The political situation, with the disintegration of former Yugoslavia and the wars in the Balkan region, had significant negative consequences on the Montenegrin tourism, especially in the mountain and central regions. These effects from the region represent the cause of most of the shortcomings, which affect the development of tourism, whereas one should bear in mind that there is a bad transportation and other infrastructure, a low purchase power of the local population, as well as the loss of the foreign market. The Government of the Republic of Montenegro is legally, organizationally, project-wise and financially supporting the development of tourism, appreciating primarily the natural potentials.