Tourism growth boosts business and employment in Albania, INSTAT reports
The expansion of Albania’s tourism sector has directly contributed to economic growth, leading to an increase in businesses and employment. According to a new report by the Albanian Institute of Statistics (INSTAT), the number of employed individuals in the sector grew by 8.8% in the last quarter of 2024 compared to the same period in 2023. The hospitality and service industries have seen particularly strong performance.
Why is this important: Tourism has become one of Albania’s key economic drivers, fueling business growth and job creation. The increase in employment and wages in hospitality and food services underscores the sector’s role in improving livelihoods.
Context: INSTAT data show that net sales in the Hotels and Accommodation sector increased by 7.9% in Q4 2024 compared to Q4 2023, reflecting a rise in tourism activity. The number of employees in this sector also grew by 8.8%, while the wage fund index surged by 19.4%.
The Bars and Restaurants sector recorded a 12.8% increase in net sales during the same period, with a 7.8% rise in employment and an 11.2% increase in total wages. Growth was also observed in Transport, Storage, and Postal Services, including rail, maritime, and air freight, all of which are critical for supporting tourism-related logistics.
The continued upward trajectory of these industries indicates that Albania’s tourism boom is having a lasting economic impact.
Go deeper
Albanian parliament approves “Mountain Package” to boost rural investment and tourism
Published on March 18, 2025
Why is this important: The “Mountain Package” provides tax incentives for rural businesses, particularly for Albanians in the diaspora who want to invest in family lands. Additionally, a €250 million loan fund with government-backed sovereign guarantees will facilitate access to low-interest agricultural loans. The government also plans to establish the Albanian Development Bank to finance projects that commercial banks typically avoid.
Italy-Albania pension agreement set for final approval, expanding benefits for thousands
Published on March 11, 2025
Why is this important: The agreement allows Albanian and Italian citizens to combine their years of contributions in both countries to qualify for pensions. The data exchange between the Albanian Social Security Institute (ISSH) and Italy’s INPS will be automatic, reducing administrative costs. This ensures that thousands of workers who previously did not meet the minimum contribution years can now claim their rightful pensions.
Non-performing loans decline to lowest level since 2014
Published on March 11, 2025
Why is this important: The steady decline in non-performing loans signals stronger financial health in both businesses and households. It also reflects the positive impact of monetary policies, such as the 2.75% base interest rate cut implemented by the Bank of Albania. These developments contribute to greater confidence in the country’s banking system and economic stability.