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Albania plans tax exemption for five-star hotels until 2027

The country's Prime minister, Edi Rama, has announced this exceptional measure in order to encourage the qualitative growth of the tourism sector. As in other Adriatic countries, increasing the scale of the offer is crucial for tourism.

Albania intends to make headlines far and wide. The announcement of the tax exemption for the management of a five-star hotel specifically targets "30 international brands", according to the Prime Minister. It was at a press conference that Edi Rama talked about his project for the temporary tax exemption of upscale properties. 

This measure will be accompanied by the construction of a road along the Adriatic coast and an obligation to install a water treatment plant. Good coastline maintenance appears to be a new priority for the government.

These new requirements are not surprising, in an area that has seen the tourism sector enter a significant growth period in the last few years. In Albania, according to data from the National Statistical Office, the number of beds in 2000 increased from 2,000 in 1995 to more than 15,000 today. The country appears to want to follow the same path as that taken by its neighbors on the Adriatic coast, including Croatia, which now has a capacity of 77,000 rooms.

Even more significant than the number of places available, is the move upmarket that seems sought after. Following the example of Croatia, where nearly half of the rooms belong to chains, Albania is determined to attract international investors. It remains to be seen whether these announcements will be implemented, and whether the Albanian government has succeeded in convincing its targets. Beyond its growing audibility, Albania's significant delay in relation to its neighbors, particularly in terms of supply, can be a source of mistrust ... as well as opportunities!

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