Understand
During the last few years Herceg Novi has become a very popular destination for tourists from the neighboring Serbia, and, to a lesser extent from Russia. In spite of this tourist boom, the city has managed to some extent to keep the traditional slow Montenegrin lifestyle. The locals are very welcoming and you are never annoyed by street vendors.
A sizeable Bosnian Serb refugee population flooded into Herceg Novi during the war years. Many of the camps are still around although they have been turned into more permanent and quite nice settlements. You can still see them on the bus as you leave the city. Also if you go for a wander up into the hills you will come into whole new areas of construction resulting from the recent property boom.
The Financial Times in 2007 listed Montenegro as one of world's 10 top property hotspots and foreign buyers have been snapping up properties on the coast.