Foreign owned, managed and franchised hotels in Montenegro – status quo as at April <strong>2007</strong>No. of rooms/Hotel Location Star category a Ownership/management suites bIn operation by end-<strong>2007</strong>Maestral Bečići, Budva 4* HIT, Slovenia 180Tara Budva 3* Unis Tours, Bosnia-Herzegovina 243Rivijera Petrovac, Budva 4* Perni Bau, Germany 91Mediteran Budva 3* Maestraltours, Budva 222Queen of Montenegro Budva 4*P Springer Plaetzer, Austria 136Vila Olivia Budva 4*P Springer Plaetzer, Austria 150As Budva 5*P Sibinergo Resurs, Russia 1504 July Petrovac, Budva 4*P Moskovskaja Trastovaja Group, Russia 9Avala Budva 5*P Beppler & Jacobson 225Bianca Kolašin 4* Beppler & Jacobson 143Bellevue Bečići, Budva 4*P Immobilia Budva/Iberostar, Spain 576Sveti Stefan/Miločer Sveti Stefan, Budva 5*P Amanresorts, Singapore c 50Queen’s Beach Sveti Stefan, Budva 5*P GHM/Amanresorts, Singapore c 125Sun Resort Herceg Novi 4*P Hunguest Hotels, Hungary 250Hotel Riviera Herceg Novi 2* Israel Hotel Company 119Hotel Splendid Budva 5*P Hotel Group Montenegro Stars d 343Hotel Otrant Ulcinj 4*P Barkli SK, Russia/Park Inn by Rezidor 250Hotel Mediteran Ulcinj P Becovic Management, USA 150Contract negotiations and/or modernization underwayHotel Village Slovenska Plaža c Budva 3* Soravia Group, Austria 1,000Hotel Kotor Excelsior(plus Kotor Palace and Kotor Bay) Kotor 5*P United Investment Partners 700Marina Resort Development Tivat 4/5* Peter Munk, Canada 500Hotel Topolica Bar 4*P Azelea Hotels, Austria 150Hotel Complex Korali Bar P Azelea Hotels, Austria 250Hotel Lido Ulcinj 4*P Management contract 300Hotel Crna Gora Podgorica 5*P Management contract 150Hotel Ljubovic Podgorica 3*P Franchise negotiations 80Hotel Planinka Žabljak 4*P Management contract 150International tenders pending<strong>Ada</strong> <strong>Bojana</strong> Hotel Village Ulcinj 4/5*P 2,500Mediterranean Health Center Herceg Novi 4*P 400Plaza Hotel Herceg Novi 4*P 250Hotel Igalo Herceg Novi 3*P 250a P = pending classification b Actual or planned c Long-lease agreement d International management (but no management contract)Sources: Agency for Economic Restructuring and Foreign Investments; Ministry of Tourism and Environmental Protection42
Upgrading the country’s road and railway networksMontenegro has a total of nearly 5,200 kilometres of roads, with thetwo major roads being the Adriatic motorway from Igalo to Ulcinjand the motorway that links the south and the north, from Petrovacthrough Podgorica to Kolašin and Bijelo Polje. The latter, which passesthrough the Morača Canyon and continues on to Serbia, is consideredone of the most dangerous routes in Europe, especially during thewinter. Preparatory work has nevertheless begun on a bypass for thecanyon.The country’s road network is of strategic importance in that itprovides the only seaport link to the Republic of Serbia and the majorroad axis from Croatia and Bosnia-Herzegovina to Albania, Kosovo andthe former Yugoslav Republic of Macedonia (FYROM). However, thenatural terrain of the region limits road geometry and, therefore, speedand capacity, as well as involving relatively high maintenance costs.The opening of the Sozina tunnel linking Podgorica to the portof Bar on the coast has had a very positive impact on traffic flows,cutting the journey time from the Montenegrin capital by half, to aboutone hour. Over the last three years, other parts of the country’s roadnetwork have also been upgraded, and a more skilled workforce is nowengaged on the maintenance of the roads so that the general quality andsafety standards have risen.There are a number of road improvements underway, some ofwhich are being financed by a loan from the Czech Government.Construction of a highway from Podgorica to Belgrade, and on toBudapest, is being part-funded by the European Bank for Reconstructionand Development (EBRD). The planned Adriatic Highway, part of theMarco Polo Road Programme – a joint venture of the Italian, Czech,Slovene and Greek governments – would link all countries down theAdriatic coast from north to south. This coastal road would in theoryease the bottlenecks currently experienced in the coastal region, andespecially around Budva, during high season.Meanwhile, Montenegro’s railways, which suffered from chronicunderfunding in the 1990s, are considered to be well below minimumstandards. As an example, safety problems culminated in the Bioče traindisaster, when a passenger train derailed, killing 47 passengers. TheMontenegrin part of the Belgrade-Bar railway line is the backbone ofthe Montenegrin railway system. It opened in 1979 and was at that timea state-of-the art railway, with features such as the Mala Rijeka viaduct– the highest railway viaduct in the world – and the 6.2 kilometre longSozina tunnel. About one third of the Montenegrin part of the railwayis in a tunnel or on a viaduct. It is also the only railway corridor inMontenegro that is fully electrified.Efforts are currently being made to completely rebuild thecountry’s rail network, in part to relieve pressure on the roads. Loansare being sought for new railway stock and the longer-term goal, oncethe reconstruction is completed, is to privatize the maintenance of therailway system. This is also the plan for the roads, and there is alreadyinterest from potential concessionaires, such as Bechtel.Given the many different priorities for redevelopment andregeneration, it is perhaps not surprising that progress on rebuildingroads and railways has appeared slow to date. <strong>WTTC</strong> urges theGovernment of Montenegro to speed up the process, not just for thebenefit of the tourism industry. Travel & Tourism is an importantdriver of economic development, and a modern transport infrastructurewill stimulate Travel & Tourism growth and will help distributewealth and jobs across the country.Illegal construction continues to challenge thegovernmentIllegal construction continues to be a problem, notably in Montenegro’scoastal zone, and this needs to be addressed urgently. Such constructionnot only threatens to spoil the attractiveness of certain areas – byignoring the ‘non-building line’ and siting property too close to thebeaches – but it also can also cause obstructions in areas planned forinfrastructure development, such as roads or pipelines delivering water.Currently, the government lacks the power to intervene as it is onlyresponsible for buildings of more than 1,000 square metres, with smallerbuildings falling under the remit of the municipalities. In addition,although the municipalities have the power to formulate their ownphysical or spatial plans, they often lack the funding or expertise to dothis. Sometimes, it is simply a lack of will. One exception to this rule isthe municipality of Budva, which has (finally) developed its own spatialplan for ‘approval’ by the local community.In order to tackle this problem, <strong>WTTC</strong> would advocate agreater horizontal and vertical flow of information from both nationalgovernment to the municipal authorities, and vice-versa. At themoment, the legal framework preventing corruption and conflicts ofinterest is lacking. Undoubtedly, a judicial system that lags behindconstitutional advances should be revised and brought up to speed inorder to better serve a fast growing and developing country, rather thancrippling its efforts to provide for the rising demand.Building the capacity for water supply and disposalThe water supply issue, which has been particularly evident duringpeak seasons at the coast is now slowly being addressed. The proposedpipeline from Skadar Lake is a project involving a number of differentdonor agencies, including World Bank and EBRD. It has been underdiscussion since 2000 but it has been beset with problems, primarily thenecessary lack of approvals to date from different municipalities. Withan overall investment of €120 million, the pipeline would provide fivecoastal municipalities as far west as Tivat with enough clean potablewater to match demand. And it could be ready by 2009 if a final goaheadis given without any further delays.While this project is extremely important, <strong>WTTC</strong> believes thatlong-term investment should also be focused on a rehabilitation of thewater grid, since estimates suggest that 80 per cent is lost throughleakage across the grid. A more efficient system would be able todeliver a far greater share of the required water supply.Waste disposal is another major concern but, once again, differentprojects are in the pipeline. A Water Master Plan is also being drafted.This is a vital link in the infrastructural challenge as the coastal watersmust be protected at all costs to preserve the natural habitats and tosafeguard against the degradation of Montenegro’s natural beauty.43
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