Sound and robust frameworks are essential for the tourism sector to drive positive economic development, enhance competitiveness, and strengthen resilience within economies, particularly those heavily reliant on tourism. This chapter assesses the comprehensiveness of the legislative structure and practices governing tourism across three sub-dimensions. The first sub-dimension, governance and enabling conditions, assesses the effectiveness of efforts aimed at strengthening strategic co-ordination and co‑operation in tourism across governance, vertical co-operation, public-private dialogue, and data collection. The second sub-dimension centred on accessibility, tourism offer and human resources, examines progress and challenges in addressing the sector’s connectivity framework and infrastructure, accommodation capacity and quality, and availability of qualified workforce. The third sub-dimension, sustainable and competitive tourism, explores the impact of tourism branding and marketing strategies, natural and cultural heritage valorisation frameworks, and operations promoting sustainable development.
Western Balkans Competitiveness Outlook 2024: Albania
16. Tourism policy
Abstract
Key findings
In tourism policy, Albania shows a positive performance, achieving an overall score of 2.8 in the CO 2024 assessment – an improvement since 2021 and outperforming the WB6 average (Table 16.1). These positive trends include governance and framework conditions, accessibility, tourism products and human resources, but challenges remain for sustainable and competitive tourism. Despite its overall positive performance, Albania still has opportunities for enhancement in sustainability, vertical co‑operation, and tourism branding and marketing strategies.
Table 16.1. Albania’s scores for tourism policy
The key findings are:
Albania has recently strengthened its position as a sought-after travel destination. Tourism remains a cornerstone of the Albanian economy, constituting 21.6% of the GDP and employing 21.2% of the population in 2022 – among the highest rates in the Western Balkans.
The prioritisation of green and sustainable tourism infrastructure is evident in recent years through the development of numerous projects spearheaded by the ministries and financed through the Tourism Development Fund.
Due to a surge in tourism in recent years, seasonality has posed several new challenges for the industry, including concerns related to infrastructure strain, overcrowding, and fluctuations in demand and workforce availability.
The current frameworks fail to fully capture the new challenges stemming from increased tourist numbers in Albania, but the forthcoming revised strategy for 2024-30 is anticipated to likely address these gaps.
Increasing collaboration is observed between municipalities and the national government, exemplified by the establishment of a task force for summer season management in 2023 under the prime minister's directive.
State of play and key developments
Albania's tourism sector has demonstrated consistent growth, especially during the summer season, emerging as an important source of employment. In 2022, the economy saw a highly positive tourism season, aligning with countries hosting over 5 million tourists annually during post-pandemic recovery, largely attributed to its European diaspora. This recovery was propelled by increased demand post‑pandemic, expanded air travel, and heightened the use of international booking platforms in hospitality (UNDP, 2022[1]).
Concretely, tourism contributed 21.6% to the nation's GDP in 2022, with forecasts predicting a further increase to 22% in 2023, amounting to a GDP contribution of EUR 4.26 billion1 (World Travel & Tourism Council, 2023[2]). The tourism sector is a vital source of employment, providing a total of 246 700 jobs in 2022 and accounting for 21.2% of the workforce, including jobs indirectly supported by the industry, with growth forecasted in 2023.
Of the WB6 economies, Albania shows the strongest seasonal distribution of arrivals in Figure 16.1, concentrated in the summer months. The reported bed occupancy rate for the entire year was 19.0%, lower than the rates recorded in Serbia, North Macedonia and Bosnia and Herzegovina (World Tourism Organization, 2023[3]).
In response, the government's increase in the tourism budget aims to strengthen Albania's engagement in tourism. In 2022, the Ministry of Tourism and Environment received ALL 2 267 278 000 (EUR 18 740 422). The annual budget for tourism stood at ALL 743 343 000 (EUR 6 144 178) (32.8%), with an allocation of ALL 124 045 000 (EUR 1 050 103) (17.1%) for the National Tourism Agency, of which ALL 75 820 000 (EUR 626 698) (59.7%) was earmarked specifically for tourism promotion and marketing.
Figure 16.1. Arrivals and overnight stays in accommodation establishments by international and domestic tourists (2019-22) and seasonal distribution of arrivals (2022) in Albania
Stays and arrivals are expressed in millions (left); seasonal arrivals are expressed in thousands (right)
Source: INSTAT (2023[4]).
Despite these positive trends, Albania still faces challenges associated with the influx of tourists during the summer season, including overcrowding, environmental impact, economic dependence, infrastructure strain, seasonal employment, and missed opportunities to attract visitors during other times of the year.
Sub-dimension 15.1: Governance and enabling conditions
Albania's tourism governance framework is conducive to a solid operational setting. The framework is anchored in the National Strategy for Sustainable Tourism Development 2019-23, set for an update for the 2024-30 period, and supplemented by additional strategies such as the General National Territorial Plan 2015-30 and the Integrated Intersectoral Plan for the Coast 2015-30. In March 2024, Albania adopted a Law on Strategic Investments, which included amendments specifically targeting the tourism sector. Investment and innovation stand as top priorities, promoted notably through tax incentives like reduced VAT, lower corporate taxes for premium hotel establishments, and strategic investments. Between 2022 and 2023, a total of 11 projects focusing on digitalisation for tourism products (e.g. a digital map of UNESCO cities in Albania, a digital tour of cultural heritage sites, platforms to promote tourism) and sustainable tourism have been developed to enhance green tourism initiatives. Efforts to establish inter-institutional task forces and work for specific workstreams are notable, yet the absence of a governmental or interministerial tourism body hinders effective monitoring of sustainable tourism sector growth. The groundwork for rural tourism and agritourism is continuously evolving through various initiatives (refer to Agriculture dimension).
Vertical co-operation and information sharing mechanisms have developed since the 2021 assessment, mainly thanks to improved co-ordination at regional and local level despite challenges primarily due to limited resources. A task force for the management of the summer season was set up in 2023 by order of the prime minister – one successful example of co-operation was that maps of authorised beaches were collaboratively approved with the municipalities. Regional Tourism Development Committees, which have been established in each prefecture, co-ordinate co-operation between the central institutions and the local government units.
Despite acknowledging the potential to establish future Destination Management Organizations (DMOs), progress in this domain has been notably slow. In 2023, the Deutsche Gesellschaft für Internationale Zusammenarbeit (German Development Cooperation, GIZ) assisted Albania in crafting a national framework for appropriate destination management structures spanning national, regional and local levels. However, the effective implementation of this legal framework remains unrealised.
Efforts to foster public-private dialogue in the tourism sector seem to have evolved since the 2021 assessment. Private sector engagement is actively encouraged through representative bodies such as the Albanian Tourism Association, Albanian Tourism Union, Albanian Tour Operators Association, and the Chamber of Commerce. These bodies, along with entities like the Advisory Committee for the Private Sector in Tourism and the Investment Council, featuring ministerial-level representation, have significantly improved engagement with the private sector to address pertinent issues.2
Albania's efforts in tourism data collection have produced some progress but continue to grapple with significant challenges. INSTAT, in collaboration with the Bank of Albania and the General Directory of State Police, is the primary organisation responsible for collecting tourism statistics. Furthermore, the proposed amended Tourism Law aims to establish a statistical system gathering data from multiple sectors and establish an inter-institutional council for overseeing the system.
Limitations persist in the availability of data, particularly regarding non-compliant statistics on arrivals of foreign visitors and inadequate information on expenditure by domestic visitors. Arrival statistics for inbound visitors do not comply with United Nations World Tourism Organization (UNWTO) guidelines and do not have the necessary granularity for effective use in tourism planning and marketing. To improve data collection and analysis, Albania has established the Delivery and Statistics Unit in 2023, tasked with analysing data from the Bank of Albania and INSTAT. Furthermore, efforts are under way, with support from the World Bank, to develop an online Tourism Statistics Database to enhance accessibility. INSTAT contributes to transparency by annually publishing a special publication on tourism indicators in Albania, offering valuable insights into tourist characteristics and trends.
Box 16.1. Swiss Tourism Council’s Role in the organisation of Switzerland Tourism
The Swiss Tourism Council (STC) plays a central role in the organisational structure of Switzerland Tourism. It comprises government representatives, business partners, strategic employees and representatives of various cantons and cities, and serves as a strategic hub for the national marketing organisation Switzerland Tourism (ST). This dynamic assembly holds important discussions with ST management and significantly contributes to the strategic direction and effective organisation of Switzerland Tourism.
The members of the Tourism Council have an influence commensurate with their financial commitment, as the number of votes in the assembly correlates directly with their annual membership fee of CHF 27 500. Apart from the financial aspects, membership of the STC offers a comprehensive package of services that increase the commitment and privileges of its members.
STC members enjoy VIP status and receive exclusive invitations to prestigious ST events such as the Swiss Holiday Day and the Switzerland Travel Mart STM. This VIP recognition also extends to events hosted by ST's strategic and commercial partners, providing members with invaluable networking opportunities. The annual STC meeting is an important gathering that provides a platform for members to actively participate in presentations and roundtable discussions, creating a collaborative environment that allows ST VIP members to make beneficial contacts within the industry. In addition, the nomination list of STC members is published prominently in the ST Annual Report to recognise their contribution to the tourism landscape.
In a democratic way, voting rights in the general assembly are directly linked to the annual membership fee, which ensures proportional representation and a fair decision-making process in the Council. Beyond democratic participation, STC members enjoy additional benefits, including special promotions and access to exclusive VIP networking platforms. This comprehensive offering not only strengthens the collaborative spirit of the Swiss Tourism Council, but also ensures that its members actively contribute to and benefit from the vibrancy of the Swiss tourism landscape.
Source: Swiss Tourism Council (2024[5]).
Sub-dimension 15.2: Accessibility, tourism offer and human resources
Albania has made progress on the connectivity framework by introducing visa facilitation measures such as facilitation during peak tourism seasons, temporary visa exemptions for citizens from several countries, and provisions for foreign citizens with valid Schengen visas. Implementation of accessibility measures has been equally proactive, with the introduction of an official website for visa processing and enhanced accessibility to both major tourist destinations and rural areas. Furthermore, Albania has simplified document control and fostered the movement of citizens with identity cards across its borders with neighbouring nations.
A noteworthy development is the establishment of an inter-institutional task force to oversee the summer tourist season, focusing on entry-exit facilities for tourist groups at national border points. Visa requirements and processing are systematically reviewed and adjusted, which delineate criteria and documentation for the entry, stay, and treatment of foreigners in Albania.
Despite positive efforts to enhance sustainability in the transport sector and successful initiatives like the Sustainable Transport Plan (STP) and ecological transport programmes, accessibility and transport planning to rural areas in Albania remains largely limited.
Concerning accommodation capacity and quality, several legislative measures and initiatives have been introduced to establish standards that elevate the overall standards of tourist accommodation. Particularly noteworthy are the efforts to align with recognised quality standards for accommodation classification, closely monitored by governmental bodies. Additional endeavours include improving accessibility for individuals with limited abilities, ensuring compliance with energy efficiency laws, and offering tax incentives to promote the creation of top-tier establishments. Some areas still exhibit shortcomings, particularly the establishment of a sustainable labelling framework for tourist accommodation. The government's focus on promoting private and public investment in tourism, as outlined in the National Strategy for Sustainable Tourism Development 2019-23, is a positive step toward enhancing infrastructure and attracting international brands to the sector.
Albania is actively shaping a comprehensive policy framework for human resource development, particularly focusing on ensuring the availability of a qualified workforce for the tourism sector, which is currently facing shortages. Efforts include the approval of the National Strategy for Employment and Skills 2023-30 and the establishment of Sectoral Committee of Hospitality and Tourism to facilitate co‑operation with social partners. As digitalisation also accelerates, effects of technology beyond distribution and marketing including use of social media, for example, as a tool to organise and engage in a wide range of e-Human Resources Management (HRM) activities plays a major role in driving workplace change in tourism (OECD, 2021[6]).
While Albania has a vocational education and training (VET) framework in place, it lacks a corresponding higher education framework. However, dual study programmes developed through international projects and partnerships with universities and employers offer practical education opportunities in the hotel‑tourism direction. Various VET schools offer profiles with curricula prepared by the National Agency for Vocational Education, Training, and Qualification (NAVETQ), which also conducts self-assessment processes and accreditation procedures for vocational training providers. The National Agency for Employment and Skills regularly reviews the graduates of vocational schools, while tourism programmes in higher education are accredited and monitored by the Agency for Quality Assurance in Higher Education. Despite these efforts, challenges such as the absence of recent skills gap assessments persist, although initiatives like the Sectoral Committee of Hospitality and Tourism and regional projects aim to address this issue and enhance workforce qualifications and skills in the tourism sector.
Sub-dimension 15.3: Sustainable and competitive tourism
Albania's tourism branding and marketing are anchored in its “Go Your Own Way” branding which has yielded positive results. Supported by a dedicated department under the National Tourism Agency (NTA), current efforts involve enhancing the existing brand and crafting a new marketing and outreach strategy customised for key markets in Europe and the Western Balkans, utilising both in-person and online promotional channels. To this end, a fresh official emblem and slogan, “Albania All Senses”, are set to represent Albania at various international tourism events.3 These efforts are further supported by the increasing use of digital marketing tools such as Google Ads, Facebook Ads, and Instagram Ads in key European markets.
Efforts have also been under way to enhance year-round tourism by promoting key events and activities in Albania coupled with involvement in EU-funded regional projects to create a unified tourism brand. Despite making some advancements, Albania trails behind neighbouring countries in the region mainly due to constraints in human and financial resources. This is evident in its reduced budget for tourism promotion and marketing in 2022, totalling ALL 75 820 000 (EUR 626 698) compared to ALL 177 899 000 (EUR 1 470 442) in 2021, which contrasts with the allocations of other countries in the region (Box 16.2).
Box 16.2. Transforming Montenegro’s brand into an immersive online experience
Montenegro's National Tourism Organisation (NTO) has embarked on a transformative journey to raise the country’s profile in the competitive tourism landscape. Recognising the changing preferences of modern travellers and the need to draw on digital strategies, the NTO initiated the montenegro.travel portal. In line with the principles of sustainable development advocated by the World Tourism Organisation, this portal serves as the cornerstone of Montenegro’s digital ecosystem and brings together the efforts of key players in the Montenegrin tourism industry.
The overarching goal of montenegro.travel is to promote the "Montenegro Wild Beauty" brand and showcase various travel experiences that emphasise sustainability and innovation in tourism. With a focus on supporting the private sector and the entire Montenegrin tourism industry, the portal acts as a central source of information. It fits in seamlessly with the changing preferences of travellers and caters to the needs of the modern tourist who values experiences over traditional destinations.
The portal takes into account the changing dynamics of tourism. Today's tourists seek immersive experiences, want to live like locals and leave a minimal environmental footprint. By providing content and resources that cater to these preferences, montenegro.travel is the go-to destination for travellers seeking authentic and sustainable experiences in Montenegro.
The project faced the major challenge of transforming the Montenegro brand from an old-fashioned approach to a modern and innovative level. In collaboration with the tourism organisation, the transformation process was streamlined. The result is an online experience that not only meets travellers' evolving needs but also reflects Montenegro's commitment to innovation and sustainability.
Albania has established a robust framework for preserving and promoting its natural and cultural heritage within the National Strategy for Sustainable Tourism Development 2019-23. This includes various strategies and documents focusing on nature conservation (Table 16.2). Several initiatives are currently being implemented to preserve the natural heritage, including partnerships with organisations like the United Nations Environment Programme and discussions on the management plan for the Vjosa River National Park with the International Union for Conservation of Nature (IUCN) and Patagonia. Additionally, the "Forests - Year 2024" project aims to promote Albania's forests as a national treasure by 2030, offering solutions for biodiversity preservation, climate change mitigation, and economic development. However, some initiatives have been perceived to have shortcomings in addressing the full extent of environmental risks and may lack sufficient consultation processes.
Table 16.2. Key documents shaping nature conservation in Albania
Source: Information based on information provided by national authorities for the Competitiveness Outlook assessment.
Albania’s cultural heritage preservation framework, bolstered by the National Cultural Strategy 2019-25, features clear implementation plans with defined timelines, responsibilities, and resource needs. Law 27/2018 on Cultural Heritage and Museums underscores Albania's dedication to conserving national heritage and fostering cultural development, involving comprehensive stakeholder engagement from various sectors. Despite challenges stemming from limited state budget allocation, efforts include implementing Integrated Management Plans for cultural sites like Pogradec Protected Landscape and Butrint National Park, supported by initiatives such as the “Revitalization Bonus” project and the “EU4Culture Project”. Collaborative efforts between governmental and cultural entities ensure effective site management and heritage preservation across Albania's diverse cultural landscape.
Albania has established a policy framework for sustainable tourism development, outlined in both the National Tourism Development Strategy 2019-23 and the Law on Tourism, although concrete implementation remains limited. Concretely, communication and support from destination administration to tourism businesses for enhancing sustainability are lacking, capacity building and guidance for sustainability improvement not adequately promoted, and certification schemes underutilised in identifying compliant enterprises. To promote sustainability, the government has introduced incentives for agritourism and nature tourism, including reduced VAT and profit tax rates, resulting in 50 certified agritourism structures. Efforts to preserve cultural heritage include a bonus programme launched in 2022, continuing in 2023 and 2024, to revitalise heritage sites for tourism purposes. Additionally, financial support initiatives, such as the Tourism Development Fund, have been instrumental in promoting sustainable tourism projects (32 in 2022 and 2023), including the establishment of new national parks. To this end, the establishment of four new national parks has expanded protected areas to cover 21.3% of Albania's territory, up from 16% in 2015, contributing to sustainability. In 2022, the economy hosted the first GSTC course on sustainable tourism, which was attended by participants from both the private sector – consisting of hotels, tour operators and destination managers – and the public sector, including representatives from the Ministry of Tourism and Environment, academics from the local university, and experienced tourism professionals (Global Sustainable Tourism Council, 2023[9]).
Overview of implementation of Competitiveness Outlook 2021 recommendations
Progress on CO 2021 Recommendations has been mixed: the economy has made strong advances in promoting sustainable development, while moderate improvements were made in areas like data collections and monitoring and evaluation mechanisms. Conversely, progress has stagnated in domains such as targeted training programmes and conducting analysis for informal tourists. Table 16.3 shows the economy’s progress in implementing past recommendations for developing the tourism sector.
Table 16.3. Albania’s progress on past recommendations for tourism policy
The way forward for tourism policy
To ensure further successful development of tourism, policy makers should:
Address challenges related to seasonality, sustainability, and ensuring the equitable distribution of tourism benefits. While some initiatives are under way, it is increasingly crucial to unlock the economy's long-term potential. There is a need to increase efforts to spread tourism, both geographically and seasonally, improve interactions between the tourism sector and local communities, and increase the local economic gains from tourism. Some instruments include initiatives to better integrate environmental considerations into tourism curricula and training, introduce visitor management systems, temporary closures of national parks and protected areas, and deployments of smart technology to optimise visitor flows (OECD, 2022[10]).
Improve tourism data collection by introducing digital data collection methods and develop the calculation of Tourism Satellite Accounts (TSAs) (OECD et al., 2010[11]) to provide policy makers with reliable information for policy design. Accurate and up-to-date data are essential for informed decision making in the tourism sector. Adopting digital data collection methods and establishing TSAs can significantly improve the quality and availability of tourism data.
Create destination management organisations (DMOs) to improve vertical co-ordination, decentralise tourism development, and engage stakeholders actively. DMOs facilitate collaboration among local stakeholders, helping streamline tourism initiatives and ensuring that regions can effectively manage their own tourism resources. This approach promotes sustainable and regionally tailored tourism development (OECD, 2022[10]).
Strengthen the National Tourism Agency's capabilities, both financially and in terms of human resources, to actively promote the economy. Given the sector's limited marketing capacity, it is crucial for policy makers to bolster efforts in promoting the economy effectively on the global stage. A well-resourced National Tourism Agency can play a central role in this; only then can effective initiatives be implemented, such as transforming Montenegro's brand into an immersive online experience.
Enhance digital visitor information services, closely linked to DMOs. Destinations and businesses must adapt to technological changes. Policy makers should support tourism businesses in embracing digital transformation to improve their competitiveness and customer experiences. Similarly, Greece has taken steps to improve the digital skills of tourism stakeholders (Box 16.3).
Box 16.3. Enhancing digital technologies for tourism in Greece
As part of its Digital Transformation Bible for 2020-25, Greece is implementing targeted digital strategies in the tourism sector to improve visitor experiences and evolve its offerings. These strategies focus on making Greece more accessible and interconnected. Currently, 13 projects are underway aiming to modernise Greece's tourism infrastructure. Such initiatives include:
Development of a unified electronic system to manage tourist accommodation registrations.
Digitisation of licensing processes for tourist ports and facilities.
Creation of platforms offering travel recommendations for families and food enthusiasts.
Implementation of a national observatory for monitoring sustainable tourism practices.
Introduction of smart tourism tools to enhance visitor experiences and accessibility.
Source: Ministry of Digital Governance, Greece (2023[12]).
Develop comprehensive training programmes to address labour shortages and enhance skills for effective tourism management. The tourism industry is experiencing persistent labour shortages. Implementing a structured training program incorporating targeted digital training could help bridge this gap and ensure the availability of a qualified workforce. Several OECD countries are investing in upskilling
Improve the monitoring and evaluation of sustainable tourism practices by establishing a dedicated sustainable tourism observatory. In addition, Albania should promote the active participation of all stakeholders in destinations in formulating and implementing sustainable tourism strategies.
References
[9] Global Sustainable Tourism Council (2023), “Albania is taking steps towards adopting international standards of sustainable tourism”, https://www.gstcouncil.org/gstc-sustainable-tourism-course-albania.
[4] INSTAT (2023), Tourism Statistics, https://www.instat.gov.al/en/themes/industry-trade-and-services/tourism-statistics (accessed on 1 March 2024).
[12] Ministry of Digital Governance, Greece (2023), Digital Transformation Bible – Tourism, https://digitalstrategy.gov.gr/en/sector/tourismos.
[7] National Tourism Organisation of Montenegro (2024), Montenegro Travel, https://www.montenegro.travel/me (accessed on 24 May 2024).
[8] National Tourism Organisation of Montenegro (2024), Montenegro Wild Beauty, https://www.montenegro.travel/en/business/b2b/about-us (accessed on 27 May 2024).
[10] OECD (2022), OECD Tourism Trends and Policies 2022, OECD Publishing, Paris, https://doi.org/10.1787/a8dd3019-en.
[6] OECD (2021), Preparing the Tourism Workforce for the Digital Future, OECD Publishing, Paris, https://doi.org/10.1787/9258d999-en.
[11] OECD et al. (2010), Tourism Satellite Account: Recommended Methodological Framework 2008, https://www.oecd.org/cfe/tourism/tourismsatelliteaccountrecommendedmethodologicalframework.htm (accessed on 28 January 2024).
[5] Swiss Tourism Council (2024), Conseil Suisse du Tourisme, http://www.stnet.ch/fr/conseil-suisse-du-tourisme. (accessed on 24 May 2024).
[1] UNDP (2022), Tourism and Hospitality in Albania 2022: An Assessment of Tourism Trends and Performance, United Nations Development Programme, https://www.undp.org/sites/g/files/zskgke326/files/2022-12/HOSPITALITY%20AND%20TOURISM%20IN%20ALBANIA_FINAL.pdf.
[3] World Tourism Organization (2023), UNWTO Tourism Statistics Database, data updated 31 October 2023, https://www.unwto.org/tourism-statistics/key-tourism-statistics (accessed on 18 November 2023).
[2] World Travel & Tourism Council (2023), Albania, 2023 Annual Research: Key Highlights, https://researchhub.wttc.org.
Notes
← 1. Currency conversion is based on the exchange rates applicable in 2022, https://www.bankofalbania.org/Markets/Official_exchange_rate/Exchage_rate_archive.
← 2. For instance, the legal and policy framework (laws, regulations, strategies, etc.) for tourism development is worked out in collaboration with stakeholders (private sector and non-governmental organisations). The Tourism Law is currently being amended, and in connection with the involvement of private stakeholders and non-governmental organisations, the MTE, in co-operation with the Minister of State for Entrepreneurship and Business Climate, has organised several rounds of consultations with stakeholders. These include accommodation providers, restaurants, tour operators and travel agencies, tourist guides, tourism companies offering services, etc.
← 3. Information on the new logo is available here: https://turizmi.gov.al/prezantohet-logoja-e-re-e-shqiperise-turistike.