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Trends and Prospects Montenegro

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Trends and Prospects Montenegro The Authority on World Travel & Tourism Travel & Tourism: Trends and Prospects MONTENEGRO 1 CHAIRMAN MARRIOTT COSTA CRUISES LOEWS HOTELS WILDERNESS SAFARIS INTERNATIONAL Pier Luigi Foschi Jonathan M Tisch Andy Payne ABERCROMBIE & KENT INC Chairman & Chief Executive Chairman & Chief Executive Chief Executive Officer Geoffrey J W Kent JW Marriott, Jr Officer Officer Founder, Chairman & CEO Chairman & Chief Executive VIRTUOSO LTD Officer CTRIP.COM MESSE BERLIN GMBH Matthew D Upchurch CTC INTERNATIONAL Raimund Hosch Chief Executive Officer PRESIDENT & CEO Arne M Sorenson Min Fan President & Chief Executive President & Chief Operating Chief Executive Officer Officer ZAGAT SURVEY LLC Tim Zagat WORLD TRAVEL & Officer DEPARTMENT OF MGM RESORTS Co-Founder, Co-Chair & Chief TOURISM COUNCIL MELIÁ HOTELS Executive Officer David Scowsill TOURISM & COMMERCE INTERNATIONAL INTERNATIONAL MARKETING, GOVERMENT Jim Murren ZARA INVESTMENT Sebastián Escarrer OF DUBAI Chief Executive Officer HOLDING CO LTD Vice Chairman Khalid A bin Sulayem VICE CHAIRMEN Yassin K Talhouni Director General MISSION HILLS GROUP OUTRIGGER ENTERPRISES Dr Ken Chu Chief Executive Officer WORLD TRAVEL & GROUP DLA PIPER Chairman & Chief Executive TOURISM COUNCIL Dr Richard R Kelley Sir Nigel Knowles Officer Jean-Claude Baumgarten HONORARY MEMBERS Chairman Emeritus Co-Chief Executive Officer MÖVENPICK HOTELS & MANDARIN ORIENTAL RIOFORTE INVESTMENTS DOLPHIN CAPITAL RESORTS ACCOR Edouard Ettedgui SA INVESTORS Jean Gabriel Pérès Gérard Pélisson Group Chief Executive Manuel Fernando Espírito Santo Miltos Kambourides President & Chief Executive Co-Chairman, Supervisory Board Chairman Managing Partner Officer TUI AG AMERICAN EXPRESS Dr Michael Frenzel SABRE HOLDINGS DUBAILAND NH HOTELS COMPANY Chairman of the Executive Board Tom Klein Jonathan S Linen President Mohammed Al Habbai Mariano Pérez Claver GLOBAL LEISURE Chief Executive Officer Chairman Adviser to Chairman PARTNERS SHUN TAK HOLDINGS ANDRÉ JORDAN GROUP Mark Harms LIMITED EXPEDIA INC ORBITZ WORLDWIDE INC Dara Khosrowshahi Barney Harford André Jordan Chairman & Chief Executive Pansy Ho Chairman Officer Managing Director President & Chief Executive Chief Executive Officer Officer FT MOORE P/L WYNDHAM WORLDWIDE TRAVEL GUARD PHOCUSWRIGHT, INC FAIRMONT RAFFLES Philip C Wolf Sir Frank Moore, AO Stephen P Holmes WORLDWIDE Chairman Chairman & Chief Executive Jeffrey C Rutledge HOTELS INTERNATIONAL President & Chief Executive Officer Chairman & Chief Executive Chris J Cahill Officer NOMURA INTERNATIONAL Officer Chief Operating Officer RADISSON EDWARDIAN PLC SILVERSEA CRUISES Lord Colin Marshall of GRUPO BARCELÓ HOTELS Manfredi Lefebvre d’Ovidio di TRAVELPORT Knightbridge Simón P Barceló Jasminder Singh Balsorano de Cluniere Gordon Wilson Chairman Chairman President & Chief Executive Chairman & Chief Executive Chairman & Chief Executive Officer Officer Officer THE HERTZ THE TRAVEL CORPORATION REED TRAVEL CORPORATION TSOGO SUN GROUP GLOBAL BLUE GROUP Frank Olsen EXHIBITIONS Brett Tollman Jabu Mabuza Per Setterberg Retired Chairman of the Board President & Chief Executive Deputy Chairman President & Chief Executive Richard Mortimore Officer Managing Director TZ ASSOCIATES LTD VISITBRITAIN Tommaso Zanzotto EXECUTIVE COMMITTEE Christopher Rodrigues, CBE HNA GROUP RELAIS & CHÂTEAUX President Chairman Feng Chen Jaume Tàpies ACCOR Chairman of the Board President UNIVERSAL MEDIA Denis Hennequin Carl Ruderman GLOBAL MEMBERS HOGG ROBINSON GROUP R TAUCK & PARTNERS Chairman Chairman & Chief Executive David Radcliffe Robin Tauck Officer ALTOUR Chief Executive President Alexandre Chemla CHAIRMAN EMERITUS AMERICAN EXPRESS HOTELPLAN HOLDING AG S-GROUP CAPITAL COMPANY President Hans Lerch MANAGEMENT RRE VENTURES Charles Petruccelli AMADEUS IT GROUP SA Vice Chairman & Chief Vladimir Yakushev James D Robinson III President Global Travel Services Luis Maroto Executive Officer Managing Partner General Partner President & Chief Executive BEIJING TOURISM GROUP WTTC Chairman (1990-1994) Officer HUANGSHAN TOURISM SPENCER STUART Qiang Duan GROUP Jerry Noonan Chairman Jose Antonio Tazón Jiwei Xu Co-leader, Global Hospitality & IMMEDIATE PAST Chairman of the Board BHARAT HOTELS LIMITED Chairman Leisure Practice CHAIRMAN Jyotsna Suri BEIJING CAPITAL IBM STARWOOD HOTELS & Chairperson & Managing INTERNATIONAL Marty Salfen RESORTS WORLDWIDE, INC GLOBAL ALLIANCE Director AIRPORT CO, LTD General Manager, Global Travel & Frits D van Paasschen ADVISORS LLC Zhiyi Dong Transportation Industry President & Chief Executive Vincent A Wolfington CARLSON Chairman Chairman Marilyn Carlson Nelson Officer IFA HOTELS & RESORTS WTTC Chairman (2004-2007) Chairman Guanghui Zhang Talal Al Bahar TAJ HOTELS RESORTS & President & Chief Executive Chairman & Managing Director PALACES Hubert Joly Officer FORMER CHAIRMEN President, Chief Executive Officer Raymond Bickson INDIAN HOTELS COMPANY & Director BEIJING TOURISM GROUP Managing Director & Chief LTD INTERCONTINENTAL Yi Liu Executive Officer RK Krishna Kumar HOTELS GROUP PLC EMIRATES President Gary Chapman Vice Chairman TAP PORTUGAL Sir Ian Prosser President Group Services & BOSCOLO GROUP Fernando Pinto Retired Chairman Dnata, Emirates Group Giorgio Boscolo JONES LANG LASALLE Chief Executive Officer WTTC Chairman (2001-2003) Chief Executive Officer HOTELS ETIHAD AIRWAYS Arthur de Haast TRANSAERO AIRLINES AIG INC James Hogan CANNERY ROW COMPANY Global Chief Executive Officer Alexander Pleshakov Harvey Golub Chief Executive Officer Ted J Balestreri Chief Executive Officer Non-Executive Chairman Chairman & Chief Executive JTB CORP WTTC Chairman (1996-2001) HILTON WORLDWIDE Officer Hiromi Tagawa UNITED AIRLINES Christopher J Nassetta President & Chief Executive Jeff Smisek ROBERT H BURNS President & Chief Executive CHOICE HOTELS Officer President & Chief Executive HOLDINGS LTD Officer INTERNATIONAL Officer Robert H Burns Stephen P Joyce LEBUA HOTELS & RESORTS Chairman INTERCONTINENTAL President & Chief Executive CO LTD UNITED AIRLINES WTTC Chairman (1994-1996) HOTELS GROUP PLC Officer Rattawadee Bualert Jim Compton Richard Solomons President Executive Vice President & Chief Chief Executive CHINA INTERNATIONAL Revenue Officer TRAVEL SERVICE, HEAD LEBUA HOTELS & RESORTS JUMEIRAH GROUP OFFICE (CITS) CO LTD WHITBREAD PLC Gerald Lawless Rong Chen Deepak Ohri Andy Harrison Executive Chairman Chief Executive Officer Chief Executive Officer Chief Executive CONTENTS TRAVEL & TOURISM: TRENDS AND PROSPECTS Foreword 3 Transport 28 Access and Infrastructure 28 Introduction 5 Air Transport 28 Background & History 6 Airline Operations 29 Geography & Attractions 7 Road Transport 31 Main Tourism Regions 8 Rail Infrastructure 33 Marine Transport 33 Tourism Performance 11 Visitor Expenditure 11 Accommodation 34 Arrivals & Overnights 13 Recent Developments 34 Recent Trends 14 Capacity and Performance 34 Current Outlook 15 Arrivals/Nights by Type of Individual Source Markets 16 Accommodation 35 Business versus Leisure Travel 19 Hotel Performance 36 New Market Segments 20 Marketing and Distribution 38 The MICE Market 38 Seasonality 22 International Markets 22 Domestic Tourism 23 Destination Breakdown 25 Brief Overview 25 Adriatic Coast 26 Northern and Central Region 27 TRENDS AND prospects FOREWORD THE WORLD TRAVEL & TOURISM COUNCIL IS THE GLOBAL BUSINESS LEADERS’ FORUM FOR TRAVEL & TOURISM, WITH A MEMBERSHIP OF CLOSE TO 100 CHAIRS AND CHIEF EXECUTIVES FROM THE INDUSTRY AND RELATED SECTORS. WTTC’S MISSION IS TO WORK WITH GOVERNMENTS TO RAISE AWARENESS OF THE IMPORTANCE OF THE WORLD’S LARGEST GENERATOR OF WEALTH AND JOBS. Following similar studies carried out in 2004 and 2007, this is the third time we have embarked on a detailed assessment of Montenegro’s Travel & Tourism development potential, in collaboration with our research partner, Oxford Economics. This particular report is also the second in a series of four looking at different aspects of Travel & Tourism in Montenegro. The first assessed Travel & Tourism’s Economic Impact and, as the title of this second report suggests, this one focuses specifically on Trends and Prospects. The figures speak for themselves. From the early 2000s to 2008, the impressive growth in Travel & Tourism demand for Montenegro contributed to stimulating investment, resulting in increased profits for hotels and other local tourism businesses. This was of course helped in large part by the privatisation process, which has seen more than 90% of hotel stock move out of state control into private sector hands, as well as donor-funded infrastructure projects. These have also played a major role in laying down the foundations on which Montenegro has been trying to build a competitive economy based on tourism and services. The dampening of demand in 2009 – largely as a result of global recessionary pressures – led to a stalling of new investment and depressed growth in tourism performance in 2009 and 2010. But there are clear signs of recovery, reflected in the bullish forecasts from WTTC/Oxford Economics for Montenegro’s Travel & Tourism over the next ten years. With a new Prime Minister, Igor Luksić, taking the reins from his predecessor, Milo Đjukanović, and a new Minister for Sustainable Development & Tourism, Predrag Sekulić, Montenegro looks set to reap the benefits of both public and private sector efforts over the past decade, raising Travel & Tourism’s contribution to GDP, employment, exports and investment. We would like to express our gratitude to the former Minister of Tourism, Predrag Nenezić, and his team at the
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