Montenegro's beaches empty! Tourism in crisis – what’s behind it?

Montenegro's beaches empty! Tourism in crisis – what’s behind it?

Montenegro's beaches are shockingly empty during high season, posing massive challenges to the country's tourism industry. Loud Cosmo Even popular beaches like Zanjice are surprisingly deserted at times that are usually busy. Footage from Budva in particular, which was shared on social networks, shows deserted promenades and unused deck chairs. The decline in tourist numbers has already been noticeable since 2024 - arrivals from Germany and Russia in particular have fallen in recent years. While the situation took a dramatic turn in 2025, many coastal towns are fighting for economic survival.

The causes of this crisis are diverse and range from excessive prices to increasing competition from neighboring countries to Montenegro's tarnished reputation as an attractive travel destination. Montenegro business also reports on political instability and infrastructure deficits that reduce the country's attractiveness. These factors lead to stagnation in the tourism sector, which plays a key role in the country's economic growth.

Political instability and infrastructure problems

Dr. Rade Ratković, Professor of Economics and Tourism in Budva, notes that tourism cannot thrive without political stability and favorable business conditions. Political unrest and poor transportation send negative signals to potential vacationers. Montenegro's image as a safe travel destination is particularly suffering in Budva, where internal conflicts within the local government are deteriorating conditions for tourism. Poor management of tourism infrastructure and long waiting times at borders contribute to rejection by travelers.

The organized tourism landscape, critical to attracting high-value guests, shows significant deficiencies. The coexistence of formal and informal accommodation providers makes it difficult to generate legal income. Loud Balkan new Rising VAT rates and inflation could lead to many suppliers moving to the informal sector. This development has a direct negative impact on the quality of visitors and could ultimately lead to significant economic losses.

Economic challenges and future outlook

Montenegro's Ministry of Finance has revised its growth forecasts for 2025 downwards to 3.5%, reflecting current economic challenges. A connection between the declining number of tourists and economic stagnation is becoming increasingly clear. The aging infrastructure in Montenegro has not only led to dissatisfaction among holidaymakers, but has also put a strain on the local economy. These are further indicators that the tourism sector, as one of the most important pillars of the Montenegrin economy, urgently needs reforms to remain competitive.

Meanwhile, the leadership is investing in airports and roads to improve connections and diversify the tourist offering. It remains unclear whether these measures are timely to compensate for the losses that have already occurred. A coordinated effort between government, local authorities and industry is required to address the structural challenges and reclaim Montenegro as a desirable tourist destination.