Beautiful Cetinje initiative is dealing with economic revitalization of the old capital through urban reconstruction of the cultural heritage with energy efficiency considerations, provision of vocational trainings and support to small businesses. The old Montenegrin capital, also known as the ‘City of the Museums,’ Cetinje holds great potential for growth of cultural and nature-based tourism. Nonetheless, the impediments to development are three fold: a) currently there are 1,539 unemployed individuals (unemployment rate of 18%, when the national average is around 12%) most of which fall in the category of difficult to employ individuals; b) over 30 unmovable monuments of culture require significant renovation and adaptation as part of cultural and historical heritage, and a resource for tourism growth, and c) most of existing objects and infrastructure are built without implementing of energy efficiency measures, which results in high maintenance costs, which is even bigger problem in a case of cultural heritage. Old royal capital Cetinje together with UNDP Montenegro is developing a project Beautiful Cetinje, which seeks to economically revitalize the city through a variety of measures aimed at support to small business and renovation and adaptation of buildings that are part of historical and cultural heritage in order to preserve them, but also to improve them by implementing energy–efficiency measures and making buildings more environmentally friendly. Additionally, this project will create opportunity for providing vocational trainings in specific construction skills to significant number of unemployed people in Cetinje, which will then have the opportunity to apply for new temporary or permanent jobs which will be subsequently hired by firms contracted by the project to refurbish chosen buildings, primarily monuments of culture. In addition the initiative will support small business development in sustainable tourism, arts and crafts and other low impact sectors.