The increase in the tourism tax rate is a direct blow to the backbone of Montenegro’s economy, said Mirko Stanić, President of the Main Board of the Social Democratic Party (SDP) and a representative of the European Union.
“Only an economic illiterate would decide to more than double the tax amount paid by an industry that has experienced a decline in revenue compared to last year,” Stanić stated in a press release.
He emphasized that tourism contributes to over 20% of Montenegro’s gross domestic product (GDP) and provides employment to tens of thousands of citizens. According to him, tourism also serves as the dominant source of income for residents and local governments in a third of the country’s municipalities. By imposing such measures, he warned, local revenues would be at risk.
“When you consider that tourism faces probably the highest level of competition globally, as every country has its own tourist attractions, gastronomy, and hospitality, it’s clear that the current government under Mandić is working directly against Montenegro’s interests. They are intentionally undermining the country’s most significant potential,” said Stanić.
He added that the projected decline in tourism revenue of 50 million euros this year will be a mere fraction compared to the bleak outlook for the following year. With higher costs, reduced air access, and exorbitant taxes and excise duties, Montenegro will become even less attractive to foreign tourists.
“Therefore, it is crucial that after the extraordinary parliamentary elections, this government is removed and replaced with a new, civil and European-oriented one that will work in the best interests of Montenegro’s citizens and its economy, especially the sectors that generate the highest revenue,” Stanić concluded.
