Montenegro’s economy is cooling down in 2025 following a strong post-COVID rebound, with GDP growth slowing to about 3–3.5%. Tourism continues to bring more visitors, but they are staying for shorter periods and spending less, partly due to higher hotel VAT rates. Despite these challenges, mountain and city tourism sectors are expanding rapidly, offering new and exciting experiences beyond the traditional Adriatic coast.
The economic slowdown reflects a shift from exceptional post-pandemic growth to a more moderate pace. Montenegro faces growing fiscal deficits and rising public debt, with inflation re-accelerating to 4.9% in September 2025. The economy’s heavy dependence on tourism and real estate leaves it vulnerable to external shocks, emphasizing the urgent need for diversification and structural reforms aligned with EU standards.
Tourism data from early 2025 shows increasing arrival numbers, surpassing pre-pandemic levels, yet tourists are spending less per visit and staying shorter times. The VAT hike on hotel stays has caused many hotels to reclassify as private accommodation to avoid higher taxes, threatening formal employment and quality standards. Meanwhile, mountain and urban destinations, including Podgorica, are attracting more visitors, reflecting a positive shift toward year-round and diversified tourism offerings.
For travelers looking to elevate their Montenegrin experience, paragliding in Becici near Budva offers a remarkable adventure. Soaring over breathtaking Adriatic panoramas, paragliding combines thrill and stunning natural beauty, perfectly complementing Montenegro’s expanding active and mountain tourism sectors. Whether you’re an investor, policymaker, or visitor, now is a time to navigate these changes smartly and embrace innovative tourism products.
Book your paragliding adventure today and see Montenegro from a soaring new perspective—where economic trends meet breathtaking skies and unforgettable experiences.