Experts consider the new law a good opportunity to attract strategic foreign investors considering the chaotic development of tourism and urban massacres in the past two decades in the key tourist destinations and that a considerable part of the Albania’s coastline remains virgin
TIRANA, April 7 – Strategic investors in Albania’s tourism sector will be offered state-owned property for a symbolic 1 Euro under 99-year concession contracts to develop tourist resorts, according to a new draft law on tourism which has been submitted to Parliament.
Immovable property owned by central or local government situated in priority tourism development areas will be made available to investors for the construction of accommodation or other tourist infrastructure by the ministry responsible for tourism.
For strategic coastal and lake investments, investors can also build small ports for boat and yacht visitors.
Experts consider the new law a good opportunity to attract strategic foreign investors considering the chaotic development of tourism and urban massacres in the past two decades in the key tourist destinations and that a considerable part of the Albania’s coastline remains virgin.
Back in 2009, France’s Club Med withdrew from a major holiday resort project in Albania’s southern Ionian coast under a similar deal after continuous land disputes with local inhabitants despite a court ruling in favour of the investor’s 99-year concession deal with the Albania government, unveiling the long-standing issue of clear property titles which is often one of the key barriers to foreign investors in Albania.
The draft law clarifies competences among tourism institutions, targets making operational the Tourism Development Fund, certifying and licensing tourism operators, classifying accommodation units and tour guides based on international standards in a bid to make tourism in Albania sustainable, environment-friendly and year-round.
“The goal of this law is to promote Albania as a top Mediterranean destination and attract foreign and domestic visitors based on sustainable tourism. It regulates the activity of domestic and foreign tourism operators, making sure that the available tourism services meet tourists’ expectations in a healthy and safe environment,” says the report to the draft law.
Bank of Albania data shows the foreign investment stock in hotels and restaurants dropped to 64 million euros in 2013, down from 94 million euros in 2008 just before the onset of the global financial crisis.
In its latest report, London-based World Travel & Tourism Council says the direct contribution of Travel & Tourism to Albania’s GDP was ALL 68.1 bn (Euro 478 million) equal to 4.8 percent of total GDP in 2013. Meanwhile, the total contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry, was 15.2 percent of total employment (146,500 jobs).
Tourism revenue registered a record high of 1.2 billion euros in 2014 when more than 3.6 million foreign tourists visited Albania, according to data published by the central bank and INSTAT.
Ethnic Albanians from Kosovo, Macedonia, Montenegro account for three-fifths of foreign tourists visiting Albania, with local experts often referring to this market as ‘patriotic tourism.’
Back in May 2014, U.S-based APCO Worldwide and its StrawberryFrog ad unit was announced the winner of an international competition on branding Albanian tourism which in the past four global crisis years has suffered a decline in income. The global ad campaign will be led under the slogan “Albania, Go your own way.”
