Once a shimmering gem of Montenegrin tourism, the iconic Sveti Stefan city-hotel stands silent, with its doors closed for what may be the fifth consecutive summer. The cause? A bureaucratic stalemate gripping the fate of this historic site. Adriatic Properties, the leaseholder helmed by Greek businessman Petros Statis along with partners Aidway Investments Limited and Amanresorts Management, have extended an olive branch to Montenegro’s government in the form of a partial settlement offer and a plea to suspend arbitration proceedings. However, for over a month and a half, this proposal has floated unanswered in the halls of power, leaving the resort’s future uncertain.
The leaseholder consortium’s agreement, intended to breathe life again into the Sveti Stefan-Miločer hotel complex, was formally sent to the government awaiting approval. Despite the looming deadline of a main hearing scheduled at the International Tribunal in London on May 18—and impending arbitration meetings from May 2—Montenegro's officials, including the Prime Minister’s Office under Milojko Spajić and the Ministry of Economic Development helmed by Nik Gjeloshaj, have remained notably silent. This silence is no mere bureaucratic oversight; sources indicate that clear directives from the government to its legal team are crucial for requesting the suspension of the arbitration process. Without such guidance, the legal battle trudges on, and the storied halls of Sveti Stefan and the tranquil Villa Miločer are destined to remain shuttered.
The stakes for this elegant Adriatic retreat extend beyond mere hospitality preferences. The plan—if the stars align—was for Villa Miločer to swing open its doors on May 21, Montenegro’s Independence Day, followed by Sveti Stefan greeting guests by July 1. Yet, no bookings have been announced by Aman, the prestigious management company, signaling uncertainty that dampens hopes for a vibrant tourist season. Unofficial reports, marked confidential but widely circulated, reveal a tentative blueprint: an agreement crafted to not only open the famed resort this summer but also pause costly arbitration proceedings, providing a space for compromise and eventual harmony. Though cloaked in confidentiality, this proposal has faced neither public denial nor outright affirmation, underscoring the delicate negotiations underway.
This complex agreement isn’t the product of a simple handshake, involving a delicate web of stakeholders. Beyond the government and the Ministry of Economic Development, approvals are awaited from key state-owned entities—Sveti Stefan Hotels, HTP Miločer, HG Budvanska Rivijera—as well as the Municipality of Budva and the public enterprise Morsko Dobro, guardians of the region’s natural and cultural heritage. The proposal demands swift action: upon signing, within a day, both the state and private companies would submit a joint plea to the London Tribunal to pause arbitration while seeking a final resolution. Further commitments made by Statis’s enterprises include guaranteeing an annual operational period of at least eight months for Sveti Stefan and Villa Miločer, with a minimum of five months slated for this initial summer season. This promise not only signals economic revival but also aims to restore the charm and accessibility that have drawn travelers for decades.
Among the plan’s notable provisions is a thoughtful resolution to the controversial access issues surrounding Queen’s Beach—a flashpoint that ignited local protests in 2021 over restricted entry. Under the terms, the leaseholder may install gates and fences along the Miločer Park pedestrian path to regulate access to Queen’s Beach, reserving it exclusively for hotel guests between 8 AM and 9 PM, with public access restored afterward. This balancing act seeks to preserve the guest experience while respecting local residents’ rights, including permitting guided public tours of Sveti Stefan and the continuation of religious ceremonies on the island’s churches. Financially, the agreement aims to rescue state-owned companies from mounting debt exacerbated by unpaid rent, with Adriatic Properties agreeing to pay multiple quarterly installments—albeit with adjustments to the amounts based on court rulings around arbitration costs. Intriguingly, a new chapter may be on the horizon as tennis legend Novak Djoković has expressed interest in investing in the companies holding the long-term lease, potentially adding star power to this high-profile endeavor to reopen Sveti Stefan.
Sveti Stefan, often described as a "postcard-perfect" destination, isn’t merely a luxury resort; it’s an emblem of Montenegro’s cultural and natural allure. Perched on a tiny islet connected to the mainland by a narrow sandy isthmus, its pink-hued stone buildings blend seamlessly with the rocky landscape and turquoise Adriatic waters. Its origins trace back to a 15th-century fortified village that once provided refuge from pirates—today, it’s a haven for discerning travelers seeking exclusivity and charm. The on-off saga surrounding its operation highlights the broader challenges Montenegro faces in balancing heritage conservation, tourism development, and political-economic complexities. For locals and admirers worldwide, reopening Sveti Stefan would herald a return of a captivating experience, where history meets hospitality in an enchanting embrace under the Mediterranean sun.
In the grand tapestry of Montenegro's tourism legacy and future, the Sveti Stefan dilemma is more than a saga of legal wrangling; it encapsulates dreams of revitalization, identity, and prosperity. The intertwined roles of government authorities, private investors, and community stakeholders underscore the necessity of clear communication and coordinated action. As the May arbitration deadlines draw near, the world watches with anticipation. Will the ancient walls of Sveti Stefan once again echo with the laughter of guests sipping espresso by the sea? Will Novak Djoković’s famed dedication and competitive spirit inject new energy into this storied retreat? The answers remain just beyond the horizon, like the gentle waves lapping the shores of this captivating Adriatic jewel, waiting to wash away years of silence and bring renewed vibrancy to Montenegro’s tourism crown.
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