Kosovars Invest Over €1 Billion in Ulcinj Real Estate

Tourism in Montenegro has experienced a significant boost as citizens of Kosovo have invested over €1 billion in real estate in Ulcinj. Škeljzen Rizaj, the Director of the Kosovo Tourism Centre, noted that while official statistics suggest a decline in Kosovar visitors compared to last year, the reality appears quite different. He emphasized that many Kosovars have purchased apartments and other properties, contributing to this remarkable figure.

Rizaj explained, “Official statistics may indicate fewer visitors from Kosovo than last year, but this is difficult to confirm accurately. The reality is that many Kosovars have acquired property in Ulcinj and are currently residing there.” He pointed out that numerous Kosovars spend their holidays visiting friends and family in Ulcinj, forming a unique bond with Montenegro.

Many Ulcinj residents have studied in Kosovo, establishing friendships that lead to visits without formal guest registrations. Rizaj acknowledged that this year’s tourism season has faced challenges due to unstable political conditions in the region, soaring prices across various sectors, and persistent traffic congestion.

He stated, “From the beginning, the season has been uncertain. There has been ongoing confusion regarding beach rentals, which has puzzled tourists from Kosovo, who traditionally have a strong affinity for Montenegro.” Additionally, some tourists expressed surprise over the sharp increases in accommodation, food, and service costs, not just in Montenegro, but also in Albania and Croatia.

Rizaj also highlighted the importance of recent developments, such as Kosovo’s visa liberalization, which has provided tourists with more options. “In just six months, around 2 million Kosovars traveled to Greece for vacation,” he noted, adding that they were satisfied with lower prices compared to southern Albania and Montenegro.

Montenegro has long been a favored destination for Kosovar tourists, but this year has revealed significant issues that Rizaj believes are atypical for the region. He remarked, “Imagine the famous Copacabana beach on Velika Plaža being half-empty; that would be a catastrophe. The focus seems to be solely on raising prices rather than improving the tourist experience.”

Kosovar tourists have voiced complaints about traffic congestion in Ulcinj, which has been reported by local media. Rizaj mentioned, “Traveling from city hotels to Velika Plaža takes over an hour and a half each way. This frustrates visitors and may deter them from returning.”

Concerns have also been raised about Budva’s performance this season. Historically, Budva and Ulcinj have attracted the highest number of overnight stays, yet Rizaj noted a concerning trend. “Budva’s accommodations have remained empty or partially filled. This is troubling, especially since Budva is considered the tourism capital of Montenegro,” he said.

He reminded stakeholders that substantial investments in the hospitality sector could be jeopardized if occupancy rates do not improve. “For instance, Hotel Mediteran has invested heavily in renovations, yet occupancy remains low. If hotels like “Otrant” and “Karizma” continue to maintain contracts with special pricing, ordinary tourists may find it challenging to afford their rates,” Rizaj added.

A significant influx of tourists from Kosovo had been expected in Albania this year, but competitive pricing in Greece has shifted the trend. Rizaj pointed out, “Albania anticipated a mass arrival of Kosovars, but Greece’s 50% lower prices and visa liberalization resulted in only three million overnight stays from Kosovo, down from ten million in previous years.”

As the summer season draws to a close, attention is turning to how to organize the next tourist season effectively. Rizaj stressed the need for stability and strategic planning among tourism professionals.

Traffic congestion at the Sukobin-Murićani border crossing has also been a persistent issue, with delays of two to three hours reported this season. “This is significant, especially with children in the cars. The border police have done an admirable job, but we must consider the overall experience for tourists,” Rizaj noted.

He believes that the tourism experience should be seamless, from the border to accommodation and pricing. “It is crucial to return to a competitive position that Montenegro once held. Prices this year have been excessively high. They need to return to reasonable levels next summer,” he emphasized.

Rizaj pointed out that while the government must consider its fiscal responsibilities, understanding the standards of tourists from key markets is equally essential. He referred to recent investments in Albania as examples of attracting foreign capital, such as the acquisition of a beautiful island by Donald Trump’s son-in-law and the involvement of billionaire Mohamed Alabbar in Drač.

He expressed hope that Montenegro would take a more proactive stance regarding potential investments from Alabbar. “It is essential to involve local governance in these discussions, as these projects affect citizens and must adhere to legal and planning requirements,” Rizaj concluded.

The proposed bridge over the Bojana River, intended to connect Ulcinj and Velipoja, is currently not a priority for Albania, which Rizaj believes is detrimental to both regions. He stated, “This bridge would significantly shorten travel distances and benefit tourism in both countries.”

Rizaj’s commentary reflects broader political trends that could influence the perception of Kosovo as a safe destination for tourists. He cautioned against any moves that might threaten Kosovo’s recognition, stating, “The discussions surrounding the withdrawal of Kosovo’s recognition could severely impact tourism. It is vital to maintain the relationships that were built over the years.”