Megayachts, millionaires and mourning Tito: How Montenegro embraces luxury while celebrating a simpler past

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For Radovan Peric and his family, real life is in the mountain, with their forty goats.

'This is the way my ancestors lived, it's my fate,' he tells me, liberally sloshing more home-distilled grappa into shot glasses.

In the thirty years he has lived with his wife, and later his daughters and granddaughter, in this simple home perched on the hillside above the Kotor old town and the bow-­tie shaped southern part of the bay, he has seen cataclysmic change, the landscape pushed and pulled by tradition versus progression.

Once, communist-owned factories chugged below; now, ecology is thriving, Peric grows all his own food and only descends for beer, coffee and sugar.

A view over Kotor Bay from the home of Radovan Peric and his family, who live the simple life away from the modernisation of Montenegro

Apart from the odd horror during the Eurovision Song Contest I knew little about Montenegro, except that it sounded green, but somehow moody and grey, in the shadow of huge mountains ­and of course, that lots of millionaires live there.

Now, daring to dip a toe into the world of multi­-generational holiday, I'm here with my mother, and I see that I was right. But of course, that's just the tip of the iceberg.

We begin in Tivat, where the biggest news is the 287 million euro Porto Montenegro – baby of Canadian gold­miner Peter Monk, which calls itself the Adriatic sea's first megayacht marina.

Once a military factory with large berths once for warships, now home to behemoth yachts where discerning super rich can remain anonymous and enjoy the deliciously swanky Regent hotel, a sophisticated nightclub, three tennis courts, five lavish restaurants, lido swimming pool and 45 shops metres of retail space.

Aman Sveti Stefan became an Adriatic playground for the rich and famous in the 1960s but the break-up of Yugoslavia saw its decline

The peaceful waters of Kotor Bay: Here, old men sit contented with their coffee and cigarettes, enjoying the quiet life

Superyachts up to 80-foot long and megayachts over 164-foot long cost between £15,000 and £40,000 per year to moor here but I'm told per metre of yacht, owners pay one million euros, so it's a mere drop in the ocean.

But the most curious thing here is 165-foot 1969 Yugoslave submarine pitched up next to the 210-foot infinity pool and Scaramanga, the nightclub. It was bought from the Ministry of Defence for a large, unnamed sum and then brought back to life by its last Captain. It seems jarring to see such a blatant reminder of communism in amongst all this pomp.

Luxury tourism is everywhere. In Budva, looking over the city scape, Petar, our guide says 'Fifteen years ago if you told me this was Budva, I'd think it had been photoshopped.' Money talks in this city; high rise luxury apartments and resorts are popping up like unruly creepers. 

The infinity pool at Villa Vita in Budva, a beautiful cluster of villas with its own herd of goats and onsite cheese and yoghurt making

Madonna and the Rolling Stones have stayed at Hotel Splendid in the infamously flambouyant royal suite. Now in low season there are cranes and building works dot the horizon.

We stay at Villa Vita, a beautiful cluster of villas with its own herd of goats. It is luxurious in its simplicity. There is a room here devoted to Tito and old Yugoslavia with paintings and trinkets from before the nineties when communism shut down – and in homage to simpler times, the owners make their own cheese and yoghurt. 

But then there's the pool. What a pool. 'I've never been in an infinity pool before,' says mum. 'What happens if you swim over the edge?'

In the morning, Petar takes us to the wine cellar where we all drink brandy at 9am. Apparently it thins the blood, so it's health-­giving in a sense. I'm not convinced, but it tastes great.

The £220 million Porto Montenegro – baby of Canadian gold­miner Peter Monk, calls itself the Adriatic sea's first megayacht marina

Porto Montenegro, where Superyachts up to 80-foot long and megayachts over 164-foot long more in the berths of former warships

Food in Montenegro was traditionally divided by wealth, with the poorer north accompanying every meal with bread, cheese and meat. On the coast, fish and seafood rule, with specialities including black risotto. Wine is good here, too, especially if you can't stomach the endless shots of grappa.

We visit Aman Sveti Stefan, something of a staple for tourists to Montenegro - a tiny islet consumed by one single hotel resort, Villa Milocer. Once, the summer resident of the Queen, it became an Adriatic playground for the rich and famous in the 1960s and 1970s, but the break-up of Yugoslavia saw its decline. 

After a painstaking refurbishment which saw each of the original bricks that were removed, returned to their original position, the beautiful site is now a five-star franchise hotel owned by the Aman group, with 58 rooms, cottages and suites, and high profile guests such as Roman Abramovich. Workers relax of Kings and Queens beaches, were in high season tourists pay through the nose for a beach package, including towels and an umbrella. 

Meanwhile, over on the banks of Kotor Bay the water is so tranquil it looks like it's been ironed. My mother and I sit outside the Ferri cafe. Old men sit with their coffee and cigarettes, reading the local rag.

Once a military factory, Porto Montenegro now has a nightclub, three tennis courts, five lavish restaurants, lido swimming pool and 45 shops

Kings beach: In high season, tourists flock to this beach and pay through the nose to hire umbrellas and towels for the day

Within the old city walls: The home of Radovan Peric is the last inhabited home in the mountains overlooking Kotor old town

Branca, the owner tells me: 'We don't go into town, we stay here where it is slow and quiet.' 

Later, we hike up to the fortress walls overlooking the Kotor fjord. This was once the was once safest place to live in Montenegro, now Peric's house and the crumbled remains of the village of Spirali are all that is left.

The fabric of Montenegro is changing, each stitch taking it further from the simple Slavic holiday destination it once was. Now, for the heavy-pocketed there is almost too much. But for everyone else, there's enticing, beautiful greenery; including four national parks and Europe's last remaining rainforest; sumptuous food; and a truly fascinating history.