Tourism leader Žarko Radulović warns of impact from Euro model

Žarko Radulović, President of the Montenegrin Tourism Association, has expressed serious concerns regarding the impact of the ‘Euro model’ on the tourism sector. He warned that the program could be devastating for small and medium-sized enterprises, noting that while large entrepreneurs might profit, many businesses may struggle to meet future payroll obligations.

Using his company, Montenegro Stars, as an example, Radulović stated that the Euro model could increase wage expenditures by over 53 percent, or more than two million euros, assuming next season matches current levels. He also criticized the government's approach to taxation, noting a 114 percent increase in accommodation tax, which accounts for 85 percent of total turnover.

Radulović indicated that raising prices to offset costs is not a viable option as it would make the region uncompetitive. Instead, he is considering reducing staff numbers or potentially closing his hotel for two years to navigate the current economic situation.