Tourism is one of the main sectors that is doing well and promises a future. The arrivals of foreign citizens in 2023 exceeded 10 million people, according to INSTAT.

These citizens spent around Euro 2.3 billion last year, according to data published in the balance of payments of the Bank of Albania.

The positive trend continued in the first part of 2024, while it slowed down somewhat in the summer, due to the increase in hotel prices and the decrease of tourists from Kosovo.

The latter, after the liberalization of visas from January 2024, diversified the countries where they spend long-term vacations, while for weekends, Albania continues to remain the most suitable. The development of tourism has encouraged the growth of the "Accommodation and Food Service" activity.

According to the updated data of INSTAT in the GDP review, this sector has expanded by 36% in 2023, among the highest in the economy, while it was the second contributor to economic performance, after construction.

The growth of tourism has encouraged investments in hotels, especially in coastal areas. In recent years, the number of hotels listed in the list of the largest has increased, both in terms of turnover and profit. However, their profit rate remains low, for residential constructions and tourist villages, "justifying" the ranking towards the latter in coastal areas.

While from the point of view of added value in the economy and tourism, a hotel structure has a much higher impact, their management remains difficult and profit rates are low. In contrast, tourist villages return the investment within a much shorter period.

Another factor that has negatively affected the hotel industry in the country is the weakening of the Euro, which has decreased income by about 20% in recent years.

This decline cannot be compensated by the room prices, which remain low in the face of tourists with low paying ability, the non-categorization of stars, and the high informality of Airbnb and Booking structures.

Market operators claim that the capital is over-equipped with hotels, while there is room for the development of large structures on the coast. "I notice that in Tirana many permits for hotels have been granted or are in the process of construction. I doubt that Tirana has a demand for hotels or that there will be an upward trend. I think there will be many unnecessary structures," affirms Behar Male, Investor of "Maritim Hotel Plaza, Tirana".

He adds that the country lacks real tourism structures on the coast, which are brands. "We have hotels, but not structures that gather organized groups in significant numbers," he asserts.