Abstract
Euroization has served Montenegro well by anchoring inflation expectations, and shifted the burden of adjustment to fiscal and structural policies. The paper looks at trends and how developments in the tourism industry have contributed to the shaping of the economy. The lack of monetary and exchange rate policies in Montenegro puts a premium on a well-designed and appropriate fiscal policy. This paper has presented a dynamic analysis of the structure of the banking sector of Central and Eastern European countries.
II. Tourism in Montenegro24
A. Introduction
40. The potential of the tourism sector in Montenegro is impressive. For the fourth consecutive year, Montenegro has been ranked among the world's top three destinations in terms of growth over the coming decade. However, because Montenegro relies heavily on imports, its tourism industry has high leakage. There are also concerns that, despite rapid growth, tourism has weak linkage with the rest of the economy, and may not lead to significant improvements in any other sectors. By targeting high-end tourists, the industry is in danger of becoming an enclave.
41. The paper looks at these trends and how developments in the tourism industry have contributed to the shaping of the economy. Section B covers the growth of the sector over the last 5 years, and how it is influencing real sector activities in Montenegro. Section C discusses the structural factors that undermine the contribution of the tourism sector to overall economic growth, namely high leakage, low linkage with the rest of the economy, and tourism as an enclave. Section D looks at determinants of competitiveness of Montenegro's tourism sector and Section E concludes with a discussion of the way forward, including an analysis of the productivity gains needed to meet the goals adopted by the Ministry of Tourism and Environmental Protection (MTEP).
B. Growth in Tourism Sector
42. Tourism has been the pillar of Montenegro's real economic growth. After a complete halt during the 1990s due to the Balkan conflict, the sector expanded by over 7 percent per annum, ranking 9th position in the world in terms of annual real growth.
Travel and tourism activity in Montenegro
Citation: IMF Staff Country Reports 2008, 049; 10.5089/9781451826715.002.A002
International Tourist Arrivals and Overnights 1/
Citation: IMF Staff Country Reports 2008, 049; 10.5089/9781451826715.002.A002
43. Growth has been one of the most impressive in the region, and Montenegro's tourism potential has been widely recognized in the world. According to the World Travel and Tourism Council (WTTC), the baseline forecasts for Montenegro's Travel & Tourism (T&T) are extremely positive. In 2007, the T&T economy25 is expected to contribute 21 percent of Montenegro's GDP (11 percent for T&T industry)—as against 10.9 percent for T&T economy in the European Union. The T&T economy accounts for 28,900 jobs representing 19 percent of total employment (12 percent in the EU), about 34 percent of total exports of goods and services, and about 26 percent of capital investment. Over the next ten years, Travel & Tourism in Montenegro is forecast to achieve annualized real growth of 7 percent, in terms of GDP, compared with only 3 percent in the EU.
T&T Economy
(% of Total GDP)
T&T Economy
(% of Total GDP)
| Rank | 2004 | % GDP | Rank | 2007 | % GDP |
|---|---|---|---|---|---|
| 19 | Malta | 28.5 | 23 | Malta | 23.7 |
| 21 | Cyprus | 27.6 | 25 | Cyprus | 21.5 |
| 27 | Croatia | 24.2 | 27 | Montenegro | 20.7 |
| 38 | Bulgaria | 16.8 | 33 | Croatia | 19.0 |
| 46 | Montenegro | 14.8 | 43 | Greece | 16.5 |
| 50 | Greece | 14.3 | 50 | Slovakia | 14.9 |
| 52 | Slovenia | 14.1 | 54 | Bulgaria | 14.5 |
| 68 | Slovakia | 11.5 | 57 | Slovenia | 14.2 |
| 83 | Turkey | 10 | 70 | Turkey | 9.1 |
T&T Economy
(% of Total GDP)
| Rank | 2004 | % GDP | Rank | 2007 | % GDP |
|---|---|---|---|---|---|
| 19 | Malta | 28.5 | 23 | Malta | 23.7 |
| 21 | Cyprus | 27.6 | 25 | Cyprus | 21.5 |
| 27 | Croatia | 24.2 | 27 | Montenegro | 20.7 |
| 38 | Bulgaria | 16.8 | 33 | Croatia | 19.0 |
| 46 | Montenegro | 14.8 | 43 | Greece | 16.5 |
| 50 | Greece | 14.3 | 50 | Slovakia | 14.9 |
| 52 | Slovenia | 14.1 | 54 | Bulgaria | 14.5 |
| 68 | Slovakia | 11.5 | 57 | Slovenia | 14.2 |
| 83 | Turkey | 10 | 70 | Turkey | 9.1 |
Expected Growth in T&T Economy (%)
Expected Growth in T&T Economy (%)
| Rank | 2008-2017 | 10-yr avg real growth |
|---|---|---|
| 1 | Croatia | 8.9 |
| 9 | Montenegro | 7.1 |
| 32 | Slovakia | 5.5 |
| 70 | Bulgaria | 4.5 |
| 103 | Greece | 4 |
| 105 | Turkey | 3.9 |
| 107 | Slovenia | 3.9 |
| 108 | Cyprus | 4.6 |
| 172 | Italy | 1.3 |
Expected Growth in T&T Economy (%)
| Rank | 2008-2017 | 10-yr avg real growth |
|---|---|---|
| 1 | Croatia | 8.9 |
| 9 | Montenegro | 7.1 |
| 32 | Slovakia | 5.5 |
| 70 | Bulgaria | 4.5 |
| 103 | Greece | 4 |
| 105 | Turkey | 3.9 |
| 107 | Slovenia | 3.9 |
| 108 | Cyprus | 4.6 |
| 172 | Italy | 1.3 |
44. In terms of origin of tourists, the EU accounts for about 50 percent of all arrivals, and visitors from former Yugoslavia represent about 20 percent, followed by Russia and CIS countries (18 percent). The largest group of visitors by country is from the former Yugoslavia, followed by Russia. Tourists from other western European countries are also rising rapidly, including Italy (up 55 percent a year since 2000), France (up 57 percent) and UK (up 67 percent).
45. Montenegro's tourism is characterized by high seasonality of demand in the coastal region. The five months from May through September account for about 90 percent of total overnights and over 80 percent of arrivals. Just two months, July and August, generate over 50 percent of arrivals and overnights. These tourists mostly favor coastal areas, with about 60 percent of arrivals and 65 percent of overnights concentrated in the popular destinations of Budva and Herceg Novi. About 95 percent of hotel bed capacity is concentrated in the coastal region of Montenegro, only 1 percent in the mountains despite their potential, and 3 percent in the capital and central region.
C. Structural Factors Affecting the Development of Tourism
High Leakage
46. Montenegro's tourism sector is marked by high leakage and vulnerability to sentiment of foreign investors. The country relies heavily on imports for most of its consumption goods. Hence, a significant portion of revenue from foreign tourists is spent on imports of goods and services to cater for them. Top tier hotels, the biggest contributors for growth in the tourism sector, have indicated that from total cost of sales, over 70 percent is attributed to the cost of food and beverages alone26. Should international prices of food and beverages rise further, so would costs. Moreover, because the industry has just embarked on growth, there is significant start up costs (imported building materials, etc.), hence the profit margins are reported to be quite low for top hotels. In addition, over 80 percent of 4 star and above hotels are owned by foreigners. This implies that profits are likely to be repatriated, and that investors are less attached to Montenegro and could quickly relocate to other locations if prospects for profits were to shift in the future.
Business operation in hotels
Business operation in hotels
| Hotel class | ||||
|---|---|---|---|---|
| <25 euros | 20<x<60 euros | >60 euros | ||
| Foreign visitors | ||||
| Group/allotment (% of total) | 86.2 | 74.0 | 61.0 | |
| Independent leisure travelers (% of total) | 7.8 | 11.7 | 25.0 | |
| Hotel operation | ||||
| Total operating revenue (euros) | 826,804.0 | 729,879.2 | 2,297,208.9 | |
| Total net operating revenue per room (euros) | 3,971.0 | 8,045.0 | 19,195.0 | |
| o/w from rooms (%) | 51.5 | 47.5 | 38.4 | |
| o/w from food and beverage (%) | 41.5 | 41.4 | 30.2 | |
| Total expenses | 3,814.1 | 7,186.3 | 15,114.6 | |
| o/w from rooms (%) | 17.7 | 13.3 | 17.6 | |
| o/w from food and beverage (%) | 35.0 | 50.3 | 35.7 | |
| Profit before tax (% of net operating recenue) | −10.9 | −1.8 | 2.8 | |
Business operation in hotels
| Hotel class | ||||
|---|---|---|---|---|
| <25 euros | 20<x<60 euros | >60 euros | ||
| Foreign visitors | ||||
| Group/allotment (% of total) | 86.2 | 74.0 | 61.0 | |
| Independent leisure travelers (% of total) | 7.8 | 11.7 | 25.0 | |
| Hotel operation | ||||
| Total operating revenue (euros) | 826,804.0 | 729,879.2 | 2,297,208.9 | |
| Total net operating revenue per room (euros) | 3,971.0 | 8,045.0 | 19,195.0 | |
| o/w from rooms (%) | 51.5 | 47.5 | 38.4 | |
| o/w from food and beverage (%) | 41.5 | 41.4 | 30.2 | |
| Total expenses | 3,814.1 | 7,186.3 | 15,114.6 | |
| o/w from rooms (%) | 17.7 | 13.3 | 17.6 | |
| o/w from food and beverage (%) | 35.0 | 50.3 | 35.7 | |
| Profit before tax (% of net operating recenue) | −10.9 | −1.8 | 2.8 | |
47. There are indications that, despite strong growth, the tourism sector may be becoming less efficient. While the total numbers of arrivals, overnights and amount of tourist receipts have all shot up, growth in tourism receipts appears to be lagging behind the growth rate of total arrivals and overnights, signaling that Montenegro is earning less from individual tourists than before.
Growth in foreign tourist visits and receipts
(In percent)
Citation: IMF Staff Country Reports 2008, 049; 10.5089/9781451826715.002.A002
Sources: MONSTAT and CBM.Low Linkage
48. There are concerns that other sectors of the economy may not be fully benefiting from spill-over effects of tourism. From the labor market perspective, tourism-related industries are increasingly relying on foreign workers to meet rising demand. Data indicate that in 2006, employment of Montenegrin workers in construction and hotels/restaurants declined by about 5 percent, while employment of non-residents rose by 64 percent during the same period. There is strong demand for labor, but these demands are met increasingly by foreign workers rather than Montenegrins, partly due to insufficient skills. The country's current labor law also stifles competitiveness and protects resident employees, making nonresident employees a much cheaper and attractive option. This has not only contributed to a high rate of unemployment at around 18 percent, but implies a lost opportunity to build necessary human capital.
Employment trend
(Empoyees in construction (cons) and hotel/restaurant (H/R) industries)
Citation: IMF Staff Country Reports 2008, 049; 10.5089/9781451826715.002.A002
Source: Montenegrin authorities49. The impact of tourism on the rest of the economy also appears limited. Rapid increases in tourist arrivals and overnights did not lead to any notable impact on the output of industrial sector, except for construction activities. Figure II.1 below compares the indirect benefits of tourism in Montenegro with that of other competitor tourism countries. This is done by comparing the size of the T&T Economy minus the T&T Industry, which is taken to represent the indirect effect of T&T activities in the economy. The relatively low ratio of Indirect/Direct tourism GDP in Montenegro indicates that Montenegro's tourism growth is limited to areas directly impacted by visitor activities, and has not lead to broader development of the economy through spill-overs, including the agricultural sector which continues to contract.
Impact of tourism on the rest of the economy
(2002=100)
Citation: IMF Staff Country Reports 2008, 049; 10.5089/9781451826715.002.A002
Source: WTTC, MONSTAT, and CBMRatio of (Indirect/Direct) Tourism GDP
Citation: IMF Staff Country Reports 2008, 049; 10.5089/9781451826715.002.A002
Tourism Enclave
50. There are concerns that Montenegro's tourism sector is becoming an “enclave” industry. Montenegro targets high-end tourists partly to protect its fragile environment. The majority of these high-end visitors enter through tour operators rather than as independent travelers because the country is still young and not much information is available to the tourist public compared to other competitor countries. Tourism infrastructure is also weak, hence visitors rely on tour operators rather than venturing out themselves. Tour operators often have exclusive contracts with specific restaurants or other entertainment facilities. Also, high-end tourists spend most of their time in secluded resorts, hence there are minimal effects on local businesses and spill-over to the rest of the economy. Compared to the increase in the number of visitors, the increase in the number of new restaurants and other entertainment has been negligible.
D. Competitiveness of Montenegro's Tourism Sector
51. The competitiveness of Montenegro's tourism industry can be viewed not only from costs but also from the tourist perception factor.27
Cost Competitiveness
52. The Figure II.2 below compares average net monthly wages of Montenegro with competing countries in the region. The average net wage is currently at mid range compared to other neighboring countries; however, it has been rising rapidly. Moreover, wages are expected to increase even further in coming months due to the impact of the hike in public wages by 28 percent on the private sector.
Comparison of net monthly wages in the region
(in euros)
Citation: IMF Staff Country Reports 2008, 049; 10.5089/9781451826715.002.A002
Source: ILO and Montenegrin authorities.53. On the demand side, the cost of lodging in Montenegro is relatively high compared to other competitor countries. Table II.1 compares lodging costs for similar class hotels for the same period offered by a popular tourism on-line vendor (Expedia.com). While a precise comparison would be difficult, the figures clearly indicate that Montenegro is a much more expensive destination than Greece or Turkey that offer a wider range of tourism activities (historical sites, shopping etc.) than Montenegro which relies mostly on nature.
Price factor: Comparison of hotel costs
Price factor: Comparison of hotel costs
| Location | Hotel | In US$ |
|---|---|---|
| Bulgaria, Varna | Kempinski Hotel Grand | 211.0 |
| Hermitage Varna | ||
| Budva, Montenegro | Splendid | 288.0 |
| Constanta, Romania | Millenium hotel | 109.2 |
| Cyprus | Palm Beach Hotel and Bungalows | 98.2 |
| Marmaris, Turkey | Elegance Hotel Intl'.5* | 64.5 |
| Santorini, Greece | Rocabella Resort & Spa, | 185.2 |
| Malta | Le Meridien St Julians Hotel and Spa 5* | 130.5 |
| Malta | Hilton | 261.7 |
Price factor: Comparison of hotel costs
| Location | Hotel | In US$ |
|---|---|---|
| Bulgaria, Varna | Kempinski Hotel Grand | 211.0 |
| Hermitage Varna | ||
| Budva, Montenegro | Splendid | 288.0 |
| Constanta, Romania | Millenium hotel | 109.2 |
| Cyprus | Palm Beach Hotel and Bungalows | 98.2 |
| Marmaris, Turkey | Elegance Hotel Intl'.5* | 64.5 |
| Santorini, Greece | Rocabella Resort & Spa, | 185.2 |
| Malta | Le Meridien St Julians Hotel and Spa 5* | 130.5 |
| Malta | Hilton | 261.7 |
54. When the direct and indirect cost of transport and access are taken into consideration, the total cost of tourism in Montenegro is even higher. Direct flights to Podgorica or Tivat are infrequent and much more limited compared to competing destinations such as Greece or Turkey. To accommodate increasing demand for air transport, Montenegro increased the number of airlines operating into the country to more than 40 in 2006, a significant portion of which are chartered flights into costal areas. Nevertheless, there remains a significant gap, with large capacity constraints during the summer peak seasons, and flight movements and passenger numbers fall sharply outside the peak summer season, limiting the opportunity to extend the short season.
55. Tourism in Montenegro appears to be related to tourism in Croatia. Tourism in Montenegro is largely concentrated in the costal region (in particular, Budva and Herceg Novi) where over 80 percent of arrivals and overnights take place. This region is located only few hours drive from Dubrovnik, a world renowned tour destination in Croatia28. Tourist operators in Dubrovnik have indicated that increasing number of tourists who visit Croatia/Dubrovnik also visit Montenegro as an extension of their holiday, and in search of a less expensive holiday destination to spend part of their vacation. WTTC reports also indicate that a sizeable share of visitors, especially those from UK, come through Dubrovnik airport and drive to Montenegro for a few hours/days. Croatia offers a larger variety of tourist destinations, and the size of the tourism market is over 20 times that of Montenegro. Cross border cooperation and strategic planning to take advantage of, rather than directly competing against Croatia, could prove useful in the medium to long run.
Foreign arrivals
(in thousands)
Citation: IMF Staff Country Reports 2008, 049; 10.5089/9781451826715.002.A002
Foreign overnights
(in thousands)
Citation: IMF Staff Country Reports 2008, 049; 10.5089/9781451826715.002.A002
Tourist Perception Factor
56. Safety and rule of law are important factors in attracting tourists, especially higher-end tourists who are more sensitive than young independent travelers. This is particularly important for a regime that is trying to shake off its earlier socialist image, and lingering concerns related to conflict in the region (i.e. dispute on Kosovo). The table below provides an indication of safety and rule of law in Montenegro compared with other countries, using the commonly used Corruption Perception Index (CPI) by Transparency International, Doing Business Index (DBI) by the World Bank, and Global Competitiveness Index (GCI) by World Economic Forum. All three institutional indices rank Montenegro consistently at the middle-lower end of the group. Montenegro ranked 84 out of 179 in the CPI, and 81 out of 177 in DBI, and 82 out of 131 in GCI.
Perception-based Indicator of Competitiveness in Tourism Sector
Corruption Perception Index
Global Competitiveness Index
Perception-based Indicator of Competitiveness in Tourism Sector
| 2007 CPI 1/ by Transparency Intl. Countries |
rank | 2008 Doing Business by IFC Countries |
rank | 2007-08 GCI by 2/ World Economic Forum Countries |
rank |
|---|---|---|---|---|---|
| Slovenia | 27 | Slovakia | 32 | Estonia | 27 |
| Malta | 33 | Namibia | 43 | Czech Rep. | 33 |
| Dubai/UAE | 34 | Bulgaria | 46 | Slovenia | 39 |
| Botswana | 38 | Botswana | 51 | Slovak Rep. | 41 |
| Cyprus | 39 | Slovenia | 55 | Latvia | 41 |
| Slovakia | 49 | Turkey | 57 | Poland | 51 |
| Greece | 56 | Belize | 59 | Turkey | 53 |
| Namibia | 57 | Trinidad & Tobago | 67 | Croatia | 57 |
| Turkey | 64 | Montenegro | 81 | Greece | 65 |
| Bulgaria | 64 | Vietnam | 91 | Ukraine | 72 |
| Croatia | 64 | Croatia | 97 | Romania | 74 |
| Trinidad & Tobago | 79 | Greece | 100 | Botswana | 76 |
| Montenegro | 84 | Dubai/UAE | … | Montenegro | 82 |
| Belize | 99 | Malta | … | Serbia | 91 |
| Vietnam | 123 | Cyprus | … | Macedonia | 94 |
Corruption Perception Index
Global Competitiveness Index
Perception-based Indicator of Competitiveness in Tourism Sector
| 2007 CPI 1/ by Transparency Intl. Countries |
rank | 2008 Doing Business by IFC Countries |
rank | 2007-08 GCI by 2/ World Economic Forum Countries |
rank |
|---|---|---|---|---|---|
| Slovenia | 27 | Slovakia | 32 | Estonia | 27 |
| Malta | 33 | Namibia | 43 | Czech Rep. | 33 |
| Dubai/UAE | 34 | Bulgaria | 46 | Slovenia | 39 |
| Botswana | 38 | Botswana | 51 | Slovak Rep. | 41 |
| Cyprus | 39 | Slovenia | 55 | Latvia | 41 |
| Slovakia | 49 | Turkey | 57 | Poland | 51 |
| Greece | 56 | Belize | 59 | Turkey | 53 |
| Namibia | 57 | Trinidad & Tobago | 67 | Croatia | 57 |
| Turkey | 64 | Montenegro | 81 | Greece | 65 |
| Bulgaria | 64 | Vietnam | 91 | Ukraine | 72 |
| Croatia | 64 | Croatia | 97 | Romania | 74 |
| Trinidad & Tobago | 79 | Greece | 100 | Botswana | 76 |
| Montenegro | 84 | Dubai/UAE | … | Montenegro | 82 |
| Belize | 99 | Malta | … | Serbia | 91 |
| Vietnam | 123 | Cyprus | … | Macedonia | 94 |
Corruption Perception Index
Global Competitiveness Index
E. Sustainability of the Tourism Sector
57. Montenegro has significant potential as the next top tourist destination in the world. However, some structural factors cloud the sustainability of growth over the medium term. For example, as Montenegro is a small economy of less than 700,000 citizens, it may not be economically feasible to produce a significant part of tourism-related goods domestically. High dependence on imports and high leakage of tourism industry is therefore almost unavoidable. Taking such constraints into consideration, this section provides some suggestions for ensuring sustained growth over the medium term. They include (i) reform of the labor market to boost productivity; (ii) establishment of the rule of law; and (iii) intensive government intervention to establish tourism infrastructure.
58. Labor market reform should include a revision of the employment law and provision of appropriate training to boost productivity. Current labor laws discourage employers from hiring Montenegrin workers due to the high cost of dismissal. It encourages employers to hire non-resident seasonal workers instead, thereby foregoing the opportunity to build up human capital. On the training side, close cooperation with industry professionals and educators is needed. Also efforts should be made to raise the perception of working in the tourism and service industry (there are reports from hoteliers of a lack of interest from Montenegrins in working in the industry, possibly due to wealth effects). Under the Tourism Master Plan developed by the MTEP, Montenegro aims to expand employment in T&T industry by 76 percent, increase the number of beds by 141 percent, and T&T industry output by 213 percent by 2017. Using a standard production function with labor and capital as inputs, this would imply the need to achieve efficiency gains of 35 percent.
Efficiency in tourism sector
Efficiency in tourism sector
| Montenegro T&T estimates and forecasts | 2007 | 2017 | % change |
|---|---|---|---|
| T&T Industry employment ('000) (L) | 14.9 | 26.2 | 76% |
| No. of beds ('000) (K) | 35.8 | 86.0 | 141% |
| T&T Industry GDP (mil euro) (Y) | 212.0 | 664.0 | 213% |
| To achieve this target, labor will need to rise by 76%, capital by 141 % and efficiency of la bor by 35%. | |||
Efficiency in tourism sector
| Montenegro T&T estimates and forecasts | 2007 | 2017 | % change |
|---|---|---|---|
| T&T Industry employment ('000) (L) | 14.9 | 26.2 | 76% |
| No. of beds ('000) (K) | 35.8 | 86.0 | 141% |
| T&T Industry GDP (mil euro) (Y) | 212.0 | 664.0 | 213% |
| To achieve this target, labor will need to rise by 76%, capital by 141 % and efficiency of la bor by 35%. | |||
59. Rule of law must be firmly established. Not only to improve Montenegro's image, but also remove cumbersome urban planning procedures and reduce illegal activities in the tourism sector. Tourism providers have cited lengthy and non-transparent procedures as a major difficulty in doing business in Montenegro. Illegal construction of low economic impact residences and secondary apartments has also become widespread, threatening to endanger the fragile ecosystem, while necessary infrastructure (i.e. water and electric shortages, sewage system) remains underdeveloped. Such problems have deterred tourists and investors alike, and could pose a significant threat to the strategy of targeting high-end visitors and sustained growth.
60. Tourism has a bright future in Montenegro. However, given the numerous factors discussed above that affect Montenegro's tourism potential, government assistance is essential at this initial stage of development. This should include policies to maximize the efficiency of air-transport operations, improve the road system, and to upgrade infrastructure; measures to raise competitiveness, strengthen human resources and liberalize labor legislation; and firm action to ensure the rule of law, including urban planning. The authorities should also actively seek to improve cross-border cooperation and take advantage of tourists visiting neighboring countries to promote Montenegro as a twin destination.
References
Central Bank of Montenegro Chief Economist Reports, 2006.
Central Bank of Montenegro Monthly Reports, 2006–07.
Chao C., B. Hazar, J. Laffargue, M. Pasquale, and E. Yu, 2006, Tourism, Dutch Disease and Welfare in an Open Dynamic Economy, Chinese University of Hong Kong, Deakin University, CEPREMAP City University of Hong Kong, The Japanese Economic Review, vol.57, no. 4.
Doing Business Report, World Bank and IFC, 2008.
Dwyer, L., and C. Kim, 2003, Destination Competitiveness Determinants and Indicators, Current Issues in Tourism, University of New South Wales, Australia, and Kyunghee University, Korea.
Edwards, J., 2005, Building the Tourism Mega-cluster: What Works and What Doesn't, University of West Indies.
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Meyer, D., 2006, Caribbean Tourism, Local Sourcing and Enterprise Development-Review of the Literature, Centre for Tourism and Cultural Change, Sheffield Hallam University.
Ministry of Tourism and Environmental Protection (MTEP) and National Tourism Organization—Bulletin 65, August 2007.
MONSTAT Labor Force Survey, October 2005.
Nowak, J., 2007, Coastal Tourism and ‘Dutch disease' in a Small Island Economy, Faculté de sciences économiques et sociales, EQUIPPE, Université de Lille I, Tourism Economics, 2007, 13 (1), pp. 49–65.
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World Travel and Tourism Council Country Report: Montenegro, 2004 & 2007.
Prepared by Jung Kim.
T&T economy includes direct and indirect impact of visitor activities, capital investment, exports and government services. A narrower concept is T&T industry, which is limited to direct impact of visitor activity such as transportation, accommodation, food and beverage, recreation, entertainment and travel services.
See Horwath Hotel Industry Survey Montenegro 2006.
See Destination Competitiveness Determinants and Indicators, Current Issues in Tourism, 2003. L Dwyer, University of New South Wales, Australia.
Croatia has been recognized as top third travel destination in the world (38th out of 124 countries) in the Tourism Competitiveness Index by World Economic Forum (2007). Croatia lags behind in terms of price competitiveness (96th), but is among the top countries in tourism infrastructure (11th). Montenegro was rated together with Serbia in 60th in overall ranking, with 88th in price competitiveness, 54th in tourism infrastructure.
