TOURISM & HOSPITALITY PULSE

Albania, July 2022

est. 7.3 million est. 3 billion € est. 250.000 jobs

expected foreign visitors total contribution to the Albanian full time equivalent jobs
for 2022, + 18% vs. 2019 economy, +15% vs. 2019 supported

EVOLUTION OF INTERNATIONAL ARRIVALS RECOVERY 2022: the year of recovery

(MoM % change vs. 2019)
Inbound - Internationals Outbound Albanians
100%

60% 51% +20%  -2% 

Inbound foreigners Outbound domestics
20% (Jan-Jun ‘22 vs.2019) (Jan-Jun ‘22 vs.2019)
9%
-8%
-20%
-2% -7% In 2021  400 million € remained in the
-12%
-60% -36% -41% country, because 1.8 ml Albanians did not
-…
travel internationally, as they did in 2019
-100%
Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec

2020 2021 2022

Fastest growing markets Jan-Jun ‘22 vs ‘19 80% Total
spending
20%
Netherlands +65% Foreigners Domestics
25,321 | Market share 1% Ukraine -5% Source: WTTC Albania, March 2022
11,502 | Share 0.5%
Kosovo +59%
Russia -25%
969,547 | Market share 38% 10,401 | Share 0.4%
Poland +1%
est.70% of all internationals are
Serbia +35%
39,778 | Market share 1.6%
39,455 | Share 1.6%
Albanians or of Albanian heritage
T
Czechia +36%
UK +34% 10,715 | Share 0.4%
Others* +4%
62,362 | Market share 2.4%
8,790 | Share 0.3% Top 5 markets
Italy +24% *Belarus, Latvia, Lithuania,
Estonia, Moldavia
198,031 | Market share 8%)
War affected
Germany +24% markets
73,636 | Market share 3%

38% 11% 8% 8% 8%
Kosovo N. Macedonia Montenegro Italy Greece

+48% passengers (vs.2019)

Legend  above 2019  below 2019 Air transport | Share 20%
Visitors as % change from 2019 Non-Residents
Residents

120% enabling the recovery

80% 90%
71% Wizzair alone offers 41 routes in
40% 39%
28% 14 countries from Tirana airport
0%
-19%
-40%
-80% -69% Room Lower occupancy rate
Occupancy rate
-120% Despite the increase in the number of visitors,
Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun
2020 2021 2022
occupancy rates have not yet recovered!
Source: INSTAT, 2022, Accomodation Survey data
 TOURISM & HOSPITALITY PULSE
Albania, July 2022
2,200 Hotels 55,000 rooms 120,000 beds
Online booking platform estimated capacity estimated capacity
Source: www.booking.com as of June 2022 (Hotels and Guesthouses only as by booking.com filter)

Hotel survey: On July 13 -27,2022 a survey with 217 hotels was conducted in six major touristic destinations
Durres Shkoder Vlore Berat Pogradec As of July 2022, hotels
Tirana
Kavaja Lezhe Sarande Gjirokast. Korce
perceive the current
# of hotels surveyed 31 40 71 23 28 24 season to be worse than
Avg # of Rooms 44 44 24 12 23 45 2019 & 2021 in terms of
bookings!
Price/Room 63€ 51€ 75€ 36€ 43€ 58€
This might be due to:
Occupancy rates (May) 30.4 28.2 30.6 51.2 32.3 67.7 • Increase in the number
Occupancy rates (June) 46.3 45.0 46.0 63.1 42.3 67.9 of Airbnb offer
% of seasonal staff 41% 73% 60% 43% 30% 3% • Reduced spending due
to inflation
% of foreign guests 74% 62% 69% 73% 38% 82%
• Shorter trips because of
% net better-worse* -13% -45% -37% -9% -36% +21% inflation and cheap air
* Net difference between hotels stating 2022 is
better than 2019 and those stating it is worse fares
Compared to 2019, based on reservations how
Note: To be investigated in Sept.’22
do you see this season through a survey with hotels (2nd
wave), survey with Albanian
Airbnb apartments households and focus groups
(% change Q2 ‘22 vs Q2 ’19)
Durres county Hotels' future
+61%(1,297) expectations
50% 12% 24% 12% However, when asked on
Tirana (city) Worse Equal Better Don’t know mid-term expectations,
+79% (2,382) hotels showed optimism!
Vlore county Hotels’ expectations in the upcoming three years
+56%(5,694)
Saranda (city) 65%  29%  63% 
+44% (2,283) think foreign think domestic tourists think hotel prices
Source: AirDNA.com tourists will increase will increase will increase

Hotels’ perspective
Gov. policies with impact How can the government support?
Reduction of VAT to 6% 66%
Visa Free Program 39%
Increase in the number of flights 31%
Urban Renaissance 23%
Removal of property tax 21%
55% 53% 43% 40% 33%
Promotion Tax Financial Electricity Salary
T
Creation of new airports 17%
None of the above of Albania reduction aid subsidy subsidy
12%
packages

Top 3 challenges Top incentives

Finding and Retaining Staff 56% | Better infrastructure
❶ 55%
54% | Maintaining a good quality of service
Rising Prices
❷ 47% 75% 33% | Cultural/musical activities/festivals
Global changes (Covid, war, etc) need  35% more
❸ 42%
employees 29% | Airport near destination