The President of Montenegro, Jakov Milatović, did not intend to criticize anyone personally; instead, the aim was to facilitate progress, as stated by the Office of the President of Montenegro today.

This response comes after the State Secretary of the Ministry of Tourism, Vuk Žižić, expressed surprise at Milatović’s remarks regarding the concerning state of tourism, claiming that he presented, according to Žižić, misleading data.

“We respect all institutions that work earnestly for the state’s benefit. However, when discussing the economy, it is crucial that we speak precisely, responsibly, and contextually. Data holds value only if it accurately reflects the reality of those who depend on it, rather than serving to hide its shortcomings. Montenegro undeniably possesses immense potential, but this potential is not measured solely by the volume of border crossings; it is evaluated by the genuine contribution of key sectors, like tourism and transport, to the nation’s development,” emphasized the statement from Milatović’s office.

The statement highlighted that in the first quarter of this year, tourism saw a 6.4% decline in revenue along with a 10% decrease in overnight stays.

“Last year, revenue decreased by 3.1%, with overnight stays down by 5%. Despite this, the tourism sector operates under minimal profitability, with a profit margin of only 0.4%, a shift from negative figures. This is an unsustainable model. We see a similar trend in transport infrastructure. At the Airports of Montenegro, while the number of passengers and employees increased by 13%, total revenue fell by 20%, and net profit declined by over 22%. In essence, while traffic and employment rise, profitability is diminishing. Profit is not a negative term; it’s essential for sustainability, investment, and improving employee wages. President Milatović did not intend to assign blame but rather to catalyze progress. He believes that there is significantly more work to be done. The limited outcomes from sectors supporting the Montenegrin economy signal an urgent need for comprehensive and systemic reforms,” stated the Milatović Cabinet.

They noted that the Montenegrin economy is experiencing its slowest growth rate in the past decade.

“The growth rate for the first quarter is 2.5%, which is inadequate for catching up with EU countries. Montenegro needs a stable growth rate of 5% or higher, but this requires reforms that stimulate investments and production, enabling people to enjoy better livelihoods,” asserted Milatović’s office.

In this context, tourism should not be viewed as an end in itself.

“Tourism needs to be the driving force for development, a sector where we focus not on the number of arrivals, but on results—greater profits that can be channeled into infrastructure, better working conditions, and improved salaries for workers, aiming for consistent growth above 5% annually. To achieve real progress, we must shift our focus back to the economy and enact reforms that allow every citizen to live without worry. Montenegro can no longer afford the luxury of prioritizing political maneuvers over economic matters. Thus, President Milatović emphasizes that he seeks not miracles, but rather accountability in managing the public’s assets with integrity,” concluded the statement from Milatović’s Cabinet.

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