FOLLOW BUSINESS ALBANIA December 2019 ECONOMIC AND INVESTMENT MARKET OUTLOOK

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are growing each day…so this are indicators that parents show genuine interest towards BONEVET and see it as an institution that was missing to the community.

How does Bonevet stimulate the entrepreneurial skills at the kids since at a tender age? In your view, what is the best way to raise entrepreneurial children?

The child’s mind is the most powerful learning machine that we are aware of.

Every child is born with natural talents and abilities. They have immense capacity for learning (great brain capacity), they possess independent learning skills (educative instinct), they love learning (natural curiosity), their brains grow as they struggle and make failures (growing intelligence).

BONEVET Tirana, a Space Where Anyone Can Materialize the Dream

But, recent studies have provided evidence that whatever the natural capacities, it is the environment and the culture in which children grow up in, that has a deep influence on how they develop.

By Rudina HOXHA

The vision of Alfred Nikolla for BONEVET Tirana, modelled according to BONEVET Prishtina, is very clear: to make BONEVET the epicenter of the development of the spirit of curiosity and entrepreneurship in town. “So in 3 years’ time we would like to see BONEVET Tirana as a business incubator and a maker space where anyone can engage to materialize their dreams into achievable results,” BONEVET’s CEO, Nikolla told FOLLOW BUSINESS ALBANIA in an exclusive interview.

He elaborated that BONEVET is a children-friendly environment designed to stimulate children’s curiosity, imagination and creativity, three main pillars that in my opinion are the healthy foundations of raising an entrepreneurial child.

From this perspective, this project creates the future ground for a more consolidated entrepreneurial

What is all about BONEVET and how did the idea for it come about? Why Bonevet is a novelty nowadays?

BONEVET (Albanian word for DO IT YOURSELF) is a non-profit and non-formal educational institution established in 2014 based in Prishtina. Kosovo. Since then more than 6

2’800 children and young people have attended classes and/or workshops at BONEVET in Gjakova and Prishtina. More than 70 makers have gained various technical and non-technical skills.

BONEVET has made an important positive impact within the community of Gjakova, and it continues to give hope to the community that was left to itself after the last conflict, because many educated and skilled people left home to look for jobs elsewhere. So, looking at this perspective that BONEVET created, we thought that the same mindset of doing things, needs and should be part of Tirana’s community.

So, let me tell you a few numbers that you can create your own idea why BONEVET Tirana is a novelty nowadays. We are counting only 2 seasons (4 months) of being active in Tirana with our modules(courses) and until now have mentored 96 children from the age of 7-10 years old in 5 different disciplines. Request for older children to be part of our courses December 2019

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BONEVET is a childrenfriendly environment designed to stimulate children’s curiosity, imagination and creativity, three main pillars that in my opinion are the healthy foundations of raising an entrepreneurial child.

Children here at BONEVET are encouraged to actively play, make their own games, work together with other children, program robots, make prototypes with 3D-printers and CNC’s, solve riddles and puzzles, design and make puppet theatre’s, understand the importance of values, develop their communication skills, read books and learn languages.

What are the challenges as well as the motivation of running such a learning environment?

Our project-based learning approach enables young people to gain teamworking and management skills, as well as self-confidence and perseverance during the design and realization of seemingly unachievable projects.

In year 2016, 6 teenage-makers, 3 girls and 3 boys, have managed to convert a fuel-engine-vehicle into an electric-vehicle, a flagship project, which generated large waves of motivation for all young children in Kosovo.

Now our main challenge in running such a learning environment is the expansion to more advanced courses for youngsters of age 16-21. In order to make this courses in place, we need advanced technological equipment such as 3D printers, CNC machines, high capacity PC’s. Until now one or two donors made a step forward in supporting us to extend the modules in older group age, but their support is still not enough.

What are the plans of Bonevet? Do you intend to expand in other cities?

Our one and only mission is to have a real solid impact in the community of Tirana, but not limited to. As we are somehow struggling in the first steps of this mission, our vision is very clear, make BONEVET the epicenter of the development of the spirit of curiosity and entrepreneurship in town.

So in 3 years’ time we would like to see BONEVET Tirana as a business incubator and a maker space where anyone can engage to materialize their dreams into achievable results.

We do actually intend to expand in other cities as well, but we’ll leave this as a surprise for the begging of the next year….

- Do you have a message for the parents of the kids who opt for entrepreneurial spirit?

Myself, I am a father of two wonderful daughters which is looking forward for them to fill the minimum age requirement of 7 years old. Let me tell to all parents out there, our wonderful children, are capable of illuminating their future and we should take pride in this invaluable energy and skills potential, and support them with greater responsibility. It gives us reason for more optimism, more confidence and with some more personal engagement of every citizen of Albania, we stand a good chance to build a country with a brighter social economic future

December 2019

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CONTENTS

12 A Big Boom to Big Business.

Until 2013, Albania applied a same flat tax of 10 percent for corporate profits and dividends.

Starting in 2014, both rates were increased to 15%.

While avoiding the increased profit tax would amount to an illegal action, avoiding the dividend tax was easy – the companies simply could decide not to ..

FBA PUBLISHING © KUMI PRINT Editor in Chief: Rudina Hoxha Lead Design: Leart Zajmi Contributing and Producing Team: E. Zaloshnja M. Sheta M. Hasani

52 EU’s Luigi Soreca: Tourism Development Programme – One of the Largest Ever Investments of the EU in Albania.

The EU Ambassador...

Consumption As A Proxy For Employment.

Lindner CEO, Helmut Lang: “If mk|hotel Runs Well, Then the Door is Opened for Other Hotels From Our Side”

S. Lleshi B. Leone A. Halilaj E. Hasanbelliu WEB: www.FollowBusinessAlbania.com

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36

K. Prifti

EMAIL: info@followbusinessalbania.com

The ultimate economic goal of every government is to have as many citizens productively employed...

During the Groundbreaking Ceremony of mk|hotel Tirana at Tirana Business Park, the Lindner...

NOTICE The publishers regret that they cannot accept liability for error

BONEVET Tirana, a Space Where Anyone Can Materialize the Dream

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SEE Region: Economic and Investment Market Outlook

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or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those

Stepping Up Regional Cooperation Among Youth

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advised to seek specialist advice before acting on information contained in this publication, which is

Norwegian National Opera and Ballet, an Art Work of All Times

Uranik Begu: Kosovo’s Startup Ecosystem Has Seen a Fast Growth Compared to Region

Why there is no “Mulliri of Pastries”?

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The Companies

EMS-FEHN-GROUP THE SHIPPING AND LOGISTIC EXPERTS

Our Experience Ensures Your Success EMS-Fehn-Group ĐŽŶƐŝƐƚƐ ŽĨ Ϯϯ ĐŽŵƉĂŶŝĞƐ ǁŝƚŚ ŽĸĐĞƐ ŝŶ >ĞĞƌ͕ ƌĞŵĞŶ͕ ,ĂŵďƵƌŐ͕ >ƺďĞĐŬ͕ ŽƌƚŵƵŶĚ͕ >ĞǀĞƌŬƵƐĞŶ͕ ĞƌŐĞŶ͕ ZŝŐĂ͕ ŽůnjĂŶŽ͕ WĂůĞƌŵŽ͕ ZŝũĞŬĂ͕ ƵƌƌĞƐ͕ ^ŬŽƉũĞ͕ ^ƚ͘ WĞƚĞƌƐďƵƌŐ ĂŶĚ &ƚ͘ >ĂƵĚĞƌĚĂůĞ͘ D^Ͳ&ĞŚŶͲ'ƌŽƵƉ ŝƐ ĂĐƟǀĞ ŝŶ ĐŚĂƌƚĞƌŝŶŐ͕ ůŽŐŝƐƟĐƐ͕ ƐƉĞĐŝĂů ƚƌĂŶƐƉŽƌƚƐ͕ ĐƌĂŶĞ ƐĞƌǀŝĐĞƐ͕ ǁŽƌůĚͲǁŝĚĞ LJĂĐŚƚ ƚƌĂŶƐƉŽƌƚ͕ ƐŚŝƉ ŵĂŶĂŐĞŵĞŶƚ͕ ƚĞƌŵŝŶĂů ŽƉĞƌĂƟŽŶƐ͕ ǁĂƌĞŚŽƵƐŝŶŐ ĂŶĚ ĐƌĞǁŝŶŐ͘ D^&ĞŚŶͲ'ƌŽƵƉ ĞŵƉůŽLJƐ ĂďŽƵƚ ϮϬϬ ƐƚĂī ŵĞŵďĞƌƐ ĂƐŚŽƌĞ ĂŶĚ ϭϰϬ ĂďŽĂƌĚ͘ ůů ĐŽŵƉĂŶŝĞƐ ĂƌĞ ŽǁŶĞƌŵĂŶĂŐĞĚ ĂŶĚ ƵŶĚĞƌ 'ĞƌŵĂŶ ŵĂŶĂŐĞŵĞŶƚ͘ D^ &ĞŚŶ 'ƌŽƵƉ ŝƐ ƌĞƉƌĞƐĞŶƚĞĚ ŝŶ ůďĂŶŝĂ ďLJ EMS Albanian Port Operator ĂŶĚ 'ĞƌŵĂŶ ůďĂŶŝĂŶ >ŽŐŝƐƟĐƐ ŐĞŶĐLJ >ŽĐĂƚĞĚ ŝŶ ƚŚĞ WŽƌƚ ŽĨ ƵƌƌĞƐ͕ 'ĞƌŵĂŶ ůďĂŶŝĂŶ >ŽŐŝƐƟĐƐ ŐĞŶĐLJ ŝƐ Ă ĨƵůů ƐĞƌǀŝĐĞ ƉƌŽǀŝĚĞƌ ĨŽƌ ůŽŐŝƐƟĐƐ ƐŽůƵƟŽŶƐ 'ĞƌŵĂŶ ůďĂŶŝĂŶ >ŽŐŝƐƟĐƐ ŐĞŶĐLJ ^ŚƉŬ >ĂŐũũĂ ϭ͕ Zƌ͘ ͞dĂƵůĂŶƟĂ͞ <ƵůůĂƚ ŝŶũĂŬĞ͕ <ĂƟ ϯ͕ Durres, Albania

DĂŝů͗ ŝŶĨŽΛŐĂůĂͲĂů͘ĐŽŵ Website: ǁǁǁ͘ŐĂůĂͲĂů͘ĐŽŵ DĞŵďĞƌ ŽĨ D^Ͳ&ĞŚŶͲ'ƌŽƵƉ ǁǁǁ͘ĞŵƐͲĨĞŚŶͲŐƌŽƵƉ͘ĚĞ

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ECONOMY

A Big Boom to Big Business Until 2013, Albania applied a same flat tax of 10 percent for corporate profits and dividends.

Starting in 2014, both rates were increased to 15%.

While avoiding the increased profit tax would amount to an illegal action, avoiding the dividend tax was easy â&#x20AC;&#x201C; the companies simply could decide not to distribute dividend to their shareholders.

In fact, this is exactly what happened with most companies. Sifting through the public records of the top 100 companies in the electronic registry of National Business Center, I found that around 1.5 billion Euros worth of accumulated profits were sitting on the balance sheets of these companies at the end of 2018.

ment would lower the dividend tax rate.

And their waiting paid off.

Their hopes were materialized in the last fiscal package passed by the Parliament, in which the dividend tax rate was lowered from 15% to 8%.

One of the first big companies that took advantage of the new rate was Telecom Albania, which announced a dividend distribution to shareholders in the amount of 250 billion Euros. After five years of not distributing dividends, its shareholders will now have to pay only 20 million Euros in dividend taxes, instead of 37.5 million (at the older rate).

By comparison, at the end of 2013, only around 100 million Euros worth of undistributed profits were sitting in their balance sheets (Figure 1).

Why the biggest companies were holding onto their profits, instead of distributing dividend to shareholders? Obviously they were hoping that the Albanian govern

Figure 1 - The undistrubuted profits of top 100 Albanian companies (in million Euros)

1500

100

2013

12

2018

December 2019

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ECONOMY

Thanks to the waiting game of their company and the generosity of the Albanian government, they saved 17.5 million Euros (taxpayers lost this amount).

It is very likely that other companies would follow suit. Thus, by the end of the year, most likely the 1 billion Euros of accumulated profits would be distributed to shareholders. And they will have to pay only 120 million Euros in dividend taxes, instead of 225 million (With the remaining 105 million Euros Treasury could pay for 105 new schools, for example.)

From a macroeconomic perspective, it would have made more sense for the government to lower the profit tax than the dividend tax. An 8 percent rate for the profit tax and 15 percent rate for the dividend tax would encouraged big companies to use the increased net profits for investing in new lines of business , capacity expansion and new technologies, instead of distributing dividends at a high tax rate.

Obviously the new investments would boost the GDP and employment, and eventually tax revenues.

Whereas dividends distributed to shareholder would end up outside of Albania (to foreign shareholders) or into new beachside villas, which are used only a few day a year by the rich shareholders

By Eduard Zaloshnja, PhD Research Scientist at Pacific Institute for Research and Evaluation, Washington DC

December 2019

13

C-Class i ri. Përmirësimi nuk njeh kufij.

Nuk bëhet fjalë thjesht për modelin më të mirë, por për një model të përmirësuar vazhdimisht, deri në perfeksion. Pikërisht kjo ka rëndësi më shumë se gjithçka tjetër.

Kjo vlen në jetë, në sport dhe sigurisht edhe në udhëtim.

Auto Star Albania Përfaqësues zyrtar i Mercedes-Benz në Shqipëri Autostrada Tiranë-Durrës, Km. 7, 1051, Kashar, Tiranë Mobile: +355 69 40 91 642 / +355 69 20 91 638 +355 69 20 28 404 / +355 68 60 60 255 E-mail: sales@mercedes-benz.al

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REGIONAL COOPERATION

Stepping Up Regional Cooperation Among Youth RYCO through Nikola RistiÄ&#x2021;, Communication Officer

By Rudina HOXHA

RYCO, its Mission and Objectives Regional Youth Cooperation Office (RYCO) is an independently functioning institutional mechanism, founded by the six governments of the Western Balkans: Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro and Serbia, aiming to promote the spirit of reconciliation and cooperation between the youth in the region through youth exchange programs.

We strongly believe that the young people should be creating a culture of mobility, intercultural exchange and reconciliation in the region. They should also be active contributors to democratic development, social and economic prosperity, and European integration in an increasingly open Western Balkans region.

The mission of RYCO is to support regional exchange of youth, and their sharing of ideas, as a ground for future cooperation prospects in our region, based on the values of co-existence, tolerance and respect for human rights and diversity, as well as commitment to inclusion and security. We want to step up regional cooperation among youth and dedicated institutions and ensure implementation of joint programs for young people with the focus on the principles of democratic governance sustainable economic development, education and innovation, but also to coordinate youth cooperation in the Western Balkans.

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December 2019

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REGIONAL COOPERATION

The Main Events of RYCO for 2019 There are three key activities for RYCO in 2019: • We started implementing three regional projects supported by the United Nations Peace Building Fund, the European Union and the Norwegian Ministry of Foreign Affairs. These projects will raise capacities of RYCO as an institution, but also of secondary schools and youth organization from the Western Balkans which are our key ground partners. Moreover, through these projects we will foster reconciliation, support new youth exchanges and develop volunteerism in the region.

How is RYCO Managing to Bring the Albanians and Balkans'youngsters All Together RYCO’s program focuses on creating opportunities for young people to engage in activities that build mutual understanding and reconciliation in the civic, social, educational, cultural and sports domains.

We are mainly funding projects initiated by secondary schools, youth and by youthsupport organisations. In this regard we favor projects that are creative and innovative relative to prevailing practice.

Moreover, we initiate and participate in policy making and advocate for reform.

RYCO supports the development of a political and social environment that empowers and facilitates youth exchange. In pursuing its mission, RYCO is demonstrating its commitment to human rights, human dignity and the building of peace based on mutual respect and trust.

• We will also support around fifty new projects implemented by secondary schools and civil society organization aiming to bring the young people of the region together. We expect that these projects will gather over 2000 young people from all across the region to discuss its past, present and future.

• Finally, we will launch the third Open Call for Project Proposals during autumn this year in order to continue supporting great ideas of bringing the youth of the region together.

FACTSHEET ABOUT RYCO • At the moment the first 117 secondary schools and civil society organizations are implementing 33 RYCO supported projects • More than 1000 young people will be exchanged in the region within these projects • Since the beginning of our operation we devoted almost 2.000.000€ for youth exchanges in the Western Balkans • In two open calls, over 700 organizations and schools applied and created more than 1900 partnerships across the region • We created over 30 strategic regional partnerships in the region and Europe • Just in 2018, RYCO top management delivered over 40 speeches at conferences

December 2019

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ART/CULTURE

Eiliv Flakne, Representative of ENOVA

Why Oslo Opera House is a fatal attraction for many foreign tourists? What makes it so special?

Since the opening, pictures of the angular architecture seemingly arising from the waters of Oslo Fjord have become known around the world and today are considered the keystone signature of the Oslo Opera House.

This was precisely the intention of the firm of architects behind this iconic design, Snøhetta, which wanted to make the roof a platform accessible to all and in so doing create a new public space in the centre of Oslo.

A parallel wish was to create a new landscape that would draw together the natural beauty of Oslo Fjord and the city.

Will Albanian artists ever perform or will be invited at Oslo Opera House?

If the possibility turns up, yes, but I cannot predict the future. This is up to our artistic directors to decide.

The new Opera house faces the city as much as the fjord and creates a strong visual connection between the downtown and Oslo's eastern areas Camilla Elisabeth Yndestad, Press Officer at Oslo Opera House

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December 2019

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ART/CULTURE

Norwegian National Opera and Ballet, an Art Work of All Times

OSLO OPERA HOUSE

December 2019

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TECHNOLOGY

Uranik Begu: Kosovo’s Startup Ecosystem Has Seen a Fast Growth Compared to Region

By Rudina HOXHA

“Albania and Kosovo are founding members of the Startup Europe Western Balkan Network, and this is a great platform for us as two ecosystems to grow our impact at this European institution,” Executive Director of Innovation Center of Kosovo, Uranik Begu told in an exclusive interview with Follow Business Albania.

According to him, Diaspora had a big role on the ICK’s growth “since many of the good ideas and investment have come from our community abroad.” Their interest and impact is also showing signs of growth, and this is a positive signal for our ecosystem,” he said.

Underlining that ICK has supported over 300 startups, and received well over 1000 business ideas, Begu said that ICK has over 15 donors, and over 100 local and international partnership that aid our vision for Kosovo the next Startup Nation.

preneurs can tap into deep Expertise, enthusiastic Talent, proven Service Providers and access to financing in sources such as angel and VC Investors that live and work in our part of the world.

ICK’s mission is to create new jobs through business creation and growth, as well as through training and connecting young people to job opportunities in the labour market. Additionally, ICK serves as a hub for mingling new concepts and technology with human and financial resources to create or expand commercially viable companies that can successfully capitalize on market opportunities, generating sales, trade, local productive capacity and skilled employment.

Full interview below:

Can you give us an overview of Innovation Center of Kosovo?

What challenges did you face in setting up this center?

Innovation Centre Kosovo was founded in 2012 with sole aim of supporting innovation and entrepreneurship in Kosovo and the region. It was founded by Norwegian Ministry of Foreign Affairs and initiative of STIKK. Innovation Centre Kosovo (ICK) is among the most established of integrators for innovative businesses and economic development, aiding the visibility of Kosovo.

The sole objective ICK is to create an environment Camilla Elisabeth Yndestad, of Press Officer at Oslo Opera House 22

where entre December 2019

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TECHNOLOGY

The correlation of these activities are formed upon the new culture of innovation amongst individuals, companies and government, though creating a functional ecosystem in which ventures are supported and implored to continue with growth and sustainability.

signs of growth, and this is a positive signal for our ecosystem.

As a result of this growth, also the Government of Kosovo has created a Ministry of Innovation and Entrepreneurship as a pillar of support. Despite of these activities,

Kosovo's startup ecosystem is still very young, and it has a long way of becoming a sustainable one. It needs a clear backed up vision in years to come, in order to scale and have its successful stories.

How do you assess the startup ecosystem in Kosovo and how has ICK influenced on its development?

Kosovo has an emerging startup ecosystem, but thanks to many local initiatives initiates and supported mainly by donors, it has seen a fast growth compared to the rest of the region.

To this growth undoubtedly, Diaspora had a big role, since many of the good ideas and investment have come from our community abroad.

Their interest and impact is also showing

December 2019

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TECHNOLOGY

Can we talk a bit more about specific tech capabilities, skill sets, labs, manufacturing set up at ICK?

The potential and the will is definitely there, and we have seen this at the Innovation Centre Kosovo, as we have supported over 300 startups, and received well over 1000 business ideas.

ICK core activities are around startup and business services, followed up by skills development, and community building.

These activities are closely interlinked and complimentary to each other.

Our portfolios of services has changed over the years to match the needs of startups, and growing companies.

Currently we have over 15 donors, and over 100 local and international partnership that aid our vision for Kosovo the next Startup Nation.

We live in a dynamic environment so market needs are continuously changing, there anyone from any position in the marketplace, has to be able to adopt quickly to the growing needs.

This is also valid for ICK, as our Training Department seeks to bring the latest training's for startups, freelances or companies, thus helping the sector grow. We are continuously working with companies and professionals to assess the needs, and based on these trends we make our offering available.

As of today we have trained over 4000 youngsters through different training and workshops, mainly in ICT but also in soft skills.

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TECHNOLOGY

ICK is very active. One of your last visits in Israel, one of the cradles for innovation and technology, could not be missed. Can you make a wrap up of this visit?

As ICK, we are very active globally either through direct visits such as the one in Israel, or Bahrain and Holland at the TNW Conference this year, but also through our licensed global events. This is very crucial for our growth and integration at the global entrepreneurial ecosystem.

About ICK In tactful step to re-integrate into the “European Society” and to aid in the economic growth of the country, an institution called the Innovation Centre of Kosovo (ICK) has been operating, offering opportunities for youth, innovative businesses, technology and entrepreneurship. The focus of ICK is to extend digital culture, support the aspirations of innovative entrepreneurs, create new jobs, aid commercially based business development with a focus on perpetuating ICT oriented activities, and ICK’s main course: Startups. The Innovation Centre Kosovo (ICK) is the leading integrator of youth and startups, also aiding the visibility and prosperity of Kosovo.

Having many entrepreneurs with a lot of potential but inadequate conditions to implement their businesses, ICK offers technical and financial support for these startup businesses via incubation, hosting services, fundraising, mentoring & coaching, training, promotion, entrepreneurial workshops, competitions and events where startups get to network with viable investors.

As a reminder, Kosovo is the only country in Europe that still is a subject of visa regime, and such activities are a window of opportunity for youngsters to present themselves and potential that Kosovo has. One the other hand, it helps us also understand the global trends, and understand the needs, which potentially we could serve as a small nation.

We hope that in years to come, to have a greater partnership with many good global programs, and particularly accelerators through which Kosovo startups could penetrate to bigger markets.

ICK continuously advances innovation and entrepreneurship to new levels, in which entrepreneurial spirt and culture of innovation are reflected among individuals, companies, SCO’s and government, through creating a functional ecosystem in which ventures are supported for growth and sustainability, with the goal of improving the overall quality of life for citizens of Kosovo, and increase competitiveness of local economy.

Thus far, ICK has launched 19 Calls for Business Ideas, giving startups access to local and international services. +230 startups, largely from the Information and Communication Technology (ICT) sector, have been supported by ICK already through physical on-site incubation and virtual incubator services.

Another ingredient in ICK’s multifaceted platform includes a helpful course of special training services that delivers market oriented, high-quality courses improving the skills of the general workforce dubbed as Training Events Department or TED. Within this branch, ICK held over 210 training courses for web & mobile applications, cyber security, blockchain, multimedia, online marketing, data, motion graphics, machine learning, artificial intelligence, AR&VR, gaming, 3D Animation, Autodesk, with +2,700 trainees certified.

- What is your cooperation with Albania startups? Any exchange? What are your future plans for expanding the role, scope of Innovation Center of Kosovo?

But it doesn’t stop there. Along with its ample courses, ICK includes the opportunity of acquiring space for said events dubbed as the Events Department, a multimedia space dedicated to hosting various activities with the purpose of networking in a casual and friendly way, spatially covering +400 events with more than 35.000 attendees.

Naturally we have a great communication with Albania, and its ecosystem players. We partnered with government, NGO, Universities, startups and professionals in many occasions. Currently together we are also founding members of the Startup Europe Western Balkan Network, and this is a great platform for us as two ecosystems to grow our impact at this European institution.

Notable international partners ICK collaborates with include the Amazon Web Service, Microsoft BizSpark, Startup Grind by Google for Startups, Techstars, Coding Dojo, NASA Space Apps, Startup Europe Week, Get in the Ring, Rockstart, Social Impact Award, Elevator Lab, Krypto Labs, SLUSH, Send Grind, Impact Hub Vienna, etc., with the added International memberships such as European Business Netowrk (EBN), International Business Innovation association (INBIA) and European Business Angels Network (EBAN), and the cherry on top; International awards being the NASA Space Apps Challenge: People’s choice award 2015 (NatEv Explore Team), Brand & Community Champions (Global Entrepreneurship Congress 2017) and 2nd runners at Global Startup Weekend.

We have to particularly work closer with universities, and look how we can best facilitate our startups as naturally their target is one market

December 2019

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Lincoln Center 1 (Pazari i Ri)

Rruga Qemal Stafa, Nr. 184, Tirana +355 4 223 0880 / +355 68 201 0607 info@lincoln.org.al

Lincoln Center 2 (Blloku)

Rruga Ismail Qemal, Nr. 31, Tirana +355 4 240 0260 / +355 68 208 3308 info@lincoln.org.al

Lincoln Center 3 (Shkodër)

Tek Hysajt, pas Fakultetit Juridik, Shkodër. / +355 67 60 27 565 shkoder@lincoln.org.al

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ECONOMY

Consumption As A Proxy For Employment

By Eduard Zaloshnja, PhD Research Scientist at Pacific Institute for Research and Evaluation, Washington DC

T

he ultimate economic goal of every government is to have as many citizens productively employed.

The higher the employment, the higher the countryâ&#x20AC;&#x2122;s GDP is and, eventually, the more its citizens can spend on food, clothes, appliances, health, education, entertainment, etc.

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ECONOMY

Given that employment numbers are politically sensitive and the fact that INSTAT is controlled directly by the government, one has to find a statistical proxy to provide a more accurate picture of the employment situation in Albania.

Such a proxy can be private consumption, which is included in GDP reporting. GDP estimation in Albania (differently from employment estimation) is closely monitored by IMF and Eurostat. Therefore it is much more reliable.

Around 78% of Albania’s GDP goes to private consumption, with the remaining going to investments, inventories and exports.

However, Albania’s official employment figures, unfortunately, are not reliable.

If one plots published employment figures against GDP (in today’s dollars, in order to factor out the influence of inflation), it is clear that something is astray with employment numbers.

Therefore an increase in consumption is strongly correlated with the number of people employed (the higher the employment, the more money families can spend).

Figure 2 shows a gradual rise in private consumption in the last 6 years, as the number of inhabitants has steadily declined. Although consumption is dependent on other factors (savings, exports, tourism), this trend is a clear indication that gainful employment has picked up steam (though not as much as official numbers would indicate).

As a result, in 2018 the average Albanian spent $306 a month on coonsumption, up $28 from 2012

Figure 2 - Private consumption (in current billion dollars) and population (in millions)

After the change of government in 2013, INSTAT reported a huge drop in employment numbers (due to improvement in methodology).

However, the rise of employment since then has been much higher than the growth of GDP would indicate (Figure 1).

No macroeconomic theory or experience would explain such a huge discrepancy, evident in the graph presented in Figure 1.

9.7

9.6

9.8

10.0

10.2

10.5

9.5

2.91

2.89

2.87

2.87

2.87

2.86

2.86

2012

2013

2014

2015

2016

2017

2018

Consumption

Population

Figure 1 - GDP (in current billion dollars) and Nr. of empoyed (in 100 thousands) 13.6 13.1 12.9

11.6

12.2

12.2

11.9

11.7

12.6

11.1

12.4

11.7

9.9 8.6

2012

2013

2014

2015

2016

2017 GDP

December 2019

2018 Nr. of employed

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BRANDING

Why there is no “Mulliri of Pastries”?

By Vusal Gambarov, PHD From Baku with Love

My beautiful Albania. When I first arrived there many industries were not established.

So far, I easily observe great improvements, of course with room for more. And this more is not option but need. Will be. One of the industries which we are very into experienced one of the deepest evolutions. I guess to guess is not that hard. Yeah, coffee shops.

I remember how my student Ermir Korbeci was talking about Mon Cheri phenomenon with pleasure, while Mulliri I Vjeter was one of most popular brands for projects.

Everything happened very fast, and of course this speed brought difficulties for players. Let me pay credits to Sophie Caffe, which also made some good for industry.

Producer brands like Lori, Pascucci and Lavazza also deserve to be mentioned.

The top still is Mulliri I Vjeter even according to me, even according to main dimensions of business.

Almost 30 shops, great operational efficiency, customer experience and satisfaction, constant improvement.

Thesis titled (by Altin Caka) “Company which changed coffee culture in Albania” deserved totally.

Let`s now jump to the questions in the title.

For those times very few coffee shops were serving sweets, but there were some (e.g.

Merilyn Monroe). But pastry having coffee at the premise almost was not. Here I have to say that will call the name only for 2 brands which I see as successful and doing it properly.

All other players which have big problems I will call different that their own.

When I started to teach at Epoka, I always mentioned to students that coffee shops selling only coffee products cannot survive and be successful.

Same for pastries serving only as a shop.

They need to combine categories to leverage the business and boost their brands.

32

There was a big boss of pastries. BOSS didn`t care about changes.

Buy or not, we are the best was the idea.

Even when I was talking about this BOSS my students were cheering. They were very late to open second spot, which came with the coffee shop inside, and to acquire coffee shop next to their main branch. They are declining day by day, because system is not so adaptive… management as well.

BREADY is cozy, in the center, people like it and appreciate. But it is very strongly associated with the bread. Partnership with one store chain is good move. But still

doesn`t take them to the ideal spot.

INDO is a chain, it`s spread around and has good spots in the center. Shop opened at Myslym Shyrri is quite good. But only that one. Overall it`s also bread producer and unfortunately very industrial.

FSHATGUY has a lot of branches, but beside one all are in banlieue of Tirana – Yzberisht and Astiri. They cannot be cozy pastry of Tirana just because of it. Also staff is not adapting to European Tirana.

My MILKY friend failed with branding and marketing communication. Just underestimated its power. Even though came to area at the perfect time with the great idea… But failed with concept building.

Overall in this process Nefeli and Le Bon with location, with assortment, with system are there, but…

But, they are not growing. They need to. If you want to be “Mulliri of pastries” and leverage the business, you need at least double digit amount of shops in Tirana.

Otherwise you are just perfect piece of cake. Which I like at Nefeli…

December 2019

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BRANDING

December 2019

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Exclusive Distributor and Importer for Albania and Kosovo is Eurolab Internacional Group Email: info@eurolab.com.al / Tel: +355 44533100

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The forthcoming mk|hotel rendering

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December 2019

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Lindner CEO, Helmut Lang: “If mk|hotel Runs Well, Then the Door is Opened for Other Hotels From Our Side”

By Rudina HOXHA

D

uring the Groundbreaking Ceremony of mk|hotel Tirana at Tirana Business Park, the Lindner CEO, Helmut Lang told FOLLOW BUSINESS ALBANIA that “We are considering as well to extend our investment even in south Albania with five star hotels in case this project will result with success.”

He also appealed on the great importance a second airport will have for tourism in Albania.

“I heard there are plans to open a second airport in the South. This will be a very important move for Albania to do that in tourism because nowadays people and tourists are used to very good standards also in terms of being transferred from the airport to the hotel.

And they do not accept 4 -hour drive from Tirana to a city in the South. So I think a second hub is needed to be done to make it possible to get hotel located there. For example, we would be hesitant to build a new hotel in the South but if there would be one airport in the South, we would do it,” he said.

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How will you assess mk|hotel?

This Hotel is a very important and integrating part of the new concept for Tirana Business Park. We decided to switch from purely office Park which was the initial idea.

But we had to learn that this cannot be emerged easily enough.

So, that is why we changed into a multifunctional Park. So, we have to build a city within the city.

Or if you may call it residential hotel and head office in one location.. So, people can live here, work here, have leisure time.. We as Lindner Group are considering maybe even a driving range for golfers but we still have to decide on that.

So there will be a lot of activities which will be a sort of magnet for the people in Tirana and outside Tirana to come, live, work and entertain themselvesâ&#x20AC;Ś

Lindner Group is a world known brand. In your view, how this will impact the Albanian tourism landscape?

I think it will be quite important for the Albanian tourism landscape because Mr. Lang shaking hands with Albanian Minister of Tourism and Environment, Blendi Klosi

For this purpose, the Hotel is a very important part and this is why we have started the construction of this new project. In our next step, we will continue with the residential area.

needless to say, another or a new five star hotel always is a attraction for the tourists.

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Mr. Helmut Lang with Albanian and German representatives at the mk|hotel groundbreaking ceremony on May 25, 2019

To enrich this we have included in this project a swimming pool, playgrounds and sport facilities.. , At the latest stage when the Hotel is running, our goal is to collaborate and attract especially German tourist companies like TUI and other important travel agencies, which will have a great impact into the Albanian market. ...

We are considering as well to extend our investment even in south Albania with five star hotels in case this project will result with success.

How close such an investment will bring the two countries, Germany and Albania?

I think it brings them very close. As you know the German holiday sector and the German holiday migration are mostly going to Majorca, Turkey, in the past and also still nowadays.

December 2019

I may refer here as an example Bulgaria who managed quite well to attract the German tourists in their country. So I think now it is the right time for Albania to do the same thing and that’s why this hotel and tourism concept is quite important for your country.

Everyone who visit Albania can confirm that you have a rich, vivid, divers and colorful country. You have mountains, you have the sea allow me to say that most of it is untouched. So it is very interesting for those who want to do hiking, the ones who want to enjoy the beach, natural parks and many more to choose Albania as their destination.

They can do everything here. That’s why Albania and Germany should further tie up in this touristic island let’s say.

Do you have a piece of German advice for the Albanian developers or for people who really want to invest in tourism in Albania?

The first advice is: DO IT Properly! Don’t hesitate. Today the Albanian Minister of Tourism said that a few hotels seem to come to the place recently. And this has happened over the last five years, he said.

So now it is really the time to follow that. I think the important thing is not to hesitate and simply do it.

We are a family company.

We are not taking decisions on the very long run, let’s say.

Our decisions take a very short time in our organization. We do not need one or two years to decide. We decide in one hour if it is necessary and on a stomach feeling. You know, not always with a deep analysis but very often on a stomach feeling.

This is also important. If someone wants to invest in tourism, just do it. And for the Albanian politics, it is important. I heard there are plans to open a second airport in the South.

This will be a very important move for Albania to do that in tourism because nowadays people and tourists are used to very good standards also in terms of being transferred from the airport to the hotel.

And they do not accept 4 -hour drive from Tirana to a city in the South. So I think a second hub is needed to be done to make it possible to get hotel located there. For example, we would be hesitant to build a new hotel in the South but if there would be one airport in the South, we would do it 39

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TOURISM

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December 2019

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TOURISM

Sustainable Tourism: A great area of opportunity for Regional and International Investors The World Tourism Organization in a recent publication has shown that the forecast is showing an upward annual growth of tourists by an approximately 5% per year until 2030.

Sustainable Tourism

International investors and International Tourism developers are to assist developing countries like Albania and other neighboring countries in the Balkan region in implementing and financing their development programs.The mission of international developers and visionaries is to actively support the Sustainable Development Goals set by each Country.

Some examples of international institutions are the European Union, the World Bank and Albanian American Development Fund, USAID and European Bank for Reconstruction and Development and others.

By Jose PINTO*

T

ourism is a key sector of any economy in any developed country where other industries are not sufficient to employees, citizens and entrepreneurs and where international investors have an eye to get their investments safe and with a certain returns, apart from enjoying the other factors. The trend is expected to continue.

While multilateral organizations, foundations and NGOs have a long history of financing tourism projects, this action has rarely been the result of a comprehensive and coherent vision.

Sustainable tourism is able to generate positive impacts in many sectors: cultural heritage preservation, urban development, support to small and medium enterprises and biodiversity protection and others leading to numerous success stories and best practices.

JP Hospitality.EU has identified key issues and recommendations to be considered, in order to target and improve the effectiveness of international donorsâ&#x20AC;&#x2122; intervention for the sustainable development of tourism, and leveraging this formidable tool for territorial development.

While these International institutions have a history of financing tourism and other projects, but they rarely have a long-term strategy. These projects must be identified and supported by local development government and non- governmental agencies that in coordination with each other have in their agendas and plans the preservation of the cultural heritage, regional and urban development, support and development of or to small and medium enterprises, preservation of biodiversity, study and define projects against the effects of climate change and finally retain and incentivize the return of young population to the sector. Most of international institutions support sustainable tourism, but this action has not been the outcome of a comprehensive and coherent vision.

JP HOSPITALITY and associated partners recommendation is that public institutions, non-governmental organizations and other international organizations and foundations that wish to develop an intervention strategy for sustainable tourism consult experts who can assist and

define solid and sustainable strategies for investments on the Tourism Sector, not forgetting that above all, SUSTAINABLE tourism is defined as: Tourism that takes into account of its current and future economic, social and environmental impacts, that fully meet the needs of visitors, professionals, the environment and communities.

Sustainable Tourism should use of all environmental available resources as key element in tourism development, maintaining essentially all ecological processes and helping to conserve natural heritage, biodiversity, regional culture, history and traditions.

In short, Sustainable TOURISM among other studies and strategies should take Environmental Planning and DESIGN as the multidisciplinary approach to the built environment. Typically environmental programs address architectural history or design (interior or exterior), city or regional planning, landscape architecture history or design, environmental planning, construction science, cultural geography, or historic preservation. Social science methods are frequently employed; aspects of sociology or psychology can be part of a research program.

What can it bring?

- Economic sustainability: increase the arrivals to the whole territory and grow in value and increase the country GDP - Social sustainability: extend tourism activities throughout the whole year and reduce seasonality; aiming to double the number of tourists; ensure that tourism creates a positive impact for local residents and regional investors - Environmental sustainability: managing human activity in a way that does not destabilize the natural environment. It ensures that more tourism adopt among all a full energy and water efficiency and recycling measures and develop responsible waste management measures

*Founder of JP HOSPITALITY & Business Partners

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PUBLIC ADMINISTRATION

Keen to Receive Our Albanian Colleagues at KSAP

By Rudina HOXHA / Jose PINTO

The National School of Public Administration was established by virtue of a Resolution of Poland’s Council of Ministers dated May 30th 1990.

The Polish National School of Public Administration, which was established soon after the May 1990 initiation of transformation of the political system by the government of Tadeusz Mazowiecki, has played an important role in the reforms of public administration, and in building an independent and professional civil service in the democratic Poland. It was the first establishment of its kind in any of the former Communist bloc countries.

In the changing reality of the last 25 years, KSAP has been unwaver¬ing and painstaking in discharging its statutory obligation to train com¬petent and politically neutral personnel for public administration. The National School of Public Administration strives to meet the challenges faced by the Polish administration, addressing its needs, and developing close cooperation with various institutions and organizations operating domestically and abroad.

The School, based in Warsaw, reports to the Prime Minister of the day, acting pursu46

ant to the Act on the National School of Public Administration of 14 June 1991.

Training at the school lasts from 18 to 20 months.

The programme is focused on the following learning paths: law and administration; economics and public finance; the European Union and foreign policy; management and soft skills development. Students do two internships in Poland and one abroad, usually in the European Union country.

The Mission of this National School is: The training and preparation for public service of • Civil Servants • higher officials of the administration of the Republic of Poland.

December 2019

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PUBLIC ADMINISTRATION

KSAP’s activities KSAP’s history

Intramural Training

Continuing Training

Support for administration

recruitment

training courses

certification

training programmes

an observatory for administration

e-learning

a platform for exchanges

status of student

September 14th 2016 By virtue of a Resolution of the Sejm, KSAP gains a patron in the person of late President of the Republic of Poland Lech Kaczyński June 4th 1989 • First free parliamentary elections September 12th 1989 • Poland’s first democratic government of the post-War period – under PM Tadeusz Mazowiecki May 1990 • Government decision to establish a National School of Public Administration June 14th 1991 • Sejm Act on KSAP September 2nd 1991 • Official opening and inauguration of training July 5th 1996 • The Civil Service Act

training programme

Graduates

Director of the School, Prof. Dr. Wojciech Federczyk (C) with some team members

KSAP Graduates Over 1200 students have now graduated from the School. Many of these have later risen to occupy such highest posts in administration as: Minister or Secretary/Under-Secretary of State Head of the President’s Chancellery Head of the Prime Minister’s Chancellery Head of the Civil Sevrice Head of the National Security Bureau Member of Parliament Member of the Board of the National Bank of Poland Deputy Head of the Supreme Audit Office (NIK) Member of the Board of the National Broadcasting Council (KRRiTV) European Commissioner Ambassador of the Republic of Poland Head or Deputy Head of a Central Office Director-General at a Ministry or Central Office Director-General at a Voivodeship Office Departmental Director or Deputy Director at a Ministry, Central Office or Voivodeship Office

December 2019

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PUBLIC ADMINISTRATION

The Lech Kaczyński National School of Public Administration, Warsaw, Poland

Cooperation between Polish and Albanian National Public Administration - Aleksandra Orlowska - KSAP Director’s Office Regarding the cooperation between KSAP and Albanian School of Public Administration (ASPA) in 2015 our both institutions signed a Cooperation Agreement on "cooperation in the field of education and research on training and continuous training of civil servants".

Last year, we prepared the visit of the new Director of ASPA at KSAP, to discuss the cooperation and its implementation, unfortunately the visit was cancelled in the last minute.

We are keen to receive our Albanian colleagues at KSAP and we hope the visit could be organized soon.

The Mission of the National School The training and preparation for public service of • Civil Servants • higher officials of the administration of the Republic of Poland.

Otherwise, as to the contacts between KSAP and other Albanian institutions, in 2017 we received the visit of the Representatives of the National Audit Office of the Republic of Albania, and, in 2016, Ms. Pranvera Strakosha, the Commissioner for the Oversight of the Civil Service of the Republic of Albania who came with the Delegation, on study visit to Poland organised by the Chancellery of the Polish Prime Minister.

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PUBLIC ADMINISTRATION

Public administration

Forms of employment in the Civil Service As of September 2017

The State Administration

The Central Administration The Local and Regional (including the Civil Service) Government Administration

• President’s Chancellery • Chancellery of the Sejm • Chancellery of the Senat • Office of the Commissioner for Citizens’ Rights • Supreme Audit Office • Other institutions

• Prime Minister’s • Chancellery • Ministries • Central Offices • Voivodeship Offices • Other institutions

• Marshal’s Offices (in voivodeships) • Starosta’s Offices (in poviats) • City Offices • Gmina Offices (local authorities) • Other institutions

56,000 personnel

119,000 personnel

250,000 personnel

Higher posts (appointed) 2 158

Civil Service Officials (nominated) 7202

Civil Service Employees (contract of Employment) 109 977

6% 1,8%

92,2% Civil Service Employees Civil Service Officials Higher posts

How to become a Civil Service Official?

pass through the qualification procedure for the Civil Service - exams (organised by KSAP) - nomination limit (laid down in the Budget Act) graduate from KSAP by completing training there

How to become a Civil Service Employee?

Recruitment: • open • competitive • transparent • organised by the Director-General of an office, who: – makes announcements (publishes information about a vacancy, draws up a list of suitable candidates meeting formal requirements, publishes results) – calls into existence a recruitment team – employs 1 out of a maximum of 5 shortlisted best candidates • scrutinised by the Head of the Civil Service • potentially the subject of an appeal to a Labour Court

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The International Chamber of Commerce (ICC) is the worldâ&#x20AC;&#x2122;s largest business organisation with a network of over 6 million members in more than 100 countries. We work to promote international trade, responsible business conduct and a global approach to regulation through a unique mix of advocacy and standard setting activitiesâ&#x20AC;&#x201D;together with market-leading dispute resolution services. Our members include many of the worldâ&#x20AC;&#x2122;s largest companies, SMEs, business associations and local chambers of commerce.

Learn more or become a member at: www.icc-albania.org-al

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TOURISM

Posing in front of a Visitor Center in Karavasta.

Photo credit: Mrine Godanca, Europe House

EU’s Luigi Soreca: Tourism Development Programme – One of the Largest Ever Investments of the EU in Albania

By Rudina HOXHA

The EU Ambassador to Albania, Mr. Luigi Soreca, highlighted in an exclusive interview with FOLLOW BUSINESS ALBANIA that the Tourism Development Programme EU has recently launched with EBRD and the Albania Government is based on two pillars: tourism and cultural heritage. According to him, “it is crucial for Albania to integrate the principles of sustainability in tourism strategies at the national and regional level.”

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With tourism gaining momentum and a rising number of European tourists visiting Albania, in your view, how can Albanian tourism become a sustainable one?

I have been in Albania for a year now and I have already had the chance to witness the outstanding tourism potential across the country. Its diverse natural beauty and the rich cultural heritage capture the visitor and explain why the interest for tourism development in Albania is so high. To be sustainable, tourism must be economically viable, meet the needs of society and preserve the environment.

This is how tourism brings benefits to current and future generations.

The responsible use of natural resources, relying on clean energy wherever possible, assessing the environmental impact of tourism activities, protecting the heritage, preserving the natural and cultural integrity of destinations, the quality and sustainability of jobs created are just some of the key aspects of tourism sustainability.

While these issues are tackled to some extent, it is crucial for Albania to integrate the principles of sustainability in tourism strategies at the national and regional level.

A new National Strategy for Sustainable Tourism Development 2019-2023 has been adopted by the Council of Ministers in June. It mentions how sustainability has been hampered by the legacy of an December 2019

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TOURISM

uncontrolled development that, if not properly addressed can actually jeopardise the sector's growth in the longer term.

However, sustainable solutions cannot be imposed by the central government; they need to emerge from the local level, designed and consulted with those directly concerned and who understand the needs of the local context. This is why we put participation at the centre of newly launched Tourism Development Programme for Albania â&#x20AC;&#x201C; one of the largest ever investments of the European Union in this country, which brings together tourism agencies, local government and local associations in the consultation process.

We all need to be more attentive towards local governments, including for the role they play in the country's EU integration. A significant part of the EU acquis is implemented at local level, so a higher involvement of municipalities is key to any true development and progress.

Will you be willing to promote an EU-Albania tourism year to boost tourism and business in general ties and improve the proximity of us with various EU countries?

The decision of having a year of tourism is a decision that the Albanian institutions need to take. The EU, as a key partner in promoting economic development in

Albania will be willing to play a role through its existing initiatives in the tourism sector.

positive effects on a wide variety of industries and services. Beyond physical development and marketing, touristic development also benefits the promotion of natural resources, social, and cultural heritage, which has an impressive multiplier effect on any economy.

The EU supports Albania in developing a sector that is respectful of the heritage and natural beauties that minimises negative social, economic and environmental impacts, that generates greater economic benefits for local people, and that provides access to people with disabilities.

Promoting the cultural heritage of Albania is the other pillar of our investment. Cultural heritage is our bridge to the past â&#x20AC;&#x201C; and into the future.

And this is not only because we want to connect generations and communities, creating a shared sense of belonging â&#x20AC;&#x201C; it is also because heritage often holds solutions for the local economies and, in general, for the quality of our lives.

A 40 million euro co-founded investment agreement was signed recently by EU, EBRD with Albanian authorities to build the future of four regions, Berat, Korca, Fier and Shkodra. What are your expectations about this agreement and when its impact will be felt?

The Tourism Development Programme we have recently launched with EBRD and the Albania Government is based on two pillars: tourism and cultural heritage.

Tourism is an essential source of income and job creation in many economies. It has

27 indirect jobs are created for each single job in the heritage sector. To compare, the ratio for the car industry is only 6 indirect jobs for each direct job.

To help ensure that we better harness this potential, the programme will bring EBRD and EU investment and expertise to enhance and preserve the attractiveness of cultural, natural and other assets both for local communities and for tourists. For 70% of Europeans, the presence of cultural heritage influences their preferences when deciding on holiday destination.

We should also look at the length of the

Interviewing EU Ambassador to Albania, H.E. Luigi Soreka in his office.

December 2019

53

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TOURISM

Has the EU any plan to establish a hotel school in support of hotels, restaurants and their sustainability, service, quality etc.

EU Ambassador to Albania, H.E. Luigi Soreca.

Photo credit: Blerta Kambo, Europe House.

This Tourism Development programme will include vocational skills development for local tourism services and product providers, and the promotion of womenâ&#x20AC;&#x2122;s participation in the industry.

In collaboration with national and local VET institutions, we will assist in skills development for the local tourism sector, including training of guides, hotel managers, waiters, chefs, etc., and encourage development of higher skills among women through all activities related to training and skills development.

Depending on market demand, we will develop skills and gender-sensitive support initiatives for reviving traditional crafts, trades and products such as wood carving, masonry, carpet production, specialty foods and so forth.

touristic season. There is a clear necessity to diversify tourism offers, expand the season and integrate a more varied range of attractions, activities and services all year round.

The objective to be reached is to lengthen the staying, increase the spending and ensure the returning rate of tourists to Albania. Through the Tourism Development Programme, we will address all these challenges in four areas: Berat, Korca, Fier and Shkodra.

Sustainability will be assured by facilitating the active involvement of the business sector from the outset as success in tourism is primarily dependent on robust and diversified private sector development.

With private sector ownership and leadership, benefits and results achieved are more likely to be sustained beyond the implementation period of the new programme.

Our intervention will focus on ensuring a strong product-market match, so that initiatives supported are clearly aimed at addressing the needs of identified market segments, international and domestic.

Investments in heritage attractions and in preserving natural assets are sustainable 54

when conducted with a high standard of conservation. Careful investment in these assets will help to ensure that Albaniaâ&#x20AC;&#x2122;s tourism industry can be sustainable and competitive, and that the assets will be preserved for future generations.

To answer to your question on how long it takes to see the return of the investment, let me add that tourism can be a tool to aid or drive rapid regeneration and economic development as well as enhancing the quality of life of visitors and host communities in the short term.

However, if poorly planned or developed to excess, tourism can be a destroyer of the special qualities which are so central to sustainable development.

In short, this is our challenge: 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.

In Llogara.

Photo credit: Mrine Godanca, Europe House

December 2019

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TOURISM

In the Canons of Osum river

In addition to this, the funding will support the development of a private sector-led Sector Skills Council for Tourism and Hospitality, as an internationally recognised model for aligning skills with demand.

The Council will also help shaping human capital development within the sector, such as skills and occupational standards, based on international best practices and in line with the requirements of employers

December 2019

55

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INVESTMENTS

SEE Region: Economic and Investment Market Outlook New Trends: Build to Rent/ Multifamily Housing and Co-working Spaces

By Morena SHETA

Economic Outlook of SEE Region In the latest TOP 100 SEE Banks Report, it was mentioned that the biggest challenges the region is facing are emigration, skills, ageing, governance, infrastructure, connectivity and brain drain issue. It was concluded that the way forward to overcome these challenges is reforming the education systems, investing in infrastructure, innovation, research and development, fighting corruption and overall EU approximation. International instruments operating in the region promote the idea of regional integration before EU integration. Connecting markets made up in size and scale, can really develop, invest and create jobs.

Economic outlook reveals that in the Western Balkans almost every country is growing at 3%, except for Albania and Kosovo where growth is projected 4%. As a result of general improvement of the market sentiment, it is noticed an increased interest of FDI and Local investors in the region. Highest level of FDI inflows have been recorded in Bulgaria and Serbia, with Croatia expected to boom by the end of 2019. … But what are the global risks that might affect the overall economic outlook of SEE region?

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Global Risks impacting SEE Region US – China War This challenge impacts the region indirectly.

According to S. Guriev, chief economist of EBRD, if the Chinese economy slows down, it will impact the German economy and the region is very much dependent on the German and the West European economy.

Deceleration of the Turkish Economy Turkey plays a crucial part in the market size of the region, that is why is has affected in the overall GDP of SEE. But data reveal that there is no big spillover effect to other countries. The economy of Turkey is expected to improve in the next year, thus will result in a positive outlook for the GDP of the region.

Possible Higher Interest Rate by FED Even though it is said that US and ECB won’t rise the interest rate, if it happens it will affect negatively the economy of the region.

It will be accompanied with an outflow of investment and with higher cost of capital.

December 2019

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INVESTMENTS

GDP per capita (PPP adjusted)

BOSNIA AND HERZEGOVINA €63 mln

MONTENEGRO €10 mln 2018 Ÿ+203% y-o-y

BULGARIA €530 mln

2018 Ÿ+€63 mln y-o-y

2018 ź-33% y-o-y

SERBIA €184 mln 2018 Ÿ+27% y-o-y

SLOVENIA €165 mln 2018 Ÿ +558% y-o-y

ALBANIA AND FYR MACEDONIA

CROATIA €325 mln 2018 Ÿ+142% y-o-y

No notable transactions in 2018 Source: CBRE,2019

Related to the economic outlook of the region, how has the Investment Market outperformed last year and during Q1 of 2019?

Investment Market Outlook Latest report, revealed that total investment volume in Europe reached €305billion in the last year, representing a 5% decrease.

In the SEE region investment volumes continue to surge, reaching over €1.2 billion during the entire 2018, presenting annual increase of around 16%.

Investment by Sector in Europe 2018- Q1 2019 HOTEL

€5.0bn

€24.2bn TTM

+5%

OTHER

€5.5bn

€27.8bn TTM

-3%

INDUSTRIAL

€6.6bn

-29%

€32.5bn TTM

RETAIL

€6.7bn

-19%

€45.4bn TTM

July 2017

RESIDENTIAL

€9.5bn

+5%

€49.3bn TTM

OFFICE

€20.7bn

+5%

€125.2bn TTM

Most of investment is focused on the retail segment (50% of total investment volume), followed by office segment as the second largest sector (31%), then industrial and mixed market with 16% of all transactions.

Bulgaria fortified its position with a total investment volume of around 530 million EUR in the last year. 2018 represented a record year for Croatia, Serbia and Slovenia too. 34% of investors in the region are recorded from South Africa, 15% local investors, 13% Spain and 8% from Poland.

In the region, Albania is considered as a country with high investment potential in real estate market, but it lacks behind due to limited number of prime assets and lack of transparency.

Investments have been realized mostly in tourism sector.

Construction activities have been focused on the retail 25 sector. A growing need is seen for office space, predominantly in major centers.

Source: CBRE,2019

December 2019

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Office Market in Brief SEE recorded a modest increase in modern stock due to extensive construction levels in the past several years.

- Prime headline rents in Belgrade reaching 16.5 EUR psqm monthly.

- Prime headline rents in Ljubljana rose to 16 EUR psqm monthly.

- Rental levels in Sofia increased slightly to 15.5 EUR psqm monthly.

- Prime headline rent for properties in Zagreb remained stable at 15 EUR psqm.

Retail Market in Brief It is observed a strong demand in the retail market, with existing retailers expanding their market presence and new brands entering the region as well.

- Highest prime shopping center rents are recorded in Belgrade reaching 60 EUR psqm monthly.

- Prime shopping center rents in Ljubljana are recorded at 45 EUR psqm monthly.

- Prime shopping center rents in Zagreb and Sofia reached at 40 EUR and 35 EUR psqm monthly respectively.

Projected Office Stock and Shopping Center Stock 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Warsaw

Budapest

Prague

Bucharest

Bratslava

2018

Sofia

Zagreb

Belgrade

Ljubljana

2019

2,000,000

1,200

1,600,000

900

1,200,000 600

Industrial Market in Brief The industrial market is the least developed real estate segment in the region, however is expected to improve.

800,000 300 400,000 0

0 Warsaw

Source: CBRE,2019

58

Budapest

Prague

Bucharest Bratslava

Stock

Sofia

Zagreb

Density

Belgrade

Ljubljana

- For the past several years, prime rental levels in Ljubljana stood at 5.5 EUR psqm.

- Since 2015, prime rental levels in Zagreb stood at 5 EUR psqm.

- During the time span of 2015-2017, prime rental levels in Belgrade and Sofia have experienced changes, currently standing at 4.5 EUR psqm.

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According to CBRE is forecasted that multifamily investments will reach €64 billion, over the next five years.

Co-working Spaces: Co-working concept has spread into new markets, but is still concentrated in the world’s largest cities such as New York, London, Beijing, Amsterdam, LA, Paris, Stockholm, Berlin etc. Operators have welcomed this concept as an alternative way to rent space due to manageable users cost, convenient rental prices, higher user satisfaction and retention rates and reduced lease liabilities.

CBRE report revealed that about 40% of all co-working space is in North America and the rest is split evenly between Europe and Asia- Pacific.

… To conclude, SEE region has become an important investment destination and offers many possibilities to develop new investment markets.

New Trends in Investment Multifamily Housing: Growing demand for rental homes across the Europe, has sparked an interest of investors in Multifamily Housing. This type of investment provides investors with long-term inflation proof and risk adjusted returns, portfolio diversification and a reduced vacancy risk due to granularity of leases.

S LOV E N IA Office Shopping centers Logistics

8.00 7.00 8.75

C R OAT IA Office Shopping centers Logistics

8.00 7.00 8.75

S E R B IA Office Shopping centers Logistics

December 2019

8.50 8.00 9.25

BULGARIA Office Shopping centers Logistics

7.75 7.00 9.00

59

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Edelweiss Air Launches Direct Flights From Zurich to Albania's Tirana Switzerland-based Edelweiss Air, an affiliate of Swiss International Air Lines (Swiss), launched a new direct service from Zurich to Albania’s capital Tirana on April 1, Tirana International Airport said.

Edelweiss offers passengers twice-weekly direct flights, every Monday and Friday, TIA said in a statement on Monday, following an inauguration ceremony.

“We appreciate our cooperation with Swiss Airlines. This is great news for all. Meanwhile, other destinations will be coming soon,” TIA’s CEO Rolf Castro-Vasquez said.

On the other hand, Andreas Meier, the airline’s head of communications said that Albania is more and more perceived as a touristic destination when asked why did Edelweiss Air decided now to penetrate into Albanian market.

is more and more perceived as touristic destination,” Meier said in an interview with Swiss-Albania Society.

Edelweiss, based at Zurich Airport, offers flights to 68 destinations in 33 countries around the world

“Several tour operators, which already showed a potential interest for quite a while, wanted to add this destination now.

Andreas Meier

We followed the development of the market, too, and noticed, that the country

View from the inauguration ceremony of Edelweiss Air in Albania

December 2019

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António Campinos, President of the European Patent Office, delivers a welcome address at the 2019 European Inventor Award ceremony in Vienna on 20 June 2019

EIA 2019 Honors the Service to Humankind

By Rudina HOXHA & Jose PINTO

K

laus Feitchtinger and Manfred Hackl from Austria (Industry), Jerôme Galon from France (Research), Akira Yoshino from Japan (Non-EPO Countries), Rik Breur from Netherlands (SMEs) and Margarita Salas Falgueras from Spain (Lifetime Achievement and Popular Prize) were the awardees of the 14th European Inventor Award on June 20 in the heart of Vienna, Austria.

66

December 2019

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European Patent Office (EPO), one of the largest public service institutions in Europe, honored 6 outstanding inventors out of 15 finalists with the European Inventor Award on the stage of Wiener Stadthalle in front of an audience of more than 500 people who were marveled with the inventions of each of the winners.

They explained their creative inventions and their impact on the humankind. Most of the inventions include a wide array of technological and scientific fields ranging from DNA improvement process, eco-packing to rechargeable batteries, genetics to agriculture, video coding to cancer diagnosis, advanced driver assistance systems, plastic

Map showing the geographic coverage of Europeans patents as of 1 March 2019

recycling and others.

António Campinos, President of the European Patent Office, who took up office as the EPO President on July 1, 2018, opened the ceremony underlining that “I am honored to introduce this year’s 15 finalists – exceptional individuals or teams of inventors from 12 different countries.

We are delighted that you have joined us today to celebrate these pioneers and their contributions to the advancement of science and technology, society and the economy.”

is the EPO, headquartered in Munich and with a branch in The Hague, which examines the European patent applications, enabling inventors, researches and companies from around the world to obtain protection for their inventions in up to 44 countries through a centralized and uniform procedure that requires just one application.

EPO grants high-quality patents that protects the interests of both applicants and society. The three official languages of the EPO are English, French and German.

Patent applications may be filed in any of them.

Each of the invention represents a patent. It EPO, initiated to strengthen the cooperation on patents in Europe, receives some 174000 patent applications per year. Last year, 47 percent of all patent applications at EPO originated from the 38 EPO member states followed by Asian companies. The US remained the top country of origin accounting for 25 % of total filings of patent.

“The 2018 EPO’s Annual Report shows that demand for patent protection in Europe is high, on the rise, and coming from all major industrial regions,” Campinos said last year.

It is so sensible and unique to see EPO treasure such human beings (inventors) working for the other humans in our planet

December 2019

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Enova Willing to Present its Projects to Albania Enova SF is a Norwegian government enterprise responsible for promotion of environmentally friendly production and consumption of energy.

Its purpose is to explore new sources of clean energy, reduce overall energy consumption, and to provide educational materials to the public promoting energy-efficient practices.

Established in 2001, it is financed through government funding in addition to a tariff of 1 øre per kWh of electricity to consumers. The company is owned by the Norwegian Ministry of Petroleum and Energy and based in Trondheim.

Representative of ENOVA, Eiliv Flakne told FOLLOW BUSINESS ALBANIA that the projects, financed by ENOVA, can be introduced to other countries like Albania if interested. “We believe that new and innovative technology should spread globally within some years of developing.

Therefore, projects that are financed in Norway by Enova, could very well be introduced in other countries within some years like Albania for example,” Flakne said.

Enova works to create market change for the solutions that will take us to the low-emission society.

70

Eiliv Flakne, Representative of ENOVA

w

e define that market change has occurred when technologies and solutions are utilised to a significant degree, without public subsidies. We work towards this main goal of market change by three secondary goals:

1. Reduced greenhouse gas emissions that contribute to fulfilling Norway’s climate commitment for 2030.

2. Increased innovation within energy and climate technology adapted to the transition to a low-emission society.

3. Strengthened security of supply through flexible and efficient demand and energy consumption.

In order to succeed in developing markets towards a low-emission society, we have prioritised six thematic focus areas, which we call missions. They are:

• The market chooses zero-emission vessels • The market chooses zero-emission vehicles • The market chooses zero-emission industry • The market chooses to use energy and resources efficiently • The market chooses to utilise the flexibility in the energy system • The market chooses to utilise renewable resources

Enova is a state enterprise, owned by the Ministry of Climate and Environment. We are located in Trondheim, about 550 kilometers north of Oslo, the capital of Norway.

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GOING GREEN`

Enovaâ&#x20AC;&#x2122;s foremost policy instrument is financing.

By providing investment support, and loans in some cases, we reduce the costs and risk for both the providers of efficient energy and climate solutions and those who demand them.

And by highlighting what is possible while simultaneously spreading experience, we reduce the risk and make it easier for coming generations to make good energy and climate choices.

In 2018, Enova granted funding commitments amounting to NOK 2.1 billion to projects in Norway. These projects are expected to trigger just under NOK 7 billion from the market.

This will yield a total investment of about NOK 9 billion in projects approved in 2018.

We are operating under an agreement with the Ministry and are not allowed to finance projects outside the Norwegian December 2019

Economic Zone.

However, our objective has a long-term perspective. As we move closer to a low-emission society, a number of markets will have to change, new ones will be created and others will most likely disappear.

We will work to realise market changes where the impact of our expertise and instruments is greatest. When new policy instruments are developed, they are therefore based on an assessment of goals, potentials, drivers and barriers in the different markets.

And markets are global. We have seen that for example in the Norwegian maritime industry which has taken an international position, particularly in battery technology, and the electrification is in the process of gaining a foothold in Norway.

being built or modified with batteries on board, and the technology is spreading to new segments of vessels. Fully electric, chargeable and battery-hybrid solutions have been installed within the passenger ferry, aquaculture, fisheries, offshore and cruise segments.

We believe that new and innovative technology should spread globally within some years of developing.

Therefore, projects that are ďŹ nanced in Norway by Enova, could very well be introduced in other countries within some years like Albania for example

An increasing number of vessels are now 71

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Speech by Ambassador Per Strand Sjaastad at celebrations of Norway´s National Day 17 May in Tirana Dear Ministers, Mayors, Ladies and Gentlemen, I am very glad to see you all here this evening.

Norway Is Committed to Support Albania in Developing a Strong Economy 74

Every year, Norway celebrates the Constitution, signed 17 May in 1814 - more than 200 years ago. We celebrate the core values we want to keep in our society democracy, human rights, tolerance and freedom.

On Constitution Day in Norway, you will see long parades of children, organised by schools across the nation. We want these children – the new generations – to safeguard the core values of the Constitution in the future December 2019

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confident, however, that you have the skills, capacity and determination, to be among the countries that do succeed.

At the same time, it is a reminder that the leaders of today must carefully manage society on behalf of coming generations.

Norway and Albania enjoys strong friendship. We have many features in common â&#x20AC;&#x201C; a large part of both countries is covered with mountains, we are rich in hydro-power, and we both have a long coastline. We are also allies in NATO and the Western community. Bonds between our two countries are steadily growing wider and stronger.

Norway is committed to support Albania in developing a strong economy. We have a special focus on the energy sector and the maritime industries. Albania has a great energy and maritime potential.

Our partnership will be based on mutual interests and mutual benefits. The robust presence of the Norwegian energy company STATKRAFT in Albania is a good foundation to build stronger relations.

We all agree that Albania has made great achievements since transformation started in the 1990s. Connecting to Euro-Atlantic cooperation, will give you new opportunities. However, the most important driver for progress â&#x20AC;&#x201C; the willingness to reform - must come from inside Albania itself, from its people and its leadership.

Building a free and fair society is a long and complex process.

The Norwegian Constitution from 1814 was only a start. It took Norway more than 100 years to establish a true and inclusive democracy and rule of law. Even today, we are working hard every day to improve the standards, and to safeguard what we have already achieved.

Albania does not have the luxury of using 100 years. I am

Finally, let me assure you that Norway will continue to support the people of Albania, and to build strong bonds between us in the years to come.

Thank you for your attention!

View from the celebrations of Norway National Day in Albania on May 17, 2019

December 2019

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Albania Experience Landways Growing Internationally, Reinvesting in Sustainable Resources

By Rudina HOXHA

The President of Albania Experience Landways, Gazmend Haxhia, shares with Follow Business Albania his views on tourism in Albania as well as the plans of his company, the most dynamic in the Balkans, to expand in Europe.

More than ten years at the head of Albania Experience /International Landways. Please can you tell us how Albanian tourism has evolved since then?

I can relate to two sources, Tourism and AVIS Office that is tourism too. The AVIS and the budget office are booming.

Every visitor has rented a car in Albania. And the reason is that Albania has seen a more positive coverage on the news in general and Albania remains perhaps the only undiscovered country in Europe, so curiosity is there.

But more we see now the second generation of the people, who have migrated and have been fully integrated in the life of the western countries where they live. When they come back, they don't want their uncles or their fathers to come and pick them up with their cars at the airport. They don't stay in the home of their parents because they have either a foreign wife or have different expectations. Like myself when I go to US, I don't stay at the beautiful house of my brother-in law but I go to a hotel as I want my independence. That is one of the reasons.

As per tourism, we have seen changes.

Albania Experience as a company does not exist anymore. But Albania Experience exists as a brand name. We have seen a lot of changes. Frankly I was expecting more because the desire exists and Albanians are very entrepreneurial. They are very trustworthy in general. So, they really want to create respect for the guest, they want to show what they have. And on top of all, we have the best assets that is history, hospitality, 76

food, nature, heritage but more could be done because we still suffer from some basics like the training of the people who serve in this industry and one reason why I think not much is being done is because in most of these places, tourism is seasonal.

From end of October to April, tourism in Albania is rather slow or non-existing.

On the other hand, we face a lot of infrastructure issues. As an example, we brought the MSC cruises to Saranda. But we still have roads with one driving line only. Tours by bus are almost impossible. So what the buses can do?

People, who come for 8 hours in Albania, enjoy a lot and their feedback is very positive (and this really stuns me - the feedback is very positive). But these 3000 people, who come on one ship, and this summer we had even two ships per week, meaning around 5000 people, means that this country has a big potential, even if you have a 20 percent of these people returning for longer trips.

In addition, you have to make sure that the beaches are clean and well-maintained, that there is no noise and no vendors perturbing. It really makes sense if all is taken care in the macro-level rather than in the micro-level. For example, inside the rooms are cool and nice but you don't have

a place to park your car.

So a lot of development is done, new hotels opening, new restaurants, new culture of serving and cooking and better guides, better buses and better cars. But if all these aspects can be addressed in the micro-level context, it would have been even more appreciated.

From the prospect of International Landways, what do you see as the latest trends in Albania's IN and Outbound tourism? Do you see more Albanians aiming to travel abroad than spending holidays in the country?

Well, in tourism you see that the number of tourists coming in is really growing. We have more Europeans coming. A lot of FIT (frequent international travelers), individuals as well which is great. A lot of Asians coming because the Visa regime is helping a lot. So I see a lot of Asians, Europeans, Americans coming in Albania.

As per outgoing statistics, I see that the beach vacationing in Turkey has gone down which I think is a momentous trend.

This has happened because people can go to Turkey individually. On the other hand, I see a trend of the upper middle class and the rich going to other more expensive places. We can say that a good of 10 percent of the population fit in this group, mostly people holding top positions or owners of companies. They go to Asia, as couples, friends or individuals/ and they are repeated customers.

In addition, we receive groups going to very interesting and exclusive locations in Albania. I see a tendency showing that visitors visit places that fit with their lifestyles.

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For example, last January, we ran into an Albanian public figure inside a theater in Singapore. People are looking for experiences now, not just beaches, but visiting museums, going to theaters, concerts, fairs, shows etc.

Important is to highlight another tendency of visitors who do not use all their vacations at the same time but they try to split them. Say, first they get five days off and then some other days later when the kids are off at school for example.

Also I would like to stress out another trend I notice in Albania lately - Albanian families visiting Albanian destinations such as Pogradec, Korca or Himara over the weekends.

For example I sent my children to Gjirokastra city and they loved it. They learned about its history, its museums. I like this. But still this has to do with an educated class of population.

You have founded a company that went globally fast and with great sustainability. Having that in mind what are your suggestions to the country's tourism landscape to follow?

Slovenia is a good case. Slovenia does not have a mass tourism. They have been very careful. They know how to be innovative and very trustworthy. They are very strict in what they deliver. So they agree in what they provide. So in my view, Slovenia is a very interesting place to follow. Again we have to understand that Slovenia is a EU country meaning infrastructure is there, the planning permit is there, not unplanned buildings are allowed, it is a small population and at the same time, they have a big budget for tourism. Our budget for tourism is 300 000 euros per year. Croatia has it 9 million euros per year. So as you can see it is a big difference. Still Albania needs to follow such cases but at the same time they need to be very original. In this respect I think that a real functioning Albanian board from this industry should be created like it was sometimes ago. In my view, people who run companies, manage hotels, airlines etc can discuss and speak with one voice. I think that a better coordination between the tourism providers and operators should be in place.

Landways mostly deals with customers from Asia and Far East . How did you envision this affluent and growing segment? What data did you use at the time to understand the needs of such demanding customers?

travel fair. So I started out of this fair with Japan. I went to Japan for 4 years in a row, not a single group. But now we have more than 150 groups from Japan. We cover not only Albania but the whole Balkans, Eastern Europe and since last June, we are bringing 7 charters to Georgia and Armenia. Now we have an Albanian team serving in Georgia and Armenia taking care of the groups. So, now we are international. We cover Belarus, Poland, Italy, Greece and many more. The thing is that the growth has been very fast. So we need to align it with the growth of our staff. This is our main issue because now we are talking about 500/600 groups which is a technical challenge for the people dealing with them, the hotels, finance and every other aspect is an issue.

Important is to highlight that we have recently created a very powerful department, that in charge of contracting. So, there will be five guys who will travel constantly taking care of contracting, marketing, booking etc. So, lets say that we are in the stage of reorganizing. Our work is very colorful. One day is not the same.

This requires a strong and big staff and I am happy that they are my biggest asset.

What is the vision and expansion plans of Landways for the next five years, if you can share with us?

We have become now the most dynamic company in the Balkans. So the plan is to be present more in Europe now. We have the source market, so why not. I have to be sure that internally we are very sound and very safe and that the people can grow up to the challenges. We have offers from big companies to buy parts of our company because we are players now.

My plan now is to grow and have more representation in a few more cities in Europe which will make our work easier and give us a more of international presence. In long term, we reinvest in sustainable resources. For example, we have cases of guys we have sent to China where they were trained there for a year and a half, all expenses covered by the company. They speak Chinese fluently now. Now, one of these guys is our representative in China, one is back to Albania. They know the Chinese, European culture. There are 9 languages spoken in our team.

How do you see Albania Influx tourism from now to 2025 ? What are your expectations, will Albania capitalize on Medium high level income Tourists or will follow many other developing countries and go to mass tourism without caring about tourism Sustainability?

It is very important to mention the political stability as a key point. An unstable politically situation will take tourism 3-4 years back. Hopefully things will be stable and the Albanian government will think seriously about the tourism development.

Albanian tourism will boom for the reasons I mention earlier. It is yet undiscovered, people love it because of the culture in general and important infrastructure projects are under way. So, we are on a good track.

I think Albania will be a combination of mass tourism (say, in Durres, where there is a mass tourism prevailing. Charters from Poland, Ukraine, Russia, Czech Republic, Norway, Sweden etc come and go. Durres is designed for mass tourism.) and high class people who are cultured, intellectual and educated who want to explore on their own.

They want to see museums, theatres, nice spots and others. As a conclusion, I don't see Albania only for mass tourism and I really hope so.

Are you having any plans to invest in the development of the cultural heritage and touristic villages?

It depends how you see this. Being an entrepreneur, if I see a good opportunity, I invest. For example, I invest in business ideas related to tourism. Say, in a school which prepares better guides as this brings better services. But for the moment, I am not thinking of investing in hotels, touristic villages as the opportunity has not yet presented itself. When I will see that all the conditions for this are fully ripe, then I will seize the opportunity

This idea came to me when I was in Switzerland and I saw many Japanese tourists around. So back home, I said to my family that I was going to Japan to take part in a December 2019

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