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Rural tourism is widely promoted as an efficient means of counteracting the social, economic and environmental challenges facing rural areas, primarily those associated with the decline of traditional agrarian industries. In line with this, the objective of this paper is to investigate the role and key challenges of rural tourism development in Montenegro as typical transitional economy. Using the extensive literature, available secondary and primary data collected from rural tourism operators, this paper throws light on the main components and issues about current situation in rural areas and rural tourism in Montenegro. Key findings indicate that three key factors of future success should be pulled out, as follows: support from government and international and/or national bodies/organizations, development of new and diversification of present tourist offers in rural areas and enhancement of government policy in the area of entrepreneurship and starting-up of new businesses in rural areas. Regarding practical implications, this paper provide the guidance and ideas for further rural and tourism development in Montenegro.

The role and challenges of rural tourism development in transition countries: Montenegro experiences