Illegal yacht charter operations along Montenegrin coast will be sanctioned without exception

At the initiative of Milutin Butorović, President of the Coordination Body for the coordination and monitoring of inspection supervision, a coordinated operation aimed at combating illegal yacht charter operations, known as “Black Charter”, was launched on 10 June.

The joint operation involved the Tourism Inspection, the Tax Inspection, and the Maritime Safety Inspection, with the objective of suppressing the grey economy and ensuring a level playing field for all entities operating in accordance with the law.

During the operation, a total of 30 inspections were carried out. Thirteen irregularities were identified, 12 misdemeanor orders were issued, while in two cases warnings were issued requiring the correction of identified deficiencies. The total amount of fines imposed reached nearly EUR 23,000.

It is particularly important to emphasize that the amount of these financial penalties resulted from the detection of illegal business activities, namely activities conducted within the grey economy and outside the framework of legally prescribed obligations. This once again confirms the determination of the competent authorities to combat illegal operations and protect the interests of all businesses that operate lawfully.

During inspections and the collection of operational intelligence, inspectors obtained information indicating the presence of a significant number of luxury yachts being illegally chartered within the waters of the Bay of Kotor. According to the information gathered, bookings for certain vessels are arranged through a contact telephone number registered in London, further highlighting the need for intensified inter-institutional cooperation and enhanced monitoring of potential forms of cross-border and illegal business activities in this sector.

According to available market data, daily charter rates for luxury yachts range from approximately EUR 3,000 to as much as EUR 22,000 per day, depending on the type and category of the vessel. Given the level of revenue generated, the illegal conduct of such activities causes multiple forms of damage to the state, which is deprived of substantial budget revenues through unreported and unpaid tax liabilities. At the same time, unfair competition further undermines businesses that operate in compliance with the law and regularly meet their fiscal obligations.

Operation “Black Charter” will continue in the coming period, with a particular focus on combating the grey economy in the vessel charter sector, strengthening fiscal discipline, and enhancing maritime safety. The competent authorities will continue intensified inspections and undertake all measures prescribed by law against entities conducting business activities in violation of applicable regulations.

At the same time, we call on all entities engaged in vessel charter services and the provision of maritime services to align their operations with applicable regulations and properly register the activities they perform. The objective of the competent institutions is not repression, but the establishment of a lawful business environment in which all economic operators enjoy equal conditions for conducting their activities safely, efficiently, and in full compliance with the law.