Albania launches new “Tourism Development Programme" with EU and EBRD support

Tirana, 03 May 2019

A flagship Tourism Development Programme, co-funded by the European Union (EU) and the European Bank for Reconstruction and Development (EBRD), was launched in Tirana today by Prime Minister Edi Rama, Minister of Tourism and Environment Blendi Klosi, Head of the EU Delegation to Albania Ambassador Luigi Soreca and EBRD President Sir Suma Chakrabarti.

The Programme aims to enhance the contribution of quality and sustainable tourism to economic growth and competitiveness of Albanian regions, by raising the quality and sustainability of the tourism offer in four areas (Berat, Korça, Fier and Shkodra). It will also increase the attractiveness of cultural, natural and other assets for tourists and improve local sustainable development of priority infrastructures in the framework of the Albanian regional development policy.

Tourism is an essential source of income and job creation in many economies and has positive effects on a wide variety of industries and services.  With this contribution of EUR 40 million to tourism development, the EU will assist the promotion of natural resources, social, and cultural heritage, with an impressive multiplier effect on the economy.

The EBRD will manage the Programme and is designing a complementary sovereign loan facility to Albania for up to EUR 60 million to co-finance alongside EU grants the investments identified under the Programme in close cooperation with the Albanian Development Fund.

"I am proud that the EU is investing 40 million euro, in excellent cooperation with EBRD, to drive regeneration and economic development in Albania. Touristic development is of course a tool to enhance the experience of visitors and the quality of life of host communities. But if poorly planned or developed to excess, it could destroy the very qualities that make Albania unique. This is today's challenge: to help build a tourism sector that strengthens the social fabric and economic development, by giving value to the natural beauties and cultural assets of this beautiful country," EU Ambassador Soreca said.

The event brought together policy makers, the mayors of Berat, Fier, Korça and Shkodra, two Associations of Municipalities, representatives of the Ministry of Tourism and Environment, Ministry of Culture and the Institute of Monuments, Ministry of Finance and Economy, Ministry of Interior, representatives of Tourism Associations and Tour operators, civil society organizations, businesses, and donors.

Background:
 

Project: "Tourism Development Programme"

Contribution agreement for IPA2017 - "Tourism-Led Model for Local Economic Development Support Programme" signed with EBRD on 14 December 2018.

Duration:    60 months (12/2018 – 12/2023) with possible extension.

Total Budget of the Action: 105 Million EUR (including 40 Million EUR as EU contribution, while EBRD will make available additional resources up to €60 Million under sovereign guarantee and €5 Million for small loans to SMEs via local financial institutions).

Component 1 (€20 million on Tourism Development) and Component 2 (€20 million on Local Priority Infrastructures Development) in Indirect Management with the European Bank for Reconstruction and Development;

Purpose: The Action will enhance the contribution of high quality and sustainable tourism to economic growth and competitiveness of Albanian regions, by raising quality and sustainability of integrated tourism offer in four pilot areas (Berat, Korça, Fier and Shkoder), enhancing the attractiveness of cultural, natural and other assets for tourists and improving local sustainable development of priority infrastructures in the framework of the Albanian regional development policy.

In a snapshot: