The number of foreign tourists visiting Montenegro increased by 21.4% y/y to 117,407 in June, after going up by 13.9% y/y in May, the statistics office reported on July 31. Including domestic visits, total arrivals went up 19.7% y/y to 129,918 in June. However, the number of Russian visitors dropped 62% y/y. 

Montenegro is expecting tourism revenue to exceed €1.5bn a year by 2026. The sector is also expected to attract significant investments, which should support economic growth in the near term. One of the biggest ongoing projects is the development of the Lustica Bay resort on the Adriatic coast, which will see investment of €1.1bn over the next 25 years.

Meanwhile, the government has decided to offer stakes in several tourist resorts for privatisation this year, including the Simo Molisevic spa centre, Budvanska Rivijera and Ulcinjska Rivijera.

In June, foreign tourists’ overnight stays rose 19.2% y/y, after increasing 12.9% y/y in the previous month. Foreigners accounted for 91% of all overnight stays.

More Russians than any other nationality visited Montenegro in June, with Russians accounting for 25.2% total foreign tourists. However, the number of Russians arriving in Montenegro dropped to just 18,845 from 49,666 in June 2016. Meanwhile, Russians clocked up 136,381 overnight stays in Montenegro in June 2017, compared to 462,586 in June 2016. 

Montenegro has long been a popular destination for Russian tourists, with many Russians also buying up property along Montenegro’s Adriatic coast. However, diplomatic relations between the two countries have soured following Montenegro’s recent accession to Nato and alleged Russian involvement in a 2016 coup attempt in Podgorica. 

Earlier this year, Russian officials advised Russians not to holiday in Montenegro, claiming that the situation was "unfavourable" for them. Russian foreign ministry spokeswoman Maria Zankina said in a statement that Russians could face arrest on “questionable charges” should they risk a visit. 

A further 13.2% of foreign tourists were from Serbia and 6% were from Poland in June.

Through June, foreign tourist arrivals went up by 20.5% y/y and the nights they spent in the country increased by 17.8% y/y.