TOURISM DEVELOPMENT MONTENEGRO – CRUCIAL CHALLENGE WITHIN THE STRUCTURAL CHANGES IN ECONOMY

Implementation of structural changes in the Montenegrin economy was to enable productivity growth in all economic sectors. Previously realized structural changes with the aim of a more efficient market economy in Montenegro were mainly based on changes in the neighbouring countries. However, since each economy has its own particularity, the implemented changes still have not ensured balance in the total economy, competitiveness of the national economy and economic stability. This paper aims to explore the extent to which the state engaged in taking adequate measures to improve investments in tourism and accompanying infrastructure enabling its influence on structural changes in the total economy, its long-term sustainability, and economic stability. Since tourism generates 20% of GDP and 18% of employment, the role of the state is crucial when making rational solutions from the aspect of total economic activities. Therefore, the competitive advantage of Montenegro as a tourist destination can be increased if tourism development is encouraged by systematic measures.