Herceg Novi: Where Tradition Meets Modern Development

Stevan Katić, Mayor of the Municipality of Herceg Novi

From fortresses and festivals to multimillion-euro projects, Mayor Stevan Katić outlines the path to year-round tourism and global recognition

Set at the entrance to the Bay of Kotor, Herceg Novi has undergone intensive development in recent years, confirming its status as one of the most dynamic towns on the Montenegrin coast. Thanks to a blend of rich cultural and historical heritage, natural resources and strategic investment, the town is responding ever more successfully to the demands of contemporary tourism and the international market.In a Diplomacy interview, the Mayor of Herceg Novi, Stevan Katić, discusses the town’s position on the Mediterranean tourism map, major infrastructure projects worth tens of millions of euros, the development of year-round tourism and the strengthening of the investment climate. He places particular emphasis on preserving the town’s authentic identity, valuing its cultural heritage and creating the conditions for Herceg Novi to be not only a desirable tourist destination but also a place to live, work and invest.Through the development of sustainable tourism models, the improvement of infrastructure, and strong cooperation between the public and private sectors, Herceg Novi seeks to further consolidate its position as one of the leading Mediterranean centres, offering a unique blend of tradition, culture, nature, and modern development.

Diplomacy&Commerce Montenegro - Stevan-Katić
Diplomacy&Commerce Montenegro – Stevan-Katić – Photo: Municipality of Herceg Novi, Vuk Ilić, Miloš Samardžić – 

HERCEG NOVI IN NUMBERS

• More than 120 million euros invested in development projects from the local and state budgets over the past several years

• More than 15 traditional festivals and dozens of cultural events annually

• The season runs from mid-March to November

• Among the ten towns in the region with the highest number of overnight stays by foreign tourists

• 89 churches and monasteries within the municipality

• Herceg Novi connects sea and mountains in just 30 minutes

• Projects worth tens of millions of euros underway – the bus station, the Igalo–Ilinica gondola, the revitalisation of the Španjola fortress and the local bypass

How would you assess Herceg Novi’s current standing as a Mediterranean tourist destination?

Herceg Novi holds an exceptionally significant place on the Mediterranean tourism map, above all thanks to the distinctive combination of its natural, cultural and historical resources. The meeting of diverse civilisational, architectural and cultural influences is evident at every step, attracting many foreign guests. As a result, Herceg Novi is once again on the list of the region’s most visited destinations.Its competitive advantage rests equally on the traditional model of its offering and on a diverse offering that encompasses cultural, health, nautical, and event tourism. Herceg Novi is recognised as a town of culture, festivals, and the Mediterranean way of life, which sets it apart from many destinations along the Adriatic. Accommodation capacity has been significantly expanded, both in private households and in the hotel sector – in four- and five-star establishments, including the world’s most prestigious hotel brands – thereby creating the conditions to receive a greater number of guests with different needs and interests throughout the year.Particular value is added to the tourism offer by Herceg Novi’s hinterland – the Orjen Nature Park, with its rich network of hiking trails, an adventure park, and eco-tourism offerings, which are very appealing to visitors who enjoy an active holiday and time spent in unspoilt nature.Herceg Novi – where you can travel from the sea to the mountains in a 30-minute drive – has exceptional potential to solidify further its position as one of the leading Mediterranean destinations.

Diplomacy&Commerce Montenegro - Herceg Novi
Diplomacy&Commerce Montenegro – Herceg Novi – Photo: Municipality of Herceg Novi, Vuk Ilić, Miloš Samardžić – 

What are the key development priorities for the municipality in the period ahead?

The strate gic development of Herceg Novi rests on the principles of sustainability, improving the quality of life for the local population, and enhancing the competitiveness of the tourism economy. Over the past several years, more than 120 million euros have been invested in projects funded by state and local budgets, indicating that, after decades of neglect, Herceg Novi has embarked on a path of robust development.Municipal and transport infrastructure has been modernised; public spaces, the promenade, parks and playgrounds, and sports infrastructure have been improved; and significant attention has been directed towards the valorisation of cultural heritage, the development of the creative industries, and the creation of conditions for year-round tourism.Particular focus has been placed on developing culture and sport, improving environmental standards, and implementing the principles of the green transition. The long-term goal is for Herceg Novi to be attractive to investors, high-quality for the local community to live in, and competitive in the international tourism market.

How does Herceg Novi balance the preservation of its cultural and historical heritage with contemporary tourism development?

In Herceg Novi, cultural and historical heritage is not regarded as a constraint on development, but as a strategic resource.The fortresses, old-town quarters, sacred buildings, and rich cultural tradition form the basis of the town’s identity and its greatest comparative advantage. We have put our fortresses to use as summer stages, among the most beautiful on the Adriatic. The house of the Nobel laureate Ivo Andrić is visited by an ever-growing number of tourists, and its garden hosts numerous cultural events. The Old Town is, in one part, the Square of the Book and, in another, the Square of Music. All of these are cultural monuments that represent a great development opportunity for us and tell the story of this region’s history. The Njegoš School in Toplo is a museum, and soon the Topla Komunitad complex will be one as well.

The medieval fortress Forte Mare has been given ambient lighting and an appearance befitting such an important cultural and historical monument, and this year it will be inscribed on UNESCO’s list of protected cultural assets of the Venetian period.Building development is unavoidable, but we are aware that the far more important ability is to preserve the town’s unique character and its truly great cultural wealth.

Diplomacy&Commerce Montenegro - Herceg Novi
Diplomacy&Commerce Montenegro – Herceg Novi – Photo: Municipality of Herceg Novi, Vuk Ilić, Miloš Samardžić – 

How important is tourism seasonality, and how can the season be extended?

Tourism is Herceg Novi’s strongest sector of development, which is why we work continuously to make the town an attractive destination year-round. Through carefully conceived events, we seek to reduce the effects of seasonality and attract visitors outside the main summer season. The results are already visible, as the season begins in mid-March and lasts until November, when hotel occupancy is excellent. The New Year programme, the traditional Mimosa Festival – which draws several thousand guests in February and March – and this year’s two-day programme marking the First of May have shown great interest in Herceg Novi throughout the year.

Which major infrastructure projects are currently shaping the town’s development?

By the end of 2026, the citizens of Herceg Novi can expect the completion – and the tangible effects – of several significant infrastructure projects that will, over the long term, improve the quality of life, transport connectivity, and the town’s tourism offering.One of these is the construction of the bus station and access road, with opening expected this year. This project will bring Herceg Novi the most modern and bestequipped station in this part of Europe – one that, given that we are a border town, will serve as a representative gateway to Montenegro. The investment is worth around 10 million euros.On the Luštica peninsula, exceptionally significant capital projects are underway that will contribute to the area’s valorisation, which represents great potential.As part of the multi-million-euro project to revitalise the Španjola fortress, which we are carrying out with the support of the Ministry of Culture and Media, the first phase of works will be completed by the end of the year, and the fortress will become a regional cultural hub as early as next year. The Horseshoe Tower is also being reconstructed and will be opened to visitors.A further addition to the tourism offer will be the Igalo–Ilinica panoramic gondola, worth around 10 million euros, and the Olympic swimming-pool project – befitting a sporting town such as Herceg Novi – has also been completed.Of significance, too, will be the construction of the local bypass, for which the design has been completed, and which will reduce traffic congestion along the Adriatic Highway.

What is your cooperation with state institutions and the private sector in the field of tourism like?

Contemporary tourism development is not possible without a strong partnership among local government, state institutions and the private sector. That is why we work continuously on joint planning, destination promotion and the creation of an investment climate.We have excellent cooperation with the private sector and strive, to the greatest extent possible, to accommodate investors ready to support the town’s tourism development. We are developing a partnership with them. Until about a decade ago, owing to poor privatisations, Herceg Novi could not boast a large number of hotels; now the situation is different, and we can take pride in the fact that this cooperation has resulted in several dozen small, medium-sized, and large hotels. For that reason, Herceg Novi is once again among the ten towns in the region with the highest number of overnight stays by foreign tourists.

Diplomacy&Commerce Montenegro - Herceg Novi
Diplomacy&Commerce Montenegro – Herceg Novi – Photo: Municipality of Herceg Novi, Vuk Ilić, Miloš Samardžić – 

Which segments of the tourism offer have the greatest potential for further growth?

Herceg Novi has exceptional potential for developing several high-value tourism segments – alongside the traditional offer, there is health and wellness tourism, thanks to the tradition of the “Dr Simo Milošević” Institute in Igalo and the region’s natural healing resources.There is also significant room for growth in nautical tourism, cultural tourism, the MICE sector (congresses, conferences and business events), and the active-holiday segment, which includes hiking, cycling and sporting activities. That is why we have begun arranging and marking hiking trails with expert guidance, a move that has generated great interest. Likewise, by improving infrastructure, we have created the conditions for the development of sports tourism. There is also growing interest in religious tourism, given that Herceg Novi has 89 churches and monasteries and is the town from which the recently canonised Saint Sebastian (Dabović), Saint Cyril (Cvjetković) and Saint Leopold (Mandić) hail. Today’s travellers increasingly seek authentic experiences, local gastronomy and cultural content, which allows Herceg Novi to develop sustainable and profitable forms of tourism that deliver greater added value.

How important are international festivals and cultural events to Herceg Novi’s recognisability?

Cultural events are among the most important elements of Herceg Novi’s identity. We are the town with the most festivals in Montenegro – more than 15 traditional festivals and dozens of cultural events offer something for all generations and a wide range of interests. We are especially pleased that this year the Herceg Novi Film Festival received accreditation from the International Federation of Film Producers Associations (FIAPF), placing it among only about sixty festivals worldwide with such status – a confirmation of its international reputation and significance.The rich festival scene continues throughout the summer. On 26 June, Bryan Adams will perform at Kanli Kula for the first time in Montenegro, while in August, audiences will have the chance to enjoy a performance by the world opera diva DiDonato as part of the Operosa festival. The renowned Guitar Art Summer Fest and the Herceg Novi Comic Festival are celebrating their twentieth anniversaries. We are also very proud of the reggae festival, the Square of the Book, the Days of Music, the Jazz Festival, the Square of the Cyrillic Script, and numerous other events that further confirm that Herceg Novi has the content and energy to be an attractive tourist destination year-round.

How do you see the town’s future development in the context of competition in the Adriatic region?

For Herceg Novi to maintain its position as one of the most attractive towns on the Adriatic, we must preserve an authentic identity rooted in natural beauty and rich cultural heritage while continually enriching and expanding the tourism offering.I believe that Montenegro’s further progress on its European path will further strengthen Herceg Novi’s position and open new development opportunities. The completion of the capital investments currently underway and the realisation of those planned will improve transport connectivity and the quality of life for citizens.I consider it particularly important to bring back into use the tourism capacity that has been out of operation for years due to unsuccessful privatisations. The opening of new hotels and the development of additional tourism content will help extend the season and enhance the town’s competitiveness in the regional market.As the largest municipality in the Bay of Kotor, Herceg Novi has the potential to become a modern regional centre. Our goal is to sustain this trend and create the conditions for Herceg Novi to be a town where people come to live, work, invest and rest.

What message would you send to investors and tourists considering Herceg Novi as a destination?

Herceg Novi is a town – as many artists have written – “to which it is easiest to belong,” one you leave “with a dazzled soul,” unique in many respects. Writers, poets and visual artists worked and lived here; it is the home of our Nobel laureate Ivo Andrić, the place where Bishop Njegoš was educated, and the town of famous counts, sea captains and benefactors. In Herceg Novi, you will feel the Mediterranean atmosphere, the hospitality, the culture, the nature, and a sense of belonging to a place that has, for centuries, been a meeting point of civilisations. It is precisely in that unique combination of tradition and modernity that the greatest strength and the future of Herceg Novi lie. The town offers stable development potential, growing international recognition, and the opportunity to invest in projects aligned with the principles of sustainability and long-term value. For several years now, it has been attractive to investors because we have managed to create such an environment. I tell them that Herceg Novi remains open to quality investment and concrete projects that contribute to the town’s development.

THE VISION OF HERCEG NOVI

“Our goal is for Herceg Novi to be much more than a seasonal tourist destination. We want a town that attracts investors, offers a high quality of life for the local population, and represents a recognisable centre of culture, sport, and sustainable development on the Adriatic.Through the preservation of cultural heritage, the development of modern infrastructure, the extension of the tourist season and the creation of a favourable investment climate, we are building Herceg Novi as a place to which people come to live, work, invest and rest.”

Stevan Katić, Mayor of the
Municipality of Herceg Novi