Government of Montenegro plans to stop sale of public funds at the Institute. Dr. Simo Milosevic in Igalo no later than the end of 2022, in accordance with the action plan of the adopted Program for the Development of Health Tourism (PRZT).
“Health tourism products in Montenegro mainly depend on the institute, numerous dental clinics, hotels with health and spa services, as well as national parks and protected areas. In addition, health tourism represents an added value to the overall tourism offer, with an emphasis on positioning Montenegro as a year-round tourist destination, ”reads the document from the Ministry of Economic Development.
Institute income
According to the PRZT indicators, in 2019 the institute earned 11,812 million euros. Of this amount, 6,039 million is an inflow foreign guests - a whopping 2,88 million for Norwegian patients, accounting for 47,71 percent of revenue from overseas markets or 24,15 percent of total realized revenue in a record tourism year.
Montenegrin service users generated revenues of € 5,773 million, with a predominant € 3,327 million coming from the Health Insurance Fund - 57,63 percent of domestic market revenue or 27,89 percent of total revenue in 2019.
In the institute's strategy (S3) for the period from 2019 to 2024, a special chapter is devoted to health tourism based on the principles of sustainable development.
It emphasized the need to modernize and improve the institute in order to become a leading center for medical rehabilitation and physiotherapy of diseases of the musculoskeletal system, not only in the region, but also in Europe.
“The Institute, with a 70-year tradition, has been recognized as the leading institution for 'export-oriented' year-round health tourism in high-paying emission markets that need to be rebuilt and strengthened,” concluded S3.
To achieve this success, it is recommended, among other things, to improve the therapeutic and rehabilitation methods of treating diseases of the musculoskeletal system using biomechanics and nanotechnology. It is planned to invest 60 million euros on such a transformation of the institute, which will give at least twice the income.
But such investments are likely to wait a few more years. Namely, by the end of September next year, a new feasibility study for future investments in our most important and largest health tourism destination, located in Igalo, is to be completed, for which 30 euros will be allocated.
In addition, another 3000 euros will be allocated to analyze the existing training and determine the needs for professional staff of the institute. According to the action plan, all funds are intended for this wellness center near Herceg Novi.
Activity plan
Although health tourism stands out as an exceptional and underutilized potential of our country, its real development in the next few years will obviously be reduced to the possible arrival of a foreign investor who, with his investments, will make this segment of the tourist offer more attractive. ...
"For the implementation of the PRZT action plan, 1205 million euros are needed, of which 1,1 million euros - or 91,29 percent - are loan funds, and 105 euros - budget funds," the document says.
It is planned that all objects and institutions, whose services are included in the offer of health tourism, by the end of next year will receive accreditation and certificates for the performance of their work. They will, of course, have to pay from their own funds, and the government and the Ministry of Economic Development are offering loans totaling up to one million euros, with the Investment and Development Fund as assistance. The same credit institution will lend 100 euros to small domestic producers for the development of production and marketing of medicinal herbs and mud.
Incomparably less money will be allocated from the state budget. In addition to the total amount allocated to the Institute of 33 euros, the creation of tourism products that will include health services - and vice versa - will be completed for 000 euros.
The largest amounts are planned for visiting specialized fairs and conferences abroad, as well as organizing the same events in Montenegro in order to promote health tourism - 30 euros from the state budget for both types of activities.
“In 2024, health tourism in Montenegro, based on public-private partnerships with the hotel business and related suppliers of products and services, will become one of the most important segments of the year-round supply in Montenegro, accompanied by health tourism. have developed tourism products intended for health tourists and their companions, ”reads the PRZT conclusion.
Health tourism
It is estimated that health tourism brings in up to US $ 86 billion worldwide. In the countries of the European Union, revenues are estimated at about 47 billion euros, accounting for 4,6 percent of total tourism revenues and 0,33 percent of GDP.
“If we apply the data of the EU research, Montenegro will receive 50,6 million euros annually from health tourism. However, a more realistic estimate would be that in 2019 they will amount to 0,33 percent of GDP or 16,17 million euros, ”the document says.
In addition, it should be noted that 494 companies with 2676 employees carry out activities related to the health sector, with total revenues of 52,95 million euros, but also with a loss of 4,4 million euros. From the municipalities, the largest inflow goes to Podgorica (27,8 million) and Herceg Novi (13,2 million euros), while profits go to Podgorica, Budva and Bar. Hospitals (23,4 million), specialist clinics (11,1 million) and dental surgeries (8,9 million euros) have the highest income, while specialist clinics (1,5 million euros) are the most profitable.
