Albania’s State-Funded Tourism Investment: A 100% Financing Initiative

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Following a remarkable revenue influx of 4.1 billion euros from tourism in 2023, the government of Albania is poised to further bolster this sector by financing key strategic projects.

In a directive issued by the Ministry of Tourism and Environment, published in the Official Gazette, it has been stipulated that entities with innovative concepts for tourism projects will receive up to 100% backing from the state budget. While hailed by industry experts as a timely move amidst the current surge in tourist arrivals, it is emphasized that such support must be targeted towards addressing the genuine needs of the tourism sector.

Besnik Vathi, a seasoned tourism expert, expressed reservations regarding the existing approach, noting discrepancies between rhetoric and reality. Despite claims of support for strategic investors in tourism development, Vathi highlights a disproportionate allocation of resources, with a significant portion directed towards coastal hotel developments.

Payments from the budgetary fund will be disbursed in two installments: 60% of the total value at least 5 days prior to project commencement, and the remaining 40% upon project completion. Criteria for project selection include factors such as promoting the tourism industry, showcasing local products and destinations, and preserving natural heritage.

In light of the diverse challenges facing Albania's tourism sector, experts advocate for a more equitable distribution of projects across all regions, not solely concentrated along the coast.

Vathi stresses the importance of a strategic vision for tourism development, urging policymakers to proactively shape the agenda rather than merely responding to external demands.

The final list of approved tourism projects will be made publicly available on the official websites of the Ministry responsible for tourism and the National Tourism Agency.