ABACO participates in public consultation on Draft Law on Tourism and Hospitality
September 02, 2025.
ABACO participates in public consultation on Draft Law on Tourism and Hospitality
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ABACO has actively contributed to the public consultation process initiated by the Ministry of Tourism concerning the Draft Law on Tourism and Hospitality, published on 10 June 2025.
In its submission, ABACO raised formal objections and provided targeted recommendations regarding the regulation of yacht chartering activities, with particular focus on Article 70 of the Draft Law. The firm emphasized that the proposed restriction—limiting chartering activities exclusively to yachts registered in the Montenegrin Yacht Register—directly contradicts Article 35(3) of the Law on Yachts (Official Gazette of the Republic of Montenegro No. 46/2007 and Official Gazette of Montenegro Nos. 40/2011, 42/2015, and 16/2016), which permits Montenegrin-registered companies to charter both domestic and foreign-flagged yachts.
Additionally, ABACO referenced Article 6 of the Law on the Sea (Official Gazette of Montenegro Nos. 17/2007 and 6/2008), which stipulates that cabotage—defined as the transport of goods and passengers between domestic ports—may only be conducted by vessels, yachts, or boats of Montenegrin nationality. However, the Ministry of Maritime Affairs may grant cabotage approval to foreign yachts for the transport of persons between domestic ports if justified by Montenegro’s economic interest.
ABACO warned that such inconsistencies undermine the legal certainty required for the sustainable development of the nautical tourism sector and could significantly impair Montenegro’s competitiveness as a nautical destination. The firm noted that the seasonal and cross-border nature of yacht chartering makes the proposed re-registration requirement economically impractical and discouraging for foreign operators.
Furthermore, ABACO objected to the Draft Law’s requirement that service providers in nautical tourism be registered as Montenegrin legal entities. We argued that this measure is economically unjustified and administratively burdensome, proposing instead that tax compliance be ensured through the appointment of a tax representative, as provided under Article 26 of the Law on Tax Administration (Official Gazette of Montenegro Nos. 65/2001, 80/2004, 20/2011, 28/2012, 8/2015, 47/2017, 52/2019, and 145/2021).
The firm also highlighted practical challenges in the legal entities registration process, including delays and inconsistent requirements imposed by local authorities, which further hinder the development of yacht chartering in Montenegro.
To address these issues, ABACO proposed a comprehensive legal framework aimed at harmonizing the Draft Law with existing maritime legislation and international best practices. Key elements of the proposal include:
- Unrestricted chartering of Montenegro flagged commercial yachts by domestic entities, subject to compliance with the Central tourism register.
- Chartering of foreign-flagged commercial yachts permitted upon obtaining cabotage approval under the Law on the Sea, either by domestic legal entities or foreign operators via a tax representative.
- Cabotage approval for domestic legal entities to be limited to the duration of the bareboat charter agreement.
- Cabotage approval for foreign operators to be valid for one year, contingent upon the prior appointment of a tax representative responsible for VAT compliance.
- Issuance of cabotage approvals based on annual quotas and yachts length restrictions to safeguard domestic operators.
ABACO believes that the proposed amendments to Article 70 would enhance Montenegro’s appeal as a competitive and investor-friendly nautical tourism destination. Abaco remains committed to supporting legislative reforms that promote sustainable growth and legal clarity in the maritime sector.