The country of the fastest growing tourism in the world

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The country of the fastest growing tourism in the
world
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Experience the wild beauty

• In one day, the curious traveler can have a
  coffee on one of the numerous beaches of the
  Budva Riviera, eat lunch with the song of the
  birds on Skadar Lake and dine next to a fireplace
  on the slopes of the Durmitor Mountain.
• A large number of sunny days in summer and a
  large quantity of snow in winter determine the
  two most developed forms of tourism in
  Montenegro the coastal one- in summer and the
  ski recreational one - in winter

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Basic information

• The Montenegrin coast is 293 km long with 73 km
  of beaches spread over 117 locations.
• Highest mountain - 2.522 m (Durmitor, Bobotov
  kuk)
• Border crossingsAlbania - Bozaj and
  SukobinBosnia and Herzegovina - Sitnica, Vilusi,
  Scepan PoljeCroatia - Debeli brijeg
• Ports Bar, Budva, Kotor and Herceg Novi
• Airports Podgorica and Tivat (Cilipi - Croatia)

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WTTC The Tourism in Montenegro

• On the WTTC rang list takes the first place as
  the long term, the fastest growing tourism
  economy as well as China and India it is on the
  top of the list of 174 countries for four years
• Forecasting annual growing rate 10,1 in the
  following decade
• WTTC forecasts Montenegro will reach through
  tourism and other related sectors 1.8 billions
  in 2017, according to the aggregate demand
• http//www.visit-montenegro.com/article895.htm

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Tourists mix in 2006

• (1)
• Source Ministry of Tourism

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• (2)
• Source Ministry of Tourism

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Expected tenders

• Institut Simo Milosevic AD Igalo
• HTP Budvanska Rivijera AD Budva
• HTP Ulcinjska rivijera A2/ Ulcinj
• Ada Bojana

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Tourist places breathtaking beauty

• Budva is the metropolis of Montenegrin tourism
  thanks to the great number of beaches that make
  this a most desirable tourist destination. Apart
  from its natural beauty, Budva is rich in
  historic monuments.
• The Budva coast is 21 km long with 17 beaches.
• It is among the most beautiful coasts in the
  world and its beauty will not leave you
  indifferent

One of the most precious gifts of nature to
Montenegro is peninsula Sveti Stefan.
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KOTOR

• Located along one of Montenegro's most beautiful
  bays is Kotor, a city of traders and famous
  sailors, with many stories to tell.
• The Old City of Kotor is a well preserved
  urbanisation typical of the Middle Ages, built
  between the 12th and 14th century. Medieval
  architecture and numerous monuments of cultural
  heritage have made Kotor an UNESCO listed World
  Natural and Historical Heritage Site".

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Biogradska Gora

• The beautiful Biogradsko lake is situated in the
  heart of the primeval forest, the biggest and the
  best known in the range of the glacial lakes on
  the NP territory. The entire beauty of an old
  forest is reflected on the clean lake water
  giving it a blue-green colour.

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Lovcen

• Situated in the southwest of Montenegro, it rises
  from the borders of the Adriatic basin closing
  the long and twisting Bokas bays and making the
  hinterland to the ancient coastal town of Kotor.
• Lovcens area abounds in numerous elements of
  national construction. The old houses and village
  guvna are authentic as well as the cottages in
  katuns summer settlements of cattlebreeders

The biggest monument of NP Lovcen is
NjegosMausoleum, risen at Jezerski vrh (Lake
Crest), a place where laid to rest Petar II
Petrovic Njegos the most important Montenegrin
ruler and poet
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Skadarsko Jezero

• The largest Lake on Balkan Peninsula.
• Keep the contact with the Adriatic Sea through
  the River Bojana.

The numerous cultural-historical monuments this
area represented a significant cultural center.
Skadar Lake is a bird paradise for almost 264
bird species. In Europe, the rare Dalmatian
pelican (Pelecanus crispus) has become the symbol
of the Lake and Skadar Lake National Park.
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Durmitor UNESCO WORLD HERITAGE(NATIONAL PARK)

• skiing snowboarding, rafting, orienting,
  extreme sports
• Tara - Canyon of the wild and untamed beauty of
  the Tara River second largest in the world, after
  the Colorado River canyon

TARA - Tear of Europe
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Foreigners treatment

• Foreign companies in Montenegro are guaranteed
  equal legal treatment as local ones. Foreign
  investor can operate in Montenegro either as a
  legal entity or as a natural person. The term
  foreign investor applies to a company that has
  been founded by a foreign person in Montenegro or
  a foreign legal entity whose share of investment
  capital is higher than 25 of total capital
  invested in Montenegro.
• There is no limit of amount of invested capital.
  Foreign investors are allowed to invest in any
  industry and freely transfer all financial and
  other assets, including profits and dividends.
• Foreign investors can acquire rights to real
  estate, such as company facilities, place of
  business, apartments, living space or
  construction land. All major national and
  international investment insurance companies
  insure investment projects in Montenegro.

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Competitive tax system

• TAX
  TAX RATE
• VAT
  Standard rate 17
• 
  Lower rate 7
• 
  Zero rate 0
• Corporate Profit Tax Flat rate 9
  
• Personal Income Tax Flat rate- 15
• Property Tax
  Proportional tax
  ranging between
  0.08 - 0.8 of the immovable
  propertys market value

• Montenegros tax regime has become one of the
  most competitive in whole of Europe. With 9
  corporate profit tax rate companies operating in
  Montenegro enjoy not only a business friendly
  environment but also a low tax burden, thus
  maximizing their operational profit.

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Skilled labor force

• For a country of 620 000 inhabitants, Montenegro
  can offer highly skilled labor at competitive
  costs. Every year, around 1300 students graduate
  from universities and colleges in Montenegro, out
  of which 1/3 come from technical universities.
• Montenegro introduced Bologna Declaration into
  university education since 2004.  25 of public
  expenditure goes for education. Not only
  Montenegro boasts modern skilled and productive
  workforce but also provides access to some unique
  qualifications, such as maritime industry skills.
  Foreign languages are widely spoken due to highly
  developed tourism industry and dual competences
  (technical/business linguistic skills) are not
  uncommon.

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Major macroeconomic data

• Overview of the main macroeconomic indicators in
  Montenegro, in this section you can find the
  table of macroeconomic indicators from 2001-2006.
• http//www.mipa.cg.yu/pages/why/macroeconomicdata.
  php

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Investment incentives

• What are tax incentives in Montenegro?
• Tax credits The amount of tax due can be
  reduced by 25 of the amount invested in fixed
  assets for the respective tax period. This
  reduction cannot exceed 30 of the total tax
  liability.
• Incentives for non-developed areas (Northern part
  of the country) - New founded companies, in the
  area of production, are corporate tax-free during
  the first three years of operation.
• Carrying Loss - Losses resulting from business
  relations, excluding those resulting in capital
  gains and losses, may be transferred forward to
  offset profit generated in future calculations
  periods, but not exceeding five years.
• Incentives for new employment - The Law provides
  tax relieves on the basis of hiring new
  employees.Tax base shall be reduced to a taxpayer
  who hires new employees for a permanent
  employment in a business year, but not less than
  two years, by gross salaries of such employees
  plus pertaining contributions for compulsory
  social insurance paid by employer. This tax
  relief shall be applied for a period of one year
  from the day of hiring a new employee.
• Investments in securities If profit from
  capital investment is used for purchase of new
  securities, such profit is not taxable under to
  condition that it is reinvested within 12 months
  from its arising.  Profit from sale of securities
  held by a taxpayer for more than two years in his
  portfolio is exempt from taxation.
• (1)

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• What are custom tariff incentives in Montenegro?
• Import of raw materials one does not have to
  customs for raw materials in case that one will
  export finished products made by imported raw
  materials. For this, it is necessary to have
  approval for this procedure by authoritative
  custom- house.
• Import of equipment as the equity of foreign
  investor one does not have to pay customs, but
  one has to pay VAT. It is necessary that user of
  this right hand in the appeal with ascribable
  certificates by authoritative custom- house,
  which make decision about liberate of customs.
• No exports custom one does not have to pay any
  custom on exported goods, but one has to pay VAT
  by rate of 0, by the Law on VAT. This means that
  one paid VAT on raw materials, and than when he
  exports finished products he does not pay VAT,
  and you have right for refunding VAT on raw
  materials.  
• (2)

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Free trade agreement

• CEFTA Agreement and Free trade agreement with
  Russia
• Companies operating in Montenegro take the
  advantage of a duty free access to the South East
  market the fastest growing market in Europe.
  Free regional agreements have been signed
  Albania, Bosnia and Hercegovina, Croatia, Serbia,
  Macedonia, Moldova and Umnik Kosovo, granting
  free access to markets of some 30 mil people.
  These eight countries signed an agreement on
  amendments and accession to CEFTA and after its
  coming into force in 2007, they will accede to
  the consolidated version of CEFTA 2006, which
  gives access to a market of 30 million consumers
  in South Eastern Europe.
• A free trade agreement signed with Russia in 2000
  makes Montenegro an especially attractive place
  to foreign investors and manufacturers as it
  gives goods produced in Montenegro with
  prevailing value added in Montenegro a free of
  customs access to Russia a market of some 150
  mil additional consumers. Montenegro is alons
  with Serbia the only country in the Balkans and
  South-Eastern Europe that has concluded the free
  trade agreement with Russia.
• (1)

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• Agreement with EU countries
• The EU has taken steps to stimulate exports of
  countries in the region through the establishment
  of autonomous trade preferences (ATP) that
  provide duty-free entry for over 95 of goods.
  Exemptions include wine, meat and steel. Products
  originating from Montenegro are generally
  admitted for import into the European Union
  without quantitative restrictions and are
  exempted from customs duties and charges. The
  products exempted from the free import regime are
  agricultural products, baby beef products and
  textile products.
• Agreement with EFTA countries- Switzerland,
  Norway, Iceland, Liechtenstein
• A preliminary declaration of cooperation was
  signed with EFTA in December 2000, pledging
  asymmetrical treatment of Serbian and Montenegrin
  products in the markets of the four member
  countries. This declaration has paved the way for
  a future free trade agreement between EFTA and
  Montenegro. At the first official meeting of the
  working group in September 2001, EFTA has
  ascertained its commitment to following the
  dynamics of the liberalization of Montenegro
  trade with the European Union.
• (2)

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Market access

• As a logistic base, Montenegro is an excellent
  place for companies supplying their products to
  EU countries, South-East Europe or Middle Eastern
  Customers. Transportation possibilities by land,
  air and sea make a unique mix of logistic options
  allowing Montenegro based companies to supply
  their customers on a just-in-time basis.
• Just-in-time supply to UK customers quotation of
  DAIDO METAL.
• Mr. Kiminori Shigemitsu, President of Daido Metal
•  
• Montenegro has concluded four multi-lateral free
  trade agreements with the European Union (EU)
  countries, European Free Trade Association (EFTA)
  and Central European Free Trade Agreement (CEFTA)
  and Free trade agreement with Russia.
• These free trade agreements give Montenegro
  access to more than 650 million consumers.

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Safe and stabile

• Over the past few years Montenegro has developed
  into a stable democratic country with a fast
  growing market economy. The youngest independent
  country of the 21st century, Montenegro severed
  its remaining ties with Serbia in May 2006 and
  became a sovereign country taking a full
  responsibility of its future development. Open
  economy and business-friendly environment has
  become one of the cornerstones of Montenegrin
  economic policy.
• With growing GDP and falling inflation rates
  Montenegro has enjoyed a healthy economic
  development over the past five years and became
  one of the top economic performers of the region.
  For more detailed macroeconomic indicators, visit
  section Major Macroeconomic data.
• (1)

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Montenegro received a positive assessment of the
countrys feasibility study for concluding the
Association Agreement with the EU. The agreement
was signed in May 2007, while preparations for
full EU membership are planned to be over by
2013. Montenegro credit rating raised from BB to
BB (2)