PhD, Associate Professor. Ilirjan Lipi��Department of Business, Faculty of Economy, University of Vlora ‘Ismail Qemali’�

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Tourism in Albania- Case of Vlora

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PhD, Associate Professor Ilirjan Lipi

• Professor in the Department of Business Administration, Economic Faculty at University of Vlora “Ismail Qemali”, in Albania, where he has been since 1998.
• Main research interests include:
• Business Management
• Human Resource Management
• International Business
• Business Plan Development
• Management Informatin System.
• He is author of many national and international scientific papers.
• Part-time in a training center.
• “My Training” --- Hybrid Training (online since 2018, offsite since 2009)
• Small Business Training and Consulting Service.( Trajnimiim.com)
• I am engaged part time in Small Business Training and Consulting Service, services that are offered online (in Albania) and offsite (Vlora).

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Work Experience

• 1998-2004. Lecturer of Management Subjects (full-time). Vlora University “Ismail Qemali”, Economic Faculty, Department of Business Administration.

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•  1999-2001. Responsible for the Management Section, Department of Business Administration,

Economic Faculty, Vlora University “Ismail Qemali”.

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• 2000-2004. Dean, Economic Faculty, Vlora University “Ismail Qemali”.

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• 2004 – 2005.
• Lecturer of Management Subjects (part-time). Vlora University “Ismail Qemali”, Economic Faculty, Business Administration Department
• ProCredit Bank. Bank manager, Sarande Branch (full-time)
• Center “My Training” (Trajnimiim.com) , (part-time) Vlore

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Education

• 1992-1996. Tirana University, Economic Faculty. Higher Education in Business Administration (4 years study)

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• 1999-2001. MSc. In Business Administration. Tirana University, Faculty of Economy

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• 2002-2006. PhD in Economy, Tirana University, Faculty of Economy

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• 2015. Associate Professor, Durrës University, “Aleksandër Moisiu”

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Other Training

1. Power BI, 2023
2. R Programming  Language, 2022.
3. Java , 2021.
4. MS SQL Database, 2020.
5. Python Intermediate, 2020.
6. Administrim Website CMS, 2020.
7. Fiscal Expert, 2019.
8. Front End Developer,2019.
9. Internal auditor, 2019.
10. SPSS; 2019

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Deans of Economic Faculty, UV

1. Selman Lamaj
2. Natasha Ahmetaj
3. Ilirjan Lipi
4. Kreshnik Bello
5. Arta Musaraj
6. Dorjan Tozaj
7. Miftar Ramosaco
8. Evelina Bazini
9. Albert Qarri

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Tourism in Vlora

• Gross domestic product (GDP) is one of the general indicators of the economy of a country or region.
• In the following, the Gross Domestic Product (GDP) is presented for the region of Vlora according to the main economic activities or even at the country level, based on the latest data published by INSTAT, referring to the year 2021;
• And also the contribution of tourism in the Vlora region in terms of GDP.

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ALBANIA

• In 1995, the GDP of Albania was $750/capita, while in 2021 it was $6377/capita. The increase in GDP is 8.5 times.

(1995-2021)

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• Economic Complexity Index (ECI). We have a decrease, 8 positions. (1995-2021)

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• Projection for 2031, very ambitious

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Albania vs Croatia

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(1995-2021)

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(1995-2021)

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It is a comparison between Albania and Croatia. At the beginning, it shows the evolution of GDP. Croatia has a GDP per capita, about 3 times higher.Then for ECI Ranking (Economic Complexity Index) in both of them. Both countries have a decrease, but Croatia is very high in the ranking. At the end, it is shown for future projections to 2031.

Croatia vs Albania

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The services sector looks almost the same. While the other part shows that Albania has fewer layers that represent certain industries.The chemical industry, machinery, etc. are missing. At the same time, some layers are thinner, testifying in less development of the sector. For example, agriculture, electronics, etc.

RANKING COMPARISON TOOL�

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In this graph, the position of Albania according to ECI, compared to the countries of the region.

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Croatia Albania North Macedonia

In this graph, Albania is crossed with North Macedonia and Croatia.

In 1995, Albania and North Macedonia were in the same positions. For several years, the advancement was the same. But in the last two decades, North Macedonia has differentiated itself by greatly improving its competitive position. Croatia has always been higher and has maintained its dominant position.

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The activities that occupy the largest share

in the GDP of the Vlora District, 81%

These statistics show the economic activities by GDP structure in Vlora Regions, and trade, transport, and hotels are the second-largest contributors to Vlora GDP.

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Tourism in Vlora

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The main sectors of GDP, Vlora Region

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1-The chat show the economic sectors that share quasi 81% of GDP in Vlora region.

2-Economic sectors share

A-Agriculture , 27,3%

B-Trade, Transport and Hotels; 18.4%

C-Construction. 13.34 %

D-Public Administration, 12.7%

E-Extractive Industry, 9,4 %

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These statistics show the economic activities by GDP structure in Vlora Regions, and trade, transport, and hotels are the second-largest contributors to Vlora GDP.

Do you know that almost 28.8% of the total active Albanian enterprises by the end of 2022 refer mainly to the service sector and other services (excluding trade, transport and storage, accommodation and food service, information, and communication)?

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Tourism in Vlora

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Vlora Region, GDP share according the economic sectors.

Vlora Region

2021

Tourism in Vlora

Trade, Transport and Hotels;

18.4%

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Other sector are: Scientific activities ,Arts, entertainment and recreation,Information and communication . In total these sector are 7.5% .Trade, transport, and hotels, along with the other sectors, will be 25.9%.

Did you know that about 74% of the total active Albanian enterprises until the end of 2022 have the legal form of a natural person (excluding farmers)?

GDP share according the economic sectors.

Vlora Region, 2021.

A-Agriculture , 27,3%

B-Trade, Transport and Hotels; 18.4%

C-Construction. 13.34 %

D-Public Administration, 12.7%

E-Extractive Industry, 9,4 %

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Other

Scientific activities 3.9%

Arts, entertainment and recreation 1,9%

Information and communication 1.7%

Total= 7.5%

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Fast growth opportunity

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18.4+7.5=25.9 %

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Tourism in Vlora

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Burimi: INSTAT

Tourism in Vlora

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1.Tirana, 43,72%

2.Fier 10.86%

3.Durres, 10.06%

4.Elbasan 6.73%

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5.Vlora, 5.69%

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The region of Tirana is ranked first, followed by Fieri, Durres, and then Elbasan, followed by the region of Vlora, which is ranked fifth.

Tourism in Vlora

How to foster growth?�

• Short run-impact
• Scientific Activities: Increasing the scientific activity development in the Vlora Region.
• Arts, entertainment and recreation: Encouraging, and expanding the recreational activities throughout the whole year.
• Information and communication: Improvements must be made even in this sector and activities.

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So the growth of accompanying and linked tourism activities is needed too.

• Long run-impact
• Agriculture. Growth and development in the agriculture sector , will impact the development of tourism sector in Vlora, not only by the promotion of agro tourism but even by their linkages.
• Investments in road,airport and hotel infrastructure will affect the improvement of the lives of citizens and tourists. This will increase the number of tourists and the level of income for the region.

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The table shows a geographical division of Albania, reflecting the structure of gross value added.�

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Nord

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Center

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South

Here it is shown for the region of Vlora. We will focus on these groups: Trade, transport and tourism 18.4%, Information and communication 1.7%, Scientific, professional and technical activities 3.9%, Arts, entertainment, recreation 1.9%. Total 25.9%.�

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Here it is shown for the region of Gjirokastra. We will focus on these groups: Trade, transport and tourism 19.5%, Information and communication 2.0%, Scientific, professional and technical activities 3.9%, Arts, entertainment, recreation 1.2%. Total 26.6%.�

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Vlora vs Gjirokastra

• Gjirokastra. 26.6% (19.5% , 2%,3.9%, 1.2%)
• Trade, transport and tourism 19.5%,
• Information and communication 2.0%,
• Scientific, professional and technical activities 3.9%,
• Arts, entertainment, recreation 1.2%.

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• Vlora. 25.9 % (18.4%, 1.7%, 3.9%, 1.9%)
• Trade, transport and tourism 18.4%,
• Information and communication 1.7%,
• Scientific, professional and technical activities 3.9%,
• Arts, entertainment, recreation 1.9%.

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Vlora and Gjirokastra are both in the south of Albania, based on the geographical division shown above. Although geographically, Vlora also has a sea (and harbor), it is in second place after Gjirokastra (customs point)

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According to the geographical division, Tirana is in the center. Despite the fact that Tirana has no sea (aeroport), it is ranked ahead of Vlore.�

• Tirana: 45.4% (ku 23%, 6.3%, 12.1%, 4%)
• Trade, transport and tourism 23%,
• Information and communication 6.3%,
• Scientific, professional and technical activities 12.1%,
• Arts, entertainment, recreation 4%.

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• Gjirokastra. 26.6% (19.5% , 2%,3.9%, 1.2%)
• Trade, transport and tourism 19.5%,
• Information and communication 2.0%,
• Scientific, professional and technical activities 3.9%,
• Arts, entertainment, recreation 1.2%.

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• Vlora. 25.9 % (18.4%, 1.7%, 3.9%, 1.9%)
• Trade, transport and tourism 18.4%,
• Information and communication 1.7%,
• Scientific, professional and technical activities 3.9%,
• Arts, entertainment, recreation 1.9%.

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• 1-Tirana: 45.4% (23%, 6.3%, 12.1%, 4%)
• Trade, transport and tourism 23%,
• Information and communication 6.3%,
• Scientific, professional and technical activities 12.1%,
• Arts, entertainment, recreation 4%.
• 2-Durres 34.9% ( 25.6%, 1.2%,6.3%, 1.8%)
• Trade, transport and tourism 25.6%,
• Information and communication 1.2%,
• Scientific, professional and technical activities 6.3%,
• Arts, entertainment, recreation1.8 %.
• 3-Gjirokastra. 26.6% (19.5% , 2%,3.9%, 1.2%)
• Trade, transport and tourism 19.5%,
• Information and communication 2.0%,
• Scientific, professional and technical activities 3.9%,
• Arts, entertainment, recreation 1.2%.
• 4-Vlora. 25.9 % (18.4%, 1.7%, 3.9%, 1.9%)
• Trade, transport and tourism 18.4%,
• Information and communication 1.7%,
• Scientific, professional and technical activities 3.9%,
• Arts, entertainment, recreation 1.9%.

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According to the geographical division, Durres is in the North. The city has a sea and border points. It ranks second.

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Exports of Albania, 2021

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According to the Economic Complexity Index (ECI), the main countries for export are: Serbia, Italy, Greece, North Macedonia, Spain, etc.

Croatia is tenth, 2.07%

Import of Albania, 2021

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The main imports are from Russia, Italy, Serbia, Poland, Czechia, Germany etc.

Croatia is 29th

Travel and tourism in Gross Export

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Burimi: https://atlas.cid.harvard.edu/explore?country=4&queryLevel=location&product=undefined&year=2021&productClass=HS&target=Product&partner=undefined&nodeSizing=None&startYear=undefined

In this grafik is ECI for Albania , 2021. Travel and tourism is 29.72%

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Travel and tourism , Albania

2000---2010---2021

Burimi: https://atlas.cid.harvard.edu/explore?country=4&queryLevel=location&product=undefined&year=2021&productClass=HS&target=Product&partner=undefined&nodeSizing=None&startYear=undefined

Tourism and diversification of exports

• Regardless of what are the main determinants of export variables such as:
• comparative advantages of products
• competitiveness of exports
• export diversification
• the process of learning through exporting or the composition of the export portfolio

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• studies have shown that the increase in exports is the most necessary factor for economic growth,
• because developing countries through export generate foreign currency, which is needed to pay for capital and imported products or services.

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• Export growth promotes economic growth by generating foreign currency, which enables the import of machinery and intermediate goods, which are necessary for investment.

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• Burimi: Brenton et al., 2010; Besedes dhe Prusa, 2006; Nitsch, 2009; Fugazza dhe Molina, 2009; Hausman et al., 2007

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Prices low of Exports vs Innovation as basic factor

• The export growth is important at all stages of development.
• But the factors supporting export growth tend to be different at each stage of development.
• A- In a country with high income, innovation is a basic factor for supporting exports.
• B- Low and middle income countries tend to compete with each other based on prices rather than innovation (the fall in the price of goods.)
• The inability to innovate leads middle-income countries to base their export growth on low prices, which are the result of an undervalued currency or free labor, unable to provide a product of differentiated.
• Middle income trap- is the situation of slowing economic growth resulting from poor innovation. It is precisely the capacity for innovation that is the main variable or economic virtue that enables the transition of a middle-income country like Albania to a high-income country.
• The number of tourists increased by 41% in January, February 2024 (Albania), compared to the same period a year ago. The main reason is the low prices

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The size of the companies in Albania in the trade, transport and hotel sectors are close to North Macedonia, but they are lower than Croatia and other EU countries.

Large firms

The experience of the new industrialized economies shows that large firms are very necessary when it comes to the transition from a low-income to a high-income economy,

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BECAUSE

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these businesses tend to benefit from economies of scale and are better positioned to handle research and development or even marketing activities.

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THE CONTRIBUTION OF TOURISM

Tourism has generated some export revenue, growth, and employment. But still, the question that arises is:

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Can this industry be a long-term supporter of economic growth in Albania?

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World experience and empirical studies suggest that tourism is also considered a "quick win"

So it can hardly be considered a key to long-term growth.

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WORLD EXPERIENCE

• World experience shows that specialization in traditional tourism brings limited growth benefits for several reasons.
• First, to generate growth, the country must attract even greater numbers of tourists, since real income per tourist is largely constant. The greater number of tourists would exponentially increase the cost of public services such as security, utilities, and waste management.
• Secondly, tourism includes activities with low productivity, such as trade and hotel-restaurants. In this way, even the selection of tourism as a strategic sector fits the slow industrial policy followed by Albania until today ("snail crawling"), and it is not enough to move fast.
• Finally, we must recognize that sophisticated services that bring benefits in the long term are related to scientific, research and development, and professional services.

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CAPITAL HUMAN

• Compared to the countries of the region, Albania lacks employment in industries with high intensity and sophistication in technology.
• 80% of the workforce in formal sector production works in sectors with low technological intensity (e.g., in the production of food and beverages, textiles and clothing, wood, and furniture products).
• and 17% in the industry with medium-low technological intensity (e.g., metals, materials, minerals, equipment installation).

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• Employment in industries with medium-high technological intensity (e.g., vehicles, chemicals, machinery, and equipment) and in high-tech industries (e.g., computers and electronics, pharmaceuticals) is negligible.

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• Part of employment in medium- and high-technology industries is significantly higher in Croatia, North Macedonia, and Serbia (World Bank, 2019).

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Share of employment by intensity of technology use, 2016

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80% of the workforce in the formal sector production works in sectors with low technological intensity

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17% in the industry with medium-low technological intensity

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THE CONTRIBUTION OF TOURISM

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Tourism has generated some export revenue, growth, and employment.

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World experience and studies suggest that tourism is also considered a "quick win“

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The Vlora region can have an even greater impact on the economic development of Albania.

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Thank You