Creative Industries Montenegro: A Blend of Tradition and Modernity

Global Development Montenegro at Red Yellow Blue (RYB)

Creative industries in Montenegro are an emerging force in the country’s economic and cultural landscape. Known for its stunning natural beauty and rich history, Montenegro is leveraging its cultural heritage and modern innovation to build a dynamic creative economy. From fashion and film to crafts and digital arts, the creative industries are gaining prominence as a driver of growth and cultural identity.

Flag of Montenegro

A Foundation in Heritage and Tradition

Montenegro’s creative industries draw heavily from its deep cultural roots, with influences from its Slavic, Ottoman, and Mediterranean past. Traditional crafts such as textile weaving, pottery, and wood carving remain integral to the cultural identity of Montenegro and are increasingly being incorporated into contemporary design and art.

Creative Industries Montenegro, Budva

Key Sectors of the Creative Economy

  • Fashion and Textiles
    Montenegro’s fashion scene is growing steadily, with local designers gaining recognition for their unique blend of traditional motifs and modern aesthetics. Events like the Montenegro Fashion Week provide a platform for emerging talent and established designers to showcase their work. The use of local materials and craftsmanship in fashion is also gaining traction, with a focus on sustainability and slow fashion.
  • Film and Television
    Montenegro’s picturesque landscapes, ranging from coastal towns to mountainous regions, have made it an attractive destination for film productions. The country has hosted several international projects, including major movies and TV series. The Montenegro Film Festival, held annually in Herceg Novi, celebrates local and international cinema, fostering growth in the domestic film industry.
  • Music and Performing Arts
    Music is a vital part of Montenegrin culture, with traditional folk music and modern genres coexisting harmoniously. Events like the KotorArt Festival and the Sea Dance Festival attract international audiences and showcase local talent. Theater and performing arts are also thriving, supported by institutions such as the Montenegrin National Theatre in Podgorica.
  • Crafts and Design
    Montenegro’s traditional crafts are finding new life in contemporary design. Artisans and designers are collaborating to create products that appeal to both local and international markets. From handmade jewelry to ceramics, these crafts reflect Montenegro’s cultural heritage while embracing modern design trends.
  • Digital Arts and Gaming
    The digital arts and gaming sectors in Montenegro are still in their infancy but show significant potential. Young creatives are exploring opportunities in animation, graphic design, and game development, often collaborating with international companies or using global platforms to showcase their work.

Trends and Challenges

Montenegro’s creative industries are benefiting from a growing focus on sustainability, with many creators incorporating eco-friendly practices into their work. However, challenges such as limited funding, inadequate infrastructure, and a small domestic market persist. Efforts to promote creative industries internationally and attract investment are essential for overcoming these obstacles.

Cultural Tourism and the Creative Economy

Cultural tourism plays a significant role in Montenegro’s creative economy. Tourists are drawn to the country’s festivals, art galleries, and craft markets, providing a platform for local creatives to showcase and sell their work. Initiatives to link cultural heritage with tourism are helping to boost the visibility of Montenegro’s creative industries.

The Future of Creative Industries in Montenegro

Montenegro’s creative industries have immense potential to contribute to the country’s economic growth and global identity. Investments in education, infrastructure, and technology will be crucial in fostering innovation and supporting young talent. Collaborative efforts between government, private sector, and creatives can further strengthen the sector and position Montenegro as a hub for creativity in the Balkans.

Montenegro’s creative industries are a vibrant reflection of its cultural heritage and modern aspirations. As the sector continues to grow, it offers exciting opportunities for economic development, cultural preservation, and global recognition. Through fashion, film, music, and more, Montenegro is carving out its place in the regional and international creative economy.

Population: 599,849
Capital: Podgorica; note – Cetinje retains the status of “Old Royal Capital”
Internet country code: .me

Economy

upper middle-income Balkan economy; unsanctioned euro user; controversial religious property ownership law; persistent corruption; major infrastructure investments and high expenditures; growing offshore banking destination

Montenegro’s economy is transitioning to a market system. Around 90% of Montenegrin state-owned companies have been privatized, including 100% of banking, telecommunications, and oil distribution. Tourism, which accounts for more than 20% of Montenegro’s GDP, brings in three times as many visitors as Montenegro’s total population every year. Several new luxury tourism complexes are in various stages of development along the coast, and a number are being offered in connection with nearby boating and yachting facilities. In addition to tourism, energy and agriculture are considered two distinct pillars of the economy. Only 20% of Montenegro’s hydropower potential is utilized. Montenegro plans to become a net energy exporter, and the construction of an underwater cable to Italy, which will be completed by the end of 2018, will help meet its goal.

Montenegro uses the euro as its domestic currency, though it is not an official member of the euro zone. In January 2007, Montenegro joined the World Bank and IMF, and in December 2011, the WTO. Montenegro began negotiations to join the EU in 2012, having met the conditions set down by the European Council, which called on Montenegro to take steps to fight corruption and organized crime.

The government recognizes the need to remove impediments in order to remain competitive and open the economy to foreign investors. Net foreign direct investment in 2017 reached $848 million and investment per capita is one of the highest in Europe, due to a low corporate tax rate. The biggest foreign investors in Montenegro in 2017 were Norway, Russia, Italy, Azerbaijan and Hungary.

Montenegro is currently planning major overhauls of its road and rail networks, and possible expansions of its air transportation system. In 2014, the Government of Montenegro selected two Chinese companies to construct a 41 km-long section of the country’s highway system, which will become part of China’s Belt and Road Initiative. Cheaper borrowing costs have stimulated Montenegro’s growing debt, which currently sits at 65.9% of GDP, with a forecast, absent fiscal consolidation, to increase to 80% once the repayment to China’s Ex/Im Bank of a €800 million highway loan begins in 2019. Montenegro first instituted a value-added tax (VAT) in April 2003, and introduced differentiated VAT rates of 17% and 7% (for tourism) in January 2006. The Montenegrin Government increased the non-tourism Value Added Tax (VAT) rate to 21% as of January 2018, with the goal of reducing its public debt.