New tender rules for beach rentals, which include three times higher prices, caused fierce debates between local tenants and the Montenegrin Government.
Several ministers also expressed dissatisfaction, warning that they may leave the Government.
The loudest reactions were in Ulcinj - a city in southern Montenegro, inhabited by an Albanian majority.
Ulcinj tenants believe that with the new prices, it is impossible to do business, as they will make the tourist offer more expensive.
Deputy Prime Minister and Minister of Economic Development, Nik Gjeloshaj, told Radio Free Europe on February 17 that, due to the Government's decision, ministers from the Albanian Forum will reconsider their further participation in the Government by the end of the month.
The new rules for renting out beaches were approved by the Government of Montenegrin Prime Minister Milojko Spajic, despite the objections of coastal municipalities and without consulting economists.
Minister of Spatial Planning, Urbanism and State Property, Slaven Radunović, from the Democratic Front, said that the new rules will establish order in a sector where decisions have been made by "bandits".
He said that beach rentals in Ulcinj, until now, were half of the real ones.
This was followed by a protest by three Ulcinj tenant associations on February 14.
Their representatives described the Government's decision as the biggest economic blow to the city.
They called on Radunović to apologize for characterizing the entire sector as "criminal."
They were also supported by the mayor of Ulcinj, Genc Nimanbegu.
The 300-kilometer coastline is one of Montenegro's most valuable resources. The country expects to earn between 15 and 30 million euros this year from renting it out.
It is managed by the public enterprise "Maritime Assets", which in the tender announced on February 16, also allowed participation by persons against whom legal proceedings are underway.
Minister Radunović said that such an action "respects the Constitution and the presumption of innocence."
Radunović: Semi-mafia situation
The Montenegrin coast has 563 city beaches, 70 hotel beaches and around 1,500 temporary facilities in the "Marine Goods" area.
Announcing the tender for their four-year leases, Minister Radunović said that the situation in this sector is "semi-mafia-like".
“So far, 30 percent [of the tenants] have been from criminal circles, but the businesses have been run by their relatives - sisters, aunts,” Radunović said on February 12th.
According to him, there have been cases where "the tenant has paid around 20 thousand euros for the beach and has earned a million", as well as cases of reselling the lease.
Radio Free Europe asked Minister Radunović to explain these claims.
"We have all witnessed the 2019 procedures and the pressure exerted on bidders," he said in response, without providing further details.
That year, the Democratic Party of Socialists (DPS) was in power in Montenegro.
But she was dismissed a year later, in 2020, and parties led by the Democratic Front, of which Minister Radunović is also a member, took power.
This area has been under their jurisdiction for four years now.
"The greatest responsibility for this situation should certainly lie with the then leadership of the Ministry and 'Maritime Assets'," said Radunović's cabinet, in response to Radio Free Europe's question about their responsibility for the situation in this area.
Radio Free Europe sent the same question to "Maritime Goods", but received no response.
The Prosecution Office also did not comment on the minister's assessment of the influence of criminal structures on beach rental.
The case of Ulcinj
As the biggest problem, Radunović mentioned Ulcinj, where, as he said, rents were paid for half of the actual beach area.
The ministry published this information recently, even though the geodetic survey was carried out in the summer of 2023.
The Ministry told Radio Free Europe that they did not react at the time so as not to jeopardize the tourist season and that they waited for the tenants' contracts to expire.
Xhavid Hodzic from the Ulcinj Beach Owners Association says that the difference in square footage was due to different calculations of the beach's width.
Previously, the width was about 46 meters, but now it is 76 meters and includes the free part of the beach, Hodzic explains to Radio Free Europe.
This is a part of the beach that renters must leave free for those who do not want to use the beach furniture.
Hodzic says it will be impossible to do business with the new rental prices.
For example, he says, the beach rental of 41 thousand euros last year, with the new rules has a starting price of about 115 thousand euros.
He emphasizes that this is only part of the investment, to which must be added preparations for the season, furnishing, utility services, and more.
The President of the Ulcinj Beach Tenants Association, Prelë Shkrela, believes that the Government's decision aims to "declassify Ulcinj's beaches."
He considers claims that millions can be made from this business to be incorrect.
"We have a 60-day summer season, weather permitting. There is no beach that can make a million euros in two months - especially with low-budget guests, as we mostly have," says Shkrela.
Last year, prices for two sun loungers and service on Ulcinj beaches went up to 20-25 euros.
"We are extremely angry and shocked because the minister called us 'semi-mafia'. He insulted the whole of Ulcinj," says Shkrela.
"There are family businesses here, people who work with their wives, children... These are honorable families, who work hard to earn money," says Hodzic.
Disagreements in the Government
The tenants were also supported by the mayor of Ulcinj, Genc Nimanbegu, who sent a letter to Prime Minister Spajic, in which he said that Ulcinj "is being plundered by centralist and anti-citizen politics."
According to him, the Government's sudden and hidden decision did not have the consent of the coastal municipalities.
Even within the Government itself, not everyone agreed with the tender decision.
The ministers from the Democratic Party did not vote, while the Deputy Prime Minister and Minister of Economy, Nik Gjeloshaj, and the Minister of Public Administration, Marash Dukaj, were against.
The Minister for Human and Minority Rights, Fatmir Gjeka, did not vote.
The Chamber of Commerce and the Association of Municipalities also lined up on the side of the tenants.
Minister against returning powers to municipalities
The Government of Montenegro also has contradictory positions on the amendments to the Law on Maritime Property, which are currently in process.
With these changes, coastal management would return to the jurisdiction of coastal cities.
Spajic agreed that local leaders should manage their own property, but Radunovic said this would be “catastrophic”.
"A large part of these tenants are people from the semi-grey area and the municipalities would hardly be able to withstand the pressure from them," said Radunović.
The changes to the law were initiated in mid-December last year by six coastal municipalities, under whose jurisdiction coastal management was until 1992, when, on behalf of the state, they took over the "Maritime Assets".
The Parliament of Montenegro must decide on their initiative./ REL (A2 Televizion)
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