Silent progress: Regenerative tourism through ESG practice: The Luštica Bay experience

This paper analyses the application of ESG (Environmental, Social, and Governance) principles in the luxury tourism sector through a case study of The Chedi Hotel and the Luštica Bay destination in Montenegro. The focus is on identifying concrete sustainability measures and evaluating their impact on operational performance, branding, and social responsibility. The paper adopts a case study methodology, relying on secondary sources such as ESG reports, international standards, and EU regulatory frameworks. The findings suggest that ESG strategies can become a competitive advantage, while also highlighting challenges related to reporting standardization and replicability in smaller entities. Particular attention is given to the role of ESG policies in the process of European integration. It is concluded that sustainability should not be a peripheral business component but the foundation of modern tourism development.