Page 75 - bne IntelliNews Southeastern Europe Outlook 2025

Albania also mines and processes other metals, such as copper, iron-nickel and coal.
The mining and processing industry faces a potential scandal as the dispatch of 102 containers loaded with suspected toxic waste from the Albanian port of Durres is investigated. The containers allegedly contain electric arc furnace dust – a steelmaking by-product rich in heavy metals – that is classified as hazardous waste and requires strict handling and transport measures. Steelmaker Kurum has denied being behind the shipment.
The manufacturing sector is dominated by the textile and footwear industries. Albania has a well-established fashion and textiles sector, with many factories importing raw materials to produce garments or shoes that are partially or fully finished before being re-exported. Italy, located just across the Adriatic, is a key market for these goods. However, the rapid appreciation of the Albanian lek in recent years has negatively affected the sector by reducing the competitiveness of exports.
Despite these challenges, Albania's manufacturing sector has been expanding the diversity of its export portfolio. For instance, exports of machinery, equipment, and spare parts grew by 38% between 2021 and 2022. Although Albania's automotive industry remains smaller than those in neighbouring Western Balkan nations like Serbia, the World Bank has identified potential for developing an auto components sector.
5.1.4 Major Sectors & Companies
Summer 2024 saw a continued rise in tourist numbers in Albania, which has become an increasingly popular destination in recent years. It was helped by the post-pandemic wave of ‘revenge tourism’ as well as its status as a relatively low cost alternative to other Mediterranean destinations such as Croatia and Greece, a consideration for holidaymakers during the hike in inflation triggered by Russia’s invasion of Ukraine and the related energy crisis.
The arrival of low cost airline Ryanair, following a hike in visitor numbers, confirmed Albania’s position on the European tourist map, and is set to lead to a further increase. Meanwhile, the Albanian government is building new infrastructure to facilitate travel to and within the country, including new airports at cities such as Saranda and Vlora. The new airport at Vlora is currently in the final stages of construction and is due to open in April 2025, just in time for the summer tourist season.
As well as being a cheap seaside destination Albania is gradually diversifying its tourist offering beyond peak season sun and sand holidays, taking advantage of its mountainous landscape and rich
75 SE Outlook 2025 www.intellinews.com