Tourism Investment Climate Diagnostic for the International Finance Corporation’s Foreign Investment Advisory Service (FIAS)
What: In response to a request from the Government of Montenegro, the FIAS mini-diagnostic tool was applied to conduct an incisive assessment of the investment climate in Montenegro – which brought together a multi-disciplinary team of experts and that drew on a range of existing resources and analyses to:
– assess the legal framework for doing business;
– identify the main policy and regulatory impediments to private investment;
– propose options for designing reform solutions; and
– develop a framework for possible follow-up advisory work.
Given the importance of the tourism sector in Montenegrin economy, the diagnostic was conducted with a special tourism focus.
In particular, the project examined the relevant policy and regulatory constraints facing tourism investors/operators in Montenegro both to highlight the impact of such constraints on Montenegrin business environment and to underscore the importance of addressing them in order for Montenegro to compete successfully in its strategic sectors.
The Government identified tourism as Montenegro’s most important industry and recognized the sector as the main provider for its overall development. Using tourism as an entry point to address economy-wide Business Enabling Environment (BEE) issues is thus another way to ensure commitment to reforms.
The project was designed to include institutional strengthening, organizational change, and capacity building. A critical element of the strategy for overcoming the short-term capacity constraints requires resources for engaging suitably qualified and experienced local consultants, engaging in a well-orchestrated, adequately-resourced, and technically sound capacity building and knowledge transfer activities, and building in a process of transferring responsibilities to trained staff.