Investing in Albania
Natalia Bayona,
Executive Director, UN Tourism
“Tourism Doing Business – Investing in Albania” offers a compelling exploration of Albania's vibrant business landscape, providing a comprehensive overview of its economic resilience and growth potential.
ECONOMIC OUTLOOK
The journey commences with an insightful dive into the global economic context for 2025, navigating through both challenges and opportunities before zooming in on Albania's economic trajectory. Overcoming adversities such as the 2019 earthquake and the impacts of the COVID-19 pandemic, Albania emerges with a remarkable economic resurgence, underscored by its vibrant private sector and government-led reforms. This initial chapter lays a solid foundation for understanding Albania's position as a promising investment hub in Southeast Europe.
FDI PERFORMANCE
Continuing the narrative, the subsequent chapter on investment outlook and the integral tourism investment collectively paint a vivid picture of the nation's robust economic landscape and its strategic allure for foreign investors. Despite a global 8% dip in Foreign Direct Investment (FDI) flows in 2024, excluding financial flows through European conduits, Albania shines, consistently surpassing its 10-year FDI average and attracting significant investments in sectors such as electricity, mining, and real estate. Notable post-pandemic growth areas include education, information and communication, and wholesale and retail trade, with the Netherlands, Switzerland, and Italy emerging as key investors.
VALUE PROPOSITION
Simultaneously, the specific focus on tourism investment unveils Albania's exponential growth in tourism, surpassing pre-pandemic levels, fostering associated industries, and attracting global hotel brands. With proactive measures, including 33 tourism projects totalling EUR 5.3 billion, Albania positions itself as a forward-thinking destination. Although fewer greenfield projects in tourism have landed compared to neighbour countries, Albania's strategic initiatives, facilitated by Albanian Investment Development Agency (AIDA), aim to transform it into a year-round tourism hotspot, aligning with sustainable development goals.
The government is focused on developing the tourism sector in an orderly manner throughout the National Tourism Strategy 2024 – 2030 developing each of the 6 tourism clusters across the country, prioritizing: investment, destination management, product development, marketing, capacity building and training, and regulatory and fiscal policy. This combined with the recently launched Mountain package aims to foster and developed the tourism country new niches and main attractions.
GREEN INVESTMENTS OUTLOOK
The analysis of Albania's competitiveness in the tourism sector reinforces its attractiveness, establishing the nation as an enticing destination for both tourists and investors. In 2024, amid the dynamic global tourism landscape, Albania has notched a significant achievement, securing the 3rd position worldwide for the highest percentage change in international tourist arrivals compared to 2019. Boasting an impressive growth rate exceeding 80%, Albania stands prominently and underscores its emergence as a formidable player in the region of Europe and Eurasia.
The last chapter of the report highlights sustainable tourism practices, regulatory frameworks, and comprehensive sector development, offering a comprehensive overview of Albania's tourism sector, spotlighting its substantial contribution to the country's GDP and noteworthy accomplishments on the global stage.
With over 11.7 million visitors in 2024 and a promising future ahead, Albania's tourism sector stands as a dynamic and promising landscape, offering a compelling blend of natural beauty, cultural richness, and strategic initiatives shaping its trajectory towards sustainable growth and success.