Just like some grounded stone boat, Sveti Stefan “anchored” in the middle part of Budvanska Riviera. A former fishermens village, mentioned in documents for the first time in 1442, since 1960 has been a world famous town-hotel with comfortable villas and luxurious apartments. According to tradition, the Pastrovici erected this settlement using the treasure they had grabbed from the Turks in the XV century. Centuries later the town of Sveti Stefan became the residence of Pastorvici. Their court, called ‘bankada’, had sessions and made decisions there. This tradition is still alive.

By being engaged in fishing and olives the former residents of this island, forced by a hard living and poverty, left it. In search for a better life they moved towards Constantinople and later even towards America and the far away Australia. At the end of the Second World War, the island was almost deserted. Thanks to the idea of the distinguished Montenegrin painters like Lubarda and Milunovic, the town-hotel welcomed its first guests forty years ago. Soon afterwards, it was given the title of one of the most exclusive resorts in the world. The statesmen, high officials, industrialists, film stars and the best sportsmen are among its clientele, especially in the prestigious and the legendary villa “118”, where the daily rent rate goes up to 1 500 dollars.

“… Just as if I have returned to town from the most beautiful fairytale of my childhood” said Sophia Lauren, the Italia film star, when visiting Sveti Stefan.