On January 1st, we went to Budva. This is probably the most touristy area of Montenegro, and according to one of our friends here, most of it belongs to Russians. Unlike Podgorica (which was entirely rebuilt after WWII), there are many ancient buildings and narrow stone paths. This beautiful old church is one example.
Just off of Budva there are several islands. This one to the right is rather pretty, we don't know if there are any inhabitants, or hotels or anything.
However, the isthmus of Sveti Stefan which is mentioned in my last hurried blog is just exclusive hotels. I don't know if they would qualify as luxury, since I've heard that Budva still has issues in providing a constant source of running water. We heard of one group that stayed in a hotel in Budva (not on Sveti Stefan) and out of the two weeks they were there, only had running water two days! This seems rather ridiculous since they are surrounded by the Adriatic sea.