Montenegro Tourist Service (MTS) DMC is a travel agency that has been operating for more than 15 years. The headquarters is located in Podgorica, with branch offices in all the key coastal cities of Montenegro – Budva, Petrovac, Ulcinj, Kotor and Herceg Novi. Their operations also extend to Serbia, Croatia, Bosnia and Herzegovina, Albania, Macedonia, Slovenia, Hungary, Bulgaria, Romania, Austria and Italy. MTS are a direct marketing company and are associated with a number of brands across all aspects of tourism including group and individual tours, car hire, accommodation and more.
Emil Kukalj, their R and D Director, is interviewed by Saverio Bertolucci for Tourism’s Horizon: Travel for the Millions (THTM).
See also the short article in our partner The “Good Tourism” Blog.
You are a renowned figure in Montenegro and your role allows you to oversee the development and implementation of new and existing projects, programs, and initiatives that aim to enhance the competitiveness and sustainability of the tourism sector in Montenegro and beyond. From your leading managerial perspective, how would you describe the evolution of tourism in Montenegro?
Montenegro's tourism industry has evolved from its initial emergence as a relatively unknown destination to gaining recognition on both regional and international scales. This recognition has been driven by the country's stunning natural landscapes, including its coastline along the Adriatic Sea, picturesque mountains, and rich cultural heritage. Over the years, Montenegro has invested significantly in infrastructure development to support its growing tourism sector. This includes the construction of modern hotels, resorts, transportation networks, and recreational facilities to accommodate the increasing number of visitors. Without intending to advertise anyone, I must highlight significant projects that have significantly influenced Montenegro's positioning as a desirable tourist destination in the international tourism market. Foremost among these are: Porto Montenegro, a luxury yacht marina and waterfront development located in Tivat, Luštica Bay, a large-scale resort development situated on the Luštica Peninsula overlooking the Adriatic Sea, Portonovi, a luxury resort and residential development located near Herceg Novi, overlooking the entrance to the Bay of Kotor. In Montenegro, there are globally renowned hotel brands such as Aman Resorts, the first One&Only in Europe, Regent, The Chedi, Nikki Beach, Mamula Island hotel and others.These projects represent substantial investments in Montenegro's tourism sector and contribute to the country's development as an attractive destination for travelers seeking luxury and exclusive experiences.
Initially known primarily for its coastal attractions, Montenegro has diversified its tourism offerings to include a wider range of experiences. This includes ecotourism in its national parks, adventure tourism such as hiking and rafting and cultural tourism centered around historic sites and festivals. In recent years, there has been a growing emphasis on sustainability within the tourism sector in Montenegro. Efforts have been made to promote responsible tourism practices, protect natural habitats, and preserve cultural heritage sites for future generations. Montenegro has actively sought partnerships with international tourism organizations and marketed itself as a premier destination through various channels. This includes participating in travel expos, leveraging digital marketing platforms, and collaborating with airlines and travel agencies to promote the country's attractions. Despite its growth, the tourism industry in Montenegro faces challenges such as seasonality, infrastructure capacity, and environmental concerns. However, these challenges also present opportunities for innovation, investment, and collaboration to further enhance the competitiveness and sustainability of the sector. Overall, the evolution of tourism in Montenegro reflects a dynamic process of growth, diversification, and adaptation to changing market demands and environmental considerations.
Global international tourism has increased massively, from around 55 million in the mid 1950s, up to 1.5 billion today. Similar growth data can be seen in your region, the Balkans. One could see this as inspiring, or perhaps frightening and unsustainable. How do you see it?
The exponential growth of tourism in the Balkans region, presents a complex scenario that can be perceived as both inspiring and concerning, depending on various perspectives and considerations.
On one hand, the surge in international arrivals signifies increased economic opportunities, cultural exchange, and global connectivity. It fueling economic growth, job creation, and infrastructure development in the Balkans. The influx of tourists brings revenue streams, stimulates local businesses, and fosters cultural understanding among diverse communities.
However, the rapid growth of international tourism also raises significant challenges and concerns. It can lead to environmental degradation, capacity-related issues in popular destinations, strain on local resources, and cultural commodification. Infrastructure may struggle to keep pace with the influx of visitors, resulting in traffic congestion and pollution. Furthermore, dependence on tourism revenue can make local economies vulnerable to external shocks, such as economic downturns or natural disasters (especially in Montenegro and Croatia, both of which heavily rely on tourism). Just remember COVID.
By fostering collaboration among planners, policymakers, implementers, and communities, local governments and stakeholders must collaborate to implement policies that balance the needs of residents, businesses, and tourists while preserving the unique character and social cohesion of neighborhoods.
‘Overtourism’ became de rigueur during 2017 and is now the object of debate among academia. What does this term mean to you and what is your take on the debates as a representative of the industry?
'Overtourism' is traditionally perceived as a negative phenomenon. The concept has been extensively discussed, yet it overlooks a crucial aspect: the winners within local communities amidst overtourism's challenges.
In navigating these complexities, it's important to acknowledge the insights of Professor Buhalis, who advocates for the term "democratization in tourism" over "overtourism". This reframing emphasizes the positive aspect of increasing access to travel and tourism experiences for a broader range of people, while also acknowledging the need for responsible management and sustainable tourism practices.
Since the term 'overtourism' was invented, as a representative of the industry, I interpret it as a call for nuanced understanding and action. While it underscores the negative impacts on destinations and communities, it also prompts us to recognize opportunities for positive change. By embracing sustainable practices and inclusive approaches, we can mitigate the adverse effects of overtourism while fostering equitable tourism development.
Ultimately, 'overtourism' serves as a catalyst for dialogue and innovation, urging stakeholders to collaborate towards a more balanced and resilient tourism ecosystem. I am sure that through proactive measures and shared responsibility, we can ensure that tourism continues to enrich lives while preserving the integrity of destinations for generations to come.
Your publications made in 2014 and 2017 are aimed at analyzing and forecasting tactics for tourism development in Montenegro. Can you briefly share the results of your studies and the consequent policies related to these analyses?
While I was working at the National Tourism Organization, I had the opportunity to work on some very interesting research projects with my colleagues. One of the first ones was the Guest Survey (2014), which was a quantitative survey. The main goal was to obtain reliable information on the attitudes and expenditures of tourists in Montenegro, gather quantitative and qualitative sociodemographic data on guests and their stay in Montenegro, and understand attitudes about tourist destinations and the country's tourism offerings. We were supported by the Croatian Institute for Tourism in this project, and for the first time, we used their "TOMAS" research methodology. The results were more or less as expected, but we were able to prove our hypothesis and suggest some corrective measures in product development as well as marketing of the destination.
The research showed that Montenegro was an attractive tourist destination whose guests were relatively young (30-49 years old, 47.6%) and came from various source markets. The most numerous guests were from Russia and Serbia, and our country maintained the image of a summer tourist destination, so guests preferred to come for beach and sun enjoyment, or passive relaxation (72.4%), and entertainment (41%). The most common activities were swimming and bathing (94.1%) and enjoying good food (73%).
A very high level of tourist satisfaction (83.2%) was recorded regarding the beauty of nature and the area, as well as the hospitality of the local population (73.1%).
Information via the internet was overwhelmingly the most prevalent (44.3%), which was an increase of 29% compared to 2010. The research results showed that guests were loyal to Montenegro as a destination because they returned again and again.
Guests from the surrounding area mainly used road traffic to come to Montenegro, while others mainly relied on air traffic. The largest number of tourists stayed for 4-7 nights (34.7%) and 8-10 nights (30.6%).
Also, according to the obtained results, Montenegro had a similar offer to its competitors. In comparison to competitors, additional efforts needed to be made to improve traffic accessibility and cleanliness.
The total travel expenses per person amounted to 539.73 euros, while that amount per person per day was 61.92 euros. The highest total spending per trip was achieved by Russian tourists (855.51 euros), followed by tourists from Ukraine and Belarus, Scandinavia, Great Britain, France, Germany, Italy, etc.
Montenegro, nestled in the heart of the Adriatic, boasts a stunning natural landscape, rich cultural heritage, and a burgeoning tourism industry. However, despite its potential, Montenegro faces challenges in marketing its offerings effectively. Previous marketing concepts have lacked coherence, resulting in fragmented messaging and underutilization of resources. Distribution channels remain underdeveloped, hindering the reach of Montenegro's tourism products to global markets. While the tourism market shows promise, trends indicate the need for strategic positioning and brand enhancement to remain competitive.
Through the implementation of the Marketing Strategy, Montenegro aimed to emerge as a premier tourism destination in the Mediterranean region. By leveraging its unique offerings and addressing marketing inefficiencies, Montenegro aspired to become synonymous with authenticity, adventure, and luxury. The envisioned future saw Montenegro positioned as a must-visit destination for travelers seeking diverse experiences, pristine nature, and immersive cultural encounters.
Positive aspects favoring Montenegro's vision included its natural beauty, cultural richness, and growing infrastructure. However, challenges such as seasonality, limited brand recognition, and marketing performance deficiencies hindered progress towards realizing the vision. Addressing these aspects required strategic interventions aimed at enhancing brand equity, improving service quality, and fostering collaboration across sectors.
A comprehensive SWOT/BSC matrix analysis identified twelve key issues plaguing Montenegro's marketing landscape. These issues, ranging from product diversification to budget constraints, underscored the multifaceted challenges confronting the nation's tourism industry. Strategic questions arising from these issues guided the formulation of the Marketing Strategy, necessitating solutions that drove market diversification, enhanced product portfolios, and mitigated seasonality-related fluctuations.
The Marketing Strategy for Montenegro was guided by a set of strategic imperatives aimed at catalyzing transformative change within the tourism sector. Market diversification and customer base expansion strategies sought to broaden Montenegro's appeal across diverse demographic segments. Emphasizing high net value experiences and service quality enhancement initiatives elevated Montenegro's position as a premium destination. Moreover, fostering cross-sector collaboration and upgrading marketing competencies were pivotal for enhancing Montenegro's competitiveness in the global tourism arena.
To translate strategic directives into actionable outcomes, a series of measures were delineated to address Montenegro's marketing challenges systematically. These measures encompassed initiatives such as brand revitalization campaigns, capacity-building programs, and stakeholder engagement forums. Furthermore, targeted utilization of EU funds facilitated the execution of the Marketing Strategy, enabling resource allocation towards priority areas and strategic markets.
A critical assessment of Montenegro's tourist organization system revealed opportunities for optimization and enhancement. Proposals for improving organizational structures, enhancing operational efficiency, and fostering synergy among stakeholders underscored the imperative for systemic reforms. Strengthening the capacity of tourism agencies and empowering local communities were integral to fostering sustainable tourism development and ensuring equitable distribution of benefits.
Recognizing the disparity in tourism development across regions, a dedicated support strategy aimed to bolster underdeveloped areas in Montenegro. Targeted interventions, including infrastructure upgrades, promotional campaigns, and community-based tourism initiatives, sought to unlock the untapped potential of these regions. By fostering inclusive growth and leveraging local resources, Montenegro endeavored to create a more balanced and resilient tourism ecosystem.
In conclusion, the Strategic Marketing Plan for Montenegro embodied a holistic approach towards revitalizing its tourism industry. Grounded in rigorous analysis and stakeholder consultations, the Strategy charted a path towards sustainable growth, enhanced competitiveness, and enduring prosperity for Montenegro's tourism sector. By embracing innovation, collaboration, and strategic foresight, Montenegro was poised to realize its vision of becoming a premier global destination for discerning travelers.
Another significant project I must highlight is the development of the Tourism Strategy of Municipality of Bar, my hometown, during my tenure as CEO of the Tourist Board. It was a challenging endeavor, especially given the circumstances of the COVID-19 period, yet it stands as one of the pioneering projects for my hometown, of which I am immensely proud.
Working on the Strategy demanded considerable effort, ensuring it met quality standards. The document itself is structured into three interconnected parts: Situational and market analysis, providing insights into our current status; Strategic framework of tourism development, outlining our desired direction; and Guidelines for tourism development with an action plan, charting how we achieve our objectives.
The Situational and market analysis objectively evaluated relevant factors for future tourism development, while the SWOT analysis laid the groundwork for the Strategic framework, defining principles for destination tourism development. Building upon this, we conceived not only a desirable concept for municipal tourism but also a strategy for future market communication, respecting the area's resources.
The third part of the document focuses on operationalizing the development concept, introducing measures to address weaknesses and bolster Bar's market competitiveness as a tourist destination.
I must acknowledge the significant support we received from the Institute for Tourism from Croatia during the strategy's creation. Additionally, an expert Commission, comprising representatives from the National Tourism Organization of Montenegro, the Ministry of Tourism, the Municipality of Bar, academia, and the Local Tourism Organization of Bar, ensured the quality of each phase of work.
I extend my heartfelt gratitude to the entire team involved in this project. It was a genuine pleasure collaborating with each of them.
Considering your executive participation in Tourism Councils at a local and European level, is there a difference in the way micro and marco organizations work? What is the key to properly address tourism destination management?
Certainly, there are distinctions between the operations and approaches of micro and macro organizations within the tourism industry, and understanding these differences is crucial for effective destination management.
Micro organizations, such as local tourism boards, operate at a smaller, more localized level. They focus on promoting tourism within a specific region, city, or community. Macro organizations, including DMOs, NTOs, and the European Travel Commission, operate at a larger scale. DMOs typically oversee tourism development within a specific destination or region, while NTOs and the European Travel Commission are responsible for promoting tourism at the national or continental level.
Micro organizations are often directly involved in product development and destination marketing, visitor services, event planning, and community engagement within their respective locales. Macro organizations have broader responsibilities, which may include strategic planning, policy development, marketing campaigns, industry research, and advocacy at the national or international level. They often collaborate with various stakeholders to promote tourism and enhance destination competitiveness.
Micro organizations typically have more localized decision-making processes. They may involve local government, community members, local businesses, and government representatives in planning and implementing tourism initiatives. Macro organizations operate with more centralized decision-making structures. They may involve government officials, industry leaders, and other key stakeholders in shaping national or regional tourism policies and strategies.
Micro organizations often have limited resources and capacity compared to their macro counterparts. They may rely on volunteer efforts, local partnerships, and modest budgets to support their tourism initiatives. Macro organizations generally have greater resources and capacity to execute large-scale tourism programs and initiatives. They may have access to government funding, international partnerships, and specialized expertise to support their activities. However, there can be exceptions to this rule. In some cases, city tourist boards may have more substantial budgets and resources than national tourism organizations. Certain cities or regions may prioritize tourism development and allocate significant resources to their local tourist boards to enhance their competitiveness in the tourism market. Cities with high levels of tourism may generate substantial revenue from visitor spending, accommodation taxes, or other tourism-related fees. Some of this revenue may be reinvested into local tourism initiatives, including marketing campaigns, infrastructure development, and visitor services, thereby bolstering the budget of city tourist boards. City tourist boards may establish strategic partnerships with local businesses, cultural institutions, and community organizations to secure additional funding and resources for tourism promotion and development. These partnerships can enhance the capacity of micro organizations to implement impactful tourism initiatives. In highly competitive tourism markets, cities may invest heavily in destination marketing and visitor services to attract tourists and differentiate themselves from rival destinations. This could translate into larger budgets and resources for city tourist boards compared to their national counterparts.
Micro organizations focus on promoting tourism within their local communities, enhancing visitor experiences, and supporting local economic development. Macro organizations focus on promoting tourism at the national or international level, increasing visitor arrivals, generating economic revenue, and enhancing the overall competitiveness of the destination.
In summary, while both micro and macro organizations play essential roles in destination management and tourism development, their approaches, responsibilities, and operating contexts differ significantly. Effective collaboration and coordination between micro and macro organizations are essential for achieving sustainable tourism growth, preserving cultural and natural heritage, and enhancing the overall visitor experience.
Due to your professional career, what are the game-changing characteristics of an innovative and functional idea in the hospitality & travel segment?
In the dynamic landscape of the hospitality and travel segment, game-changing characteristics of innovative and functional ideas often revolve around addressing evolving consumer needs, leveraging technology, sustainability, and fostering unique experiences.
Innovative ideas in hospitality and travel must prioritize understanding and meeting consumer needs and preferences. This involves personalization, seamless experiences, and anticipating traveler demands. Ideas that offer customized services, flexible booking options, and tailored experiences based on individual preferences stand out in the market.
Technology plays a pivotal role in transforming the hospitality and travel industry. Innovations such as mobile apps, AI-powered chatbots, virtual reality tours, contactless payments, and digital concierge services enhance convenience, efficiency, and guest satisfaction. Integrating technology not only streamlines operations but also enhances the overall guest experience, setting innovative ideas apart from traditional approaches.
With increasing environmental awareness, sustainability has become a critical consideration in the hospitality and travel sector. Game-changing ideas prioritize eco-friendly practices, reduce carbon footprints, and promote responsible tourism. Concepts such as green hotels, zero-waste initiatives, locally sourced amenities, and renewable energy solutions resonate with environmentally conscious travelers and contribute to a positive brand image.
In an era of mass tourism, travelers seek authentic and immersive experiences that go beyond conventional sightseeing. Innovative ideas focus on offering unique, off-the-beaten-path experiences, cultural immersion opportunities, and connections with local communities. This could include heritage tours, culinary experiences, homestays, and participation in local festivals and traditions.
Collaboration among different stakeholders within the hospitality and travel industry fosters innovation and enhances competitiveness. Strategic partnerships between hotels, airlines, tour operators, local businesses, and technology providers enable the creation of comprehensive travel solutions and seamless guest experiences. Collaborative ventures allow for the pooling of resources, expertise, and networks, leading to the development of groundbreaking ideas and initiatives.
The hospitality and travel industry is subject to rapid changes in consumer behavior, market trends, and external factors such as global events and regulations. Game-changing ideas demonstrate adaptability and agility in responding to emerging challenges and opportunities. Flexibility in operations, the ability to pivot strategies, and a culture of innovation enable businesses to stay ahead of the curve and maintain relevance in the evolving landscape.
In conclusion, innovative and functional ideas in the hospitality and travel segment embody consumer-centricity, technological integration, sustainability, authentic experiences, collaboration, and adaptability. By embracing these game-changing characteristics, businesses can drive growth, differentiate themselves in the market, and deliver exceptional value to travelers in a rapidly evolving industry landscape.
Lastly, I would like you to share your suggestions and insights in order to inspire young talents who would love to cover your position and become like you.
For young talents aspiring to a similar position, embracing the ever-evolving landscape of tourism and travel is key. Continuously expand your knowledge, communicate effectively, and diversify your skill sets to thrive in this dynamic industry. Stay adaptable, seek guidance from mentors, and let your passion for creating memorable experiences drive you forward. Cultivate meaningful connections, remain humble in your successes, and leverage technology to innovate while preserving the essence of travel and exploration.