Foreigners to pour some EUR 2.5 billion in Bay of Kotor by 2019

Montenegro, although it does not have big coast, is trying to attract foreign investors and luxurious yachts with marine development, Financial Times report. It is estimated that foreign investments in Bay of Kotor in the next five years total even EUR 2, 5 billion. In order to attract world yachting elite, the Montenegrin government, decreased value added tax (VAT) on marine services from 19 to 7%.

- Investors are offered everything possible - Financial Times reports.

As reminded, tender for maintenance of the old shipyard in Bijela is ongoing and the Italian and the Dutch investors are announcing investments of minimum EUR 15 mil. The shipyard will offer services of yacht repair and equipping.

Montenegro started with the strategy of attracting rich visitors and investors in 2006 when the marine basis in Tivat was sold to Canadian billionaire, Peter Munk, who built the Porto Montenegro marine. The Regent , hotel will open this year and it is the first international hotel brand in the bay.

- Up till now, Munk’s consortium has sold 130 suites in Venetian style and the risk paid off for investors because in four years time, the value of their property increased for 60 to 70%. For example, 48 suites in a new Ksenija facility, which will be completed by the next summer, sell well although they are not cheap at all – it is written in the text.

Services which the marine provides are common ones ranging from cleaning and sales of vignettes to pizza delivery to a ship. Prices are, however, the same as in the north Adriatic and even lower than the ones at the Mediterranean.

Yacht fans in Montenegro can buy customs-free fuel which is a saving of some 40%, provided that the yacht with foreign flag leaves Montenegrin waters temporary within 24 hours as of the fuel injection moment.

- On the trail of the Porto Montenegro marine success, another big project funded by Azmont Investments is underway. It is located at the second side of the Bay of Kotor, near Herceg Novi. . On an area of 25 ha, a marine which will be able to host other yachts up to 250 meters long will be built here and 100 suites and 40 villas will also be constructed. The project should end by 2016 – the Financial Times reports in the article it published.