Investment Potential Montenegro
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The Authority on World Travel & Tourism Travel & Tourism: Investment Potential MONTENEGRO 1 CHAIRMAN MARRIOTT CHINA INTERNATIONAL Deepak Ohri WHITBREAD PLC INTERNATIONAL TRAVEL SERVICE, HEAD Chief Executive Officer Andy Harrison ABERCROMBIE & KENT INC OFFICE (CITS) Chief Executive LOEWS HOTELS Geoffrey J W Kent JW Marriott, Jr Rong Chen Jonathan M Tisch WILDERNESS SAFARIS Founder, Chairman & CEO Chairman & Chief Executive Chief Executive Officer Chairman & Chief Executive Andy Payne Officer COSTA CRUISES Officer Chief Executive Officer PRESIDENT & CEO Arne M Sorenson Pier Luigi Foschi Chairman & Chief Executive MESSE BERLIN GMBH ZAGAT SURVEY LLC President & Chief Operating Raimund Hosch Tim Zagat WORLD TRAVEL & Officer Officer President & Chief Executive Co-Founder, Co-Chair & Chief TOURISM COUNCIL CTRIP.COM Officer Executive Officer David Scowsill MELIÁ HOTELS INTERNATIONAL INTERNATIONAL Min Fan MGM RESORTS ZARA INVESTMENT Sebastián Escarrer Chief Executive Officer INTERNATIONAL HOLDING CO LTD VICE CHAIRMEN Vice Chairman Jim Murren Yassin K Talhouni DEPARTMENT OF Chief Executive Officer Chief Executive Officer GLOBAL LEISURE OUTRIGGER ENTERPRISES TOURISM & COMMERCE PARTNERS GROUP MARKETING, GOVERMENT MISSION HILLS GROUP Mark Harms Dr Richard R Kelley OF DUBAI Dr Ken Chu HONORARY MEMBERS Chairman & Chief Executive Chairman & Chief Executive Chairman Emeritus Khalid A bin Sulayem Officer Officer Director General ACCOR RIOFORTE INVESTMENTS Gérard Pélisson MÖVENPICK HOTELS & MANDARIN ORIENTAL SA DLA PIPER Co-Chairman, Supervisory Board RESORTS Edouard Ettedgui Manuel Fernando Espírito Sir Nigel Knowles Jean Gabriel Pérès Group Chief Executive Santo Co-Chief Executive Officer AMERICAN EXPRESS President & Chief Executive Chairman COMPANY SILVERSEA CRUISES DOLPHIN CAPITAL Officer Jonathan S Linen Manfredi Lefebvre d’Ovidio SABRE HOLDINGS INVESTORS Adviser to Chairman NH HOTELS di Balsorano de Clunieres Miltos Kambourides Tom Klein Mariano Pérez Claver Chairman President Managing Partner ANDRÉ JORDAN GROUP Chairman André Jordan THE TRAVEL DUBAILAND Chairman SHUN TAK HOLDINGS ORBITZ WORLDWIDE INC CORPORATION Mohammed Al Habbai LIMITED Barney Harford Brett Tollman Chief Executive Officer FT MOORE P/L President & Chief Executive Pansy Ho Chief Executive Officer Sir Frank Moore, AO Managing Director Chairman EXPEDIA INC PHOCUSWRIGHT, INC TUI AG Dara Khosrowshahi Dr Michael Frenzel TRAVEL GUARD Philip C Wolf THE HERTZ WORLDWIDE President & Chief Executive President & Chief Executive Chairman of the Executive Board Officer CORPORATION Jeffrey C Rutledge Officer Frank Olsen WORLD TRAVEL & Chairman & Chief Executive Retired Chairman of the Board FAIRMONT RAFFLES RADISSON EDWARDIAN TOURISM COUNCIL Officer HOTELS INTERNATIONAL Jean-Claude Baumgarten HOTELS NOMURA INTERNATIONAL Chris J Cahill Jasminder Singh TRAVELPORT Chief Operating Officer PLC WYNDHAM WORLDWIDE Gordon Wilson Chairman & Chief Executive Lord Colin Marshall of Stephen P Holmes President & Chief Executive GLOBAL BLUE GROUP Officer Knightsbridge Chairman & Chief Executive Chairman Officer Per Setterberg REED TRAVEL Officer President & Chief Executive TSOGO SUN GROUP EXHIBITIONS TZ ASSOCIATES LTD Officer Richard Mortimore Jabu Mabuza Tommaso Zanzotto Managing Director EXECUTIVE COMMITTEE Deputy Chairman GRUPO BARCELÓ President Simón P Barceló RELAIS & CHÂTEAUX UNIVERSAL MEDIA ACCOR VISITBRITAIN Chairman & Chief Executive Jaume Tàpies Denis Hennequin Christopher Rodrigues, CBE Officer Carl Ruderman President Chairman Chairman & Chief Executive Chairman Officer HNA GROUP R TAUCK & PARTNERS Feng Chen Robin Tauck CHAIRMAN EMERITUS AMERICAN EXPRESS GLOBAL MEMBERS Chairman of the Board President COMPANY HOGG ROBINSON GROUP RRE VENTURES Charles Petruccelli ALTOUR S-GROUP CAPITAL President Global Travel Services David Radcliffe MANAGEMENT James D Robinson III Alexandre Chemla Chief Executive General Partner President Vladimir Yakushev BEIJING TOURISM GROUP Managing Partner WTTC Chairman (1990-1994) Qiang Duan HOTELPLAN HOLDING AG AMADEUS IT GROUP SA Chairman Hans Lerch SPENCER STUART Luis Maroto Vice Chairman & Chief Jerry Noonan IMMEDIATE PAST BHARAT HOTELS LIMITED President & Chief Executive Executive Officer Co-leader, Global Hospitality & CHAIRMAN Jyotsna Suri Officer Leisure Practice Chairperson & Managing HUANGSHAN TOURISM GLOBAL ALLIANCE Director Jose Antonio Tazón GROUP STARWOOD HOTELS & ADVISORS LLC Chairman of the Board Jiwei Xu RESORTS WORLDWIDE, INC Vincent A Wolfington CARLSON Chairman Frits D van Paasschen BEIJING CAPITAL Chairman Marilyn Carlson Nelson President & Chief Executive WTTC Chairman (2004-2007) Chairman INTERNATIONAL IBM Officer AIRPORT CO, LTD Marty Salfen Hubert Joly Zhiyi Dong General Manager, Global Travel & TAJ HOTELS RESORTS & FORMER CHAIRMEN President, Chief Executive Officer Chairman Transportation Industry PALACES & Director Raymond Bickson INTERCONTINENTAL Guanghui Zhang IFA HOTELS & RESORTS Managing Director & Chief EMIRATES Talal Al Bahar HOTELS GROUP PLC President & Chief Executive Executive Officer Sir Ian Prosser Gary Chapman Officer Chairman & Managing Director President Group Services & TAP PORTUGAL Retired Chairman Dnata, Emirates Group BEIJING TOURISM GROUP INDIAN HOTELS COMPANY Fernando Pinto WTTC Chairman (2001-2003) Yi Liu LTD Chief Executive Officer ETIHAD AIRWAYS RK Krishna Kumar AIG INC President James Hogan Vice Chairman TRANSAERO AIRLINES Harvey Golub Non-Executive Chairman Chief Executive Officer BOSCOLO GROUP Alexander Pleshakov JONES LANG LASALLE WTTC Chairman (1996-2001) Giorgio Boscolo Chief Executive Officer HILTON WORLDWIDE HOTELS Chief Executive Officer Christopher J Nassetta Arthur de Haast UNITED AIRLINES ROBERT H BURNS President & Chief Executive Global Chief Executive Officer Jeff Smisek HOLDINGS LTD CANNERY ROW COMPANY Robert H Burns Officer Ted J Balestreri President & Chief Executive JTB CORP Officer Chairman INTERCONTINENTAL Chairman & Chief Executive Hiromi Tagawa WTTC Chairman (1994-1996) HOTELS GROUP PLC Officer President & Chief Executive Jim Compton Richard Solomons Officer Executive Vice President & Chief CHOICE HOTELS Chief Executive Revenue Officer INTERNATIONAL LEBUA HOTELS & RESORTS JUMEIRAH GROUP Stephen P Joyce CO LTD VIRTUOSO LTD Gerald Lawless President & Chief Executive Rattawadee Bualert Matthew D Upchurch CTC Executive Chairman Officer President Chief Executive Officer CONTENTS TRAVEL & TOURISM: INVESTMENT Potential Foreword 3 Global Investment in Travel & Tourism 5 A Key Indicator of Competitiveness 5 Measuring Investment Growth 6 Current Global Outlook 7 Trends in Southeast Europe 8 Travel & Tourism in Montenegro 11 Tourism Development Strategy 12 Planned Hotel Capacity Growth 14 International Hotel Brand Development 16 Travel & Tourism Investment in Montenegro 19 Travel & Tourism’s Share of Overall Investment 20 Investment Trends through 2009 21 Outlook for Investment in Travel & Tourism 22 Attracting Investors 24 Facilitating Investment 24 Key Projects and New Investment Opportunities 29 Greenfield Tourism Investments 29 Firm Greenfield Projects 30 Other Major Developments 35 Projects Still Unconfirmed, or Abandoned 40 New Opportunities for Investment 43 Legislation Affecting Travel & Tourism Investment 50 INVESTMENT Potential FOREWORD THE global ECONOMIC RECESSION AND associated CREDIT CRISIS created NEW, AND UNEXPECTED, CHALLENGES FOR montenegro IN TERMS OF attracting INVESTMENT IN travel & TOURISM. YET, DESPITE THE CONTINUING uncertainties, THERE ARE now CLEAR SIGNS OF RENEWED INTEREST FROM MANY DIFFERENT SOURCES, IN LINE WITH THE recovery IN tourism DEMAND. WTTC’s latest research also confirms our earlier optimism with regard to the longer-term potential of Travel & Tourism investment in the country. The government’s foresight and careful planning over the past decade can still be expected to pay off handsomely. Not only do we expect the country to be the fastest growing Travel & Tourism economy in the world over the next ten years – in terms of its contribution to GDP and employment – but our research ranks Montenegro in number one position worldwide for Travel & Tourism investment growth from 2011 to 2021, as well as in second position (behind Brazil) for visitor exports. There is clearly no room for complacency, especially given the postponement and even suspension of some major projects as a result of the challenging economic and operating environment. Yet these positive forecasts – developed in co-operation with our research partner, Oxford Economics – reflect the significant progress made by the government of Prime Minister Igor Luksić, building on the successes of his predecessor, Milo Đjukanović, at moving Montenegro into a era of prosperity and long-term competitiveness. In addition to putting in place a solid policy framework to help ensure that tourism development is sustainable, the government has made every effort to create the right business/operating environment conducive to attracting foreign investment. Indeed, in its recently published annual report on Doing Business 2012, the World Bank shows that Montenegro has moved up a full ten places in the world ranking – to 56th out of 183 countries. On behalf of WTTC’s Members – many of whom will, I feel sure, become key stakeholders in Montenegro’s Travel & Tourism – I congratulate you and wish you every success for the future. WTTC stands ready to work with you to help you achieve your vision – for the benefit of all Montenegrins, as well as for your country’s Travel & Tourism industry and the many millions of tourists who will