's business principles. The Montenegrin market is small and it was necessary to fight for its position, which was not easy, but we did not abandon either our principles or the fight for our clients.

We expanded our business, hired new people, studied the market, in order to get the best solutions. Today we are recognized in this market, we cooper-

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CORPORATE

LUŠTICA BAY: DREAM HOME. DOWN-TO-EARTH INVESTMENT With natural riches and investment incentives, there has never been a more advantageous time to invest in Luštica Bay, new integrated resort town in Montenegro

F

ew horizons are as entrancing as the one that Luštica Bay’s apartments look onto: different hues of blue play out between sea and sky, waters glisten, swifts fly and fall. There are no distractions to take away from nature’s beauty.

It is a view that is already relished by many, with numerous Luštica Bay residents settled into their new homes.

However, this July heralded a special era for the coastal town with the official launch of its Marina Village neighborhood. This exciting phase saw the opening of the restaurants, cafés and shops of the Marina promenade, Luštica Bay’s new state-of-the-art marina and its first hotel, the five-star The Chedi Luštica Bay. The town with its spectacular views is now a flourishing place to live.

Set to become a fully integrated, sustainable town across 690 hectares of the Luštica peninsula, creating life as it should be has been the development’s ethos from the start. The raw materials were already there: a beautiful setting on the Adriatic coast, sunny climate 240 days of the year, easy access and the diverse landscape of Montenegro at its fingertips.

Luštica Bay has sought to add to this canvas, forming a town that embraces local culture and tradition while setting

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the stage for a forward-thinking future.

Sustainable planning, high-quality construction, exceptional facilities, luxurious finishes and a diverse, connected community life have combined to create Montenegro’s most sought-after place to live. Behind the project is Swissbased developer Orascom Development Holdings who have created successful, integrated towns across the world, including Egypt’s El Gouna and Switzerland’s Andermatt Swiss Alps.

LIFE

SET TO BECOME A FULLY INTEGRATED RESORT TOWN CREATING LIFE AS IT SHOULD BE HAS BEEN THE DEVELOPMENT’S ETHOS FROM THE START Orascom and Luštica Bay understand that cultivating a unique lifestyle is only half the story. Ensuring a secure investment is just as vital. With an advantageous economic and political climate and Euro as the official currency, Montenegro offers a solid investment foundation.

The country’s economy has been

growing year-on-year with tourism as the major driver - 2017 was Montenegro’s most successful tourist season, exceeding the record-breaking 2016. By 2027 international tourist arrivals are forecast to total 2,978,000, generating an expenditure of just over €1,593 million, a predicted increase of 5.5% per annum for the next decade.

This success is partly down to the government of Montenegro’s carefully planned, long-term tourism strategy. Since its inception in 2001, focus has been on developing sustainable facilities for visitors while protecting and preserving the country’s natural landscapes. Luštica Bay, which is the result of a joint partnership between Orascom and the Government of Montenegro, embodies this far-sighted approach.

Luštica Bay’s location takes further advantage of the growing tourism trend.

With three international airports within reach, including Tivat at only 10km away, residents can fly from all major European destinations in under two hours and arrive at Luštica Bay within minutes. The majority of nationalities don’t require a visa to stay for up to 90 days and if you buy property in Montenegro, whatever the value, you benefit from a renewable one-year residence permit.

Luštica Bay itself offers an extremely

flexible buying process, allowing buyers to purchase both off-plan and already built properties. Buying off-plan means that buyers can capitalize on significantly lower purchase prices during construction and the expectation of price increases over the construction period.

There is also a favorable payment plan for off-plan purchases, plus the flexibility of adding extra options during the building process. After purchase, Luštica Bay’s rental brokerage service can oversee the rental process on your behalf, from setting prices and handling bookings to taking care of upkeep and cleaning.

Luštica Bay residents can also be reassured they are not only buying a property, but a place within a thriving, year-round town, a town that has been designed to become an organic part of the surrounding area and future-proofed for generations to come. With a network of sidewalks, green trails, cycle lanes and roads, apartments, townhouses and villas are extremely well-connected.

From their doorstep, residents will have access to all the requirements of modern town living, including numerous dining options, shops and boutiques, a golf course, a private beach, conference and sports centres, school, medical services and other essential amenities.

The newly opened main marina in the village by the sea will provide residents and guests access to the ultimate riviera lifestyle and a passage to a life on the coast. Safe harbour from wind and weather conditions, it will be able to accommodate small boats and large yachts alike and provide a total of 176 berths

MIX

THE CHEDI LUŠTICA BAY RESORT IS AN ALLURING MIX OF BAREFOOT LUXURY AND MODERN SOPHISTICATION at its full capacity. With the country’s yacht-friendly legislation, it will attract sailors from far and wide, opening up easy passage to what is considered one of the world’s most beautiful sailing spots.

Luštica Bay’s first and highly-anticipated hotel has also added a glamorous dimension to town life. Set on the water’s edge and full of local character, The Chedi Luštica Bay resort is an alluring mix of barefoot luxury and modern sophistication. With two restaurants, a ballroom, a wellness spa and gym, outdoor and indoor pool and resort shops, residents and guests can enjoy

all the hotel has to offer alongside The Chedi’s impeccable service.

Aside from new openings, there is always something happening at Luštica Bay, no matter what time of year. A calendar of events regularly brings the community together with sunset barbecues, beach parties, sporting competitions, festivals and cultural celebrations. The town’s private beach offers clean waters for swimming, snorkeling and watersports. An 18-hole, Gary Player-designed golf course is planned to sit atop the peninsula with views in every direction, and, currently, residents can hone their skills on the practice range.

That is before you consider the wider temptations of Montenegro. The country’s small size makes discovery easy, yet its riches are endless. Its 293km coastline encompasses 117 beaches, historic towns, modern cities and the UNESCO heritage site of Boka Bay. Inland, four national parks offer breathtaking variety and beauty, with numerous outdoor activities, and winter sports and skiing from October through to April.

Life as it should be has never been so easy, but beyond its stunning, bluesea views, Luštica Bay offers a new and exciting perspective on property investment.

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ECONOMY

ONGOING TRANSITION U-turn towards East and West

tercompany debt, amounted to EUR 247.1 million or 38.1% of the total inflow.

The UAE is the biggest investor in Montenegro, investing EUR 112.6 million in the country, followed by Italy with EUR 78.5 million and Azerbaijan with EUR 66 million.

In the top ten countries that contributed the most to the positive balance of FDI are (still) Russia, Switzerland, Germany, Serbia, Cyprus, Turkey and Spain.

GREEN, I LOVE YOU, GREEN

M

ontenegro entered NATO in June 2017 and the reaction of investors around the world was also logical, where investors from the EU are focusing even more on Montenegro now Montenegro today is one of the most developed and stable Balkan country. Since 2003, Montenegro has tripled the gross national income per capita (according to the World Bank's Atlas method), from $2,400 thousand to $7,220 thousand in 2012. Now it has the highest per capita income among the five countries of Southeastern Europe.

INVESTMENTS The total value of foreign direct investments in the previous year amounted to EUR 649.2 million, while EUR 174.9 million left the country at the same time, according to the preliminary data of the Central Bank of Montenegro.

According to Bankar.me, the net inflow

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of foreign direct investment, i.e. the difference between inflow and outflow, amounted to EUR 474.3 million last year and was 27.6% higher than in 2016. EUR 45.3 million left the country on the basis of Montenegrin residents investing abroad, while withdrawals of non-resident funds invested in Montenegro amounted to EUR 129.6 million. The inflow of foreign direct investments in the form of equity investments amounted to EUR 366.9 million, accounting for 56.5% of the total inflow. EUR 147.2 million was invested in real estate, and EUR 219.7 million in enterprises and banks. The FDI inflow, in the shape of in-

MONTENEGRO TAKES A SOLID STEP FORWARD, USING ITS GEO-STRATEGIC ADVANTAGES, WITHOUT POLLUTING ITS LAND

Montenegro decided to position itself as an environmentally friendly country, first such country in the world. It was precisely this that determined the direction of the country's development, saved from dirty industries. Therefore, Montenegro's economy is based on small and medium enterprises, which generate more than a half of the GDP. The service sector accounts for more than 60% of the GDP. Due to the available natural resources, the Montenegrin economy relies heavily on tourism and energy, which at the same time, attracts the greatest attention of the investors.

TOURISM Montenegro best performs in tourism.

The country has good conditions for the development of all types of tourism, considering its beautiful beaches, a mountainous region in the north, a rich religious and cultural heritage and a well-preserved natural environment. In 2016, Montenegro was visited by 1,813,817 tourists, of which 91.62% were foreigners, which was 6.15% more than in the previous year, and with similar trends recorded in 2017 too.

Coastline and ski resorts in the north are the most popular.

All in all, amidst all the upheaval in the Balkans, Montenegro takes a solid step forward, using its geo-strategic advantages, without polluting its land. In a world with increasing pollution and instability, this is a fascinating success!

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CORPORATE

FIRST IN DELIVERY OF PREMIUM SEGMENT VEHICLES For three years, Ljetopis Automotive has been the leader in the sale of Mercedes-Benz vehicles.

LJETOPIS AUTOMOTIVE D.O.O.

T

he business policy of Ljetopis Automotive d.o.o. is focused o n p r o fe s s i o n a l i s m a n d maximum satisfaction of all customers and service users, which are validated by the highest ratings given to the company by the supervisory bodies of Mercedes-Benz which are our trademark in the region.

Ljetopis Automotive d.o.o. was founded in 2002. That same year, the company signed a contract the German company, Daimler Chrysler AG, following which Ljetopis Automotive became their general agent for Montenegro.

Ljetopis Automotive covers the Montenegrin market where it is the only authorized importer / dealer of Daimler Chrysler vehicles and spare parts, as well as service provider. The company represents brands such as MercedesBenz (passenger and truck range), Evo Bus and Setra.

In early 2004, the company built a facility, spanning 1,800 square metres, designed in accordance with Daimler’s highest and strictest criteria. The same year, the company started officially selling vehicles. Our facility has a showroom where we sell passenger vehicles, vans, trucks and buses, plus it provides a comprehensive service for the aforementioned vehicles, and it sells spare parts.

Ljetopis Automotive pays a great

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deal of attention to human resources and their professional training. Currently, the company employs 33 workers, most of whom are educated and are continuously being trained at MercedesBenz centres in Europe.

Our business policy is focused on

IMPROVEMENT

WE WANT TO IMPROVE THE LEADING POSITION OF THE MERCEDESBENZ BRAND IN MONTENEGRO IN ALL BUSINESS SEGMENTS PASSENGER, DELIVERY AND CARGO VEHICLES, BUSES AND POSTSALES professionalism and maximum satisfaction of all customers and service users, which are validated by the highest ratings by the supervisory bodies of Mercedes-Benz and is our trademark in the region.

In Montenegro, the company is recognized as the biggest vendor of cars from the premium segment. Since Montenegro is a rather small, but very demanding market, the company has managed to maintain its leading posi-

tion in delivery of premium segment vehicles despite the changeable financial situation in the country.

Mercedes – Benz is a premium brend and a symbol of prestige. It is far ahead of its competitors in terms of quality, comfort, safety and cost-effectiveness.

For the past 16 years, Ljetopis Automotive has been successfully representing the Mercedes-Benz brand in Montenegro. The company owes the years of successful operations to its customers, who have demonstrated trust in buying our Mercedes vehicles and maintaining them in our service centre. Thanks to our organizational culture, business policy, and the strict Daimler standards, these brands are presented in Montenegro just as in the rest of the world.

Ljetopis Automotive's goals have remained unchanged since the company's establishment and they are: the maximum possible recognition and fulfillment of the needs and demands of customers and service users, upholding our standards related to our products and services, the strong desire to secure and retain a constant presence among the leaders in the domestic market, supporting and stimulating creativity of our employees, their initiatives and responsibility for quality, and providing education and training while motivating our employees.

ECONOMIC COOPERATION

NATURAL PARTNERS, COMPLEMENTARY ECONOMIES

Economic ties and tradition stronger than new borders

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W

hile being alone in the same state, Montenegro and Serbia depended on each without having many available options. Now, 12 years after independence, they are still great partners, because politics is fallacious, but economy is inexorable – so is cooperation!

After 1992, Montenegro and Serbia continued to be in the same state while avoiding the wave of civil wars. They formed economies that were even more complementary than at the time of the Socialist Federal Republic of Yugoslavia. The same

situation remained after the peaceful separation in 2006. And today, the general consensus is that that both countries should use the complementarity of their economies. The economic and political relations continue to develop, and the overall cooperation and trade and investment volume are increasing. Close proximity of the two markets, familiarity of brands, mutual understanding and tradition are some of the elements of good economic cooperation.

Indeed, the propulsion of capital, investments and economic cooperation will only progress in the upcoming period and in the coming years. As a result of the preservation of the once common economic space, the complementarity of our economy, the connection to the personal, political and national level, the future is growth, regardless of the new forms of cooperation.

Although, Montenegro occupied the 6th position on the list of the biggest markets that Serbia exported to in 2017, there is still room for improvement.

The initiative for the establishment of a common market in the region, which Serbia initiated, is also very important, as is the formation of a transport community that needs to be put together prior to these countries joining the EU, through modalities of a wider cooperation. They also need to grow economically in order to join the EU as wealthy as possible, with a higher living standard and an economic development. The already signed agreements, like CEFTA, are considered a gateway to the EU and make a positive contribution to the aforementioned.

One of the basic elements of development is overcoming the seasonality of tourism, which could contribute to the development of cooperation and more

THE COMPLEMENTARITY OF THE ECONOMY, TRADITION, BRAND FAMILIARITIES, AS WELL AS NEW OPPORTUNITIES STEMMING FROM THE "ONE BELT, ONE ROAD“ INITIATIVE CREATES NEW OPPORTUNITIES FOR COOPERATION BETWEEN THE TWO COUNTRIES Serbian tourists coming to Montenegro, as well as bolstering Serbian tourism with the view of attracting Montenegrin tourists to Serbia, particularly to go on city breaks. In terms of tourism-related figures, Serbia occupies the second place, just after the Russian Federation, according to the number of tourists who vacation in Montenegro. And this number, regardless tourists chosing new destinations like Greece and Croatia, has not been declining.

REGIONAL COOPERATION We should also mention the regional cooperation. The traditional co-operation between Vojvodina and Montenegro is perhaps one of the biggest driving forces behind the cooperation between the two countries. The total value of the trade between Serbia and Montenegro over the past year exceeded EUR 774 million, which is 9.5 percent more than a

year earlier. More than a fifth of the external trade, or more precisely 22.5 percent, was realized between Vojvodina and Montenegro, which value stood at EUR 174 million, a 9.1 percent growth. This was one of the main reasons why a business forum, with the Vojvodinian and Montenegrin business people in attendance, took place. At the AP Vojvodina - Montenegro Business Forum, organized by the Vojvodina Chamber of Commerce (PKV) and the Chamber of Commerce of Montenegro (PKCG), on Wednesday, 16th May 16, 2018, nearly one hundred Montenegrin and Vojvodina businessmen took part. The forum took place at the PKV premises, and after the plenary session, the participants had 50 bilateral meetings. This all points towards the cooperation becoming even better. In 2008, prior to the global economic crisis, Vojvodina and Montenegro reached the historically highest value of the trade in the amount of $245 million. The aim should be to repeat this success through well-structured operations and organization. There is a lot of space for cooperation, primarily in the area of economy, especially agriculture, regional and international tourism, with an emphasis on tourist visits between the two countries, improvement of infrastructure, technology, IT sector, international projects, especially in the Danube region, and engagement on the "One belt, one road“ project, the business people from Vojvodina and Montenegro said at the Forum.

Also, Montenegro has a very strong economic cooperation with the border regions of Raska and Sandzak, and after the establishment of the border, this cooperation has gained a new dimension, but has not diminished in any way.

NUMBERS

THE TOTAL VALUE OF THE TRADE BETWEEN SERBIA AND MONTENEGRO OVER THE PAST YEAR EXCEEDED EUR 774 MILLION, WHICH IS 9.5 PERCENT MORE THAN A YEAR EARLIER MONTENEGRO 2018

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CORPORATE

ALUBOND U.S.A. FR A2 - THE SAFEST ACP IN THE WORLD! Montenegro is a country with a huge potential and we are here to be a part of its growing expansion. Our wide range of colours and textures provide designers with infinite design possibilities, giving the entire Adriatic region a new, classy, elegant and chic style

DIJANA LJUBIŠA

CEO of Alubond Europe d.o.o. and Globeclad d.o.o.

W

e talked to Dijana Ljubiša, CEO of Alubond Europe d.o.o. and Globeclad d.o.o about the company’s plans in the region and the new sister company of Alubond Europe, Globeclad d.o.o. which rounds off the range of services that the company provides.

Which factors have contributed to Alubond’s such swift entrance to this market?

— Let’s clarify one thing! Alubond U.S.A. is the world’s largest ACP brand! What people might not be familiar with is that we have 7 production facilities worldwide (UAE, China, India, Turkey, Iran, Oman and Serbia). With such numerous manufacturing units we are definitely the largest ACM producer, annually producing and fabricating over 20 million square meters. The aforementioned facts facilitated a much easier market penetration for us. We have to admit that the American origin was of great help. Alubond made the first, tenative steps in these markets a long time ago, in 2004. But the road was not that difficult to conquer. People were already familiar with brand and the story behind it, so they were happy

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such a renowned brand is finally present in Serbia. We have an Alubond U.S.A. factory right here.

The Serbian unit was established in this region for a strategic purpose, namely to cater to the European market, comprising of 40 countries, with Russia and the former Soviet Union. Thanks to its location, the factory is well-connected to all of the main transport routes which enables us to export our products to neighbouring markets and widely across Europe. European clients of Alubond U.S.A will benefit from the close proximity and EUR 1 certificate.

MAKE THE WORLD A SAFE PLACE – USE ALUBOND U.S.A. FR A2!

In which segments of the Montenegrin market is your brand notably present?

— The construction market is our main focus much more than the signage in Montenegro. We are witnessing a huge growth in the construction market as more and more hotels and private houses are being built in Montenegro in the past few years. Montenegro is a country with a huge potential and we are here to be a part of its growing expansion.

What is your vision of the further development of your brand and the

company’s positioning in the region?

— Our next goal is to promote the new sister company of Alubond Europe, Globeclad d.o.o.. With Globeclad, we have rounded off the services we provide. Alongside the production of Alubond U.S.A. aluminum composite panels, we are now offering full technical support during the entire project process.

We have an in-house CNC routing machines and are able to deliver complete ready-to-install façade cassettes. One huge novelty, that we are very proud of, is our own Coil Coating Line which is ready to be put in use full time. It will help us to improve our products, be more responsive to market demands and ensure shorter delivery terms. With the new facility, we will extend our client range to include roofing construction, production and processing industries.

The second big short-term plan for the Serbia plant is the assembly and installation of an A2 fire rated production line in late 2018. This will make us the first factory in the region to produce the magnificent Fire Rated A2 panel, with a non-combustible, fire retardant, self-extinguishing core.

Our prerogative is to educate our clients and wider community about the necessity of having a reliable and safe product for wall cladding. We wish to raise awareness about the necessary fire safety measures.

As we like to say: Better prepare and prevent than repair and repent!

CORPORATE

QUEEN OF MONTENEGRO Falkensteiner took over four-star hotel in Montenegro and went into the pre-opening phase in June as the so-called "white label" of the hotel group

T

he Falkensteiner hotel group became the operator of the hotel "Queen of Montengro" starting from 23 June 2018, once again expanding its presence on the Balkan peninsula. The hotel will be open until mid-October as the hotel "Queen of Montenegro". For the winter season, comprehensive redesign plans and a new positioning concept have already been prepared. With the summer season 2019, the re-branding and the official opening under the flag of Falkensteiner will take place.

Montenegro has been an exclusive insider tip among tourists and globetrotters for several years now. This Balkan state is situated on the Adriatic Sea and attracts guests from all over the world with extensive sandy beaches, lush natural landscapes and warm Mediterranean charm.

The Falkensteiner hotel group originating from South Tyrol has discovered Montenegro as a location and, as of 23 June, became the official operator of the four-star hotel "Queen of Montenegro", located directly on the beach

near the historic town of Budva. The hotel with a total of 236 rooms will be managed as a so-called "white label" in the summer season 2018.

After this first pre-opening season in 2018, the Falkensteiner hotel group will carry out the necessary construction work and a new design and positioning of the "Queen of Montenegro" to adapt the hotel to the high standards and typical Falkensteiner assets.

At the end of 2018, new information and details on Falkensteiner's plans and progress will be announced. In the spring of 2019, the opening will take

NEW DESIGN

AFTER THIS FIRST PRE-OPENING SEASON IN 2018, THE FALKENSTEINER HOTEL GROUP WILL CARRY OUT THE NECESSARY CONSTRUCTION WORK AND A NEW DESIGN

OTMAR MICHAELER

Chief Executive Officer CEO of Falkensteiner Michaeler Tourism Group - FMTG place under the brand "Falkensteiner".

Otmar Michaeler, CEO of the Falkensteiner Michaeler Tourism Group (FMTG), on the decision to establish Falkensteiner in Montenegro: "For us, as a group of hotels on one hand, but also as a development company on the other hand, the introduction of the brand "Falkensteiner" in Montenegro is an important step and an exciting challenge.

We see great potential here to develop and open up an entirely new market – a future market – for us as a company.

With OTP Bank, we have also succeeded in winning another major financial investor following Morgan Stanley."

Zsolt Barna, Chairman of the Board of the Directors of the OTP group, Hungary's largest banking company with representations in Croatia, Serbia and Croatia, is pleased about the cooperation with Falkensteiner as well: "For us, the key to a successful investment is to have a reliable and competent partner who shares our goals and ambitions.

With FMTG, we have found a partner with decades of experience and knowhow in the hotel industry and real estate development."

For operators and owners, involving the region is of central importance and essential for long-term success.

Therefore, Falkensteiner and the OTP Bank owner group are equally pleased with the positive response and support from the municipality of Budva and the Tourism Ministry of Montenegro.

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CORPORATE

SUPERIOR QUALITY AND DESIGN

Our products are the top choice for hygiene and equipment for business, residential and hospital facilities

P

G Pak is one of the leading companies / distributors in Montenegro in providing equipment for business and catering facilities such as hygienic-paper products, dispensers and a wide range of consumables. The company possesses all hygienic certificates and it represents renowned European manufacturers.

Our products across all product groups, especially dispensers, produced by world renowned manufacturers, are of superior quality and design, are increasingly popular among clients, and

ensure the highest level of hygiene in business, catering and residential facilities, as well as in health institutions.

BEST SOLUTION

PG-PAK TEAM WILL PROPOSE THE BEST SOLUTION AND PROVIDE COMPLETE SERVICE IN ACCORDANCE WITH YOUR NEEDS AND ORGANIZATION

Thanks to the wealth of experience, the PG-PAK team will propose the best solution and provide complete service in accordance with your needs and organization. From the HACCP-certfied equipment and its support and logistics to supervising the ordering process and product / material consumption, along with the cost plan for consumables and the standardization of the client's daily, weekly or monthly requirements, PG-PAK ensures that ordering and delivery are easy, thus saving time for your employees.

PG-PAK SHOWROOM

Donja Gorica, Berski put bb Podgorica ¡ +382 68 880 211, +382 69 192 418 info@pg-pak.com

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www.pg-pak.com

CORPORATE

FIVE STAR ALLURE PALAZZI KOTOR

BY KARISMA CELEBRATES OPENING

Allure Palazzi Kotor Bay is the only hotel with private sandy beach in Kotor Bay

A

llure Palazzi Kotor Bay by Karisma, a five star beachfront hotel complex was open on Sunday, June 24, in Dobrota, Kotor, following a ribbon cutting ceremony. Managing of the hotel has been entrusted to the international hotel group Karisma Hotels & Resorts, which is recognised for its innovative approach, besides being one of the leading hotel management groups in the world.

Nemanja Kostić, Development Director for the Karisma Group, addressed the attendees at the opening ceremony. He pointed out that Allure Palazzi is another contribution of Karisma to the tourism product of Montenegro, implemented by means of national workforce, Montenegrin companies and products,

and employing tourism workers predominantly From Montenegro but supported by Karisma’s trained staff.

Beside Kostić, the guests of Allure Palazzi were welcomed by Ljubiša Krstajić, founder of Karisma Hotels & Resorts, who pointed out that this luxury hotel complex consists of 89 modern appointed rooms, as well as 10 unique

COMPLEX

ALLURE PALAZZI LUXURY HOTEL COMPLEX CONSISTS OF 89 MODERN APPOINTED ROOMS, AS WELL AS 10 UNIQUE VILLAS

villas. A beautiful beach located in the heart of the Bay of Kotor will also be at guests’ disposal. There are also 3 hotels, 2 restaurants and five bars with a rich culinary offer.

The legendary singer, Massimo Savić, performed during the ceremony marking the opening of the Allure Palazzi hotel complex, followed by a magnificent firework display. The event opened with the music performances

by Martina Vrbos and Unique Quartet.

Allure Palazzi is situated only 11 km away from Tivat airport and a 15 minute walk to the Old Town of Kotor, therefore it is already reputed to be a unique destination of absolute harmony and comfort in the centre of the Bay of Kotor.

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— Text —

Mina Vučić

CULTURE

TAKE IT T EASY Simplicity, Uniqueness and Diversity – a guide to Montenegros’ Culture

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he Culture of Montenegro lies within a mixture of uniqueness and diversity. Due to their particular geographical position as well as historical aspects, Montenegro’s culture has drawn influence from the Ancient Romans to the Republic of Yugoslavia.

Their ethnical beliefs lie within “Humanity and Courage” a person has to show virtues of integrity, self sacrifice and dignity, as well as respect for their surroundings.

The diversity of the periods that came one after another in the region all left

traces behind many of Montenegro towns.

The Balkan country is if full of cultural heritage, most of which is concentrated around the Kotor Bay. Monasteries and churches from the Byzantine period until now all reveal the nations spiritual wealth. The Ostrog monastery is situated at an almost vertical angle, high in the rock of Ostrska Greda, is a Serbian Orthodox Church named after Saint Basil of Ostrog, who is buried there. This is counted as the historic center of Montenegro. The next in line is the Cathedral

of Saint Typhon, in Kotor. This is one of the two Roman Catholic Cathedrals in the country, counted 69 years older than the Cathedral of Notre-Dame de Paris, located in the best preserved and most beautiful medieval towns in the Mediterranean.

Montenegro is diverse in all of its aspects. When it comes to religion, the majority are Eastern Orthodox, 19% of Muslims and 3.5% Roman Catholic. The official language is Montenegrin, which is nearly identical to Serbian, containing both Latin and Cyrillic scripts. The printed word in Montenegro goes back to thirty-eight years after the Gutenberg’s Bible in 1493, and this is when the first printing shop in the Balkans and in the world started its operations.

Many might question what are the cultural keys to understanding this country.

Simply put, the main motos are “take it easy”, and” take it slow”. This life philosophy, whether on the Mediterranean

coastline or up in the mountainous villages, marks the Montenegrin way of life.

Worries must be placed away, and expectations lowered, everyone lives in the moment-here and now.

MONTENEGRO’S CULTURE HAS DRAWN INFLUENCE FROM THE ANCIENT ROMANS TO THE REPUBLIC OF YUGOSLAVIA You’re likely to find a Montenegrin surrounded by a big family. Loving relationships among family members and friends are very important life aspects in this country. Montenegrins boast a special relationship between an adult sister and

her nephew and nieces. “Tetka” meaning aunt, is a unique relationship, locals pride themselves on the lack of historical violence. Tetka’s are loving and nurturing, just like mothers, sometimes even more.

Yet another special member of every Montenegrin’s life is the “kum”, also known as the Godfather/mother. This is a chosen relationship based on the birth of a child or wedding, promising friendship, love and affection, as from the moment of baptism in church, they are family members. Many call the kum relationship the healthiest and best in the country.

After only a short time in the country, travelers are likely to hear a phrase “sve moze”, (everything is possible). Many locals joke how this increases their confidence, making sales ore successful. In the fairy tale land of Montenegro, the answer to everything is yes, as everything is possible, however when it will be ready-is another question.

OSTROG

THE OSTROG MONASTERY IS SITUATED AT AN ALMOST VERTICAL ANGLE, HIGH IN THE ROCK OF OSTRSKA GREDA MONTENEGRO 2018

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Mina Vučić

TRADITION

OLIVES LEAVE HISTORY Delicious Cuisine, Immense Production, and the Oldest Tree in Europe!

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Y

ou know you're in the heart of Montenegro's tradition when you find yourself in the city of Bar, a place where “The Old Olive Tree” is the symbol of the area. This spectacular creation of mother earth stood in the same position for over 2000 years!

Making it not only the oldest tree in Europe but in the top 10 of the world! This natural monument is older than any written manuscript ever recorded in the country, and as a result it is protected by the UN. The circumference of the tree is 10 meters and is a must-see attraction, said to give luck and make peace within families and friends.

Olive Oil production is a family tradition and a subject of pride, deeply rooted in the Montenegrin Culture. Surprisingly, olive oil isn’t the only production source of this wonderful tree, the locals have turned into a business innovative environment, creating soaps, furniture and other diverse souvenirs! Olive oil is not only an addition for cooking, but a way of life, forming the key ingredient for the delicious local cuisine.

Montenegro has produced some of the finest olive oils in the Mediterranean. Over 10,000 ancient trees survived, with over 1,700 growers which continue this tradition. One of the many types which forms part of the production is the “Zutica”, or “yellow yield”. Due to the oils beautiful golden color, containing a balance of fruitiness and piquancy, it is a harmonious oil with fresh grass. Other types of olive oil produced in the Bar and Ulcinj provinces are considered therapeutic, with their production mainly focused on cosmetics and medicine.

When you think you’ve read everything there is about olives, wait until you hear this. Olive orchards cover around 1/3 of

OLIVE OIL IS NOT ONLY AN ADDITION FOR COOKING, BUT A WAY OF LIFE, FORMING THE KEY INGREDIENT FOR THE DELICIOUS LOCAL CUISINE the total fruit tree surface in Montenegro. Olives are grown along a coastline of about 293 km, influenced by the Mediterranean climate. After the gigantic life span of the old olive three (over 2000 years), the next in line is the “Big Olive” in Ivanovci, near Budva, this tree is estimated to be 2000 years old, making this country have two of the oldest trees in Europe! Believe it or not, in 2016 Prince Charles and Camilla took a visit to the wonderful olive oil production centers as well as visited the agri-

cultural capitals in Montenegro.

Huge amounts of olive oil is sold throughout summer as tourism peaks. It is a potential market for the future as the challenge remains to improve and increase the production of the oil quality. Montenegro additionally has huge success abroad.

Delicious Montenegro and Old Oil Brand participated on Agri and Slow Travel Expo in Bergamo, Italy in 2017!

According to the Montenegrins, olive oil is extremely high in oleic acid which reduces blood pressure. The fresher the oil, the better the taste, therefore fresh oil is used for salad dressing and a year-old oil is best for cooking. Because oil flows from the olives naturally when they are crushed, the vitamins and natural ingredients are not destroyed! One olive tree can produce around 4 liters of oil a year, for hundreds of years! Now we know why this Eastern European country takes such good care and provides protection this glorious invention of nature.

SYMBOL

“THE OLD OLIVE TREE” IS THE SYMBOL OF THE AREA. THIS SPECTACULAR CREATION OF MOTHER EARTH STOOD IN THE SAME POSITION FOR OVER 2000 YEARS! MONTENEGRO 2018

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Photo: Dragan Veličković

CORPORATE

BUDVA STANDS FOR BEAUTY Let the charm take you away for a moment, experience love at first sight

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n the central part of the Montenegrin coast, between beautiful sandy beaches and wild bays, coastal pines and the parks of Miločer, from one hinterland rich in numerous churches, monasteries and rural households on the other side, the Budva Riviera is situated.

The most recognizable tourist centers: Budva, Bečići, Rafailovići, Przno, Sveti Stefan, Miločer, Petrovac and Buljarica are symbols of state tourism. Budva, a small town on which the whole rivijera relies is around 2,500 years old. The legend says that the city of Budva was founded by the Phoenician-Greek hero Kadmo and his wife Harmony, the daughter of Ares and Aphrodite. Traveling from Beotia (formerly an area in ancient Greece) to the eastern coast of the Adriatic.

The earliest literary meaning of Budva under the name Butua originates from the V century before the new era, when it is mentioned by the famous ancient writer Sophocles. Based on numerous historical sources and preserved remains of material culture, the city of Budva is reliably ranked among the oldest urban settlements on the eastern

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coast of the Adriatic.

Among other things, this is witnessed by the early Christian basilica from the end of the 5th and the beginning of the 6th century, the remains of the Roman necropolis and numerous ethnographic and archaeological treasures are kept in the City Museum.

KADMO

THE LEGEND SAYS THAT THE CITY OF BUDVA WAS FOUNDED BY THE PHOENICIAN-GREEK HERO KADMO AND HIS WIFE HARMONY, THE DAUGHTER OF ARES AND APHRODITE Today, when Budva is the most important tourist center of Montenegro, history continues to inspire. Numerous manifestations carry the "seal" of the past, to the satisfaction of many visitors from all over the world. Goods that have been hidden for a long time in the layers of the earth below and around the Old Town are now available in the Budva

Museum with the eyes of all visitors who want Budva to meet this way.

The Old Town is the most recognizable symbol of modern Budva, a town with only 20,000 inhabitants, which is visited by almost a million tourists annually.

The Budva Municipality is famous for having 9 monasteries and over 60 churches in its territory, and the largest number of them is located in the hinterland, in the area called "Paštrovići".

The special churches of rural settlements are given to small churches that are mostly built on hilly hills, from which there are fascinating views of the Riviera.

For lovers of hiking tours, there are fifteen organized walking tracks on the Budva Riviera which we recommend to all "people from the action".

The picturesque villages of authentic architecture, old stone houses with volts, terraces with vines, mandarins and lemons are located at an altitude of 300 to 700 meters. They are a special jewel in the tourist offer, and if you manage to "revive" history and tradition and transfer it to this day, you have succeeded in fulfilling the wishes of a large number of guests who are

COAST

ON THE BEAUTIFUL COAST, OVER 30 KM LONG, FROM BULJARICA TO JAZZ, THERE ARE THE MOST BEAUTIFUL HOTELS, RESTAURANTS, BEACH BARS, HIDDEN COVES world names in the world of film, music, high fashion, politics, science, etc. On the beautiful coast, over 30 km long, from Buljarica to Jazz, there are the most beautiful hotels, restaurants, beach bars, hidden coves ...

In the summer months, its streets become open theaters, squares gathering places for poets and musicians, the hinterland beach - the center of the best European festivals.

Everything begins, moving through the rhythm of the music, scenting the sun and love. Budva is a city that recognizes the summer in Montenegro!

We can not simply describe Budva to you.

This is a unique gem that you must visit and be part of its diversity.

TOURISM IS IN OUR BLOOD The head of Budva’s Tourism speaks about their successful years of work

Photo: Teodora Ćirić

looking for escape from noise, crowds and big cities.

We can not speak about Budva unless we mention Petrovac, a small town with a rich and interesting history, located on the territory of the municipality of Budva, 18 kilometers from the city of Budva. The first inhabitants were Romans in the 3rd century BC, as evidenced by the Roman mosaics that the city is famous for. Earlier it was called Castell Lastva in the period between the 16th and the 18th century, in order to get the name Petrovac in the 20th century.

Now it is very attractive to tourists from all over the world, and most often it is chosen by families for their holidays. Petrovac relies to the south on the unspoilt, virginal beach Buljarica, a natural habitat for many rare plant and animal species.

Budva today is the center of cultural, sporting and entertainment events, a city that is an inevitable station on the travels of Europe's most famous

MLADEN FRANOVIĆ Director of TO Budva

How satisfied are you with the results of the tourist season? Is there another record year waiting for us?

— We must say that we are satisfied with the results achieved during the first 6 months. In May, we had an increase in guests of almost 50% in Budva, and in June there was an increase of 10-15% on average. July began with a stagnation that has been a characteristic for decades on the first days of this month, but according to all the announcements of the tourist economy of our city, there is another extremely successful tourist season ahead of us.

The hotel facilities that Budva has at their disposal, although the most numerous and highest quality in Montenegro, are small compared to demand.

What does Budva do to confirm its title of tourism metropolis?

— Everyone in Budva is working together to achieve the best possible results in the field of tourism, because this is what the whole population directly or indirectly lives on. Local self-government, and the tourist organizations, are primarily trying to provide a receptive and beautiful ambience that

will attract as many guests as possible.

This year we additionally invested in the city’s infrastructure, we control the order on the beaches and streets, businessmen kept the same prices as the previous years. We, in the Tourist Organization, have opted for the concept of additional and rich manifestations in the period before and after the main tourist season, which also reflected the increase in the number of guests, and the ambitious program of events is expected until November.

How much do you invest in the promotion of Budva and with how many tourists from new destinations can you boast?

RESULTS

EVERYONE IN BUDVA IS WORKING TOGETHER TO ACHIEVE THE BEST POSSIBLE RESULTS IN THE FIELD OF TOURISM — TOB invests more than half its budget in promotion, both through manifestations, and through the marketing and PR sector. This fall we plan to do a completely new promotional material printed and video.

Our guests come from all over the world. This year, a noticeable number of guests from Asia, especially Turkey, as well as China, Japan and Hong Kong, we have seen a considerable number of tourists from Israel and all Scandinavian countries. Our leading positions are still taken by tourists from Russia, Ukraine and the region.

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CORPORATE

UNIQUE TOURIST DESTINATION

FATMIR GJEKA

Director of the Ulcinj Tourist Board

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e cannot be satisfied with the position that Ulcinj occupies today in Montenegro's tourist offer considering that, according to the official statistics, just over 10 percent of the country's tourist traffic is being generated in our town. Three decades ago, this percentage was 30, says Fatmir Gjeka, Director of the Ulcinj Tourist Board.

“There are too many reasons to talk about here that led to the current situation, but the fact remains that our town is swiftly re-gaining its rightful position in terms of unique resources, the potential of our human resources who are known for their friendliness, and the tradition”, Mr. Gjeka says and adds that substantial investments are being made in renewing tourist capacities, overall infrastructure, and youth education and training. “This investment tide will positively affect tourism and our entire economy, it will extend our tourist season and boost employment”, he adds.

What unique attractions can be found in Ulcinj?

— There are very few towns on the entire Adriatic coast that have such natural potential and cultural and historic monuments as Ulcinj. It is difficult to list them all here and you are hardpressed to pick which one to talk about first. We have Velika Plaža (The Big

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Our goal is for Ulcinj to regain its old tourist splendour and become an all-year-round destination, as well as for our guests and visitors to be satisfied and have many happy returns here. We want our town to live for and of tourism again, and not to have tourists only during summer months Beach) that is 12km long, the Valdanos Bay with over 80,000 olive trees, some of which are a hundred years old, the heavenly island of Ada Bojana, Solana where you can see over 250 bird species, the Šasko Lake, Ženska Plaža (The Woman’s Beach) with healing sulfur water wells, Limans, the wide hinterland, the two protected, first-category monuments (Stari Grad, founded in the 5th century BC, and the town of Šas or Svač, which according to the legend, had 365 churches, one for each day of a year), kalimeras (antique fish catching devices), Čaršija, and excellent restaurants where you can enjoy healthy and delicious food and superb service.

In recent years, Ulcinj has become a global hit destination for kite surfing.

According to pundits, Velika Plaža in Ulcinj is one of the three best places in the world for this sport.

How much do you rely on the historical tradition of Ulcinj, as a health tourism

INTERTWINED

ULCINJ IS A BEAUTIFUL PLACE WHERE THE ORIENT AND THE WEST, GREAT CULTURES, CIVILIZATIONS AND RELIGIONS ARE REWARDINGLY INTERTWINED

hub, in creating a contemporary tourist offer?

— I have to admit very little compared to how much we should have. Over eight decades ago, in 1922, the Government of the Kingdom of Serbs, Croats and Slovenes proclaimed Ulcinj as a "spa and climate health resort" by formalizing what the academic circles and the scientific community had already recognized previously. For example, a world-renowned scientist, Mihailo Pupin asked King Nikola Petrović I for a permission to open a sanatorium in Ulcinj in 1910.

Considering that we have 194 days a year when the air temperature exceeds 18 degrees Celsius, that the sun shines 7 hours a day on average every year, that the sand on Ulcinj’s beaches has over 30 minerals, that we have two wells with healing sulfur water, and that we have olive gardens and pine forests, then it becomes clear that these natural factors can be very useful in preventing, treating and rehabilitating many illnesses and conditions. In certain cases, they can completely replace medication, and in some cases, they help with achieving better health in the long run. These natural factors are not only useful to ill people but also to healthy ones who are exhausted by the modern day living and work. Considering all of this, the advertising slogan for our town could be – Ulcinj – The Anti-stress Destination. It doesn’t sound bad, does it? www.ulcinj.travel

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Photos by Visit-Montenegro.com

Mina Vučić

E MONTENEGRO’S TOURISM

WONDERS

The Youngest country in Europe presents its hidden gems of breathtaking beauty 54

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stablished as an independent country in 2006, the small Balkan Nation of Montenegro is quickly becoming the must see tourism destination throughout the world. Although Montenegro is one of the smallest countries in Europe, it features many diverse attractions, holding numerous wonders of the region. If you’ve been thinking about visiting Montenegro, sit back and enjoy, as we take you on a journey through the nations phenomenon, which won’t leave you indifferent.

THE TARA CANYON The Tara Canyon, with its depth of 1300 meters and 82 km length, is the deepest Canyon in Europe and the second in the world, after the Grand Canyon in the United States. Apart from hiking through the beautiful nature, it is a prime ground for water rafting, lasting nearly 18 km, definitely for tourists who love an active holiday! Another astonishing fact is that the canyon slices right through the Durmitor National Park, protected by UNESCO World Heritage Site. A dazzling zone of glazing lakes and towering mountain peaks overcomes every visitor as they step into these grounds. The canyon is extremely alive, green and lush, rich in evergreen and stunning flora. Believe it or not, the water along the river is extremely clean and

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perfectly drinkable! All along the river Tara gets large quantities of water from numerous tributaries, the most import of which are Ljutica and Vaskovaska Rijeka. Waters run at a few hundred liters per second! It is additionally known for its 8 caves which are still under-explored, establishing the existence of life in prehistoric times. The canyon is a local oasis and plays a habitat for many species of plants and animals.

THE BOKA BAY The next in line for a must see tourist attraction in the Balkan country is the Boka Bay. It is well known as Europe’s most Southernmost fjord. This is a place where hulking mountain peaks surround a rocky coastline, as its dotted with old historical towns, the most famous one of which is Kotor itself, at the far end of the bay. The city walls were build by the Venetians to protect the city from invaders, providing it with remarkable beauty. Panoramic views and tradition restaurants are definitely on the to – do list if you are visiting this astonishing place. Who wouldn’t want to get lost through the narrowed alleyways

lined with honey colored buildings? This is a popular destination for cruise ships as the bright blue waters represent one of Montenegrins most wanted tourist attractions.

All of this leads the nation into having yet another UNESCO World Heritage Site.

BEACHES The Mediterranean country has over 290 km of coastline, offering great weather conditions for cruising and swimming as there are more than 250 days of sun per year. When it comes to the tourists favorite

FAMOUS OF ITS MUSIC AND MOVEMENT, THE SITE HOSTS A YEARLY SEA DANCE FESTIVAL, WHICH WAS NAMED ONE OF EUROPE’S TOP 10 SUMMER FESTIVALS BY FORBES MAGAZINE

destinations its of course, the beach. What can be better than laying under the bright sun of the Mediterranean coast and drinking a cocktail. Montenegro has numerous popular beaches which it is very proud of.

“Becici” is one of the quietest beaches in the region. Being so sandy and long, at one point it stretches to 100m wide, surrounded by mountains and crystal blue waters.

“Jaz Beach” is one of the longest and liveliest beaches ibn Montenegro. Famous of its music and movement, the site hosts a yearly Sea Dance Festival, which was named one of Europe’s top 10 summer festivals by Forbes magazine. Ulcinj is a city in Montenegro which is characterized for its long beaches. Its coast is 33 km long, 18 of which are beaches, with it’s most famous, the “Big Beach” being 13 km long.

The World Tourism and Travel Council placed Montenegro first on its list of countries where tourism is a strategic industry.

Tourism is expected to grow at a rate of 8.8 percent over the next ten years. Lord Bryon, a famous English poet once said: " at the birth of the planet, the most beautiful encounter between land and sea must have been on the Montenegro's coast.”

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AT THE BIRTH OF THE PLANET, THE MOST BEAUTIFUL ENCOUNTER BETWEEN LAND AND SEA MUST HAVE BEEN ON THE MONTENEGRO'S COAST 56

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10. 07. 2018.

MONTENEGRO’S STATEHOOD DAY MARKED

H.E. Branislav Mićunović and Goran Vesić, Deputy Mayor of Belgrade

H.E. Branislav Mićunović and Branimir Gvozdenović with his spouse

H.E. Branislav Mićunović

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he National Day of Montenegro was marked at the reception at the Belgrade City Assembly that was attended by numerous political and public figures. The Ambassador of Montenegro to Serbia, H.E.Branislav Mićunović, welcomed the guests who assembled in the Grand Hall of the Belgrade City Assembly. “It’s my honour to greet you on behalf of the delegation of Montenegro, led by the Deputy Speaker of the Parliament of Montenegro, Branimir Gvozdenović. Ladies and gentlemen, I would like to sincerely thank you from the bottom of my heart for accepting the invitation to come to this ceremony. Today, we celebrate the traditional friendship between our two people in freedom and peace”, said Ambassador Mićunović.

Aleksandar Antić, Minister of Mining and Energy, Dubravka Negre, Head of EIB Regional Representation for the Western Balkans, Tanja Banković, Executive Editor D&C magazine and Zorana Mihajlović, Vice President of the Government of Serbia and Minister of Construction, Transport and Infrastructure

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CORPORATE

AMS OSIGURANJE – PART OF THE PERFECT HOLIDAY The holiday season is here and before you embark on your vacation, please don’t forget that quality travel insurance is a part of the perfect holiday

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f you have already traveled abroad, then you certainly know that medical treatment in other countries is very expensive, and that you can pay over 50 Euro for a simple medical checkup.

To protect yourself against unwanted financial losses, all you need to do is to come to AMS Osiguranje. You can buy our travel health insurance online in an easy, quick and simple manner, at our website webshop.ams.co.rs. This will save you not only time, but also money, because only during the promotional period, you are entitled to an up to 30% discount on the insurance premium. Thus, the premium for an individual policy, covering a seven-day-stay on the territory of Europe, the discount included, will cost you only 735 dinars.

Savings are great, especially if you go on a family vacation, because the premium in this case is only 1,617 dinars for the same time period.

Do not let unplanned events surprise you. Purchase a travel health insurance policy to have yourself covered

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in the case of emergency medical interventions, having to buy medication and medical supplies, as well as many other healthcare services, in line with your insurance terms and conditions. All you need to do is to call a phone number that

EASYGOING

IN ORDER TO ENJOY A COMPLETELY EASYGOING HOLIDAY, YOU SHOULD NOT WORRY WHETHER YOUR HOME IS SAFE WHILE YOU ARE RELAXING ON THE BEACH comes with the policy and rest assured that the cost of surgical interventions, hospital treatments, and other health care services will be covered on your behalf, in accordance with the terms and conditions of your insurance policy.

In order to enjoy a completely easy-

going holiday, you should not worry whether your home is safe while you are relaxing on the beach.

AMS Osiguranje has very affordable home insurance policies that protect you from many risks including fire, burst pipes, burglary, bad weather or theft, in accordance with the terms and conditions of your policy. If, on top of the home insurance policy, you choose to insure the things and belongings in your home, AMS Osiguranje will give you additional 10% discount on the total price of insurance premium.

Take advantages of the benefits we offer and come to our office at 16th Ruzveltova Street in Belgrade, or to any of more than 250 of our outlets across Serbia where you will be welcomed by our team of experts who will provide you with the best choice of insurance policy that suits your needs and financial situation.

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