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Montenegro – a challenge to mighty Monaco?

Then came the war, old sport…I was promoted to be a major, and every Allied government gave me a decoration—even Montenegro, little Montenegro down on the Adriatic Sea!” Tom Buchanan’s words have been immortalized in F. Scott Fitzgerald’s novel, The Great Gatsby.

And as a result, for generations of readers, the sovereign state of Montenegro, or rather, “little Montenegro,” as Buchanan sardonically calls it, became known as the ultimate cast-off country, more for a novel than for a nation, reports express.hr

Yet those words were written nearly a century ago, and much has changed since the summer of 1924, when Fitzgerald was sitting in the French Riviera to write his most famous novel, writes architecturaldigest.com

Like most nations that have experienced the carnage of war, Montenegro is a complex place. Bearing in mind the that the war finished less than three decades ago and that it gained independence from Serbia in 2006, we might say Montenegro is not only complicated but unusually as well. Yet, things are on the rise in this tiny Balkan country, writes express.hr

What contributes the most are the country’s stunningly beautiful mountains and lakes, as well as the coastline along the Adriatic Sea, but also friendly people and warm Mediterranean climate. In fact, it’s not just about the unspoiled terrain, ample sunlight, and hospitable locals that have made Montenegro an exciting travel destination but also a bevy of newly renovated and constructed luxury hotels and restaurants, which have made some call Montenegro the next French Riviera.

And while the Côte d’Azur is alluring for countless reasons, parts of southern France have lost their charm, mainly due to the endless stampede of tourists coming to soak up the legendary sun. Montenegro, on the other hand, has the same incredible local cuisine, wines, and splendid natural beauty of the Riviera —yet it hasn’t forfeited its soul with an influx of visitors from other countries.

Montenegro’s greatest industry is tourism, but that doesn’t mean one will be swarmed by travelers taking pics and crowding every inch of the beach. To this end, the country has spent the past decade proving that they don’t merely want to attract bunch of people from around the world, but rather those travelers looking for high-end getaway. One of the most convincing signs of Montenegro’s bright future comes with the landmark, such as Porto Montenegro. Completed in 2009, Porto Montenegro is a beautiful yacht marina that was primarily financed by the Canadian billionaire Peter Munk (rumors say he saw the plot of earth while flying over it in an airplane and he knew he had to build sth spectacular on it).

But, comparisons with Monaco are not what Porto Montenegro wants to achieve. There’s much more beyond it.

“No, we don’t like being compared to Monaco,” says Kai Dieckmann, general manager of the Regent Porto Montenegro, the first five-star property in Boka Bay.

“If you ask me, Monaco has lost its soul—there’s no real atmosphere there anymore. But in Montenegro, we have natural beauties, incredible food and wine that are both locally grown, and friendly people. We don’t need this country to be a tax haven to attract visitors; they will come here without that,” says Dieckmann.

The tax reliefs Dieckmann is referring to date back to the late 19th century, when Monaco first ceased to collect income taxes on its residents. It was enough for a person to live in Monaco for six months and one day each year, in order to be considered a legal resident).

Dieckmann’s words certainly sound convincing, as investors have swooned over property within the Regent Porto Montenegro (87 rooms can be rented as hotel rooms, while 62 can be purchased), buying apartments quicker than the hotel can build the new ones (the property is currently constructing a new wing of residences located on the water, expected to be completed by mid-2019).

The attraction for investors isn’t merely the yacht club at their doorstep but also the nearby town of Kotor. Located some seven miles from Porto Montenegro, the ancient town is incredibly charming (so much so that it’s a UNESCO World Heritage site). Locals and visitors alike can enjoy the small alleyways that climb up to a number of churches, shops, and restaurants.

Construction of Porto Montenegro maybe represents the best example of how times have drastically changed in the Balkan country. Indeed, the waters used by Porto Montenegro to berth their 450 yachts at any given time was the exact same area once used by the Soviets to build and maintain ships of war (the group plans to expand the number of berths to 850).

But that doesn’t mean Porto Montenegro is going away from its history. On a plot of land that could easily have been torn down and used for any number of profit-seeking adventures, the group has stationed an old Soviet submarine (which can be toured) as well as a museum that explains the history of the country from the mid–19th century to modern times. Porto Montenegro is so proud of its history, in fact, it held the country’s first-ever international fashion show.

While Montenegro can be a newly discovered gem for many everyday Westerners, it has a rich past in hosting some of the greatest celebs in history. Sveti Stefan, for example, was a favorite hotel for such luminaries as Sophia Loren, Marilyn Monroe, and others. Owned by the prestigious Aman Group, this island-hotel was built within the existing foundation of a 16th-century village that was originally erected by local Montenegrins who were outrunning the Ottomans. Today, rooms within this five-star hotel still keep much of the original architecture. As a result, the door frames to certain rooms may be awkwardly small. But guests who might bump their heads are rewarded when looking out their bedroom window to unobstructed views of the Adriatic.

For decades, much of what makes the French Riviera such an attractive location (including, of course, the climate, culture, and scenery) is that it’s a very comfy environment to live in. For any man thinking about moving to another country, crime rate is certainly an issue taken into serious consideration.

In this sense, Montenegro actually goes beyond European countries such as France, according to ranking list from the 2018 Global Peace Index, which takes into consideration such indicators as relations with neighboring countries, terrorist activity, and crime rates.

But this doesn’t mean Montenegro isn’t a risk for investors. Even though it has taken serious steps to ensuring greater stability and promising economic future (such as recent accession to NATO, which represents one step closer to joining the European Union), there’s still much work to be done.

And as the old saying goes, where there’s risk, there’s also reward, and it’s evident that there are many people in the world who are betting big on Montenegro’s success in near future. It’s not uncommon to travel through the scenic little villages along the Adriatic coast (such as Kotor or Budva) and see high-end homes being built in the surrounding mountainsides.

Yet, unlike St. Tropez, Cannes, or Monaco, many of these massive estates do not have roads leading to them but rather dirty paths, seriously needing repair.

In fact, Montenegro is the only country in Europe that doesn’t have a highway and not a single McDonald’s. The lack of a highway leaves many government officials nervous about their fate in an increasingly globalized economy.

However, the government recently signed a multibillion-dollar deal with the Chinese government to build a highway that would span some hundred miles of road. This massive project will link the port city of Bar with the Serbian town of Boljare. Due to the many lakes and mountains making Montenegro’s diverse landscape, this route currently takes approximately four hours to complete.With the new highway, however, the drive would be cut in half

The terms of the agreement for this Chinese-funded highway are such that if Montenegro won’t be able to pay the roughly $3.2 billion back by 2040 (at a 2% rate of interest), then the Chinese government will be authorized to seize certain parts of Montenegro’s territory. Such are the risks some investors are willing to take with this small, beautiful coastal country. Who knows?

With Montenegro’s current dynamics in building luxury hotels and its ability to attract deep-pocketed investors, maybe in the not-so-far future the roles will be reversed: A young novelist will sit at a table and, in his or her book, write a scene involving splendors throughout “high-class Montenegro.”

 

 

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