A beach concession is a commercial licence granted by a Montenegrin municipality to a private operator to manage a defined section of public beach — placing sunbeds, parasols, and beach furniture, operating a beach bar, and providing ancillary services such as watersports rentals. The concession system is the primary mechanism by which the Montenegrin beach economy functions: the vast majority of beach frontage in Budva, Herceg Novi, Petrovac, and Bar municipalities is administered through concessions. Concession operators pay an annual fee to the municipality based on beach length and location quality. In exchange they are responsible for daily cleaning, lifeguard provision, lifesaving equipment, and price transparency. Concessions typically run for 5–10 year terms and are awarded by public tender, though practices vary. The boundary between a concession section and a free public beach section is legally defined and must be clearly marked on the ground — however, enforcement of these boundaries has historically been inconsistent, a longstanding point of local controversy. Recent Montenegrin government efforts have sought to increase the proportion of free public beach access following complaints that commercial operators were monopolising shoreline.
Related terms: Beach Bar, Sandy Beach, Sunbed Rental Price, Free vs Paid Beach Section, Beach Access