Podgorica, (MINA-BUSINESS) – According to MP Nikola Milovic of the Democratic Party of Socialists (DPS), the greatest threat to Montenegro’s tourism sector is no longer competition, but poor government policies.

In a post on X, Milovic said tourism experts are clear that Montenegro’s tourism industry is facing serious challenges.

“Instead of measures to strengthen competitiveness, we have seen VAT increased to 15 per cent, overpriced tenders launched by Morsko Dobro, growing administrative barriers, and a business environment that is driving investors away,” Milovic said.

He believes that the result is lower foreign direct investment, weaker business liquidity, and declining competitiveness

He added that the ongoing uncertainty surrounding Airports of Montenegro is particularly concerning.