RECKONING WITHOUT THE HOST

Tourist Sovereignty of Montenegro

AIM Podgorica, April 21, 1996

"Who says, who lies that Serbia has no sea? It has, it has, while there is Montenegro"! This slogan, so popular at the time of anti-bureaucratic revolution seven years ago, is nowadays increasingly questioned. The latest decision of the Montenegrin Government which has independently decided to exempt foreign tourists from paying certain high state taxes provoked Belgrade press again to comment about Slovenization of Montenegro. Dnevni Telegraf, for instance, announced the news on cheaper entrance of foreigners into Montenegro as a "tax levied on guests from Serbia". This is quite in accordance with the strong political stance in Serbia on alleged separatist, that is "treacherous" policy pursued by Montenegro.

Indeed, differences between the two republics which used to be "two eyes in one head" are increasing. In the political sense, this is not so noticeable, or more precisely, it is better concealed, than in the economic. At present, at the time of preparation for the tourist season, tourism is becoming again the cause of misunderstanding between Serbia, that is the Federal Republic of Yugoslavia, and Montenegro. In fact, it is only natural that tourism causes differences and misunderstandings in creating measures of economic policy of the two federal units. The political burden of Serb-Montenegrin relations just additionally increases and complicates them. Namely, while tourism on the level of Yugoslavia is not at all a significant branch of economy and does not deserve special attention of the federal agencies, since it participates in the social product of the FRY with hardly two per cent, in Montenegro it is considered to be one of the most significant branches, even of top priority and the mainstay of future development.

Suspension of sanctions raised hopes of Montenegro concerning foreign currency revenue from tourism. The Ministry of tourism plans that about 70 thousand foreign tourists will visit Montenegro this year. The total number of guests, according to Slobodan Lekovic, assistant minister, is planned to be 700 thousand. In this way the tourist trade in Montenegro would be raised to about 60 per cent of the level reached in 1990, that is in the last normal tourist season before introduction of the sanctions.

There were times when Montenegro used to register up to 150 million dollars of foreign currency revenue made by tourism. That is why laments because of losses are quite logical, because the sanctions inflicted direct damage to Montenegrin economy in the branch of tourism and maritime industry. It is assessed that during the period of the sanctions, Montenegro lost about 600 million dollars of income of tourism. Losses cannot be compensated, people employed in tourism explain, but at least it is possible to try to return to the world market. Because, while the sanctions lasted, there were absolutely no foreign guests, and as an example, in 1994, they formed just one per cent of the total number of guests. There were somewhat more of them last year, and for this year, it is planned that they should form at least about ten per cent of the total number of guests. According to plans, this year they are expected to make a little over 20 per cent of the tourist trade which they made six years ago.

That is why this year's economic policy of the Montenegrin Government gives priority to tourism. It is planned that this year tourist economy will make by 10 per cent greater turnover than last year and participate in formation of the social product of Montenegro with seven per cent. However, in order to make these plans come true, it is necessary to have resources for preparation of the season. Since there is no issue of money this year, and the banks are proverbially illiquid, the most significant backing of tourist enterprises is the state. In February, tourist firms got eight million marks of credit from the Government for reconstruction and repairs of hotels, and in the past few days, another 20 million dinars (6 million German marks) of credit was extended to them for preparation of the tourist season in general.

Since this "invisible" export through tourism could significantly improve the blood count of Montenegrin economy which is at its last gasp, the Tourist Association, Chamber of the Economy and Ministry of tourism are seeking ways to make arrival of foreign guests cheaper and simpler. Return of foreign guests here is topic number one. But, how will foreign guests be able to come at all, when long and expensive procedure of acquiring Yugoslav visa is blocking their way. Last-year's attempt of Montenegrin Government to exempt at least organized arrival of tourist groups from abroad from the complicated and slow procedure of acquiring Yugoslav visa was not successful. The competent federal agencies (on the level of the FRY there is no separate ministry of tourism, so diplomats in the Ministry of Freign affairs are competent for visits of foreign guests) had no understanding for economic arguments from Montenegro. The demand for unilateral abolishment of Yugoslav visas met with an impenetrable political barrier. Only towards the end of last year, after the end of the tourist season, two republican ministries, Slobodan Lekovic explains, coordinated stances with the federal agencies to introduce tourist passes instead of visas.

A tourist pass is a document which replaces a visa. Apparently, it is comparatively favourable for tourism, and for foreigners it is in the first place simpler because these passes will be issued directly at border crossings, and not in consulates as visas. Besides, a pass is cheaper than Yugoslav visa which costs the foreigners 60 German marks. This is better than nothing, representatives of tourism say, but nothing has actually budged so far. Because, the Federal Government, and it is the only competent to change the regime of visas has not approved issuing of passes yet.

In Montenegro, however, this business was taken quite seriously, and in preparations for issuing passes they have already amended the Law on Administrative Taxes, so that these passes which were supposed to cost 150 dinars, will be issued completely free of charge. Apart from that, in order to further liberalize flow of foreign guests, the Montenegrin Government also reduced prices of entrance and exit visas for foreigners from 200 to 20 dinars. This very decision of the Montenegrin Government caused red alert in Serb media. Mentioned interpretation in Dnevni Telegraf was not the only one. Therefore, Slobodan Lekovic, for the sake of clarification, stresses that this is a matter of reducing the income which flows into the republican, not the federal cashbox. At the same time, Mr Lekovic denies interpretations which connected this decision with the previously known conflict between the Montenegrin Prime Minister and head of the Federal Customs Administration, Mihalj Kertes. The Government has established only draft amendments of the Law on Administrative Taxes, which means that it still needs to be adopted by the Assembly at the current session, since this issue has already been put on the agenda. The whole problem can, therefore, be brought down to the fact that foreign guests who will be entering Montenegro directly, at the port of Bar or airports in Tivat or Podgorica, will be exempted from paying for the passes, while those guests who will enter Montenegro via Serbia will have to pay for these passes at the border crossings. The main problem for Montenegrin tourism is, however, that the Government has reckoned without the host, because there has still been no sign of readiness from the Federal Government to introduce passes instead of visas.

Montenegrin seaside in the sense of tourism is primarily an aeroplane destination, so it is expected that about 70 percent of foreign tourists will enjoy the privilege of being exempted from paying these dues. For the time being, it is said in the Ministry of Tourism, charter flights were agreed with Germany, the Czech Republic, England, Slovakia, Russia, Israel, and Macedonia. There would have been much more, says Lekovic, if Montenegro had had an airline company of its own, but, if nothing else, there have been announcements that by the beginning of the season "Montenegro Airlines" will begin flying. This company, two years after its foundation, has nothing but a manager. It has no success in renting aeroplanes, and the big issue of airports has just been opened. Namely, both airports in Montenegro are officially owned by JAT, airline company which became property of the Government of Serbia few years ago. As part of the attempt of Montenegro to take over control of the airports on its territory, now there is a demand of state prosecutor of Montenegro, Vladimir Susovic, for the Constitutional Court of Serbia to check whether the decision on the Government of Serbia taking over ownership of JAT was reached pursuant the Constitution or not. The opposition insists on faster and more radical moves concerning taking over ownership of airports, and believes that such a demand is bound to be rejected. That is why there is the demand heard from certain parties, that Montenegrin Government alone, regardless of decisions of the Federal Government, abolish visas and introduce tourist passes.

Altogether, at the height of preparations of the tourist season, Montenegrin tourism is ruled by general confusion. Not even large tourist agencies can tell their possible guests from abroad whether they will need to apply for Yugoslav visa or not, whether they will be able to organize direct airplane flights to Tivat, or planes will first have to land at Belgrade airport, will tolls have to be paid on Yugoslav roads, etc. etc. "General assessment of all our foreign partners", testifies Djuro Radanovic, manager of the elite Hotel "Avala" in Budva, "is that without resolving the issue of visas, border trafficand problems of too high tolls, we cannot expect much from guests from abroad".

Too much talk about foreign guests and sovereignty of Montenegrin tourism, people employed in this branch complain, can also harm this year's season, because, the greatest number of guests, after all, comes from "brotherly" Serbia. During the past years, says Dr Vanja Brailo from the Tourist Association of Montenegro, they formed about 95 per cent of tourists who visited the Montenegrin seaside.

Tourist workers are, nevertheless, aware that in the existing circumstances, they cannot operate without guests from Serbia. They form prices according to their paying power. In Herceg Novi, the municipal Tourist Association, for example, lowered prices of lodgings in private accomodation facilities in comparison with last year's. Depending on quality of accomodations, lodging costs between 15 and 35 dinars (4 to 10 German marks) per bed. The price of board (three meals) in restaurants is not too high either - 35 dinars. But, despite that, workers in tourism fear the declining paying power of domestic guests and the possibility that hopes for increased arrival of guests may prove to be false. The hunting season for guests has begun. If foreigners will not, at least, according to the already customary habit, domestic guests will get caught in the net.

Dragan DJURIC AIM Podgorica Podgorica