TIRANA, March 13 – The tourism sector is expected to suffer major setbacks as Albania and the rest of the world are struggling to fight the spread of the novel coronavirus pandemic. As a result, tourism sector associations in the country have come together for an economic relief package, while the sector is experiencing its second hit shortly after last year’s earthquake caused significant damage to Durres, one of Albania’s biggest tourist destinations, and claimed over 50 lives.
On Friday the Albanian Minister of Health announced that there are 10 new cases of Coronavirus in Albania since the day before. These include 19 cases in Tirana, five in Durres, one in Lushnja, two in Elbasan, four in Fier and two in Rrogozhina. Moreover, a government order banning the movement of all private vehicles came into force on March 13. Only those with permission to travel or specific vehicles such as state vehicles and goods transport are allowed to travel until Sunday at midnight.
Aside from the current lockdown in the country, the suspension of flights to Italy in particular is bound to cause several issues; as of 2019, airlines operating to Italy accounted for 60 percent of the air transport market.
In an official letter addressed to the Ministry of Environment and Tourism, associations emphasized that the suspension of charter flights will affect tourism negatively, after the government announced the official suspension of flights to Italy on Tuesday.
“These suspensions will have a huge impact, especially on catering, as many of the hotels under contracts have received up to 50 percent of down payments which they have to repay. This will lead to their bankruptcy due to the lack of liquidity, ” the associations stated.
In the relief package, businesses have requested social and health insurance subsidies and a number of other aspects summarized in 12 points.
“In order to help businesses cope with the difficult financial situation of associations, through an official letter addressed to the government we ask for social security payment subsidies for a period of 3-6 months, the suspension the payment of tax profits for a minimum of 3 months, 50 percent subsidies to employees, the granting subsidies for residual wages, Suspension of payments for water, electricity for a period of 6 months, depreciation of property tax for 2020, the extension of the payment deadline for local taxes, the abolishing of the airport tax, the revision of 2019 Balance Sheet Statements at the end of April and reduction of airport taxes on charter flights by the TIA concessionaire for 2020,” the tourism associations stated.
Several travel agencies have already begun to face the consequences since the spread of the coronavirus. Besnik Vathi, owner of ATSH Travel Agency, recently said that the summer season has now become unpredictable. “Fear and panic have also affected foreigners who might have planned to travel to Albania in the spring or perhaps even book [a trip] for the summer. There have been many cancellations due to fear,” he said.
