What Is the Role of Tourism in Albania’s Economy and Real Estate Sector?

I’ve lived and worked in Saranda for years, and every summer when I walk down the promenade and hear a dozen languages in a single minute — Italian, Polish, French, even Hebrew — I’m reminded of how deeply tourism has changed this country. Tourism isn’t just about hotels and beach bars anymore. It’s the pulse that runs through Albania’s economy, shaping everything from small family businesses to the rise of luxury real estate developments on the coast.

Tourism Growth Trend & Numbers

Over the past few years, the numbers have been incredible. In 2019, Albania welcomed around 6.4 million visitors. After the pandemic, that number rebounded faster than anyone expected — over 10 million tourists visited in 2023, according to the National Statistics Institute, marking a double-digit growth rate compared to pre-COVID levels. This year, 2025, is expected to cross the 11-million mark, if current trends continue.

Most visitors still come during the June to September peak season — the beaches are full, roads are buzzing, and even the small villages like Borsh and Qeparo feel alive. But something interesting is happening: the shoulder months (April-May and October) are getting busier too. That’s a healthy sign — it means Albania isn’t just a “two-month” destination anymore.

Where do tourists go? The coastal belt dominates: Saranda, Ksamil, Himara, Dhermi, and Vlora. But there’s growing curiosity for Gjirokastër and Berat — both UNESCO cities — and for the mountain regions like Theth and Valbona, which attract a different kind of traveler: hikers, nature lovers, and lately, digital nomads looking for quiet places to work.

Tourism’s Contribution to GDP & Job Creation

Tourism now makes up around 20% of Albania’s GDP, directly and indirectly. When someone books a room in Ksamil, they don’t just support the hotel owner — there’s a chain reaction: the taxi driver, the fisherman delivering fresh catch, the decorator who furnishes apartments, even the construction worker building the next villa.

I’ve seen this firsthand. One of my close friends in Saranda started out painting holiday rentals during summer. Now, he runs a small renovation team specializing in short-term rental interiors — wall colors, balcony tiles, even pool mosaics. Tourism created his business.

And it’s not just hospitality or transport. Real estate construction — especially along the Albanian Riviera — is one of the biggest indirect beneficiaries of tourism growth. More tourists mean more interest in owning a slice of the coast, which means new developments, new jobs, and a stronger local economy.

Impact on Real Estate Demand

Tourism and real estate are inseparable here. Every summer, new investors visit Saranda or Ksamil as tourists, and many leave as future property owners.

Short-term rentals have exploded — Airbnb and Booking.com are filled with listings. Apartments that once sat empty in the off-season are now fully booked until October. This shift has pushed demand for vacation homes and seaview apartments higher than ever.

Take Ksamil, for example. A few years ago, most properties were simple family houses. Now, we’re seeing entire luxury residences built exclusively for holiday living — quiet neighborhoods, private pools, 7-minute walks to the beach. One of the best examples is our White Residence Ksamil, a brand-new 2025 development with a private pool for residents. It’s not over-the-top — it’s what I call “quiet luxury,” the kind that feels natural to the environment.

In Saranda, high-end apartments with full sea views are leading the market. Our 1-bedroom seaview apartment on Skënderbeu Street is a perfect example — completely furnished, modern, and part of a private residence with its own swimming pool. It’s in one of the calmest and safest areas of the city, ideal both for living and for short-term rentals.

Then there’s Borsh, which I consider the “next chapter” of the Riviera. With its long beach, olive-covered hills, and total absence of chaos, it’s where investors looking for privacy and nature are heading. We’re currently developing the White Villas in Borsh — four luxurious villas on the main road, each with a private pool, parking, and sea view. These are built by our own construction company, with over 15 years of experience and 150 skilled professionals. Each villa is like a small residential paradise — and they’re all for sale with 0% commission.

I’ve walked that land myself; the smell of the olive trees and the silence around sunset are hard to describe. That’s the kind of property that sells itself.

Regional Real Estate Hotspots

The south remains the strongest region for real estate tied to tourism. Saranda, Ksamil, Himara, and Vlora have seen property values rise consistently, especially in the past five years. Gjirokastër and Berat are drawing attention for boutique hotels and restored stone houses — a new niche of cultural investors who prefer charm over coastline.

Even mountain towns like Përmet and Theth are now seeing demand for small lodges or rural homes that serve as eco-retreats. It’s not mainstream yet, but the pattern is clear: tourism diversifies, and real estate follows.

Seasonality & Its Challenges

The biggest challenge remains seasonality. From June to September, occupancy is almost 100%. But once October hits, things quiet down dramatically. Streets empty out, restaurants close, and you can literally hear the waves echoing through the promenade.

However, smart investors are adapting. Some property owners offer long-stay deals for digital nomads and retirees in the off-season. Others redesign spaces for year-round living — better insulation, reliable heating, fiber internet. One of my clients recently turned a summer rental into a winter “remote work” apartment, and he’s already booked for November through March.

It’s all about seeing beyond the three summer months.

Infrastructure & Tourism Support

Tourism wouldn’t grow without better infrastructure. The Saranda port now receives more cruise ships than ever. The coastal road from Vlora to Saranda has been continuously improved, making even remote beaches like Borsh and Qeparo easier to access.

The upcoming Vlora International Airport, expected to open soon, will be a game-changer. It’ll shorten travel times dramatically for southern Albania, meaning tourists (and investors) can reach the Riviera in under an hour after landing. This kind of accessibility always boosts property values.

Risks & Overdependence

Of course, every opportunity comes with risk. Overbuilding along the coastline is a real concern. Some areas have grown too fast, with little urban planning. And while I love summer crowds, I sometimes miss the quiet Saranda I knew ten years ago.

There’s also the issue of environmental pressure — waste management, water supply, and beach erosion. If we want long-term success, sustainable development is key.

And we can’t forget vulnerability. The pandemic reminded us how fragile tourism can be. That’s why investors should diversify — a mix of rental income, personal use, and long-term capital growth.

Synergies with Culture & Heritage

Albania isn’t just beaches. Cultural tourism is one of our greatest assets. UNESCO heritage sites like Gjirokastër, Berat, and Butrint attract travelers looking for history and authenticity — and that drives demand for renovated heritage homes and boutique guesthouses.

I know a family who bought a century-old house near Gjirokastër Castle and turned it into a six-room guesthouse. The views of the Drino Valley are stunning, and they’re fully booked from April to October. It’s proof that culture, when respected, pays off.

Comparison with Other Countries

When I compare Albania to our Mediterranean neighbors — Greece, Croatia, Montenegro — we still have a huge advantage: value. Property prices in Saranda or Ksamil are still a fraction of what you’d pay across the border. And yet, the views? Just as breathtaking.

Croatia has done an excellent job of managing tourism sustainably. Montenegro focused on high-end marinas and resorts. Albania, I believe, is finding its own balance — a mix of affordable properties and luxury developments that don’t lose their soul.

I truly believe Saranda offers the best value on the entire Mediterranean coast right now.

Future Outlook

Looking ahead, Albania’s tourism is expected to keep growing by 5–7% annually. With that comes higher demand for short-term rentals, second homes, and boutique developments.

Emerging trends like eco-tourism, wellness retreats, and digital nomad living will shape the next decade. I already see early signs — yoga retreats near Lukova, remote co-working villas in Qeparo, and restored farmhouses outside Gjirokastër.

If you’re thinking about investing, now’s the time to act — before the prices fully catch up with the country’s potential.

Every time I show a new visitor around — sometimes at sunrise, when the sea still looks half-asleep — I’m reminded why people fall in love with this place. Tourism may have started the change, but it’s real estate that’s anchoring it for the long term.

Written by a local real estate expert in Saranda
(VivaView Real Estate — building and selling premium seaview properties across the Albanian Riviera)