Mixed Use Resorts in the Context of Sustainable Tourism Development (Case: Montenegro)

Abstract

This paper examines the phenomenom of mixed use resorts as a contemporary form of development of accommodation industry. The aim is to precisly define this type of resort, to represent some succesful models in the world and to consider the challenges of sustainable development of this type of accommodation facilities. In particular, we analyze the first international project of mixed use resorts in Montenegro, known as Lustica Bay. Sustainability of a concrete example is analyzed in terms of the Stategy of sustainable tourism development of Montenegro and theoretical aspects of the sustainability of tourism development. Tourism development is accompanied by the problem of insufficiency of financial resources for development. Credit and equity financing have their constant limitations regarding the extent of capital and cost of credit funds. Therefore, it is combined with a model of real estate sales, which, in good part, would be involved in the operational business of mixed use resorts. These restrictions are even more emphasized in Montenegro, as a country in transition. When we add to that the lack of the necessary infrastructure to support foreign investors (capable and efficient administration, flexible urban plans, well-explored areas in terms of sustainability, credible domestic developed companies-local developers who could be reliable partner for foreign investors and so on), then it is clear that in the last 2-3 decades, weekend flats and houses (second homes) are incomparably more rapidly built than the hotels, resorts and similar objects which have the greatest impact on the economy and society. This paper identifies the main challenges and threats of such development, where mixed use resorts are often abused as an entry ticket for the development of new resorts for sale instead of new accommodation facilities for tourism economy. The challenges of a selected case for research suggest a concrete manifestation of generally identified problems and development threats.