Milos Popovic, CEO of Ski Resorts of Montenegro – Millions in investments in ski centers, over 50 hotels to be raised on mountains

After 30 years, Montenegro got a new ski center, Kolasin 1600, in 2019. It was built in line with the most modern international standards and its infrastructure is constantly being upgraded.

Considering that, the previous year was very successful for the Ski Resorts of Montenegro, the company's CEO, Milos Popovic, said in his interview with eKapija. However, when it comes to investments in ski centers, the plans don't end there. Important projects are in progress in Montenegro, and once they are realized, the ski resorts in Montenegro will be competitive with the most developed ski centers in Europe.

eKapija: The beginning of 2020 was marked by the lack of snow on mountains throughout the region. How has this reflected on the operations of ski centers in Montenegro? What are your expectations until the end of the winter season?

– The fact is that there was not enough snow for safe skiing and for putting the ski resorts into operation at full capacity, which has of course had an impact on the results of all ski resorts, not just in Montenegro, but in the region as well. However, we can look at each winter season, this one included, from several angles – financial, technical and commercial.

From the financial angle, the planned results for January do not match the real ones and are lower by slightly over 50%, but we certainly expect to largely compensate for it by the end of the winter season. From the technical angle, we can say that there have not been any problems when it comes to the infrastructure of the ski resorts. From the commercial angle, we emphasize that a rich music, entertainment and sports program has been prepared for the entire winter season and that it is being realized.

Considering the lack of sufficient amount of snow for safe skiing, until February 6, the Troglava ski lift has been repurposed as a panoramic ski lift, with all the other features of the ski center, with a special focus on the Troglava restaurant, which is owned by the ski center. Over 5,000 tickets have been sold for panoramic rides, and on the day of the opening, an additional 500 free panoramic rides were realized. In early February, we put the ski lift in the function of skiing, just like the Vranjak track, which is 1,750 meters long. Since that day, attendance has been very high, and on weekends there are more than 1,500 skiers and more than 3,000 guests who enjoy, in addition to skiing, in the Troglava 5 facility, the highlights of Bjelasica and the rich entertainment program. On work days, we have around 200 visitors.

eKapija: In what way can the current state of things be improved, seeing how we are increasingly affected by the consequences of global warming and that there are warnings that winters will feature less and less snow?

– It has been shown throughout history that such weather conditions have occurred before, making the winter season gain some features of the springs, which is not good for us tourist workers from northern Montenegro. However, even if the climate is changing everywhere in the world, historical indicators show that, after such unfavorable seasons, each next season features more favorable weather. Regardless of such circumstances, we must be ready for these weather conditions and we will address the problem by implementing a snowing system.

eKapija: How many snowing systems does Montenegro have? Are additional investments in these systems planned?

– The construction of all new ski centers is planned in two phases. The first phase entails the works on the construction of a road infrastructure with a parking area, a base station (construction of structures with accompanying features), the primary power network, the hydrotechnical and TC infrastructure, a sufficient number of ski lifts, ski tracks along the ski lift, as well as the procurement of the necessary mechanization and equipment. The second phase entails the works on covering the tracks with snow (construction of artificial lakes, the necessary infrastructure and a snowing system). In Kolasin, through the capital budget for 2020, the construction of a water supply system for the Kolasin 1600 location and the ski tracks, as well as the designing and construction of a snowing system, are planned.

Also, in 2020, tendering procedures for the construction of an artificial lake and the procurement of the accompanying equipment for the snowing of a part of the tracks at the ski center Kolasin 1600 will open. The realization of the entire project will create conditions for the functioning of the ski center in a full or limited capacity in unexpected weather conditions in winter months, as is the case this year everywhere in the world.

eKapija: In the past few years, there have been considerable investments in the development of ski centers. What are the most important projects at the moment?

– The realization of the project of construction of new ski centers and reconstruction of the existing ones, as well as the construction of the priority highway section, which will make the area much more accessible, will secure a more even regional development, the creation of new jobs, increased attractiveness of the whole area for local and foreign investors and further investments in tourism, agriculture, energy, water management, wood processing and other industries which depend on the development of tourism. Montenegro will substantially upgrade its tourist offer and be able to meet the growing demand as a year-round tourist destination.

Also, the plan for this year is to open the tendering procedure and implement the largest bobsled system in this part of Europe, tubing tracks and a rotondo park, which will substantially improve the offer in the summer season. Furthermore, this year, the plan is to connect Kolasin 1600 and Kolasin 1450 ski centers, whereby we will get 45 kilometers of ski tracks within a single, unified ski center in the territory of the municipality of Kolasin.

The next ski centers to open are Cmiljaca and Zarski, which will be merged into a single ski center with around 35 kilometers of ski tracks.

eKapija: At what stage are the works on Cmiljaca and Zarski and when can their opening be expected?

– The realization of the first phase of the construction of the Cmiljaca ski center has been estimated at EUR 23 million, and more than EUR 17.5 million has been contracted so far. The ski center is expected to open by the end of 2021. An amount of EUR 8 million has been set aside for the construction of a new six-seat ski-lift with 3 kilometers of ski tracks, and the tendering procedure for the construction of base stations structures, worth 1.8 million, is in progress, as are the works on the construction of an access road from Bijelo Polje to the ski center and the TC and power networks.

In this period, we will build another six-seat ski-lift and a minimum of 15 kilometers of ski tracks which will connect Zarski and Cmiljaca, making for a profitable ski center with 35 kilometers of ski tracks.

As for the Zarski ski center, which is also expected to open in 2021, the estimated value of the realization of the first phase of the construction is EUR 27 million, of which more than 16 million is contracted at the moment. A total of EUR 9 million will be invested in the construction of a new six-seat ski-lift, and 2 million has been set aside for 10 kilometers of ski tracks. The base station facility is worth EUR 1.5 million. The works on the construction of an access road between Mojkovac and the ski center and the TC and power networks are in progress.

eKapija: Are there enough accommodation capacities on Montenegrin mountains and are new investments being planned when it comes to the construction of hotels?

– The Government of Montenegro is working on improving the offer when it comes to the accommodation capacities. The construction of base areas is planned in all ski centers. Within these base areas, in line with the Special Purpose Spatial Plan for Bjelasica and Komovi, a total of 53 classical hotels, 28 boarding houses, a hostel, 22 bungalows and a mountain home will be built in the territory of Bjelasica.

The agreement on the construction of a full base area has been signed for the Kolasin 1600 ski center location. Four hotels worth EUR 77 million will be built within this base area, and the first hotel, worth 12.5 million, with a capacity of 430 beds, should be built within four years.

As for the base area of Kolasin 1450, an agreement was signed on the construction of two category 4 hotels, with another one of the same category to be built in the municipality of Mojkovac. An agreement on the construction of two category 5 hotels, Aman and Chedi, in the municipality of Zabljak, was signed as well. Seen through the development of tourism, the entire investment should contribute infrastructurally to the further development of tourism by attracting local and foreign investors in the construction of hotels, apartments and other hospitality facilities with all the accompanying features.

We emphasize that, to the end of a full valorization of the project and the development of northern Montenegro, the government has provided additional benefits through the program of economic citizenship for all foreign investors and through the business policy of the Investment Development Fund of Montenegro, which offers special credit lines for the development of tourism infrastructure in the north, with the most favorable interest rates in the market.

eKapija: What is the position of the centers of the Ski Resorts of Montenegro compared to ski centers in Europe? What are our advantages and what are our shortcomings?

– Considering all the previously cited information – the construction of the highway, the availability of the coast to ski resorts, the fact that the visitors can get to the beach from the highest Montenegrin mountain peaks in only two hours, it's not surprising that The Guardian included Kolasin among the ten best small ski resorts in Europe, which only proves the kind of potential it has. All ski centers will be modeled after the Kolasin 1600 ski center with the most modern infrastructure, whereas the hospitality facilities will be built in line with the most modern architectural standards, fitting into the landscape of Bjelasica.

We thereby want to emphasize that the entire ski center system will be competitive in terms of technology, services and features it offers. It's important to note that, after the completion of the project on Bjelasica, around 224 kilometers of ski tracks will be built. The price policy will be set and adjusted during and after the project, with the aim of contributing to the competitiveness of the offer compared to ski centers in Europe.

eKapija: Mountain centers are increasingly more oriented to providing rich content in both the summer and the winter season. Are the Ski Resorts of Montenegro ready for the summer season? Which features will you offer to the tourists?

– The plan for Kolasin 1600 entails the implementation of features which are usable in the summer and the winter, namely, the bobsled, the snow tubing park, the snow rotondo, bicycle lanes, a zipline, playrooms for children, routes for hiking etc. The Ski Resorts of Montenegro are already working on planning events and defining the calendar for the summer season 2020, which would attract a large number of local and foreign guests, and which we will publish in late May. In addition to the regular services for the summer season, offered by Kolasin 1600, the Ski Resorts of Montenegro will expand their offer by organizing team building activities at the ski center itself, organized field trips tied in with the offer of Kolasin 1600 and other, natural, cultural and entertainment features such as the Djurdjevic bridge on the Tara, Lake Biogradsko etc. There are also various outdoor activities such as hiking, biking, quad safari, jeep safari, mountaineering, camping. With this project, Montenegro will substantially improve its tourist offer and be able to meet the growing demand of the visitors as a year-round tourist destination.

eKapija: In addition to this, what are other plans of the Ski Resorts of Montenegro for the upcoming period?

– In line with the business policy of the Government of Montenegro, the Ski Resorts of Montenegro and the Public Works Directorate, as an organ which is in charge of realizing the capital budget in line with the Budget Law, works on all ski resorts are planned within the first phase of the realization of the construction and development of the infrastructure of the ski resorts.

At the Kolasin ski center, works worth more than EUR 30 million have been contracted so far, and around 17 million worth of works have been realized so far, namely, the construction of a 2-km access road, a parking area for skiers, a base station, the most modern six-seat ski-lift with 6.5 kilometers of ski tracks, and all the necessary side equipment has been procured as well. Agreements on the construction of another 6 km of ski tracks worth EUR 1.2 million, a new six-seat ski-lift worth EUR 9 million, and additional 10 kilometers of ski tracks, with Kolasin 1600 and Kolasin 1450 to be connected, have been signed. A parking area for 1,600 vehicles, worth EUR 10 million, will be built in the Kolasin 1450 location. Compared to the current infrastructure of Kolasin 1450, we will have 45 kilometers of ski tracks in the location next year.

The realization of the first phase of the Hajla and Stedim ski center, which is expected to open in late 2021, is estimated at EUR 18 million, and over 13 million has been contracted so far. The plan is to build a new six-seat ski-lift worth EUR 9 million. The works on the construction of an access road from Rozaje to the ski center and the TC and power networks are in progress. Also, a tendering procedure for the construction of 6 kilometers of ski tracks and a base station estimated at EUR 1 million is being prepared.

The Savin Kuk ski center on Durmitor currently has 5 ski-lifts which serve around 5 kilometers of ski tracks. An investment estimated at EUR 27 million is planned for the development, reconstruction and extension of the current ski resort, of which more than 15 million has been contracted and partially realized. The works entail the construction of a new six-seat ski lift worth EUR 9 million with 4.5 kilometers of ski tracks, the construction of a part of a new access road of 1.5 kilometers and a parking area worth EUR 450,000. The agreement on the construction of an access road from the ski resort to the regional road Niksic-Zabljak, worth EUR 1.8 million, has been signed. An artificial lake worth EUR 3.2 million has been built as well.

There are also the investments in ski centers Cmiljaca and Zarski, and after all the started and planned projects are realized, the ski resorts will become a new pearl of Montenegro, recognizable in the international tourist scene, and one of the best destinations in the region.

Dragana Obradovic

Miloš Popović

Kolašin 1600

Kolašin 1450

Žarski ski resort

Cmiljača ski resort

Hajla ski center

Štedim ski center

Savin Kuk ski center

Durmitor

Bjelasica

Komovi

construction of a ski resort

construction of ski centers

construction of ski tracks