Prof. Dr. Arben Malaj: Albania more expensive, poorer Albanians. Albania is becoming part of the global tourism markets year after year. The number of tourists to come will be increasing. The tourists coming to Albania are from countries where the capital income is 3 to 6 times higher, so they can afford the price increase. Any increase in prices from accommodation, restaurants, goods, and services is severely affecting the disposable income of Albanians. In addition to the positive effects of tourism growth, researchers have also predicted the negative effects of rapid tourism growth in countries such as Albania. For any economics student, it is clear that if overall demand in a country’s economy grows at a higher rate than supply increases, prices of goods and services will rise and all but particularly those with real disposable incomes rising will be affected. more or less from year to year. For this reason, with 4 to 6 million tourists annually our country will become ever more expensive, due to the rising prices that come from increased consumer demand in the tourist season. This influx makes Albania more expensive and poorer Albanians. The expansion will affect the middle class in the first place, and more than others, especially public administration, but also private-sector workers, where real wage growth has stalled for years. Italians and Greeks depreciated the shocks of the 2008 crisis, where unemployment rose, social policies cut, real disposable income dropped sharply, Greeks lost up to 33% of disposable income because studies show Italians were 500% and Greeks 400% wealthier than their states. So they had a second income out of work, mainly real estate income, with which they depreciate the decline in crisis income. Albania will become increasingly expensive as its population is about 2.5 million and long by the summer season 4-6 million tourists enter, demand for goods and services will increase, everything will become more expensive. Excluding even modest vacation opportunities for a few hundred kilometers of coastal populations is a failure. This means that public policies are missing or failing. In the face of rising housing prices and services every year, in the face of the impoverishment of large numbers of Albanians, pro-active public policies are required to increase the disposable income that may include:
1. There is no tax on the first home – an annual income level can be set.
2. To have a modest tax on the second home – money in the hands of the middle class and the modest income earner is spent faster and better nourishes growth.
3. Encourage private investment with low-interest loans for accommodation in any area of the country. The large private investments in Italy and Greece for the tourism industry have been supported by loans with favorable conditions. Based on territorial adjustment plans, which clarify the destination of each palm of land in Albania, facilitate on-line permits for the construction of houses and accommodation center’s or tourism support businesses for tourism services. Simplifying procedures and eliminating direct or indirect costs for individual/family tourism investments. This could enliven the Albanian economy at least for the next three years, which are difficult to assess.