Albania Country Profile
Welcome to Albania, a country located in the center of Southeastern Europe at some of the major crossroads between east and west. Albania is bordered by Montenegro, Kosovo, North Macedonia, and Greece, and has a surface of 28,748 km² (similar to the size of Belgium) with a population of 2.9 million people, with an average age of 34.7 years.
The country’s main international airport is Mother Teresa Airport, located in Rinas, only 11 km northwest of Tirana. Albania’s main ports include Durres, Saranda, Vlora, and Shengjin, providing access to the Adriatic and Ionian seas.
The road network in Albania is well developed, with 3,848 km of national roads, offering easy access to all parts of the country. Albania’s resources include petroleum, gas, bauxite, chromite, copper, iron, nickel, salt, and timber, as well as hydropower, solar, and wind energy.
Albania has been selected as the host country for the upcoming FESTA forum on tourism for many reasons. One of the main reasons is its strong growth potential. Over the past five years, Albania’s export has grown steadily, and its trade with many EU countries has been surging. This growth potential presents a unique opportunity for investors looking to enter the Albanian market.
In addition to its growth potential, Albania boasts competitive human capital. With 50% of its population under the age of 35, Albania has a large and youthful workforce. The average wage in Albania is also one of the most competitive in the region. Furthermore, with a literacy rate of 97.6%, Albania’s workforce is highly educated and skilled.
All these factors make Albania a promising destination for investors and the perfect location for the FESTA forum on tourism.
Why Invest in Tourism
Albania has become an attractive destination for foreign investors, specifically due to its liberal framework aiming to create a favorable investment climate. The country has adopted special legislation regarding strategic investments that encourage and smooth foreign investments, particularly in the tourism sector.
Following this, the strategic investment legislation is designed to target significant capital investments in the sectors considered strategic for the country’s economic development. This legislation provides strategic investors with incentive and support mechanisms that consider these investments as a priority and guarantee a range of measures, services, and administrative facilities.
In the tourism sector, investors enjoy various benefits, such as a 6% VAT on touristic accommodation facilities, 0% tax for five-star hotels/resorts, and 99-year lease of public land. Additionally, accommodation facilities such as “Four and Five-stars Hotels, with special status” and the holders of an internationally recognized and registered trademark (brand name) are exempted from corporate income tax for a period of 10 years.
Investments in cultural monuments (and cultural heritage) are also exempted from the tax on the impact in the infrastructure.
To conclude, Albania offers a welcoming and friendly environment for foreign investors who are looking to invest in the tourism sector.