Montenegro’s Minister of Economic Development, Jakov Milatović, sent a letter to representatives of the hotel operator Aman, which manages a chain of hotels including the island of Sveti Stefan and the Miločer villa, as well as to the tenant Adriatic Properties, expressing his expectation that the hotel facilities will be opened in the near future.
In the letter, Milatović recalls that in the previous period he had intensive talks with representatives of the local community and the Municipality of Budva. Jakov Milatović is convinced that a final solution will be reached through ongoing dialogue with the local community.
Reasons for the closure of the Sveti Stefan resort
A month ago, Aman announced that it would not reopen the exclusive Sveti Stefan and Miločer resort. This was confirmed by Adriatic Properties, as well as by businessman Petros Stathis, who announced his departure from Montenegro and the launch of international arbitration.
One of the main reasons is that the hotel operator Aman and Adriatic Properties cannot guarantee peace and privacy for their guests, which is the core concept of the Aman hotel chain, because the local residents of Sveti Stefan and Pržno are seeking free access to Royal Beach (Kraljeva plaža) and Queen’s Beach (Kraljičina plaža). These beaches had been leased for several decades together with all hotel amenities.
Let us recall that prices for a stay at Royal Beachstarted at 120 eurosper season. The price included two sun loungers and an umbrella. A stay next door, at Queen’s Beach, cost slightly less — 100 euros. For guests staying at the Aman Sveti Stefan hotel, admission was free.
Meanwhile, workers were sent on leave, offered severance pay, and it was made clear that they were looking for jobs in other hotels. The department headed by Milatović was actively involved in resolving the issue.
Milatović’s letter is addressed to Aman and Adriatic Properties representatives Roland Fazel and Goran Benkunn:
“It was a pleasure to meet you and discuss all the issues related to Aman at the meeting we held on May 24 at the Ministry of Economic Development.
Let us recall that, in the hope that we would find a solution to the disputed issues, the Ministry of Economic Development organized another meeting on June 9, to which representatives of Aman and Adriatic Properties were invited, as well as representatives of Sveti Stefan, the local community, the Municipality of Budva, the management company Morsko Dobro, and the Ministry of Ecology, Spatial Planning and Urbanism.
Unfortunately, despite the fact that you confirmed your attendance, representatives of Aman and Adriatic Properties did not come to the meeting, and this meeting became another opportunity for an open and constructive conversation with all interested parties.
Representatives of the local community spoke about the problems they and their guests face when it comes to the Sveti Stefan complex (including Queen’s Beach). According to them, these violations and the lack of constructive dialogue with Aman representatives have led to isolated incidents.
After the meeting, representatives of the local community issued a press release stating that they would do everything possible not to jeopardize Aman’s business and that it would continue to operate as it had until now,” Milatović said in a letter published byVijesti.
As he notes, the Ministry of Economic Development considers this a gesture of goodwill and a clear sign that the local community is also interested in Aman remaining in Montenegro.
“In this sense, I want to take this opportunity to once again confirm our Ministry’s strategic commitment to being available to all investors.
This means that the Ministry of Economic Development will act within its competence to meet investors’ expectations, while strictly respecting the laws of the state of Montenegro, which guarantee peaceful possession and the exercise of contractual rights.
Thus, the Ministry of Economic Development indemnifies the lessor against all claims for damages or claims on any other legal basis brought by third parties, if such actions are contrary to the law or to the Lease Agreement for the Sveti Stefan and Miločer hotels in Budva,” Milatović added.
“Please note that the Ministry of Economic Development has the ability and obligation to protect only those rights provided for in the Lease Agreement, which is why we consider it extremely important to maintain ongoing dialogue with the local community in order to reach a long-term solution to any disputed issue.
Given the above, including the fact that there is no force majeure, which you mentioned in your previous communication and which was clearly confirmed in the statement of the local community, the Ministry of Economic Development expects the facility to be opened and put into operation as soon as possible,” Milatović concludes in the letter.