ECONOMIC CHAOS AND TOURISM DECLINE: MILATOVIĆ VS. ŽIŽIĆ IN A BATTLE OF NUMBERS!
Is Montenegro’s economy on the brink of collapse or is this just bad propaganda? President Jakov Milatović doesn’t hold back: tourism, once the engine of growth, recorded a 6.4% drop in revenue in the first quarter of this year, with overnight stays falling by a whopping 10%! The previous year wasn’t any better – revenue fell by 3.1%, and overnight stays by 5%. The sector’s profitability is almost non-existent, with a meager 0.4% profit, whereas it was negative before!
But wait, there’s more! The transport infrastructure, including airports, shows a paradox: passenger numbers and employment are rising, but revenues have dropped by 20%, and net profit decreased by over 22%! How is that possible? Milatović’s cabinet clearly states – this is an unsustainable model. Profit is not a dirty word; it’s the foundation for better wages and investments.
Milatović isn’t criticizing to point fingers but to shake things up. He warns that Montenegro’s economy is growing at its slowest pace in the last decade – only 2.5% in the first quarter, far below the needed 5% to keep pace with the EU.
On the other hand, State Secretary for Tourism Vuk Žižić can’t believe what he’s hearing! He claims Milatović’s statements about the poor state of tourism are “arbitrary data” and that Montenegro is experiencing a steady 4% growth in visitor arrivals. According to him, border crossings increased by 7%, and airport passengers by 3%. Air Montenegro transported 40% more passengers than last year, with flight occupancy around 90%! National parks had 45% more visitors in the first quarter, and revenues from tourist taxes rose by 8.64%.
Žižić admits the statistics have flaws, especially due to war refugees from Ukraine and Russia, but insists tourism has never been more recognized internationally. He even highlights that Simonida Kordić from Montenegro heads the Tourism Commission at the UN World Tourism Organization, proving the country’s seriousness and prestige in the field.
WHO’S RIGHT?
Is tourism in crisis or booming? Milatović says systemic reforms are necessary to enable stable growth and better working conditions. Žižić accuses Milatović of following a campaign by the former government and spreading false data that harms the tourism industry.
WHAT DOES THIS MEAN FOR CITIZENS?
If Milatović is right, Montenegro is on the edge of an economic shipwreck, and tourism as the backbone of the economy is in serious trouble. That means lower wages, worse working conditions, and fewer investments. If Žižić is right, everything is fine, and there’s no need to panic.
But reality is probably somewhere in between. Tourism has grown, but profitability and sustainability are serious issues. Milatović’s numbers indicate money isn’t flowing back into the economy properly, and Žižić’s passenger growth figures don’t automatically mean profit growth.
CONCLUSION
Montenegro must choose – either continue relying on tourism as the sole sector without serious reforms or accept Milatović’s calls for change and economic diversification. As the president’s cabinet says, politics must focus on the economy, not politics.
What do you think? Who sounds more convincing? Milatović’s grim forecasts or Žižić’s optimistic numbers? Drop a comment, maybe together we’ll figure out what’s really going on in Montenegro!
slug: milatovics-reforms-montenegro-tourism-shipwreck
