Visit-Montenegro.com : Hoteliers Should Also Decrease their Prices

Podgorica – “Government of Montenegro is well-aware of the fact that the global financial crisis would also have impact to tourism in Montenegro and it is taking measures to minimize its’ consequences”, “Vijesti” have been told.
Government claims that requests from the hoteliers are, partially, justified, but that also they have to take measures and deal with the consequence of the crisis.
Hoteliers have demanded the decrease of prices for flight-tickets of “Montenegro Airlines”. They have also requested subvention or, possibly, tax deductions which would allow them to prepare and manage the season in the quality manner.
These requests have been presented by the hoteliers at a meeting which took place at the Ministry of Tourism on Monday, when parties also agreed to form teams which would seek for the model which would decrease the scopes of the crisis.
Among other issues, sides also agreed to postpone making public statements until their next meeting and synchronize approach to the public. Despite this agreement, several hoteliers have informally told “Vijesti” what has been requested from the state and “Montenegro Airlines” and warned about the crisis and what might happen if no counter-measures were taken.
On its’ side, government warns that all sides must make concessions, including the hoteliers, who cannot simply demand decrease of prices on the side of “Montenegro Airlines”, while they would keep the prices of accommodation and other hotel services on the same or higher level.
“Prices need to be formed in an adequate way and need to correspond with the current moment and quality of service. Hoteliers need to question their prices and economical sustainability of their prices. State is prepared to help with everything. This is already being done. Taxes in tourism amount to seven percent and is the lowest rate in the region.
As of January, income taxes will decrease from 15 to 12 percent and would be further decreased to reach nine percent in 2010.
Income taxes are lowest in the region. As of January, payments for the building sites in urban areas would also be revoked, in accordance with the new Law on the Building of Objects and spatial management.
Other measures will also be considered, but no one should push for loses and budget must not be placed into jeopardy”, “Vijesti’s” source from the government said.
According to our source, government and “Montenegro Airlines” have come up with the model which would allow opening of new flights to European capitals. Prices of tickets would be acceptable.
“National carrier will, most certainly, consider bringing of tourist groups, at more favorable conditions”, government officials claims, adding that “it was not the moment to be political, to satisfy individual vanities, or to fulfill someone’s political ambitions, but it was time for team-work.”
Several hoteliers advocated the idea to form a new airline which would be founded by them. Source added that the Feasibility Study for this project has already been completed. What is also demanded is opening of the market for low-cost airlines.
“Vijesti’s” interview partner from Djukanovic’s administration says that the state would greet the foundation of such airline, if there was economic rationale behind it. This source also claims that “low cost airlines are facing their financial problems and that they were not interested in Montenegrin market, as it was too small”.
Government believes that Montenegrin tourism would show positive trends during the next year, although it might show lower dynamics of growth.
“We should not think that everything is so bleak. There is a crisis, but it will have to end. Montenegro is a small country and it is highly adjustable. And, this is our advantage in this type of situations”, government sources emphasize, claiming that “they will not give up on the envisaged strategy for the development of tourism.”
“State and the economic subjects must work and go public together, in synchronicity, both in the direction of our public and foreign markets”, our interview-partner has concluded.
(7 November 2008)

By: Z.V.