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.Sveti Stefan is a seaside resort located 5 km southeast of Budva, on the Budva Riviera ( 4215'2''N, 1853'28''E). It used to be an tidal island, but is now permanently connected to the mainland by a narrow isthmusSveti Stefan was inhabited in 15th century as a fisherman's village. In 1950s last residents of the village were evicted, and Sveti Stefan was transformed into a luxury town-hotel. It is the most exclusive resort on Montenegro's coast.Sveti Stefan was popular among celebrities, so some of its guests were Willy Brandt, Bobby Fischer, Boris Spassky, Sophia Loren and Carlo Ponti, Monica Vitti, Ingemar Stenmark, Kirk Douglas, Sylvester Stallone and Claudia Schiffer.Owing to its location, Sveti Stefan was a trading and communications centre for the whole Pastrovic clan. It possessed strategic and commercial significance at the time of the Venetian Republic when trade was lively. The settlement slowly lost importance towards the end of the 19th century when the inhabitants, mostly fishermen, began to emigrate.During the Balkan wars only about thirty families still lived on the island. Complete re-settlement took place in 1955 when the island was totally renovated and converted into the world's most unusual "town-hotel". The streets, walls, roofs, facades retained their former appearance, while the interior of the houses acquired modern hotel amenities. Today it is an attractive combination of an ancient exterior and a sumptuous interior, intended for the upscale tourist trade. For centuries on Sveti Stefan periods of turbulence and glory, brillianceand misery succeeded one another

 

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