Published on December 19, 2025

With the rising growth and development in the world tourism industry, taxation policies for destinations that have high tourism rates have become a major subject. One of the destinations that have been at the center of this discussion is Montenegro, which has imposed a higher VAT on tourism services. It is pertinent to consider the impact this new development is likely to have on this destination as a tourist center compared to other neighboring destinations.
The role of tax policy in shaping the competitiveness of a tourist destination is undeniable. VAT increases on tourism services, such as accommodations, restaurants, and activities, directly affect both the pricing and the appeal of a destination. Higher taxes can make a destination less affordable for tourists, potentially leading to a decline in visitor numbers and overall revenue.
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For Montenegro, a country known for its stunning Adriatic coastline, vibrant cities, and rich cultural heritage, the VAT increase could challenge its position within the competitive Balkan tourism market. Neighboring countries such as Croatia and Albania may not have the same tax increases, which could give them an edge in attracting budget-conscious tourists. As more tourists seek value for their money, Montenegro will need to ensure that its unique offerings, such as pristine beaches, historical sites, and natural beauty, remain attractive despite the higher costs.
The impact of these fiscal changes is not just about immediate pricing. Long-term destination strategies will need to address how to keep attracting tourists while managing the increased costs of services. Offering new experiences, improving infrastructure, and promoting sustainable tourism will be key to staying competitive.
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Globally, the tourism industry is grappling with a series of challenges. One prominent issue is the growing pressure on popular cultural sites, such as the Louvre Museum in Paris, where employee strikes have brought attention to the increasing strain on both infrastructure and labor. The strike at the Louvre highlights a critical question: How do we balance the increasing number of visitors with the capacity of the destination to provide quality experiences without overwhelming both the staff and the infrastructure?
In destinations like Montenegro, which are rich in cultural heritage, these issues are equally relevant. The rise in tourism numbers in the last decade has led to a greater demand for services, leading to crowded attractions, long lines, and overwhelmed facilities. While Montenegro does not face the same scale of tourism as France, it will need to carefully manage its growth to avoid the pitfalls of over-tourism. This includes better managing visitor flow, improving infrastructure, and ensuring that local communities are not negatively impacted by tourism.
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This global trend in tourism management is forcing many destinations to rethink how they attract visitors. It also encourages the adoption of sustainable practices and policies, which Montenegro will need to embrace to ensure long-term success and avoid the risks associated with mass tourism.
One of the more inspiring stories from this year’s global tourism trends comes from the role women play in shaping the industry. The 2025 Forbes list of the world’s 100 most powerful women includes figures who are shaping not just the global economy but also technology, politics, and culture. However, even as women rise to prominence, they still face invisible barriers that prevent them from fully accessing power and leadership roles.
In Montenegro, efforts to empower women have been gaining traction, with the Association of Women Leaders in Montenegro launching initiatives to support women in the fields of finance, law, and communication. Through free workshops and networking opportunities, these programs are giving women the tools they need to lead and innovate. This initiative could play a key role in transforming the country’s tourism industry by offering women more opportunities to influence tourism policy, promote sustainable tourism, and develop new strategies for growth.
As tourism plays a pivotal role in Montenegro’s economy, the inclusion of women in leadership roles will be crucial for shaping the future of the industry. Encouraging female leadership in the tourism sector will help create a more inclusive and dynamic environment, allowing for the development of diverse ideas and solutions.
Looking to the future of travel, innovative solutions like the electric air taxi Valo are set to revolutionize mobility, particularly in urban and tourist destinations. Valo, a new electric air taxi concept, promises to change the way we travel within cities and between key tourist hubs, offering faster and more sustainable transportation options. For countries like Montenegro, where tourism often requires long travel times between destinations, the advent of electric air taxis could open up new ways for visitors to experience the country.
Electric air taxis could offer tourists a quicker and more convenient way to travel from one destination to another, such as from coastal resorts to the mountains or from the capital, Podgorica, to the Bay of Kotor. In addition, the environmental benefits of using electric-powered vehicles would align with global trends in sustainable tourism, making Montenegro a more attractive destination for eco-conscious travelers.
Moreover, the introduction of electric air taxis could help reduce congestion and improve air quality, which are common issues in many popular tourist destinations. With Montenegro’s scenic landscapes and stunning vistas, offering visitors the opportunity to travel by air taxi could elevate the overall tourism experience while contributing to the country’s green tourism initiatives.
Montenegro has a set of challenges and opportunities in the dynamic world of tourism. Although a potential challenge may arise from the increased VAT on tourism services, there is also an opportunity available to re-think the management of such tourism and design sustainable approaches. There is no doubt that it is important that Montenegro achieves a good balance between the demands of increasing tourism and protecting the country’s culture and natural resources.
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Friday, December 19, 2025
Friday, December 19, 2025
Friday, December 19, 2025
Friday, December 19, 2025
Friday, December 19, 2025
Friday, December 19, 2025
Friday, December 19, 2025