Page 83 - SE Outlook Regions 2023

3.1.5 Construction

After winning the 2021 general election, Socialist leader Edi Rama
announced plans for major investments into transport and tourism
infrastructure. This includes the construction of new airports at Saranda
and Vlora, and ports at Durres, Saranda, Shengjin and Vlora.

At the same time, parts of Albania’s long-neglected rail network are
being overhauled with support from the EBRD with a €36.9mn loan and
the European Union. Funding announced in 2021 will support the
rehabilitation of the line between the country’s two biggest cities, Tirana
and Durres, and a new line to Tirana International Airport.

However, funding for some projects is under scrutiny. Previous Socialist
governments were criticised by the IMF and other international financial
institutions (IFIs) for their use of public-private partnerships (PPPs) for
projects, often launched on the suggestion of a private company and of
questionable value to the country. As of late 2022, there has been an
outcry from the opposition over the plans for a $1bn new tourist port at
Durres, currently the subject of a bitter political row.

3.1.6 Major Sectors

Albania’s tourism sector exceeded expectations in summer 2022. The
prospects for next year are uncertain amid the economic slowdown
expected across Europe, though as a relatively low cost destination,
Albania is hoping to attract budget-conscious travellers.

Long a popular destination among East European seeking a cheap
beach holiday, Albania is increasingly on the radar of travellers from
further afield. Its reputation as a budget destination already became a
major selling point this year, contributing to the strong 2022 figures
alongside the continued rebound in the travel sector following the
coronavirus pandemic.

Agriculture is a major contributor to Albania’s GDP and employs around
40% of its workforce, according to World Bank data. Farmers have
struggled since autumn 2021, as the costs of agricultural inputs such as
oil and fertilisers have risen. More broadly, the sector is also in need of
modernisation, in particular of its irrigation and drainage infrastructure.

Despite the rise in costs, Albania increased production of cereals, fruit
and vegetables in 2021. The government is aiming for a further hike in
agricultural exports to a record €550mn this year. The head of the ruling

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