THE MOST FAMOUS MAGAZINES WRITE ABOUT MONTENEGRO ( PART I )

Rough diamond

Better visit the 'jewel of the Adriatic' before the developers over-polish it, says David Allsop

It took me a while to figure out what was missing in Montenegro, and then it suddenly dawned. There's little sign of the usual global brands - unless you count Slag Krem, the locally manufactured version of dessert topping (predictably popular with souvenir-hunting British tourists).

This absence of Starbucks-culture is refreshing. Apparently McDonald's has recently opened its first branch in the country somewhere, but I didn't spot it. Even if I'd been looking, the view would probably have been blocked by the world's second tallest people (after an African tribe). And that's not the only title the towering Montenegrins lay claim to in the world runner-up stakes. In the yawning 1.3km deep Tara gorge they also have the world's second deepest hole (after the Grand Canyon).

Roughly the size of Northern Ireland, and with a similarly turbulent history, Montenegro was until a generation or so ago the fashionable haunt of royalty, Hollywood stars and Riviera playboys. Today, the self-styled "jewel of the Adriatic", involuntarily sucked into the violent implosion of former Yugoslavia, still bears the scars of nearly a decade of international sanctions.

But there are signs that Montenegro is emerging from its unhappy recent past, and rebuilding the tourism industry which has been central to its fortunes ever since Lord Byron wrote: "At the moment of birth of our planet, the most beautiful meeting of land and sea was on the Montenegrin coast ... " His Lordship might have been given to frequent ventilations of florid prose, but on this occasion he wasn't far off the mark.

Within a few miles of the Croatian border post I found myself skirting Europe's most southerly fjord, the Boka Kotorska, which gives every impression of having been displaced from Norway. This huge slash in the coastline cuts over 20 miles through brooding pine-clad mountains, and is as unexpected as it is jaw-droppingly scenic. Halfway along it is the medieval fortress city of Kotor. Behind its three mighty metal-studded gates lies a maze of narrow alleys and broad cobbled squares where bright young things toy with cups of glutinous kafa (coffee) at surprisingly plush street cafes. My own kafa was accompanied by a fiery glass of rakija, a locally made grappa which could strip paint. There are few bars in the country which don't vigorously promote their own variety, often unsolicited in the hope that you'll develop a taste for it.

Last year, the World Travel and Tourism Council identified Montenegro as the "fastest growing travel and tourism economy in the world". Evidence of this lofty status is plainly visible in the frenzy of construction along the country's extraordinarily picturesque 300km of coastline. Countless necessary roadworks bear testament to hefty EU financial grants, and many of the old Communist-era hotels are being refurbished at an astonishing rate. Investment is arriving from all over the world as Montenegro determinedly strives to regain its former lustre.

Symptomatic of this upturn in the economy is the imminent renaissance of the country's signature "hotel-village", Sveti Stefan, images of which adorn nearly every brochure cover, postcard, and postage stamp in Montenegro. About five miles south of Budva, this unique property is a former 14th-century fishing village perched precariously on a small outcrop of rock reached by foot across a slender 200m sandy isthmus. After spending the best part of a decade in mothballs, Sveti (as it is colloquially known) is showing its age in an endearingly tatty sort of way. At present it is possible to enjoy its sculpted gardens and winding alleyways for about £50 per night in rooms where the plumbing groans and the windows rattle in brisk sea breezes.

But the Singapore-based luxury hotel group Amanresorts is poised to sign a 50-year lease on the resort. Once the expected multi-million-dollar refurbishment is completed, the hotel's 118 rooms will be reduced to just 25 luxury suites, and the guide price will be closer to £500 per person per night. It is safe to assume that it will then once again attract a celebrity clientele of a calibre similar to former regulars Sophia Loren, Richard Burton and Elizabeth Taylor.

Also likely to pass into new hands shortly is the neighbouring Hotel Milocer, a Palladian-style former royal palace overlooking one of Sveti's pretty shingle coves. Its 27 suites are currently just as affordable, but unlikely to remain so for much longer. Now would be a good time to visit this elegant boutique hotel before its manicured lawns and cypress-fringed private beach are beyond financial reach.

The most intensive redevelopment on the Adriatic coast is concentrated in this area, more precisely on the lively 2km Becici beach between Budva and Sveti.

If this concentration of gleaming hotel complexes and beach bars is the country's equivalent of Magaluf, then nearby Budva is its St Tropez. Built by the Venetians, it is a stylish hybrid of fortified port and glamorous resort which is fast regaining its status as one of the most voguish destinations on the Adriatic. On the wide esplanade linking the marina to the old town, clean-limbed girls in high heels and micro-skirts rivet the attention of dark-eyed youths in designer clothes. Only the national preoccupation with luxuriantly drooping moustaches (mainly, but not exclusively, restricted to men) and the absence of Ferraris reminds you that you're still in the Balkans and not on the Côte d'Azur.

On the quayside gaily-canopied fish restaurants and chic little bars currently charge about £1.50 for a cocktail, £3 for a bottle of the local Vranac red, and less than a fiver for a three-course meal. It cannot be long before prices rise.

In the quaint hamlet of Rijeka Crnojevica on the banks of the tranquil Lake Skadar, about 30km inland, there is a place where they already have. The Stari Most is one of the country's top restaurants, patronised by returning royalty (it was once their summer palace) and well-heeled Montenegrin footballers who ply their trade abroad. I was intrigued to see how much crap featured on the menu, until it was pointed out that it is how carp is spelt in this part of the world. The baked crap and eel with prune risotto turned out to be unexpectedly palatable.

Way to go

Getting there: British Airways (0870 8509850, ba.com) flies daily Gatwick-Dubrovnik from £220 return including taxes.

Where to stay: Inghams (020-8780 4433, inghams.co.uk) offers five hotels in Montenegro, including the four-star Hotel Sveti Stefan and four-star Hotel Milocer, with seven nights' half-board from £598pp including BA flights from Gatwick and transfers. Flights from eight regional airport available at supplements from £79.

Further information: National Tourist Organisation of Montenegro (+81 864 020 30, visit-montenegro.com). montenegrohotels.org.

Country code: 00 381.

Flight time: London-Dubrovnik 2hrs 40 minutes. Dubrovnik-Budva approx 2hrs by road.

Time difference: +1hr.

£1= €1.42 (although it's not a member of the EU, Montenegro uses the euro).

Review from The Guardian

David Allsop