Prime Minister Edi Rama, who is currently in Shkodër, held a discussion with successful entrepreneurs in the hospitality sector about their business achievements, the challenges they have encountered, and their expectations from the government. They talked about what has been done so far and what can be improved in the future.
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Prime Minister Edi Rama: I fully understand this need for more, and there’s no doubt about it, as we are here for this purpose. But take a look at what Beneti has prepared regarding the investments made in this region, particularly in energy and water supply. These investments amount almost 200 million euros—just for electricity and water, which were once in a disastrous state. Of course, more is needed. That’s undeniable.
As for the road, the one that was 2106 meters long—he’s very precise, using meters rather than saying 2 kilometers, though it sounds less than 2 kilometers. But don’t forget, we also have the Dukagjin road under construction.
Is the Dukagjin road progressing or not? A 47-kilometer road is being built. The Koman road is another major, long-standing project.
We must also remember the Shëngjin-Velipojë road, which I believe will be completed by April and ready for this tourist season.
Additionally, there’s the Shirokë-Zogaj road, which connects Shkodër with Montenegro via another access point, opening up an entirely new territory. In fact, all of these construction sites were needed, and they hadn’t been done for many years. Now, they are either nearing completion or already in progress. And it’s not just this region—completing these main routes essentially finalizes the entire infrastructure network of the Shkodër district.
The challenge is that, first, there are the main routes, and then the railway that runs from here to Gjakova and links with Pristina, which is an ongoing project. We are in the process of securing funding for it, as railway projects are currently in development. Tirana-Durrës route is nearing completion, with about 80% of the work done. Vorë-Han i Hotit section is funded. There’s also the Corridor 8 project, which runs from Durrës to Rrogozhinë, then down to Pogradec, and connects with North Macedonia.
So, many projects are gradually being completed, and they are all coming together, creating the full backbone of infrastructure.
There are still other segments that need to be connected and enriched, but the main projects, the main connections, are crucial.
If you look at what’s happening in Shkodër from a numerical perspective, it’s clear that the demand for more accommodation units will grow significantly because, in terms of visitor flow, there has been a huge increase in the past two years. In terms of accommodation units, the need is also very high.
In fact, there are around 200 accommodation units in the city today, which are either medium-sized or small, but more are needed. As we discussed earlier, all these units within the region, such as agro-tourism or mountain hotels, have an extremely high value, and Thethi is a clear example. Thethi is a model. It shows you the potential future of many areas in Albania because Thethi is incredible, but it is not the only place with natural beauty—natural beauties in different forms exist everywhere. I said this earlier today: in Thethi, if you meet the locals, 85% of them are young people. That’s where the youth is, and everyone there has a business. They’ve opened a door and are making money through hospitality. Moreover, wages in Thethi are higher than—let’s say, better than in Germany. I’m not saying this because then I’ll be made into a meme, because many don’t even know what’s happening in Albania. They view Albania from the perspective of swamps or from the comfort of their studio couches at night, speaking nonsense, as if we’re still in the situation they saw when they last visited Albania. They don’t really know, but the reality is, wages are excellent.
Hello, Mr. Prime Minister. I have a small hotel here in the city center, and we have some projects to expand. We’re planning to create accommodation structures with around 50-60 rooms at the entrance of the city because we’ve noticed that city tourism, along with the municipality organizing many events, has breathed new life into the city compared to before, and we are seeing opportunities for expansion. We are very pleased with the municipality and the work being done.
I would like to raise two issues, each with a respective suggestion. I am located in the beach area, and since we operate seasonally, starting in May and closing in September, we have staffing issues. We have to find new staff at the beginning of the season and then send them off by the end of September. From what I’ve noticed, most of the staff we hire are young people who continue their studies and work with us during the summer season. The issue is that we have gaps at the start of the season, and by around July 7th or 8th, these gaps are filled, sometimes even with more staff than needed. This date coincides exactly with the day when they take their final exams at the universities. My suggestion would be to possibly move the academic calendar. If schools start in mid-October, or by the end of October, maybe they could begin a little earlier, so they finish earlier, or maybe compact the academic calendar.
Another issue is the beach stations. A few days ago, I came across an article and noticed that our neighbors had given the management, cleaning, and organization of the beach stations to a company from the United Arab Emirates, an investor who would be an honor for us, the people of Velipojë and the people of Shkodër, to have. I would suggest that you look into this as a possible solution for this major issue, which is a headache for any mayor who manages a massive beach, a crowded beach like Ksamili, Durrës, Shëngjin, and Velipoja.
Prime Minister Edi Rama: Regarding the first point, I believe that if wages are convincing, it’s easier to have a more stable workforce. Of course, it’s not easy from a financial burden perspective because it means keeping employees for a period beyond the peak season, and you are very much tied to the seasonality of the business. However, for this, we need to think about extending the season. We need to rethink the approach, as there are structures today that have managed to extend their seasons. As we discussed earlier today, we should incorporate more health-related components, such as physiotherapy, detox treatments, and others, which are very attractive, especially for the autumn-winter period.
Another point is that we are currently making some agreements and have begun collaborating with Germany to bring pensioners during the autumn-winter period to stay in hotel structures along the coast. These pensioners are a great help in keeping the hotels open and covering much of the costs, something that countries like Portugal, Spain, and Turkey have successfully done. Now, there is growing interest in this idea because, not long ago, as you well know, Albania was not considered convincing enough.
Now that Albania is becoming more appealing, this path seems to be opening up, and I privately suggest that you look into this as well, as there are many organizations and municipalities in Central and Northern Europe, starting from Germany and extending to the higher regions, that have this kind of need.
We have left this relaxed for now because we are not yet at a stage where we have sufficient or competitive capacity for Airbnb. It’s not yet at the point where Airbnb is affecting the hotel industry, as we don’t have the hotel capacity to handle all that demand, to begin with.
Secondly, we have allowed people to earn some extra income without getting into situations with inspectors or checks at homes because it simply doesn’t work. However, this year we are starting a new phase, beginning with the hotels.
You know very well, better than anyone, that not all hotels declare their earnings properly. In terms of declaring beds, not all hotels tell the truth. Some don’t report it correctly, and this is not something that’s happening for the first time in Albania. This is something that everyone has gone through.
What we will do this year is that we have the lowest VAT in Europe and the region, which is 6% for hotels. It’s the lowest. We have the lowest VAT in the region and all of Europe, and we did this intentionally to give hotels the opportunity to profit in the first phase, but also to help with formalization. However, while you have made a profit, we are still far from formalizing everything. So, this year, starting from May, there will be a program where, if you prefer, without any inspections or tax problems, you can avoid any tax inspection headaches by agreeing to sign an agreement with the tax authorities and pay 65% of your revenue from May to September. It’s as if you have 65% of the capacity booked, which, from May to September, you actually have 100% of your capacity booked.
I’m not talking about Thethi, since Thethi is at 100% even as we speak. But for the rest, 65% from May to September, and 30% during the off-peak period, which balances things out. This way, you will have reserves, and the state will gradually receive what it’s owed, step by step.
In parallel with this, for next year, we are working on a digital solution that will eventually include Airbnb, as this has been an issue for Italy, Spain, and Croatia. We will start with Airbnb, but gradually, so as not to overwhelm people right now, because the problem is that you then need to carry out inspections, and those inspections are unpleasant for many reasons. You know very well that it’s better to make an agreement, pay what you owe, than to have inspectors come and check everything.
It’s worth praising that as we speak, several projects have continued without being mere promises; they are now implementations. In this meeting with the most important tourism operators from the North, we can see very clearly the tourism development that Shkodër has experienced with these investments. Every investment has progressed in parallel, not just in the peripheral areas, but every investment has moved forward because the municipality hasn’t just invested with the government in the entire region, but has also operated in the city center. I want to emphasize the events that have been promoted and launched, which is one of the reasons that has contributed to giving Shkodër a major tourism development.”
Prime Minister Edi Rama: I also want to mention something else since we’re discussing tourism in the city. Another key aspect to increase the flow of visitors and extend their stay—which is the main challenge—is what we’re doing with cultural attractions. Marubi, as you know, is a small museum in terms of size, but it has played an important role. Now, we have two additional museums.
Meanwhile, for the Shkodër entrance project, there will also be the Museum of Navigation. This is already funded, and it will be built during this process. But what would really be the cherry on top is Gjon’s idea for the Museum of Ethnography, where we could gather not just costumes but also valuable objects—everything that makes up a superb museum.
