EBRD and Sweden support cultural tourism on the Montenegrin coast

This article is brought to you in association with EBRD.

Montenegro‘s Adriatic coast is renowned for its stunning beaches and historic towns. The country, which is nestled between larger Balkan neighbours, sees flocks of tourists arrive each year by sea and air. During peak season, as many as five cruise ships can be seen docked at once in the Bay of Kotor – a tourist hotspot – testifying to the region’s popularity with visitors.

While the economy is dependent on a strong tourism sector, surging demand is underlining the need to strengthen infrastructure and diversify away from a seasonal model of “sun, sand and sea” tourism.

The EBRD has been working with donors such as the European Union and Austria to develop transport infrastructure in Montenegro and improve the region’s water supply network – a crucial step towards enhancing connectivity and unlocking economic potential in sectors such as tourism.

But the Bank’s work in the country extends far beyond infrastructure. With support from Sweden, the EBRD has been providing finance and advice to women-led small and medium-sized enterprises (SMEs) that are working to protect and strengthen the region’s cultural heritage in the interests of a diverse and resilient tourism sector.

One such business, CMM Group, which is based in the picturesque seaside city of Budva, has established itself as one of Montenegro’s leading real estate developers under the leadership of its Chief Executive Officer, Nataša Grdinić. While the business has a focus on high-end real estate, it has also been working on projects centred around tradition and locally sourced products, which have been very popular with visiting clients.

The group’s Chief Operations Officer, Mirko Timotijević, observes: “As a country, we should work to preserve everything historical and cultural, because it could be a hook for the travel industry, as people will pay to see and experience things from the past.”

The Bank’s Women in Business programme has also provided advisory services to Expeditio, a non-governmental organisation based in Kotor.

The organisation operates at the intersection of sustainable spatial architecture, cultural heritage and urban planning. Expeditio was established in Belgrade by six passionate students of architecture before moving to Kotor and is dedicated to protecting the cultural identity of local communities while developing authentic urban spaces.

Tatjana Rajić, Expeditio’s Executive Director, explains that communication with local communities has been crucial to the protection of cultural heritage: “They have given us information and guidance, and we have built a strong connection with them.” 

Over the years, the group has implemented a wide range of cultural projects, producing books, guides, maps and educational programmes.

One such project involved setting up volunteer restoration camps, working mostly with students to restore neglected sites of cultural significance. “The idea is to find a ruin or some other heritage site and work with craftsmen to reconstruct part of it, while learning some of the techniques for ourselves,” Rajić explains.

The EBRD’s work with such SMEs is key to supporting sustainable practices in the tourism and property sectors, with the aim of making Montenegro’s economy more competitive, green and integrated. Alongside the development of vital infrastructure, the promotion of local cultural heritage is central to maintaining a resilient tourism industry.

As Mirko Timotijević rightly says: “Montenegro is economically dependent on tourism, so we need to act wisely in the present to be sure of a good future.”