TIRANA, Nov. 7 – Slovenia is considering investment opportunities in Albania’s tourism, agriculture and food processing industries, says Slovenia’s economy minister Zdravko Pocivalsek.
Leading a delegation of 30 potential investors, Slovenia’s economic development and technology minister visited Albania this week and addressed an Albania-Slovenia business forum in a bid to boost current low levels of trade exchanges and investment between the two NATO allies.
Speaking in an interview with state-run Albanian Telegraphic Agency, ATA, the Slovenian economy minister said the incentives the Albanian government is introducing on the country’s emerging tourism sector, make it one of the key destinations for potential Slovenian investors.
“The fiscal stimulus package for investment in Albania’s tourism sector is an excellent idea. I think this is a right step in the right way. I think there is a lot of interest from the Slovenian side to invest in tourism,” minister Pocivalsek told ATA, unveiling how Slovenia’s year-round tourism industry is one of the most important sectors of the EU member Adriatic country of Slovenia.
The Albanian government has already cut VAT on hotel accommodation to 6 percent, from a previous 20 percent and introduced in its 2018 fiscal package incentives to extend the 6 percent VAT on all new chained-brand 5-star hotels and resorts which will also be stripped of the corporate income tax for a 10-year period.
The direct Tirana-Ljubljana flights also make Albania a perfect destination to bring more of Slovenia’s potential 2 million tourists.
The Slovenian minister says a competitive business climate, a highly skilled workforce and a developed infrastructure is needed to bring more Slovenian investors in Albania.
In a meeting with his Slovenian counterpart, Albania’s Economy and Finance Minister Arben Ahmetaj said Slovenia represents an important partner and ally from which Albania can learn from.
“For Albania, Slovenia represents an important regional and European partner with many common characteristics such as geographical proximity, the historical relations and the presence of an Albanian community there. We appreciate the support that the Slovenian government has given to our country either for the NATO membership or EU integration process,” said Ahmetaj.
Albania represents an interesting market that will soon join the EU with continued growth and big investment opportunities in a diversity of sectors such as tourism, energy, infrastructure, agriculture, agroindustry, mineral exploration, banking and ICT,” added Ahmetaj.
Albania’s growth picked up to 4 percent in the first half of this year mainly driven by some large energy-related projects, while the Albanian government expects it to average at 4.5 percent in the next four years.
The current trade exchanges between Albania and Slovenia as well as Slovenian foreign direct investment to Albania remain quite modest with the trade volume at €38 million annually and Slovenian FDI stock to Albania at €16 million in mid-2017, down from €25 million at the end of 2015, according to INSTAT and Bank of Albania data.
Few years ago a big Slovenian retailer, Mercator, and another telecommunication company, Primo Communication, a unit of Telekom Slovenije, left the country and there have been no new major Slovenian investment in the country.
However, referring to information obtained from Albania’s National Businesses Center, the Slovenian embassy in Tirana says there are currently 53 Slovenian companies or companies with joint venture capital in tourism, trade and technical assistance activities, which operate mainly in Tirana, Shkodra, Durrà«s, Berat and Fier.
Slovenia and Albania are two NATO allies and Adriatic countries which have almost the same population and size, but EU member and exports-oriented Slovenia has a huge advantage in terms of development and welfare.
