The Municipality of Čajetina is among the first in Serbia to write a local economic development strategy using modern economic analysis and participatory techniques involving citizens, businesses, and local government officials.

The “Economic Development Strategy of Čajetina Municipality ” was produced by a local economic development (LED) team of municipal officials, business leaders, and citizens . It was prepared using the World Bank’s “Cities of Change” methodology with technical assistance provided by International Relief & Development (IRD).

The strategy is divided into four parts . The first part presents information and data about Čajetina grouped in nine segments. The second part is an assessment of collected data and an analysis of Strengths, Weaknesses, Opportunities, and Threats (SWOT) . The third part identifies critical issues for the development of Čajetina . The fourth part presents economic development goals and objectives, programs, and projects that will be implemented in the next five years to achieve the goals and objectives .

Geography and History

The municipality of Čajetina is located in the Southwest part of the Republic of Serbia. Administratively, it belongs to the county of Zlatibor, and spreads over 647 km². The area is an elevated plateau between the rivers of Sušica and Uvac and the mountains of Tara and Murtenica. The mountain range of Zlatibor is a central, prominent tourism feature.

The area has numerous cultural and historic monuments dating from Neolithic times, proving ancient origin. The first known settlers were Illyrians; their graveyards in villages are vivid historic testimonials. There are also many forts, ancient trails and roads, and tombstones from the Roman period. From the Middle Ages, which include creation of the kingdom of Serbia and the period of the Turkish Empire, there are monuments, monasteries, churches, fort ruins, etc.

The major roads to Montenegro, the Adriatic Sea, and to Bosnia and Herzegovina pass through Čajetina. The area experiences heavy summer traffic and many tourists travel to the Montenegro coast for summer holidays through Čajetina. The railway from Belgrade to Bar passes through the municipality. There are plans to convert the military airport at Ponikve to civilian use. Hilly/mountainous landscapes cover 80% of the area, which ranges from 600 meters up to 1,100 meters above sea level. The highest mountain peaks are Tornik (1496m) and Čigota (1422m).

Labor/Human Resources

According to the 2002 census the population is 15,628, consisting of 5,146 households. There has been a decrease in village population in recent years due to a negative birth rate and migration of young people seeking jobs. In Čajetina and Zlatibor, however, there has been an increase in population as tourism has developed.

The total number of employed persons is 6,008; there are 1,274 registered unemployed persons.

Local Economy

Tourism is the most important economic activity of the municipality. Zlatibor mountain, one of Serbia’s most popular and developed tourism destination, reports approximately 1 million overnights per year in all seasons. Zlatibor hosts health, relaxation, and recuperation programs, retreats, conferences, soccer, tennis, and basketball camps, and other outdoor activities. The area historically hosts environmental and recreational programs and youth excursions. The tourism richness of Čajetina is based on the unspoiled natural beauty and attractions of the area, authentic rural village environments and landscapes, authentic traditional cuisine, and large overnight capacity in modern hotels, apartments, and private homes in villages. Regional restaurants are known for their traditional cuisine and gracious hospitality.

Agriculture, food production, and food processing are the second most important economic activity of Čajetina. Cattle breeding is prominent. The area is famous for meat and milk products, and other agricultural crops. Several meat products have prominent brands, and others are in the process of developing brands and improved marketing for these traditional products. Čajetina is well known for its delicatessen products such as beef and pork smoked meats, sausages, and bacon.

Due to exploitation for agriculture and tourism, the water supply system of Čajetina and Zlatibor has reached its capacity. The system is particularly challenged during peak tourist seasons, and must be expanded as part of the plan to further develop tourism. Much of the area is dependent on septic tanks, as the sewage system is not sufficiently developed.

The power supply is adequate, though some parts require repair and modernization. 99% of households and businesses have adequate electric power.

Telecommunication infrastructure covers 85% of the municipality satisfactorily, and is sufficient for expansion.

Many roads need repair and asphalt, particularly to villages involved in agriculture and village tourism. The infrastructure in Zlatibor, the main tourist destination, is being expanded to include pedestrian and cycling zones , improved roads, paths, trails, and adequate parking.