Follow Business Albania MAGAZINE

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SPECIAL REPORT

S O L E A T OMars P T25rd I O2016 N ALBANIA

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WILL HIRE NEW EMPLOYEES

FIRST TIME IN ALBANIA a scientific and professional Survey commisioned by FOLLOW BUSINESS ALBANIA over 600 businesses interviewed randomly selected

STATISTICAL DATA, SURVEY, ANALYSIS, BUSINESS INTERVIEWS, DIPLOMACY, TRAVEL, ART… © Copyright FOLLOW BUSINESS ALBANIA 2016. All rights reserved.

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Tirana Business Park (TBP) is the largest german real estate, direct private investment in Albania. It is located only 2 minutes away from the International Airport „Mother Teresa“, in an area of 22 ha. By 2022, 17 buildings will be erected, with a total build up area of app. 176,500 m2 and 3600 parking spaces. TBP is divided in two main areas, PDA (Project Development Area) and RA (Resale Area), each of them 110.000m2. PDA will be dedicated for offices, retail space, commercial areas, shops, food, storage, internal and external parking spaces and supportive services while Resale Area will serve to any demand arising, so it is an area to be tailored to the needs of TBP’s customers. This ambitious, 100 million euro project is being implemented by Lindner Group of Germany.

The Lindner Group is Europe’s leading company for interior fit-out, facade construction and insulation engineering with 50 years’ experience in ‘Building New Solutions’, the development and implementation of individual, high-quality project solutions, as well as developing successful business parks in Europe, such as, Business Park Sofia, Bulgaria and Galvaniho Business Center, Bratislava, Slovakia.

The buildings express an attractive architecture, a new excellent working location; a concept of a city within the city and nearby the airport. It represents a genuine concept of urbanism, architecture, landscape, traffic and infrastructure for a premium business activity. At TBP sustainable architecture blends with nature, by bringing positive impact on users‘ work-life balance; at the same time, high priority is given to the service provided and the premise facilities and flexibilities.

The first construction phase includes three buildings with a gross floor area of approx.

39,000 square meters. TBP’s Grand Opening took place on June 30, 2015.

TBP is on its way to become one of the hot spots in Southeast Europe, by bringing together industries, enterpreneurial models and creative impulses.

FOLLOWBUSINESSALBANIA CONTENTS

CONTENTS YOU KEEP THE EXISTING INVESTORS 7 “IF HAPPY, THEY’LL BECOME ALBANIA’S BEST AMBASSADORS” CHRISTOPH DENK

14 ALBANIAN BUSINESS BAROMETER RINOT: 24 AVRAHAM “FROM ISRAEL WITH LOVE” EDUARD ZALOSHNJA

LINDEX RELIES ON 28 ISACSON: QUALITY-PRICE COMBINATION TWO WORDS ON JOHAN ISACSON

ONE ELSE IN THE WORLD HAS MATCHED ERICKSON'S 32 NO DESCRIPTIONS ABOUT ALBANIANS GROUP, AN IMPORTANT 36 VISEGRAD AND WELL-PROVED PART OF THE EUROPEAN ARCHITECTURE

BY MAREK JEZIORSKI, AMBASSADOR OF THE REPUBLIC OF POLAND TO ALBANIA

MACROECONOMIC PICTURE OF 38 AALBANIA

BY EDUARD ZALOSHNJA

OF ADA: “FRUSTRATING THAT 50 HEAD YOUNG ALBANIANS WOULD LEAVE THE

FOLLOW BUSINESS ™ ALBANIA FBA PUBLISHING © Partners and collaborators

KUMI PRINT LEGAL AND PROFESSIONAL SERVICES ALBANIA Design: Leart Zajmi WEB: www.FollowBusinessAlbania.com Email: info@followbusinessalbania.com NOTICE The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication, which is provided for general use and may not be appropriate for the readers’ particular circumstances.

The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

All photos used in the magazine are by Shutterstock unless otherwise credited.

April 2016

COUNTRY WHEN WE ARE FUNDING PROJECTS FOR A BETTER LIVING”

54 GENTI BEQIRI THE DUTCH WHO LOVES TO SHARE KNOWLEDGE 56 MEET WITH ALBANIA CEO OF AIDA

PETROV: HOW IT IS LIKE LEARNING FROM THE 58 KOSTA WORLD’S BIGGEST BRANDS CITY OF BERAT FROM THE WORDS OF 60 THE BLERINA AGO BIG PLAN OF AIR SERBIA: 66 2016’S NON-STOP FLIGHTS BETWEEN BELGRADE & NEW YORK AIR SERBIA’S GOAL IS TO BECOME THE LEADING AIRLINE IN THE BALKANS, ALBANIA, AN IMPORTANT POINT

71 FRIES: LINDNER GROUP CARES ABOUT PEOPLE AND THEIR PERFORMANCE PRAGMATIC HUNGARIAN MODEL 74 THE CANNOT GO UNNOTICED 5

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FOLLOWBUSINESSALBANIA FINANCE & ECONOMICS

Christoph Denk:

“If You Keep the Existing Investors Happy, They’ll Become Albania’s Best Ambassadors” The German, Christoph Denk, who is keeping the post of the EBRD Office in Albania for 15 months now, comments on the new EBRD’s Strategy (2016-2019) on Albania and the challenges his institution is facing here.

By Rudina HOXHA

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FOLLOWBUSINESSALBANIA FINANCE & ECONOMICS

EBRD Strategy (2016-2019) on Albania was recently approved. How do you consider this strategy vs corruption? In your view, how important is this moment for both parties?

With our new strategy we want to support the government in its ambitious goals to develop the Albanian economy. What is special and new about EBRD’s Strategy is that we not only provide financing for economic development but also offer advisory services to businesses and support structural reforms through policy dialogue.

So, we will apply an integrated approach: we will provide financing but also help companies build know-how and help the government proceed to improve the investments climate.

following results by 2020: • First, the private sector has improved its competitiveness through prudent investment and know-how development • Second, Albania has strengthened its linkages to other countries in the region and the EU, for instance, transport, energy but also through trade and investments • Third, utilities in Albania, particularly in the power and in the municipal infrastructure sector, have become financially sustainable and more efficient in their operations and service delivery.

That’s the how we would define success.

These three areas – private sector competitiveness, regional linkages and

would you promote or push among investors?

One sector which we are looking at in particular now is agribusiness. Albania has a lot of untapped potential in this area. And with agri-business, we mean the whole value chain basically from the “field to the fork”. It is already an important part of the economy, about 20 percent of the GDP is created by agriculture. And almost half of Albanian population in rural areas is working in the sector.

Yet agribusiness suffers from a number of issues. One of them is lack of access to financing. This is something we want to address vigorously.

Together with the government, the banks and micro-finance institutions we are working hard to launch the Albania Agribusiness Support Facility which will significantly improve access to financing in this important sector. This is an important development not only for the Albanian businesses but also for the foreign investors.

Combating informality and corruption is one part of that. Many businesses are concerned by that and we would like to support the government in its efforts to improve good governance and create a level playing field for all businesses.

What does the EBRD expect by the end of this Strategy? What results does it expect by the Albanian government?

We will consider the strategy a success if we are to make progress in achieving the 8

commercialisation of utilities are also the three areas we will focus on in our work.

The points of this Strategy are very important. But in your view, what is the most important out of them which the Albanian government should take into consideration mostly? I think that the most important one is the strengthening of competitiveness of the private sector.

Which sectors can you mention as the most interesting at the moment to invest in Albania, which sectors

In addition, there is another sector, which may presently receive less attention that it should: light manufacturing that includes labour intensive parts of the automotive supply chain. Here, Albania has the advantage in having fairly low labour cost. And Albania’s location is not so far from the centres of the automotive value chain in Europe. I think there is far more potential to be exploited.

The third area, where we see significant investors’interest is the power sector, particularly in the renewable energies, including hydropower. For that investment to materialize, the government has already made great progress in sector reform.

April 2016

FOLLOWBUSINESSALBANIA FINANCE & ECONOMICS

government is working very closely with EBRD to he develop this important sector.

Is the EBRD interested in taking part in privatization in Albania, for instance to push some projects?

The EBRD’s mandate is to help countries become competitive, stable, sustainable, inclusive and well-governed market economies. Since the EBRD was created 25 years ago, privatisations have been at the core of the transition process. There is a number of ways how we can support privatisations. For example, we can work with state-owned companies and prepare them on the road to privatisation by improving corporate governance, by commercialising their operations, by financing them both, through debt or eventually through equity, so to prepare them for privatization.

Moreover, if a state-owned company is coming up for sale, i.e. privatization, we can co-invest alongside a strategic buyer.

We can take a minority stake in the privatised company. Sometimes the strategic investors like to have us on board to support them, to give them some comfort and to provide our expertise. We are open to businesses in that regard and investors are welcomed to approach us on this.

What is your general assessment on the economic situation of Albanian population and the country?

Looking at the big picture, I believe that These reforms will need to be completed to give some visibility to potential investors about the regulatory framework they will operate in.

Overall this is an attractive sector given that Albania has very good renewable energy sources.

Have you shown already this interest to the government and has it replied back?

Yes. This is very much aligned with the government’s priorities and agri-business in particular is very high on the government’s agenda.

We are pleased and honoured that the April 2016

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Albania has achieved a lot in the last 25 years and Albanians can and should be really, really proud of these achievements. That is the most fundamental point. Could the economic situation be better today? Yes. But it could also be much worse, to be honest with you. So, it is important to keep that in mind. Zooming in a bit more to the recent past, it is true that the Albanian economic development has been hit by a structural shock which happened at the time of the global financial crisis. Before the crisis growth was much stronger than in the recent past.

More recently, the convergence process of Albania with Europe’s advanced economies has significantly slowed down. It turned out that the growth model before the financial crisis was not sustainable. It was based too much on creditfuelled growth particularly in construction, including a lot of unplanned and illegal constructions.

Now, the economy is recovering by working through some legacy issues.

You can see them in the balance sheets of the banks in the form of non-performing loans (NPLs).

These NPLs have their equivalent in the corporate sector where still some companies are struggling with the effects of misguided investments from the past. So, the system is working through these legacy issues and there is progress.

EBRD Headquarters in London

interest just in the first months of the year than in the last year taken together. That is good news. I have to add that everybody who comes here basically asks two questions: First: What happens if I have a conflict or a problem with the government? So, investors are very concerned about how their potential and often unavoidable problems can be resolved.

EBRD has cumulatively invested almost one billion Euro in Albania. That’s a lot and our ambition is to do much more.

What is important to understand in this context is that our investment is very much demand driven. So it is not that we have a fixed portion of annual investment which we allocate among our 36 countries of operations.

We are flexible. So the better the investment climate, the higher the interest from foreign and domestic investor, the more we can do in a country like Albania.

What is your view on the trend of FDI in Albania?

The justice system needs reform not only for the development of Albania as a society and for EU approximation but also very much to attract investment. So, that’s the first big question every investor asks, the state legal system and the conflict resolution with the government.

And the second question is also very practical: How are existing investors doing in the country? Are they happy? I think this is something very important for the government to keep in mind. If you can keep your existing investors happy, then, they will become your best ambassadors for attracting future investments.

We see interest from foreign direct investors in Albania. In fact I have seen more

What is the EBRD’s total investment in Albania?

It is also important to see the regional context. Italy, for example, is the most important trading partner of Albania and has gone through a very, very serious double-dip recession. The Italian economy is now emerging from these very difficult times. If all goes well, this recovery will help to accelerate growth in Albania as well. In addition to that, there is a special factor this year as well: We will see the start of major construction works for the Trans-Adriatic Pipeline. This will support growth in Albania. Overall, EBRD is expecting that growth will slightly accelerate this year to 3.3 percent.

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What do you see as the major challenges still facing the EBRD? In Albania, our challenge as a bank is three-fold: We have a private sector here that is still in a relatively early stage of development with, overall, limited value creation in the country. You see many companies, for example, who focus on importing and distributing goods with relatively little value creation in the country. The second issue is that the banking sector, which is for us, an imporLorem ipsum dolor sit amet April 2016

FOLLOWBUSINESSALBANIA FINANCE & ECONOMICS

tant way to reach small businesses, is extremely liquid. They have lots of deposits, so they don’t need funding from institutions like us.

The third challenge is that the sovereign, who is important for building infrastructure for example, already has a fairly high debt level. So, there is not much additional debt capacity. So, basically these are the three challenges that we are facing as a bank to do business in Albania. And in our Strategy, we have been working around these challenges. For example, by offering products to banks that do not involve funding but where we share the risk of a given project or a portfolio of projects. That is much more attractive to banks and this is the approach we are taking with the Albania Agribusiness Support Facility.

Lately focus is given even to the innovation and technology in Albania. Has the EBRD any project in this area and what is your general feeling about the development of this sector in our country?

Innovation is indeed becoming more and more important as a driver for economic growth. Last year’s EBRD Transition Report focused on this topic. And we do what we can to

support companies who innovate. There are two ways in particular which I would like to highlight. One is that we bring in advisory services for small and dynamic companies which can help them to innovate.

The other way is particularly for fast-growing companies which have a successful track record and want to move to the next level of development.

We can finance them through the Enterprise Expansion Fund, ENEF. We can invest equity or subordinated debt in these companies.

This is how we support growing innovative companies in the Western Balkans, including Albania.

April 2016

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THE LEADING LAW FIRM IN ALBANIA

Samir Lleshi

Oltjan Hoxholli

Elda Llambi

Renan Berati

Eriola Nallbani

Albana Fona

Kostina Prifti

Klejda Capeja

Anisa Bejko

Romina Shelqizi

Leading Law Firm in

Albania

Partner of Yingke Law Firm China

www.lpalbania.com

FOLLOWBUSINESSALBANIA SPECIAL REPORT

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April 2016

FOLLOWBUSINESSALBANIA SPECIAL REPORT

Eduard Zaloshnja

ALBANIAN BUSINESS BAROMETER What are business expectations for 2016?

What businesspeople think about taxes, state inspections, electric power supply etc.?

Background In this first edition of FOLLOW BUSINESS ALBANIA, we bring fresh insights from Albanian businesses, based on a representative survey of 600 businesses across different business lines and sizes.

Methodology

The survey was conducted by phone and field visit in the last week of January with randomly selected businesspeople all over Albania. We plan to continue with future waves of this survey every 6 months, interviewing the same panel of respondents.

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April 2016

The survey was designed, supervised and analyzed by Eduard Zaloshnja, PhD, Research Scientist at Pacific Institute for Research and Evaluation, Washington, DC.

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SAMPLE DETAILS SURVEY

Sample Details The 600 businesses we surveyed were randomly selected from published business phone books. Around 40 thousand businesses out of a total of 113 thousand registered in Albania have publically listed their numbers. Those that don’t have listed numbers are mainly mom-and-pop shops scattered all around the country.

However, micro businesses (1-4 employees) are well represented in the sample – 50% of the surveyed businesses had 1-4 employees. Another 36% are small businesses (5-19 employees), 11.5% are medium businesses (20-79 employees) and the remaining 2.5% are big businesses (Figure A).

The average number of employees per business in the sample is 14. However, the real average is perhaps bigger, because respondents might not have reported unregistered employees.

Figure A. The size of businesses in the sample.

The sample represents well all sectors of the economy (see Figure B). However, around 400 thousand micro subsistence family farms are not represented in it. Around 2/3 of surveyed businesses are involved in trade (retail, wholesale) and/or other services. In Albania, the trade and services sector produces around 60% of the GDP (Source: INSTAT)

2.5% BIG

11.5%

MEDIUM

50%

MICRO

36%

SMALL

Figure A. The size of businesses in the sample

On average, the surveyed businesses have been active for 12.6 years. In 71% of interviews, owners/co-owners responded themselves and in 29%, the respondents were hired company managers. Around 65% of businesses in the sample are located in Tirana and 35% in the rest of Albania. However, many medium and big companies headquartered in Tirana have their branches in many areas of the country.

3% CONSTRUCTION

19%

MIXED

28%

OTHER SERVICES

MANUFACTURING

11%

39%

TRADE

Figure B. Sectors where surveyed businesses are involved

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FOLLOWBUSINESSALBANIA SPECIAL REPORT

ELECTRIC POWER SUPPLY What businesspeople think about fines that different state agencies have issued to their businesses?

2% DON’T KNOW

Most of the surveyed businesses (54%) were not fined last year by any state agency, whereas 20% think that were justly fined.

A quarter of the interviewed businesspeople think that they were unjustly fined at least once last year (Figure 1).

20%

JUST FINES

24%

UNJUST FINES

54%

NO FINES

Figure 1. What businesspeople think about fines that different state agencies have issued to their businesses?

2% DON’T KNOW

Almost 8 in 10 of the interviewed businesspeople (78%) think that their business had reliable electric power supply last year (Figure 2). Only 21% had unreliable supply and only 11% overall were overcharged for their use of electric power (Figure 3).

21%

UNRELIABLE

Reliability of electric power supply 78%

RELIABLE

Figure 2. Reliability of electric power supply

6%

DON’T KNOW

11%

OVERCHARGED

What businesspeople think about electric power invoice correctness?

83%

CHARGED CORRECTLY

Figure 3. What businesspeople think about electric power invoice correctness?

April 2016

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TAXES AND STATE INSPECTIONS

What businesspeople think about the fairness of the Albanian tax system?

More than half (52%) of the surveyed businesspeople think that the Albanian tax system is fair, while 29% think is unfair (Figure 4). However, among the 19% that answered “don’t know”, there might be some who don’t want to say what they really think.

19%

DON’T KNOW

52% FAIR

29%

UNFAIR

Figure 4. What businesspeople think about the fairness of the Albanian tax system?

6%

DON'T KNOW

What businesspeople think about tax inspectors’ behavior?

More than 7 in 10 (72%) of the interviewed businesspeople think that tax inspectors have behaved professionally during inspections last year. Only 21% think that they have behaved unprofessionally (Figure 6).

21%

UNPROFESSIONAL BEHAVIOUR

What businesspeople think about customs inspectors’ behavior?

Almost 2/3 of the interviewed businesspeople have had no contact with customs last year. Among those who had, ¾ think that custom inspectors behaved professionally (Figure 6).

72%

PROFESSIONAL BEHAVIOUR

Figure 5. What businesspeople think about tax inspectors’ behavior?

2% DON’T KNOW

24%

PROFESSIONAL BEHAVIOUR

8%

UNPROFESSIONAL BEHAVIOUR

66%

DON’T HAVE CONTACT WITH CUSTOMS

Figure 6. What businesspeople think about customs inspectors’ behavior?

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BUSINESS EXPECTATIONS 2016 Hiring plans for year 2016

9%

Among the surveyed businesses, only 14% are planning to hire new employees this year, whereas 10% are even planning to lay off some. Over 2/3 of them do not expect any change in their payrolls, whereas 9% are not sure what will happen with theirs (Figure 7). Around 30% of businesses that are planning to add new employees are medium or big, while they represent only 14% of the sample.

14%

DON’T KNOW

WILL HIRE NEW EMPLOYEES

10%

WILL LAY OFF EMPLOYEES

67%

WILL KEEP THE SAME EMPLOYEES

Figure 7. Hiring plans for year 2016

7% MACHINERY/ APPLIANCES 5% BUILDINGS/ OFFICES

6%

DON’T KNOW

4% TRAINING

Investment plans for year 2016

10%

MIXED INVESTMENTS

Only a quarter of the surveyed businesses are planning to invest in new machinery/appliances, buildings/offices, training, or in a combination of the above. Meanwhile, 6% are not sure whether they would invest (Figure 8).Around 30% of businesses that are planning to invest this year are medium or big.

69%

NO INVESTMENTS

Figure 8. Investment plans for year 2016

17%

DON’T KNOW

21%

REVENUE INCREASE

Revenue expectations for year 2016 Businesses are quite pessimistic about this year’s revenues – only 21% of the surveyed businesses are expecting an increase in revenues (turnover) this year, while 31% are expecting a decrease. One third is expecting the same level of revenues as last year and the rest (17%) are not sure if they would have an increase or decrease in revenues (Figure 9). Only a quarter of the businesses that are expecting a revenue increase are medium or big.

April 2016

32%

SAME REVENUE

31%

REVENUE DECREASE

Figure 9. Revenue expectations for year 2016

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FOLLOWBUSINESSALBANIA DESTINATION

2015 marked the 20th anniversary of Rogner Hotel Tirana.

What are the things that you would like to do on this occasion?

20 years are a lot for a business in a new state like Albania.

They embody existential experiences, the difficulties the country has gone through during these years, especially the business of hotels/tourism, which is closely related to the foreign investments in Albania. We have experienced them all.

But, after all these years, overcoming such obstacles is part of our success, thus transforming Rogner into a brand.

The jubilee celebration usually goes by dinners and galas where the best clients are invited and offered the best services as a token of gratitude. That is what you would usually expect.

But, NO. We have decided that our most loyal clients and prospective ones can be rewarded by bringing novelties in the industry of hospitality, thus erecting a new building with more rooms and another conference room with an appropriate capacity for big events including the latest technology and modern design as well as a new wedding hall with a capacity over 350 people and a luxurious arrangement.

What has been recently drawing attention is the new building that is rising quickly, day by day. Tell us about the next revolution coming from R.H.T. 2016 will bring a new era for our hotel. This new building, which will be functional in May, includes 40 new rooms and suites, one of which will be a Presidential Suite. I can say that the arrangement will be mixed, between a rustic and modern style, in order to bring the “smell of home” and the comfort of a five-star hotel. Part of this building will be a SPA center, including the complete range of services, and a gym with considerably areas facing the garden with the most contemporary equipment.

20 years in Albania, Rogner Hotel Tirana will Reward its Clients in an Unique Way The directors of Rogner Hotel Tirana, the nice German couple which is successfully managing this hotel for some years now, have revealed in an exclusive interview for “Follow Business Albania” Magazine how the Hotel has planned to reward its most loyal clients and its prospective ones on its jubilee celebration.

They confirm that 2016 will bring a new era for the prestigious hotel, located at the center of Tirana.

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April 2016

From right to left: the founder of Rogner Hotel Tirana, Mr. Robert Rogner and its directors.

Rogner Hotel Tirana is well known as the meeting place! What strategy resulted so successful to make it the most favorite spot for the Albanian and international elite?

five-star hotel, this is the very moment where you select the category of the clients who will be its guests. The conferences and the business meetings constitute the second major service of our Hotel.

This strategy lays in the very opening of this hotel because it was built to be the hub of business in Tirana. Since it is a

That’s why it has always been a magnet for the international and local elite to choose Rogner as the right place to enjoy services starting from the morning coffee to big conferences.

What can you say about yourself?

What motivates you to work for Rogner Hotel Tirana? What makes it so special in your opinion?

We are the general directors of Rogner Hotel Tirana. We have been running this “House“as we like to name it for six years with two years pause in between. We are married in life and good partners at work :).

Part of our small family includes four dogs and our big family is made up of more than 120 employees. Initially we accepted the invitation of Mr.Rogner to be part of his business without hesitation.

Because first of all, we know the potentiality of this gentleman to do business and secondly, we are fond of challenges and especially of bringing them to the end by April 2016

working with passion and soul.

How would you characterize your experience in Albania so far? What makes your work here easier and harder?

To those who know us, we are people who chase big experiences. We can consider our experience in Albania as the most fulfilling one from the human and professional point of view.

At work, what puts a smile on your face?

The smiles of the clients! A positive note in the testimonials ‘book or on the online portals! When the service staff is full of smiles and motivated. The client, who comes back to our “home” again! The hotel which hums every day!

The distinguished Austrian investor, Robert Rogner, has made this Hotel known for its philanthropic efforts.

What feedback have you received from the public and what are the further steps in this regard?

The charity has been the first act of Rogner Family in Albania, even before 21

FOLLOWBUSINESSALBANIA DESTINATION

the hotel was built. It dates back to 1992.

Most of the charity works are not known to people but I can mention some (even though Mr. Rogner would not like that).

Fshati SOS (SOS Village) has been built by this family while a new building has been bestowed on this village.

of the Order of Malta which operates in the north of Albania. On the other hand, there has been a case I have also experienced and would like to share with your readers. It concerned the daughter of one of our employees which was diagnosed with acute leukemia.

Another center for the orphan children has been built in Elbasan city under the auspices of Mother Theresa sisters. In addition, the Rogner Family is in constant cooperation with the Federal Association

At that time, the visa regime was still in order, so, in cooperation with the Austrian Embassy in Tirana and thanks to the grandeur of Mr. Rogner, which he showed once again, the girl was

transported to Austria immediately with all the expenses covered.

Regarding the charity-related sponsors, I can say that they are part of the annual plan of our business. I can mention similar causes like the children suffering from the Down Syndrome, events for the orphan children and others.

What advice would you offer to those who are inspired to become successful in the hotel industry?

One advice, which has turned out to be a good one for us, is that of being close to the people! We do not behave like directors, we do not dress as such, we consider ourselves in service of each and every client and we talk closely with them. This way, we treat the client as a unique individual and what is far more important, everything is done with a big smile on our faces.

We can find you running around the hotel, meeting people, always being at the center of affairs and what is 22

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more important with a smile in your face. How important is this for a hospitality business?

This is everything in this kind of industry needs. Whoever has money today may build up luxurious environments, but we are lucky enough to have a dedicated staff which has embraced the spirit of team work to the point of making even sacrifices in order to fulfill the clients’ demands. We are lucky enough to have many employees, hired since at the opening of this Hotel and this is our greatest asset ever.

This is everything in this kind of industry needs.

Whoever has money today may build up luxurious environments, but we are lucky enough to have a dedicated staff which has embraced the spirit of team work to the point of making even sacrifices in order to fulfill the clients’ demands.

We are lucky enough to have many employees, hired since at the opening of this Hotel and this is our greatest asset ever.

The German couple, who is successfully running the Rogner Hotel Tirana

April 2016

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FOLLOWBUSINESSALBANIA RUBRIKA E ARTIKULLIT

Avraham Rinot

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majtas

FOLLOWBUSINESSALBANIA TABLE FOR TWO

Avraham Rinot: “From Israel with Love” What you need to know about the man who has promised to take Albania-Israel relations by storm

By Rudina HOXHA From Tel-Aviv, Israel

How can Albania be a paradise in 5 to 10 years? Just ask Avraham Rinot. Actually he stands for the most well-known brand of the Israeli people. Kind, caring, good-hearted and so witty, he spreads goodness and knows only to do good. And in fact, this is the greatest feature that makes ‘the Startup Nation’ triumphs most of the time. On the other hand, he is a precious friend of Albania, seeking constantly to bring progress and investments to it.

And I cannot believe that on one warm and lovely November afternoon, I find myself in Tel-Aviv having the privilege to be on the same table with him to talk about Albania and Israel, these two ancient nations, interlinked by the past so unavoidably, and their new era of cooperation.

This elegant gentleman, who serves as the Honorary Consul of Albania in Israel since 2012, reflects a colorful character like the life in Tel-Aviv. A real hardworking soul, he makes me really understand what an honorary consul can do if he/she does not simply consider this post a title but a serious commitment instead.

April 2016

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FOLLOWBUSINESSALBANIA TABLE FOR TWO

And if you’re waiting to hear a mindblowing secret behind his vision to make Albania a paradise within such a short time, don’t hold your breath - his formula is simple: Albanian youngsters are the ones who have the future of their country in their own hands and the government can play a decisive role in helping them to stay in the country and not leaving it.

It was him who, last year, awarded scholarships to five Albanian students, supported by him personally, and one of them was lucky enough to spend one week trip in Israel with all the expenses, covered by him.

And I think loud from what I saw and learned in Israel during one-week visit, organized by the Foreign Ministry of Israel, that here the youngsters are the driving force of this vibrant nation characterized by a young population.

They are in the forefront of the startups: every month, 2-3 new startups take wings and millions of money is made.

Youngsters are those who, once a week volunteer in the society, thus creating a strong and supportive relationship with the community in which they are situated.

Their philosophy is so right: by developing such connections with the community, the youngsters have a different look and smile on their faces, they get to know more people, their horizons are expanded and souls are recompensed.

And it is so true that every generation of youngsters has left its own mark on Albania, through many of their achievements, but the one generation, which would make the difference by staying in their own country and contributing for its future would really be remembered. And the Albanian government plays a crucial role in this regard by unlocking their drive for great achievements.

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View of Trade Center Tel-Aviv, Israel

A few minutes into the conversation with Mr. Rinot, one thing is clear for me:

He is very optimistic that Albania will make it shortly because of its smart youngsters, hardworking people, huge resources and its strong values.

From a distinguishedlieutenantcolonel in the Israeli Army to a general manager for more than 30 years in the insurance market, Rinot is today a businessman of a great fame in Israel.

He is the director of a big public company while embodies the typical Israeli entrepreneurial spirit: he owns a startup dealing with eye operation and has a patent in many world countries.

Few might know that about 25 percent of the winners of Nobel Prize from all over the world are Jews {Wikipedia}.

Enthusiastic of the bilateral relations between our two countries, which will celebrate 25 years in 2016, Rinot has Lorem ipsum dolor sit amet decided to take the bilateral relations by April 2016

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storm. By successfullypresenting Albania to many companies and people, he is negotiating with a gas drilling company as well as with a huge company in the agriculture sector.

“Now I am working on tourism field.

There is a lot of untapped potentiality in this field. There are many tourists from Israel to Albania and vice-versawho would like to explore our respective countries,” he says. In the past, there was an ongoing project which could have brought 2000 Israeli tourists per month to Albania but unfortunately the involved Albanian airliner went bankrupt.

But still he keeps persisting to find new connections and nurture the existing ones in order to bring Albania to the international limelight.

His contribution is highly appreciated even by the newly-appointed Ambassador of Albania in Israel, Bardhyl Canaj who is actually cooperating closely with him to bring bilateralrelations ahead. “I am really happy to have the chance to make concrete projects with the Honorary Consul of Albania in Israel, Mr. Avraham Rinot. He always extends a helping hand and his contribution is amazing,” said Canaj.

April 2016

But even Mr.Rinot is so pleased that an intellectual, a diplomat of career and a professor has been appointed as Ambassador of Albania to Israel. “I am really happy to have Mr. Canaj here and I will support him in every initiative he will undertake,” Mr. Rinot says.

New Israeli investments agreements are about to be signed soon and to Albania and its people, having new investments is the beginning of an era of prosperity for the small country of more than 3.5 million of inhabitants.

Surely Mr. Rinot will have its name on the future progress of Albania which is on his heart and even on the number plate of his car where the Albanian flag is shown as a way to display to all the Israeli people on the street that he bears a particular bond with the Balkans country, which saved all the Jews who came to find a shelter to ipsum dolor amet a the 73 families Lorem in Albania (whosithave certificate entitled from the Yad Vashem Museum in Jerusalem) during the Second World War, like no other country in the world.

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FOLLOWBUSINESSALBANIA VENTURE

Isacson: Lindex Relies on Quality-Price Combination Two words on JOHAN ISACSON Mr. Isacson has been working for Lindex for 15 years. He is responsible for the franchising business area worldwide. He would describe himself as “a Jack of all trades – knowing a bit of everything in the company.”

But, for most of his collaborators, he is a highly talented retail professional known for his remarkable competence, organizational skills, positive attitude and helpfulness to his colleagues.

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April 2016

Last October, Mr. Johan Isacson, Head of Business Area Franchise at Lindex – the big Swedish company, mostly known for lady’s wears and lingerie in particular but not only, was in Albania to take part in the inauguration of the newest store of Lindex in Albania, thus numbering the 19th markets in the world.

With its HQ in Gothenburg, Lindex, with 61 years of experience, has prosperous stores in Sweden, Norway, Finland, the Baltic States, the Czech Republic, the Slovak Republic, Poland, Iceland, Russia, Bosnia-Herzegovina and the Middle East. In the spring of 2015, it opened a store in London to be focused on the Balkans in the fall with new stores in Albania, Prishtina and Macedonia. Everything from large stores carrying the entire range of products to small concept stores.

What were your impressions from the inauguration of Lindex store in Albania? What do you expect? Do you think Lindex would be a success even in Albania?

I really like Tirana, Albania. I have been here three times now.

I have had the chance to work with many friendly people.

And the business relations are going well. We expect to be able to deliver fashion experience to the Albanian customers.

Albania is now the 19th market of Lindex. We have a total of 500 stores all the way from Reykjavik, Iceland to Dubai in Middle East. This year, we also opened our stores in London, UK. So, Lindex is really expanding.

Lindex celebrated 61st anniversary in 2015. Initially we have worked as a lingerie company. I wish that all the Albanian

“What we have opened in Albania is a full concept store.

Here the Albanian customers can find extended collections, kids’wears, pulls of all sorts, lingerie, winter clothes, bigger sizes, so you have here everything that we can offer here. The store we opened in Albania is 700 square meters and when we opened it, we registered a total of 28,000 articles. We will regularly deliver a new fashion that would change all the time. There will always be some new things to find in our store,” Isacson said in an exclusive interview for “Follow Business”.

If you wonder what’s typical of Lindex, Mr. Isacson satisfies our curiosity: “If Lindex was a person coming into the room, and that would be “SHE” of course, SHE would be open, positive, energetic and friendly. Very confident in her style as well. That’s the feeling people should have about our brand.”

April 2016

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women come to Lindex and try lingerie because it is of a very good quality. And it is really an affordable fashion. We are famous all over the global market for the lingerie in particular. We have good expectations from the Albanian market.

So, we welcome all the Albanian customers to come to Lindex!

Why did Lindex choose Albania? An attractive market?

We have in fact the franchise cooperation and we have a license for three markets: Macedonia, Kosovo and Albania in one contract. So, our partner started the store in Prishtina in 2015. So, now we open one in Tirana and we will see whether we will open other new stores in Albania, Prishtina or Macedonia.

Here the Albanian customers can find extended collections, kids’wears, pulls of all sorts, lingerie, winter clothes, bigger sizes, so you have here everything that we can offer here. The store we opened in Albania is 700 square meters and when we opened it, we registered a total of 28,000 articles. We will regularly deliver a new fashion that would change all the time. There will always be some new things to find in our store.

Is quality what Lindex appreciates most?

In the segment that we are working with, we are not heightened fashion. We are working with fast fashion instead, meaning with affordable prices. You should get a good quality for that price. So, quality is

garments for their kids. But in the every day life, we know that mostly is the mother who makes the shopping even for the kids. So, when they come to our store, they can buy something for themselves but even for the kids at the same time. Hopefully it will make it easier for them to go shopping because they can find everything in one place instead of having to run around in different stores.

You ask me “what’s typical of Lindex?”. If Lindex was a person coming into the room, and that would be “SHE” of course, SHE would be open, positive, energetic and friendly. Very confident in her style as well. That’s the feeling people should have about our brand. We really want the women to feel confident in our clothes.

They can find something for every occasion, for business, for party, for pleasure, for spare time and so on and so forth.

Are you experimenting on the Albanian market?

No, in fact, we are seeing the response of the market, what the customers like. We are delivering the same international fashion like we do in all our stores we have. But sometimes you have to make small alterations when it comes to choosing the suitable clothes for one’s country, for example, we don’t sell rain clothes in Saudi Arabia, but in Iceland, we sell more jackets.

So, we need to make such slight alterations. But the fashion in lingerie is the same in all our markets. What we have opened in Albania is a full concept store.

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Also you should not forget that Lindex is one of the biggest purchaser of pure organic cotton in the world. important, yes of course. But, you cannot compare heightened fashion, not even the cheaper stuff. You have to balance and see: well, for this price, I got a really good quality for something that would last. Yes, quality combined with price is very important.

What’s typical of Lindex? What makes it different from the rest?

What differs us from many others in this industry is that we focus on ladies only because the other brands in the business have also men’s collection. So, when we communicate, we can focus on the woman. I don’t say that we do not have male customers because they also buy

The inauguration of Lindex store in Albania corresponded with the approaching of winter. A perfect timing knowing that Scandinavian winter clothes are really the warmest!

Yes, we actually do that. When we open a new store, we would like to open in this period or around spring because we want to deliver a consistent store of autumn garments or spring garments.

Then, of course, the fashion changes all the time but it is also important not to have old summer clothes in the store combined with winter clothes. I mean we want to make a good clear-cut when we open a store.

April 2016

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Pink Ribbon campaign for breast cancer in Sweden. We contribute to millions of Swedish krona (SEK) to this cause every year. We are actually working on refugees as well. Just a few weeks ago, we collected 2.4 million SEK for the refugees coming from Syria to Sweden, mostly in cash and clothes. I am actually proud of working for a company that thinks about environment and people, not only about those who wear our products but even those who produce them. Special inspectors check and monitor the working conditions of our employees to make sure they are safe and sound.

You can find more information on our relationship with sustainability on Lindex webpage:

{

http://about.lindex.com/en/section /sustainability/

{

Can you mention some of the big celebrities Lindex is related with?

In 2014, Lindex celebrates its 60th anniversary. On this occasion, we had a big collaboration with Paul Gaultier in Gothenberg. He was part of our big party.

It felt really good. We had previous collaboration with Missoni in the context of pink ribbon campaign.

What would be your invitation for the Albanian customers?

We decided to open the store in Albania over a weekend offering a 20% discount as an offer. So, everything was 20 % off.

We thought this would bring more people to come and try our garments. I would invite all the Albanians to come and try our fashion. Women can find really good things like lingerie for themselves and high quality outfits for their kids.

How sustainable is Lindex?

Sustainability is very important for us. We deal with water projects and sporting school projects. We are one of the biggest, not to say the biggest founder of April 2016

Our brand is also associated with big celebrities like Penelope Cruz, Kate Hudson, Reese Witherspoon, Gwyneth Paltrow, Karlie Klos.

So, we are growing.

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FOLLOWBUSINESSALBANIA LIFE & ART

No one else in the world has matched Erickson's descriptions about Albanians The distinguished Albanian diplomat and scholar, Mr. Mal Berisha, has shrewdly combined his successful tenure in London, where he served as Ambassador of Albania to UK (2012-2015), with his extremely particular research works. Also subject to his studies were the life and the contribution of the extraordinary US missionary, Charles Telford Erickson, to Albania. “The life of Erickson is perhaps my favorite topic to discuss or explain. I believe Erickson had an unusual power to help people while he was alive...But I believe that he has had a deep and personal transformational impact on my own life because I see in him a man of virtue, sacrifice, and great dedication to the causes he believed in,� said Mr. Mal Berisha, who has dedicated 4 volumes to Erickson.

Can you tell us who was Charles Erickson, what did he do, why did he come to Albania and what did he accomplish there?

Erickson was the son of two immigrants from Sweden. His father was a trumpeter in the American Civil War. He was reared and educated exceptionally, not only through the Protestant Church, but also in such a fine university as Yale.

In the following interview, he penetrates into the character and the sacrificing life of this unique friend of Albania: Yale University

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April 2016

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Being educated in such a humanitarian spirit, he was chosen for a post in Burma and spent some years there together with his wife Carrie. But his wife could not handle the rigors of missionary life there.

Erickson goes to Korça (Albania) From Salonica, through Monastir (Bitola), he travelled seven days to arrive in Korça where Phineas Kennedy was serving as a missionary.

There he joins the missionaries and in 1908 he preached his first service in the church of Korça. Fifteen days later, this great man realized that Korça is more advanced than he expected and thought, "Korça does not need my work as a missionary; I need to go somewhere more primitive, with greater needs." So the next place would be Tirana.

She suffered from the deprivations that seem to accompany the lives of such people. Thus he needed to return to the USA. But his desire for missionary work with the poor, with those who had great needs, never ceased.

Wilson received between 1000-1200 letters each day from various persons in the Balkans, all claiming the rights to portions of one another's lands.

So he applied to the American Board of Missions, which after some time and difficulty offered him a post. "We have a station in Albania in the Ottoman Empire and if you agree to go there, we can offer you a post,” they said to him.

So, by sending these daily letters each and every day - I believe that the fruit of that effort was Wilson's declaration, published in the French press in the final days of the Conference, when Wilson wrote that the American delegation would never sign e declaration compromising Albania's political borders.

What were two or three of Erickson's most important achievements?

It is a very nice question and indeed I could list so many, but I'll choose just a few.

What motivated Erickson's efforts for Albania?

My answer to this is that he was a great

believer. He believed in his faith; he was committed to it. He was inspired by extraordinary motives and by wonderful moral and human virtues. He esteemed the fate of a nation higher than his own fate, and even higher than the fate of his own family.

Because, in fact, many others have made sacrifices for the Albanian nation or for other various causes. But Erickson is rare because he also sacrificed his most precious loved ones, his own family.

So I believe that what inspired him was the faith that Protestants have and the high moral values that they hold and embody. The Evangelicals were those

First, Erickson was one of the people who informed the international public opinion about Albanian issues (and perhaps better than anyone else.)

Another great achievement was that in 1919, he was the most active member of the Albanian delegation at the Paris Peace Conference.

I am strongly convinced that President Wilson's famous decision NOT to sign the peace accord if Albania's political borders would be compromised, this decision evolved based on daily information over a course of 15 days, in which Erickson sent him a letter every day and, thanks to the acquaintance that Erickson had with President Wilson's wife (who had also worked for the International Red Cross and Erickson had recently left Italy where he had been the general director of the International Red Cross of Italy).

So he managed to ensure that his letters to President Wilson would be on top of the mound of papers and briefings that he received each day. It is thought that April 2016

Charles Telford Erickson

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Erickson in Tirana So he began his missionary life in Tirana - and according to my research there was not one Christian there. There were 12,000 inhabitants. Obscurantism dominated all around. There were no schools. The Ottoman Turkish administration was backward beyond description. And Erickson, together with his wife and children, found a house somewhere at Dibra Street (I have tried to find the house but still have not succeeded). He took walks in the town, spoke to the people, and very soon was learning Albanian. Their life was tremendously difficult. Carrie was not coping with this life. There are some touching episodes - I will tell you one...

One day he went into the town. He came home and told Carrie "Today I have learned several Albanian words." And Carrie replied: "Erik, yes, but did you learn how to say "Please take me home!"

(Laughing) Later on, he went to the city of Elbasan where his family was added to another daughter, so now they had four children. Later they opened a school, but not long after there was an incident with the Turks in which they "needed" the school building as a gunpowder and arms warehouse. Apparently their warehouses were not sufficient so they needed to take Charles Telford Erickson's school.

Later they took him and detained in Monastir for several months under repressive conditions under the care of the Turkish authorities at a place where there were scores of foreign consulates. Monastir in that time was a significant center of the Ottoman Empire in Europe. There is an episode which is among the most interesting of Erickson's life - and I want to share it. In that time, the USA had an Embassy in Istanbul. The Turks allowed Erickson to go make a complaint to his embassy (The Embassy in Istanbul was responsible for the care of Americans living in the Ottoman Empire.) When he arrived - I think the ambassador's name was Strauss -they spoke face-to-face. And the ambassador said, "Erickson, yesterday the foreign minister of the Ottoman Empire was sitting in that very chair you are sitting in now. We talked about you and I asked, "Mr. Minister, what's the issue with Charles Erickson? Why are you nagging him so? He seems very honorable, good and wise. He is not a troublemaker, has a great family - what's your business with him?

And the Turkish minister replied, "No what's YOUR business with him? Because he is not an American..."He is an Albanian who is hiding behind an American passport, because in his house, he receives in the same manner Muslims, Christians, and Jews, and all find peace and teaching, and everyone communicates with him. We make extraordinary efforts to teach Albanian to our troops and administrators, that most difficult language and none of them have emerged from that training with fluent Albanian. Whereas this man learns to speak Albanian fluently in such a brief time period and speaks with people on the streets as well as with the intellectuals of Elbasan."

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who brought great moral values to Albania.

The Albanians are believers of different religions, and the Evangelicals do not make up a large percentage. In fact, their numbers are very small. But based on their values or worth, I would place them at the top of all the others. And Erickson was as such - That's what I believe.

What are the most significant values that you glean from Erickson's life?

First of all, I am not proud of the fact that I was reared in an atheist state that did not permit us to learn the values and morals of religion. But he was a great and extraordinary moralist - he had such wonderful values. He was also a man of principles: if he committed himself to a cause, he would see it through to completion.

And indeed he did see things to completion thanks to the great sacrifice required to do it. He was a man - well I would not call him an ascetic - but he never lived a life of ease at a time when, as an American, he could have had a wonderful life.

April 2016

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Who is Mr. Mal Berisha?

He was highly skilled, very capable to be a teacher or to lead a church, and could have led a comfortable life. But he didn't want that. So he lived with people in poverty and need, among a nation that was being broken up. And I would advise this to my fellow citizens: If you can spare some time, if you can just read about the work of Erickson on behalf of Albania, you will become a better person, more patriotic.

You will love Albania more, your family more, yourself more. And you'll understand more about who you are.

No one else in the world has matched Erickson's descriptions about Albanian 'besa' (honor), virtue, hospitality, and tradition.

So, I feel indebted to that man, so much that the five years of work I did to publish that book seem almost completely insignificant.

Mr. Mal Berisha, KCFO, has served as the Ambassador of the Republic of Albania to the United Kingdom of Great Britain and Northern Ireland and Ireland from 2012 to 2015. Previously, Berisha served as General Consul of Albania to Istanbul from 1993-1997. Following his assignment in Turkey, Berisha joined the Pan - Albanian Federation of America “VATRA” in 1998, contributing to the indefatigable efforts of Albanian Americans to resolve the Kosovo question. Berisha appeared on U.S television as an expert and historian shedding light to the unjust treatment of Albanians in Kosovo and presenting to the American public the values that the two nations inherently shared. In 2000, congruous to these beliefs, Berisha joined the United Nations (UNMIK) in helping Kosovo construct its own democratic institutions. Having spent roughly a decade in Kosovo, Berisha returned to Albania where he was appointed General Director of Regional Affairs and Initiatives at the Ministry of Foreign Affairs.

Berisha is a history scholar and has published a number of books and articles as well as translated material surrounding Albanian history and culture. Berisha’s books include: a translation of the book “Southern Albania or Northern Epirus in the European International Relations” written by Edith Pierpont Stickney of Stanford University in addition to the translation of “Rescue in Albania”, outlining the history of the Albanian “Besa” and telling the gripping story of the Jews saved in Albania. Other books include: “Albanians, Oaks on the Illyrian Soil” (2007), “Albanians, the youngest and most ancient Europeans”, (2008), “Charles Telford Erickson, A Life Dedicated to Albania” (2012).

Ambassador Mal Berisha presenting his Credentials to Her Majesty Queen Elizabeth II, June 27, 2013

Ambassador Berisha and his Spouse, meeting with 103-year-old, Grace Johnson Erickson, the daughter of Charles Erickson. March, 2014

In 2014, Berisha presented his first English book in Manhattan at the YIVO Institute of Jewish Studies and the U.S Embassy in London: “Herman Bernstein, U.S Ambassador to Albania” where he detailed the close relations between Jews, Albanians, and the United States Government. Berisha’s latest book “Realities of the Albanian–British Relations” was published in 2015 on the eve of closing his mission to the UK. The book was launched at the Regent University of London and the British Embassy in Tirana. Berisha is an honorary member of the Pan – Albanian American “VATRA”. Berisha is a Knight Commander of Royal Order of Francis I. Currently he is Diplomatic Adviser of the Chairman of the Albanian Democratic Party, Mr Lulzim Basha. (Malberisha.com) Source: Institute of Albanian & Protestant Studies

April 2016

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FOLLOWBUSINESSALBANIA DIPLOMACY

Visegrad Group, an important and well-proved part of the European architecture

By Marek Jeziorski, Ambassador of the Republic of Poland to Albania On the 15th of February 2016 we celebrated the 25th anniversary of the Visegrad Group (V4). The Visegrad Groupis an informal, regional form of cooperation comprising four Central-European countries – Poland, Czech Republic, Slovakia and Hungary. The Visegrad states are united not only through their common neighborhood and similar geopolitical situation, but also through their joint history, traditions, culture and values. The initial objective of the Group’s foundation was to intensify cooperation in the field of building democratic state structures and a free-market economy, and – in the longer-term perspective – to participate in the European integration process.

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April 2016

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Our increased efficiency is especially needed on a number of issues of the European agenda, in the defense field, in connection with migration crisis and energy security, in the area of infrastructure and cohesion policy. The Visegrad Group also offered a mechanism of cooperation with other partners in the “V4 plus” format. There is a great potential for further developing it with the Baltic and Nordic states, as well as with SouthEastern European countries.

It was established on the 15th of February 1991, when Polish President Lech Wałęsa, Czechoslovakian President Václav Havel and Hungarian Prime Minister József Antall signed a Joint Declaration in the Hungarian city of Visegrad.

cooperation among the V4 countries is the International Visegrad Fund (IVF), which has been supporting many projects of non-governmental sector within the Group, but also in Eastern Europe and Western Balkans.

The document defined the aims and conditions of cooperation. After the entry of V4 countries to the EU in 2004 another Visegrad Declaration was signed focusing on V4 cooperation in new circumstances of the EU membership. V4 became a platform for exchanging experiences and working out common positions on issues which are essential to the future of the region and the EU.

There have been many factors of strength and success of the Visegrad cooperation: close contacts and common historical memories and experience; joint political objectives and common will to achieve them; focus on the most important common strategic goals that prevails over narrow national interests of every single V4 country. A crucial element of the V4 cohesion in the context of the security policy has been the membership of all our countries in the North Atlantic Alliance.

The V4 countries support the process of the integration of Western Balkans states with the European Union. The International Visegrad Fund served as a point of reference and a model for the creation of the Western Balkans Fund, which was established last year and will have its seat in Tirana. V4 –Western Balkans Expert Network on rule of law and fundamental rights proved to be a very useful tool of offering to our Balkan partners V4 experience from transition and European integration.

We are looking forward to our future cooperation on important issues of our common agenda.

Apart from European issues, V4 cooperation focuses in particular on reinforcing the stability in the region, promoting cultural community and cooperation in the field of culture, science, education and youth exchange.Cooperation priorities include reinforcement of energy security, as well as development of transport infrastructure.

Visegrad cooperation involves many actors: presidents, prime ministers, ministers, parliaments, governmental institutions, NGOs, research centers, academic and cultural institutions. The only fully institutionalized form of April 2016

The Visegrad Group constitutes an important and well-proved part of the European architecture. It represents common interests of the region of Central and Eastern Europe. In the future we will work to further consolidate and develop our cooperation.

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FOLLOWBUSINESSALBANIA MACRO/CLOSER LOOK

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April 2016

FOLLOWBUSINESSALBANIA MACRO/CLOSER LOOK

A MACROECONOMIC PICTURE OF ALBANIA

By Eduard Zaloshnja, PhD1 April 2016

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FOLLOWBUSINESSALBANIA MACRO/CLOSER LOOK

Gross Domestic Product Gross Domestic Product (GDP) represents the monetary value of all finished goods and services produced within a country during a year. Albania experienced a rapid GDP growth in the period 1992-2008 (average yearly real increase: 6.1%), driven by the tremendous demand – or more precisely, hunger – for consumer goods and decent housing. That demand was mainly fueled by remittances from Albanians working abroad

and by suspected amounts of illicit money from illegal trafficking.

However, since 2009, GDP has been growing at a much lower pace.Only lately it has picked up some steam, especially in the last quarters of 2015 (Figure 1).

7.52%

3.41%

3.71%

2.55%

2008

2009

2010

2011

2012

2.98%

2NDQ-15

3RDQ-15

2.24%

2.02% 1.42%

2.96%

1.11%

2013

2014

1STQ-15

Figure 1. Year-on-year GDP real growth in Albania (2008-15)

Source: INSTAT

Private consumption On the demand side of the GDP, the aggregate private consumption in Albania, whose nominal value is currently as high as 80% of GDP, has been the main drag on economic growth in recent years. It has significantly slowed down since 2008 (Figure 2) due to a major contraction in remittances from

Albanians living abroad. From a high of Euro 950 million in 2007, remittances totaled only Euro 550 million in 2014 (Source: Bank of Albania). In the 3rd quarter of 2015, consumption has showed some signs of revival, growing in real terms 1.9%, compared to the same quarter of 2014.

4.93%

2.68% 1.91%

1.66%

1.78%

1.90%

1.36% 1STQ-15

0.13%

2008

2009

2010

2011

2012

2013

2014

2NDQ-15

3RDQ-15

-1.12% -3.03%

Figure 2. Year-on-year private consumption real growth in Albania (2008-15)

1

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Source: INSTAT

The author is a Research Scientist at Pacific Institute for Research and Evaluation, Washington, DC.

April 2016

FOLLOWBUSINESSALBANIA MACRO/CLOSER LOOK

Investments In addition to the sluggish private consumption, the aggregate demand for GDP has also suffered in recent years from a significant slowdown in investments (public and private). Fixed capital formation was very weak after 2009, but has picked up significant steam in 2015 (Figure 3). The exclusion of

machinery/appliance investments from Value Added Taxation (VAT) and construction activities in the Devoll river hydropower project and in the Trans Adriatic Project (TAP) may have contributed to this uptick.

19.35%

18.49% 12.58% 9.23%

8.82%

5.94% 2010

2008

2012

2009

2013

-2.06%

2011

2014

-3.90%

1STQ-15

2NDQ-15

3RDQ-15

-7.86%

-8.47%

Figure 3.Year-on-year fixed capital formation real growth in Albania (2008-15)

Source: INSTAT

Foreign demand for Albanian goods and services The only bright spot on the demand side of the GDP has been the increase in foreign demand for Albanian goods and services in recent years. Exports experienced rapid yearly

growth in nominal value from 2008 to 2014 (Figure 4). However, they slowed down significantly in 2015 due to the low demand for oil and minerals in international markets.

54.6%

15.8%

15.7% 21.9%

8.2%

2009

2008

-7.2%

2010

2011

2012

2013

Figure 4. Year-on-year export nominal growth in Albania (2008-15)

April 2016

3.8%

2015

2014

-4.9%

Source: INSTAT

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The dramatic swings in the construction sector On the supply side of the GDP, the value added by the construction sector has seen the most dramatic swings. In 2008, at the height of the Durrës-Kukës highway project, the real growth in construction, compared to the previous year, was

over 29% (Figure 5). Then, for years, the sector experienced a major contraction. The rapid growth in construction reappeared only in the 2nd and 3rd quarters of 2015, being the main reason for the positive growth in GDP registered in those quarters.

29.32% 24.79% 16.54%

-0.56%

2008

2009

2010

-6.85%

2.82%

2012

2013

2014

-8.80%

-8.16%

-7.33%

2011

1.20%

1STQ-15

2NDQ-15

3RDQ-15

Figure 5.Year-on-year construction real growth in Albania (2008-15)

Source: INSTAT

Private investments a key to future GDP growth Given the high level of public debt (72.5% of GDP), private investments remain the main engine for continued growth in the construction sector and in other promising sectors like agriculture, tourism, mining, hydropower, etc. New private investments can create jobs, thus increasing consumer incomes that go toward domestic consumption (weakened by the dramatic decrease in remittances from abroad). Also, private investments can make Albanian products and services more attractive to foreign demand. However, domestic private 1000

923 857

900

896

881

812

800 700

investments are impeded by Albanian banks’ unwillingness to take risks, given the high rate of non-performing loans (20% of the total loan portfolio). On the other side, foreign private investments are discouraged by the slow pace of reforms, especially in the judiciary and in land ownership. IMF forecasts for Foreign Direct Investments in the coming years are higher than in 2015. However, by 2019 they are expected to return to the 2015 level (Figure 6).

720

712

648

600 500 400 300 200 100 0 2012

2013

2014

2015

2016

Figure 6. Foreign Direct Investments (in million Euros)

42

2017

2018

2019 Source: IMF

April 2016

FOLLOWBUSINESSALBANIA MACRO/CLOSER LOOK

Employment and inflation According to the latest INSTAT’s employment survey, 1.09 million Albanians over the age of 14 were employed at the end of last September. Around 40% of them were self-employed,near-subsistence farmers, living off plots 0.5-1 hectare.

There was a 7% decrease in employment from the beginning of 2012 to September 2015 (Figure 7). This decrease is consistent with the slowdown in GDP growth (see above).

However, the 18% decrease from the 1st quarter of 2012 to the 1st quarter of 2014, followed by a 12% increase until September 2015, is not correlated at all with changes in GDP. Such dramatic swings in employment may take a decade or more to materialize. Therefore, they seem to be a product of statistical

1.18

1.15

1.12

1.12

1.09

1.02

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glitches, rather than a true representation of employment trends in this three-year period.

Given the high level of underemployment in near-subsistence farming and in the self-employed craft sector, the official unemployment rate (17.2%) is practically meaningless. The real unemployment rate may be over 30% (CIA’s World Factbook).

Inflation, as measured by the Consumer Price Index (CPI), has gravitated around 2% (on a year-to-year basis) since 2009, when the slowdown in private consumption started.

In specific months, when the CPI’syear-on-year change has almost reached the zero level, Albania has even flirted with deflation.

1.04

0.98

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Q.3.

2014

Q.4.

2014

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2012

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2012

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2013

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2013

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2014

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Figure 7. Quarterly numbers of employed Albanians over the age of 14 (In millions employed)

April 2016

Q.1.

2015

Q.2.

2015

Q.3.

2015 Source: INSTAT

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FOLLOWBUSINESSALBANIA MACRO/CLOSER LOOK

Public Finances Tax collection is weak in Albania compared to neighboring Montenegro, a country with lower tax rates, but similar geography, history, culture and economy. Budget revenues in Albania were as much as 26% of GDP in 2014, whereas in Montenegro, they were as much as 34% of GDP (Figure 8). Had Albania collected budget revenues at Montenegro’s level, an additional Euro 400 million would have entered Albania’s public coffers in 2014.

The Value Added Tax (VAT) is the main source of budget revenues for both countries, but Montenegro has a lower overall VAT rate. It applies a 3-tier VAT rate – a 19% rate for most goods and services, a 7% rate for a basket of necessities, and a 0% rate for medicines and health services, for publishing and cultural activities, for the value added by small businesses with a yearly turnover of Euro 15 thousand, and for goods

produced for export. On the other side, Albania applies a 2-tier VAT rate – a 20% rate for almost all goods and services and a 0% rate for medicines and health services, for publishing and cultural activities, for the value added by small businesses with a yearly turnover of Euro 55 thousand, and for goods produced for export.

And how did these two neighbors performed in VAT collection?

Albania’s VAT revenues were as much as 9% of GDP in 2014, whereas in Montenegro they were as much as 12% of GDP (Figure 8). A significant difference (5% of GDP vs. 10.7% of GDP) was also registered in the collection of social security taxes, although the social security tax rates are almost the same in the two countries. (The level of collection of other taxes was similar for the two neighbors)

MONTENEGRO 34%

ALBANIA 26%

ALBANIA 9%

BUDGETARY INCOME

MONTENEGRO 12%

VAT INCOME

Figure 8. Budget and VAT revenue in 2014 – Albania vs. Montenegro (% of GDP)

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Source: CIA’s World Factbook

April 2016

FOLLOWBUSINESSALBANIA MACRO/CLOSER LOOK

at 59.3% of GDP by 2019. This was the main reason behind the Standard and Poor’s decision to raise Albania’s sovereign debt rating from B to B+.

The weak tax collection has been persistent over the years in Albania. In the period 2000-2015, the yearly budget revenue has been at 24.1%-26.9% of GDP (Figure 9).

The main cause of the rapid growth in public debt after 2007 has been the rapid increase in public investments. In the period 2008-15, public investments totaled Euro 4.2 billion (1 Euro = 140 Lek).

The weak tax collection coupled with public expenditures exceeding revenues – especially after 2007 – has taken the Albanian public debt to unsustainable levels (Figure 10).

On the other side, almost an equal amount (Euro 4.1 billion) was added to the stock of public debt during the same period.

Lately Albania has signed an agreement with IMF on a debt consolidation program, targeting a level of public debt 26.9%

26.1%

26.0% 26.0%

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Figure 9.Budget revenue in Albania as % of GDP (2000-15)

70.4%

71.8%

72.5%

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2015

Source: Albanian Ministry of Finance

70.9% 67.9%

54.7%

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2009

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2010

59.4%

57.7%

2011

2012

63.9%

62.2%

2013

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Figure 10. Albanian public debt level as % of GDP (2008-18)

April 2016

2017

2018

2019

Source: Albanian Ministry of Finance (2016-19 numbers represent targets agreed with IMF)

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FOLLOWBUSINESSALBANIA MACRO/CLOSER LOOK

Foreign trade deficit and currency exchange rates In the last quarter century, Albania has consistently run significant foreign trade deficits. From 1993 to 2009, for every 100 Euros of imports, in average, Albania exported 25 euros worth of goods (Figure 11). Starting from 2010, this average has significantly improved, reaching the mid-forties level. However the current low demand for oil and minerals in the intrnational markets hinders further improvements in Albania’s trade balance. New investments in domestic production that can increase exports and/or lower imports could give a boost to the trade balance.

whereas in 2007, they covered half of the trade deficit. This reduction in remittances has put tremendous pressure on the exchange rate between the Albanian Lek and Euro, the main foreign currency used in Albania. In 2007, the exchange rate was 1 Euro = 120Leks and today it gravitates around 1 Euro = 140 Leks. Given the smaller weight of remittances in the balance of payments, the exchange rate stability hinges nowadays mainly on foreign currency entering Albania through exports, Foreign Direct Investments and loans from international institutions like IMF, World Bank, etc.

In 2015, the Albanian trade deficit was Euro 2.1 billion. Remittances from Albanians living abroad covered only a quarter of this deficit,

Foreign currency transfers to Albania from criminal activity abroad may also be a factor, but it is not measurable.

48%

46%

45%

40% 34% 30%

Figure11. Percentage of imports covered by exports in Albania (1993-2015)

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2016

2015

2014

2013

2012

2011

24%

2010

26%

2009

26%

2008

2007

25% 26%

2006

2005

2004

2003

2000

1999

23%

23% 24%

2002

24%

22%

1998

1996

22%

1995

1994

1993

23%

26%

25%

2001

28% 21%

36%

Source: INSTAT

April 2016

Meet in Balance at TheClub SPA Encompassing 3,000 square meters, the TheClub SPA offers a unique range of activities for your well-being – an oasis of relaxation and recuperation for body and mind. We invite you to immerse yourself in health and well-being, and restore your body and soul to physical balance and inner harmony. Our TheClub Life Balance programs will help you do just that.

The Swiss SPA Life Balance Philosophy Business combined with the best of well-being: Meet in Balance is especially designed to give your teambuilding day or management meeting that extra-special something to foster team spirit, creative developments and the well-being of you and your colleagues.

You can utilise the philosophy of the TheClub Life Balance to ensure that your meeting is an effective and memorable occasion. As, whatever your situation in life, you have to find the right balance in order to achieve physical and mental well-being and relaxation. You can choose from four different programs: Beauty, Relax, Vitality or Detox.

Treatment Menu With our body treatments you can turn off the world. Return back into the game rejuvenated and revitalized.

Push the pause button for life and revitalize your spirit with our expert techniques and methods using customized ingredients. Leave everything up to us, and you’ll walk out of our SPA with new energy and power for your daily routine. www.theclub.al

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ADA at a glance Name: Austrian Development Agency (ADA) Major Commitments: Reducing poverty, building peace and protecting the environment Projects: About 500 projects and programmes and more than EUR 100 million in funding are implemented every year to improve the standard of living in developing countries. The Federal Ministry for Europe, Integration and Foreign Affairs finances ADA's budget. ADA is managing 7 EC’s programmes.

Staff: Personnel in 13 field offices abroad ensure that ADA’s programmes and projects are aligned with the national development goals of its partner countries, meet the needs of the local population and put resources to the most efficient use.

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April 2016

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2016 appears to be an important year for ADA in Albania.

Albanian citizens should expect from the Austrian Development Agency six to seven financing agreements to be signed in various fields in the course of spring (ca. 5 million Euro).

Austrian financed projects will focus on the water sector, labor market-oriented vocational education and training, rule of law, public administration reform, regional development and gender equality.

All of these projects are equally important. There is a new Cooperation Strategy for Albania since October 2015. We are obliged to support each sector as agreed in the strategy.

Albania is implementing a number of reforms. Our support to the water sector is an important contribution to the implementation of the reform given that the government is struggling to implement several reforms at the same time.

How could ADA assist Albania in meeting the 5 key criteria?

In the end, these criteria are rather political. Over the last seven years, the Project Preparation Facility has substantially driven the reform agenda forth. The main objective of this facility was to improve the planning, programming and implementation of the Instrument for Pre-Accession Assistance (IPA) and to support mechanisms for an integrated EU accession process in Albania. Therefore, the project increased the capacities in the Ministry of European Integration and line ministries and central institutions to plan and implement IPA programmes. More than 1000 officials received trainings and 200 programming documents have been written, checked and approved. In this regard, the project was quite successful. I think it was a great assistance for the government to kick start reforms and to improve the quality and timeliness of IPA-planning.

PERSONAL How would you characterize your time in Albania so far?

Head of ADA: “Frustrating that young Albanians would leave the country when we are funding projects for a better living” The Head of Austrian Development Cooperation (ADA), Heinz Habertheuer, details of the 2016 major Austrian projects for Albania while highlights his so far experience in Albania with its “likes“ and “dislikes“.

April 2016

I came to Albania one year ago. These 12 months have passed by very quickly because it has been an intensive working year.

We have worked really hard to conclude a new country strategy on development cooperation. The strategy was subject to several rounds of consultations with stakeholders. At the same time, we determinedly worked on the design of new projects to be financed in the first quarter of 2016. Whatsoever, most of the paper work is done and now it is time to bring alive those ideas, strategies and plans.

I had a chance to travel throughout Albania. There are beautiful landscapes. It does not take long to travel from Tirana to neighboring countries like Podgorica/Montenegro, Skopje/Macedonia or Greece. Therefore it is convenient to explore these places during weekends.

The hospitality of Albanians is great. The food is delicious. In Tirana, there is a coffee house culture which Austrians enjoy in Vienna or in my hometown Graz. We like to go to cafés to read newspapers or to meet friends. Travelling across Albania has given me the chance to meet many people, youngsters and the 51

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elderly. All of them are curious, particularly if you are a foreigner or a stranger. If you say that you are from Austria, then, the interest is even greater. To conclude, it was an intensive working year but I also had the chance to explore a bit the country.

LIKES Recently, I went to see the ballet “The Nutcracker”. Before I came to Albania, I did not expect to find an opera house in Tirana. It always surprises me when I go

lent cooperation with the Albanian Government.

Numerous ministries request our support in one way or the other. The visit of the Austrian Foreign Minister, Sebastian Kurz, in February to Tirana was well perceived and several high-ranking Austrian representatives regularly visit Albania.

DISLIKES On the negative side, I would mention corruption, which occurs at all levels of society. We should not forget that corrup-

nism. In the end of the accession process, it is Albania and all of its citizens that are supposed to join the European Union and not just a political party or the capital Tirana.

When I talk to young people, I see their enthusiasm to learn, to acquire working experience and to find a job, even in Austria. In my responses I emphasize that I am not here to encourage anyone to leave from Albania to find a better living in Austria. To the contrary, the Austrian Development Agency is providing funding through projects to improve the living conditions of the Albanian citizens.

Therefore, it is frustrating to see so that so many young Albanians would take the chance to immediately leave the country rather than doing their best to improve and change the actual state of affairs in Albania.

This cannot be left to the government, ADA or other development partners. We have to set a good example and set reforms in motion. Imagine all youngsters and intellectuals leave the country! There would be no bright future.

© ADA/Helmrich

there. The quality of the productions is above expectations. The artists give their best and it is always a pleasure to watch the performances. Albanians, who I meet, apart from work-related officials, offer a welcoming hospitality, especially in the remote areas. The food is very delicious making our stay here very convenient.

There is a music culture, particularly in the area of jazz or live music. It goes without saying that we cultivate an excel52

tion has two sides: one, which offers and the other one, which takes. Proactive investigations, systematic risk assessments and inter-institutional cooperation need to be improved. The polarization between the main political parties is evident.

More needs to be done to address the disruptive political culture and ensure a more constructive cross-party dialogue but also consensus rather than antagoApril 2016

NET RECRUIT TOP RECRUITMENT AGENCY IN ALBANIA

Rruga Brigada VIII, nr. 16 Kati 5, Apt. 29, 1019, TiranĂŤ, Albania

e-mail: info@netrecruit.al www.netrecruit.al

Through our offices in Tirana, Saranda and Vlora we will be there for you on every step of the way.

Our team will be happy to provide our services to you.

We can help you get the Albanian property or investment of your dreams. info@albaniapropertygroup.com www.albaniapropertygroup.com

FOLLOWBUSINESSALBANIA MY PATH

GENTI BEQIRI CEO of AIDA

“I am attracted to the mixture of culture, nature landmarks and food that Asia offers.�

Genti Beqiri is the CEO of Albanian Investment Development Agency (AIDA) since June 2015. Graduated in Finance and Accounting at the University of Tirana, Beqiri has completed the Master Degree at Kobe University- Hyogo, Japan and then MBA at George Washington University - School of Business in Washington DC, USA. Recently he got a PhD in Management of Information Systems.

His principal areas of expertise and research are not limited to economics but also to the development of economic policies and research work in several public institutions. For more about Genti Beqiri, see: aida.gov.al/pages/executivedirector

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April 2016

FOLLOWBUSINESSALBANIA MY PATH

What are your favorite hotels?

Medium size, mostly, family-run business and superb breakfast.

What is never missing in your luggage?

Camera.

What makes a good hotel?

To my opinion, a good hotel should have a great service, good location, free connectivity and space.

Where do you like to spend holidays, in the city, on the beach or in the mountains?

It depends on the season, but beach and mountains are my favorites.

What are your preferred destinations?

Most of Asian countries. But my favorite is Japan. I am attracted to the mixture of culture, nature landmark and food that Asia offers.

What was your last trip?

Tokyo, Japan.

What is your way to combat jetlag?

Trying to get adapted with new time before departure.

What is the country, which offered you a great experience and the worst experience?

Thailand in both terms. Bangkok for the worst experience and Koh Pee Pee Island for the great experience.

Where should everyone go at least once in their life?

To their most preferred, remote, exotic destination.

What is the most recent project of AIDA? Any one on startups?

Being very supportive to investments especially in tourism, agriculture and manufacturing. Increasing “Made in Albania� mark is our greatest gratification. We have in plan starting a business accelerator and startups support in several ways - Government funded and EU- funded.

April 2016

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FOLLOWBUSINESSALBANIA REAL ESTATE

Meet the Dutch Who Loves to Share Knowledge with Albania Sven Dekker, Corporate Real Estate & Facility Management expert at Mercator Management for 10 years now, was graduated in Architecture and Real Estate and has a long-standing background in consultancy with respect to corporate real estate management and facility management issues. He manages complex projects in the field of (accommodation) strategy and policy, project management and (facility) organisational development in the profit and non-profit market, both national and international.

But he is passionate not only about properties. He loves to be a pilot while his hobby is Krav Maga, a self-defence system developed for the Israel Defence Forces.

Sven leads a life based on a great motto: “Successful people are always looking for opportunities to help others. Unsuccessful people are always asking, "What's in it for me?''.

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April 2016

FOLLOWBUSINESSALBANIA REAL ESTATE

How was 2015 for you? What was a major highlight?

For me 2015 was a very successful year.

In the Netherlands, I successfully completed one of my projects, the renovation of 12.000 m2 office space.

Besides the renovation, I implemented a new future proof workspace concept for the organisation that uses the office.

You are very active even in Albania.

What do you think about this cooperation?

Besides having my own company, I am what we call a Netherlands Senior Expert at PUM. PUM connects entrepreneurs in developing countries and emerging markets with senior experts from the Netherlands who gained at least 30 years of experience in a business environment.

These senior experts voluntarily devote their knowledge to execute short-term, solid consultancy projects on the work floor. In Albania, I was asked for a 4-day Real Estate seminar which was attended by 100 Real estate agents and brokers.

April 2016

You celebrated 10 years at the Mercator in 2015. What’s the number one rule to be successful in the real estate market? What’s the secret to success?

Customers are just like regular people!!

So make sure your services are customized to their needs and wants. The aim is to know and understand the customer so well the product or service fits their needs and wants and sells itself. Besides that, be yourself….there are plenty of others, stay authentic.

What are some of your hobbies?

I practise Krav Maga. Krav Maga is a self-defence system developed for the Israel Defence Forces and consists of a wide combination of techniques sourced from aikido, judo, boxing and wrestling, along with realistic fight training. Krav Maga is known for its focus on real-world situations and its extremely efficient counter attacks. Krav Maga is developed

by Imi Lichtenfeld, his motto “so that one may walk in peace”.

If not in the real estate, what would you like to do?

What is the main resolution for 2016?

I always wanted to become a pilot. I still like to travel the world and especially my work for PUM gives me the possibility to work in different parts of the World.

Successful people are always looking for opportunities to help others. Unsuccessful people are always asking, "What's in it for me?''. If work is a pleasure, life is a joy!

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FOLLOWBUSINESSALBANIA MARKETING

Please can you share your name, title, and a description of your job duties and responsibilities.

My name is Kosta Petrov and I am the Chief Experience Officer at P World. We are a global creative agency organizing business events in 30 different countries in the Middle East, North and West Africa and Central Asia. As the Chief Experience Officer I am in charge of business development, marketing and country expansion.

How did you get started working in the field of marketing?

I actually studied Politics at the American University in Prague but I have never ever worked in politics.

After graduation I started working for an event agency in Prague and since I was in charge of producing the marketing and PR events, I got to learn a lot about marketing. I am self thought marketer. I have the privilege to work daily with some of the world’s biggest brands so I learn most of my marketing skills from them.

What is a typical day like at P World?

I usually go to work at around 8:30 after I take my daughter to kindergarten.

Usually I spend the mornings going through my emails. I receive over 500 emails a day so answering all of them is pretty challenging task.

Kosta Petrov: How it is like learning from the world’s biggest brands The Chief Experience Officer of P World, a conspicuous global creative agency, is Kosta Petrov, a cool guy from Macedonia. His Agency organizes business events in about 30 different countries from all over the world.

P World has organized two events even in Albania. “I am very happy that the Balkans are also creating a lot of new trends. We have a lot of good creative people,” he underlined in an exclusive interview for Follow Business Albania Magazine.

According to him, this is the most exciting time for marketing. “The future is integrated marketing so I think all marketers should work on that. Social media is becoming more strategic and it really is a tool that can help you create marketing strategies on a budget. At the same time we need to be more creative than ever because our customers want a personalized experience,” he added.

April 2016

I make sure that I talk to my Project Managers on daily basis and understand their progress and their results.

We are very target oriented company so we need to make sure that everyone is achieving their targets so we can create the right experience at our events.

I finish work at 3 because I want to personally take my daughter at kindergarten and I try to spend as much time with her as possible. I usually continue working after she goes to sleep until around midnight. You know when you have your own company it is very hard to make a balance between work and life but I do my best. For me, family always comes first.

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You have been in Albania in the framework of many events. What is your view on the marketing development and market in our country? Do you have a view on how to make it even more alive?

We organized two events in Albania and both of them went really well. There is a huge buzz in the Albanian marketing community.

creating a lot of new trends. We have a lot of good creative people.

What changes in the field of marketing do you expect to see in the future?

I think we are living in a very exciting time for marketing. There are so many tools that everyone can use to create a world class marketing strategy.

Our business field is a bit different from let’s say consumer brands. All of our projects have integrated marketing campaigns. We also focus a lot on telemarketing as well as Linkedin advertising.

Linkedin marketing is amazing for B2B companies and I many times say that without Linkedin companies like ours would not have been able to grow so fast in such a short time.

You know in today’s era it doesn’t matter where you are. With the rise of social media all of us can follow global trends. I am very happy that our region is also

We try to follow marketing trends but we are not running like crazy to implement everything. I think it is very important as a business for you to understand what works and what doesn’t for your brand.

The future is integrated marketing so I think all marketers should work on that.

Social media is becoming more strategic and it really is a tool that can help you create marketing strategies on a budget.

At the same time we need to be more creative than ever because our customers want a personalized experience.

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How is P World swimming in the challenges of marketing in today?

How do you see the correlation social media and marketing?

Social media is marketing. They are not two different things. They are one! Social media is becoming more serious and this is very important. It is now a strategic tool and marketers need to take it very seriously. Not just to post photos but also to understand how their consumers behave online.

April 2016

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April 2016

FOLLOWBUSINESSALBANIA TRAVEL

The city of Berat from the words of Blerina Ago

Blerina Ago, the Deputy President of Albania Rafting Group and a tourism expert, is from Berat city. Who better than her can share the curiosities and the beauties of this city with our readers!

Apart from being one of the most enchanting cities of Albania and the Balkans, Berat is widely known for its unique tradition in handcrafting and gourmet food. Berat is one of the only cities in Albania that besides having developed a complete line of souvenirs and local food products, is also offering visitors the full experience of meeting the artisans in their home-based studios, in the old town district of Mangalem or Gorica. Visitors can order personalized wood and stone cravings, sketches, jewellery and local delicacies as they are taken back to another era by the melodies of Berat folk music and nostalgic anecdotes, spoken softly by the artisans.

Houses in city of Berat in Albania, World Heritage Site by UNESCO

April 2016

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Historic city of Berat in Albania, World Heritage Site by UNESCO, top view from the castle.

St. Theodores church in Berat city, Albania

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April 2016

FOLLOWBUSINESSALBANIA TRAVEL

April 2016

Street view in Berat city, Albania.

World Heritage Site by UNESCO

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FOLLOWBUSINESSALBANIA TRAVEL

The region of Berat is home to some of the largest plantations of figs in the Balkans, renowned for their exceptional quality, prepared as long-life products or jam. The famous Berati olives, are a national appetizer with a buttery and exquisitely fresh aftertaste. In many have associated Berat to wine, due to the fact that some of the best Albanian wineries, are located in that area.

Berat is also known for raising turkey, and enlists among its specialties the dish called “Kaposh deti me përshesh” (Turkey with a typical corn bread called përshesh).

Visit the enchanting city of Berat and experience some of the city's most beautiful attractions!

Highlights of the tour:

You can taste local specialties prepared skillfully, such as pies (byrek) with meat and leek, stuffed zucchini oven, pispili with corn flour and of course lamb / goat meet accompanied with vegetables and fresh dairy of the area. Wines made in the local¬wineries or homemade, and the artisan raki are pleasant drinks to accompany your food. Typical desserts in Berat are kabuni with rasins (a sweet rice dish), baklava, marmalade (gliko) of walnut, fig, plum, etc.

Among the typical dishes there are also Pispili (a dish with spinach, wild herbs, Feta cheese and spices), Gjelle me Arra (veal or chicken with walnuts), Byrek Berati ( A typical pie filled with a mixture of leek, rice and ground meat).

The products in Berat restaurants are mostly organic, and this is noticeable in their special taste. Restaurants in Berat serve traditional foods, where the most preferred meal is turkey with stuffing, accompanied by grape wine produced from the local wineries.

Duration: 2 days & 1 night Tours will be offered based on request, minimum group of tourists 4 persons

Berat facts!

Buying Berat souvenirs will add values to different traditional products of Berat, which will be promoted to local and international tourist. Also, it will help local artisans produce and sell more interesting products to tourists, by preserving at the same time ancient crafts from one generation to the other. Every tourist will enjoy the new flavour of the beautiful crafts of Berat by bringing home an exceptional memory from this ancient and attracting city.

We invite you to take and enjoy the tours of Berat, learn more about this city, take a traditional piece of it with you and contribute to keeping these amazing crafts alive!

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1. Hiking to the ruins of Gorica quarter, dating back in 4th century BC 2. Stop at an old Mangalemi house for local delicacies and house tour with the host 3. Visit at the Ethnographic Museum of Berat 4. Traditional Berat dishes taste 5. Experience one hour of stone workshop with the Master Xhoxhi Fani 6. Onufri Museum visit, sightseeing at the castle walls and narration of the legend of the city.

1. Berat is called the city of "one-above the other" windows and you can see it yourself if you look at the Mangalem neighborhood from the Gorica hills.

2. How the famous iconography painter Onufri of Berat, created the "Onufri Red" shade or why he used it as his signature mark, is still considered one of the mysteries of byzantine art.

3. Berat is famous for its fleshy and tasteful olives. Make sure you try some!

4. Berat is known for promoting peaceful religious coexistence. It is one of the rarest cities that holds several churches, mosques and tekkes next to each other.

5. Berat is home to the Purple and Gold Codexes, considered as two of the best preserved written documents of biblical literature.

6. The region of Berat stands out for the breathtaking scenery offered by the Osumi river canyons and its 8 waterfalls.

April 2016

FOLLOWBUSINESSALBANIA TRAVEL

top view from the castle. Historic city of Berat in Albania, World Heritage Site by UNESCO,

April 2016

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FOLLOWBUSINESSALBANIA BUSINESS

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April 2016

FOLLOWBUSINESSALBANIA RUBRIKA E ARTIKULLIT

Photos Fleet Air Serbia

2016’s big plan of Air Serbia: Non-stop flights between Belgrade & New York Air Serbia’s goal is to become the leading airline in the Balkans, Albania, an important point “Air Serbia’s goal is to become the leading airline in the Balkans and part of that is enhancing regional air connectivity, which is essential for developing bilateral relations and strengthening trade and commerce. Albania is an important point in the airline’s network and strategy for the region,” the spokesperson of Air Serbia said in an exclusive interview for “Follow Business Albania.”

According to him, Air Serbia began flying from Belgrade to Tirana on 23 September 2014 and has carried thousands of passengers between the two countries in the intervening years.”

Many Albanians and foreigners living in Albania densely use Air Serbia given the high-quality and innovative services it offers. “As a full service carrier, Air Serbia has set a high standard when it comes to the regional travel experience. For example, the airline has one of the leading Business cabins, offering superior comfort with leather seats, an a la carte menu and an iPad packed with music, movies and games. The Economy offering is similarly attractive for the price point, offering a complimentary bar service, a choice of main courses and spacious seats,” the spokesperson said. In addition, the airline offers weekly promotional fares through its “Happy Fridays” and “Special Sundays” campaigns, which residents of Albania can access by going to airserbia.com/en-RS/specialoffers,” he said.

Can you tell us a bit about the history of Air Serbia?

How was 2015?

Air Serbia is an airline with a long and illustrious history, whose lineage dates back to the establishment of Aeroput in 1927, making it the eighth oldest continuously-operating airline in the world today. The airline was reformed as JAT (Jugoslovenski aerotransport) in 1947 and as Jat Airways in 2003, before being rebranded to Air Serbia in 2013, after Etihad Airways came onboard as an equity partner. Over the last two years, the airline has modernized its fleet with ten narrow-body Airbus aircraft and greatly enhanced its inflight services, building on the famous cuisine and warm hospitality of the Serbian culture.

AirlineRatings.com recently awarded Air Serbia five stars for product – the highest in the region – demonstrating that this focus on enhancing the guest experience is paying off.

2015 was a year of significant development and growth at Air Serbia. The airline continued to expand its point-to-point and codeshare network to a total of 118 destinations, up from 63 the year before, and signed new codeshare agreements with Air Europa, Air Baltic and LOT Polish Airlines. In addition to connecting guests to more cities, Air Serbia strengthened its regional fleet by acquiring a new ATR 72-500 aircraft, its sixth turboprop. The airline also placed a strong focus on enhancing its travel offering – both in the air and on the ground, by launching an inflight internet and mobile connectivity service called Wi-Fly, introducing web check-in and redesigning the airserbia.com to make booking flights easier and improve accessibility on mobile devices. The highlight enhancements is

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the new Air Serbia Premium Lounge in Nikola Tesla Airport, a 400 square metre space offering all the modern amenities that a traveler could want – luxurious seating, showers and restaurant-quality dining to name a few.

How important is the Balkans market and Albania in particular for Air Serbia?

Air Serbia began flying from Belgrade to Tirana on 23 September 2014 and has carried thousands of passengers between the two countries in the intervening years.

The route was initially launched as a three-per-week service and saw considerable growth, as a result of which the flight frequency was upgraded to daily in

Why should people choose Air Serbia, do you offer any special packages?

As a full service carrier, Air Serbia has set a high standard when it comes to the regional travel experience. For example, the airline has one of the leading Business cabins, offering superior comfort with leather seats, an a la carte menu and an iPad packed with music, movies and games. The Economy offering is similarly attractive for the price point, offering a complimentary bar service, a choice of main courses and spacious seats. This focus on providing the best-in-class class guest experience is why a growing number of travelers are choosing to fly with Air Serbia. In addition, the airline offers weekly promotional fares through its “Happy Fridays” and “Special Sundays” campaigns, which

Air Serbia Cabin crew

offering inflight internet connectivity, making it possible to call family and friends or browse the internet at 30,000 feet.

A large factor behind Air Serbia’s continued success has been its close relationship with Etihad Airways and its membership of Etihad Airways Partners, which enables Air Serbia to take advantage of training, know-how and best practice across the group.

Partner airlines also collaborate on many joint initiatives, one example being the recent collective financing agreement, through which USD 700 million was raised to be used by the airlines, including Air Serbia. When you bring in other benefits, such as resource sharing, joint procurement of assets, aircraft and insurance, as well as enhanced network reach and better frequent flyer benefits for guests, Air Serbia can achieve much more together with the group than alone.

Business Class Air Serbia

the summer of 2015, providing business and leisure travelers with the convenience of multiple flight options per week. In addition to significant point-topoint traffic, the route sees many transit guests flying from Albania to Germany and the Scandinavian region via Belgrade.

Air Serbia’s goal is to become the leading airline in the Balkans and part of that is enhancing regional air connectivity, which is essential for developing bilateral relations and strengthening trade and commerce. Albania is an important point in the airline’s network and strategy for the region.

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residents of Albania can access by going to airserbia.com/en-RS/special-offers

How innovative do you consider Air Serbia and what are the factors behind your continued success?

Innovation is an integral part of the Air Serbia work culture and the airline is continually evaluating ways of meeting the changing needs of guests, as well as staying ahead of the industry curve. One example is the focus that Air Serbia places on technology as a way of enhancing the guest experience, by allowing guests to check-in online, having a mobile-friendly website and

Can you reveal something interesting that Air Serbia has in store for 2016?

One of our biggest plans for this year is to launch non-stop flights between Belgrade and New York in June. This is a flight that people in the region have been eagerly anticipating since 1992 and which will provide the many Balkan diasporas in the United States with convenient air links to fly home with Air Serbia.

The airline plans to operate five flights a week to New York on a modern Airbus A330 aircraft; on the other two days, Air Serbia will offer one-stop codeshare connections with close partner airberlin via its hubs in Düsseldorf and Berlin.

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Premium Lounge Air Serbia

Catering Air Serbia

Cabin crew Air Serbia

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Please, can you make a short presentation of yourself?

My name is Björn Fries. I was born in Feldberg (Black Forest) in Germany. After finishing school (RealschuleTitisee-Neustadt & Richard-Fehrenbach-Schule Freiburg), I chose to pursue civil engineering. I finished my higher studies for this branch at HTWG-Konstanz University.Apart from work, my hobbies are soccer, volleyball, skiing and snowboarding.

I also like travelling. Initially I travelled to Middle America to see another culture. I got the inspiration to travel for business. I got the chance to work for Lindner Group where I had finished an internship earlier. During my 6-month internship at Lindner Group, I was part of a small team.

We worked on projects in Munich. So, later on, I thought to address to Lindner Group again for work experience. I acted as a junior project manager and I came to Tirana Business Park after finishing my university begins of 2015. I worked on quality, cost and time management in the construction department. It was a great experience overall.

How do you like business and sport combination?

They are interconnected. I like to play volleyball and soccer. It incredibly helps to cool my head from business issues.

Who is the person who has inspired you most?

Fries: Lindner Group cares about people and their performance

My mother has always told me to make use of my time as long as I am young. Also my grandfather remains the most important person in my life. He brought me into this business because he was also an engineer. I have spent much time with him talking over his profession. He also spent a lot of time abroad. It is because of him, why I got into civil engineering.

Only 23 year old, Björn Fries, did an internship and later on worked for one of the most successful German investments in the retail business in Albania - Tirana Business Park. With a great passion to travel as a way to expand his horizon, Fries shares with us in this exclusive interview with “Follow Business” his experience from working with Lindner Group, the lessons gained from it as well as his enjoyable time in Albania.

“To start their own business, first of all, it is important to gain experience. If we speak of Albanian youngsters, they need to travel abroad in order to expand their knowledge.

Then, after being back, they can give their humble contribution to their own country,” the German guy says who was mostly inspired by his grandfather to pursue engineering.

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What’s your advice for the youngsters aiming to start a business at an early age?

To start their own business, first of all, they need to gain experience. If we speak of Albanian youngsters, they need to travel abroad in order to expand their knowledge. Then, after being back, they can give their humble contribution to their own country. In the same way, I will go abroad for some more experience before I return home.

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At the end of the day, all that counts is “Home Sweet Home”. Especially in Albania it is important that experienced young people come back to their home country.

From your point of view, what’s the motto of Lindner Group?

For this huge company, I think people and their high performance is what counts most. “Acts local think global”

And Tirana Business Park, how important is it for Albania in your eyes?

It is a long-term project. Tirana Business Park has the potential to become the economic hub not only for Albania but for the entire Balkan region. Lindner brings long term experience in building business parks which means flexible

office space for various companies.

What is still that you like to experience?

There are many things I still want to experience. Life goes on and on. From Tirana, I will go to other places. Life is a journey but not an endless one for me because I would like to come home now and then.

What is your secret to success?

Work hard, be organized, live and enjoy your life.

What is your next destination?

First i will go to Bavaria, where Lindner Group’s headquarter is situated and then in March or April, i will head for Jekaterinburg (Russia) for some months.

A final note?

Thank you Albania, I had a great time here.

I will visit Albania again. You have everything here. I have friends here as well whom I came to know through playing sports.

You have to use what you have, you have a stunning landscape, beautiful places. Make sure you use them!

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Ministry of Foreign Affairs and Trade – institutional changes The world has substantially changed and this means Hungary's foreign policy must change both institutionally and in its approach.

The Pragmatic Hungarian Model Cannot Go Unnoticed EMBASSY OF HUNGARY, TIRANA

On 5-6 April, 2016, the President of Hungary, János Áder, paid an official visit to Albania On the eve of this important development in the relations between our two countries, we looked into the recent changes Hungary has embraced pragmatically to take a significant position not only in the EU but even towards its neighbours and regions.

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The government has already carried out the biggest change, namely integrating the institutions overseeing external economic relations and cultural diplomacy into the foreign ministry's structure. All institutional conditions are now in place for Hungary to achieve its goals of taking a leading position in the EU in terms of the export-GDP ratio and the contribution of industry to the national economy. Hungary can also assume poll position in central Europe in terms of per capita direct foreign capital investment. Hungary pursues a pragmatic foreign policy.

Ethnic Hungarian communities in neighbouring countries have an interest in smooth relations between Hungary and its neighbours. Common achievements may build a degree of confidence, enabling these nations to resolve what seem to be tough disputes. For example, the construction of new bordercrossing points with Slovakia and more intense economic links between border regions.

The Visegrad Group cooperation is a major resource for Hungary, all the more so since central Europe would surely remain an engine of growth in Europe.

The Hungarian National Trading House The Hungarian Government, in harmony with it its foreign trade strategy, seeks new business opportunities in foreign markets for national small and medium-sized enterprises to grow export business dynamically. To this end, the Hungarian Government hand in hand with the Hungarian Chamber of Industry and Trade have established the Hungarian National Trading House Private Limited Company, which works as a for-profit organisation and offers complex services to mediate between the supply of Hungarian small and medium-sized enterprises and demand of foreign target markets effectively. Since 2014 all export development activities have been implemented under the aegis of the Hungarian National Trading House. By exploring, providing, and mediating export opportunities we offer our partners complex services. In addition, high-added value is guaranteed in participation in international development projects and complete management of foreign transactions.

The service portfolio primarily seeks potential export opportunities and foreign business partners and investors for our customers (Hungarian small-and medium-size enterprises), besides creating and maintaining relationship with customers. In addition, the Hungarian National Trading House puts great emphasis on integration activities, in which it offers Hungarian products and services to foreign customers and assist seeking logistic and financing solutions as well.

EXIM Underseen by the Ministry of Foreign Affairs and Trade, the objective of the Hungarian Export-Import Bank Plc.dolor (‘ThesitBank’) Lorem ipsum amet April 2016

and Hungarian Export Credit Insurance Plc. (‘The Insurer’) is to serve Hungarian exporters through the provision of effective financing and insurance facilities. The Bank and the Insurer act with the basic objective of facilitating the sale of Hungarian goods and services in foreign markets. They operate within an integrated framework, with a shared corporate identity, under the common brand “EXIM”. As a vehicle for providing economic policy incentives, the mission of EXIM is to support business, facilitate

the retention of jobs, growth in employment and the expansion of Hungary's export capacities. EXIM – within the frames of Export Promoting Credit Program – pursues effective financing cooperation with the national credit institutions, thus broader range of companies exporting directly or indirectly gain access to better export finance solutions. EXIM can offer its direct loans and refinancing loans at preferential interest rates. EXIM provides a range of lending, guarantee and insurance

products that cover the entire spectrum of export activity, from procurement through production to support for the sales process.

HIPA The Hungarian Investment Promotion Agency (HIPA) is the professional government organisation with the goal to promote investment in Hungary. HIPA provides information in a one-stop shop system about the Hungarian business environment, the domestically-financed, European Union co-financed programs and funding opportunities. It offers free of charge its project management services tailored to meet the specific needs of companies. Within this framework, it recommends investment locations, organises site and reference visits, B2B events and meetings with experts. Upon request it helps to identify and find suppliers and offers to put together a list of experts.

The Agency is actively involved in the preparation of government support of investments. HIPA also organises events to promote international investment and welcomes business delegations. It handles its own project portfolio, the (Hungarian Investment Projects – HIP), that contains projects certified by

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This process will not have any negative impact on the EU markets. It would be contrary to common sense if we increased the non-European export proportion and reduced exports to the European countries.

Opening to the East strategy has proven to be successful; it has opened the doors ahead of economic actors.

experts that are awaiting foreign capital input. It promotes the re-investment by companies already present in Hungary.

Through its work HIPA contributes to the fact that FDI Magazine belonging to the Financial Times Group, has chosen Budapest, the capital of Hungary, as the most attractive city in terms of capital investment in Eastern Europe, and that in Hungary currently there are now about 96 service centres employing around 36 thousand workers.

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Opening to the East and Opening to the South Hungary’s traditional external market is the European Union: its share of total exports has even increased over the last years. This is good, but Hungary needs to diversify its export opportunities beyond the EU market, therefore the aim is to increase exports to the non-European countries up to one-third in in the near future.

Opening to the South strategy follows the same pathway with the same goal: diversification of Hungary's export markets. Seeking new markets in addition to the traditional ones is what common sense dictates. If we are able to export more services - especially engineering knowledge, ICT and water management services – to the countries of Africa and Latin America, Hungary will have the opportunity to benefit from the recent economic growth of the region.

In order to strengthen relationships, Hungary needs to increase its presence in the regions. Therefore, Hungary will open new embassies in Colombia, Peru, Angola, Ethiopia and Ghana. Furthermore, the number of the Hungarian Honorary Consuls will be increase to 68 from 57 in the regions; there will be two new Honorary Consuls in Latin America and nine in Africa.

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Business and Cultural Day” for the purpose of introducing future development opportunities for Albanian businesses and promoting cultural variety through a photo exhibition. These events are dedicated to ensure the opportunity to reaffirm the commitment to intensify cooperation in all fields of economy in the best interest of both countries, especially in facilitating the economic cooperation and mutual investment through concrete joint projects.

Hungarian companies have internationally recognized references and competitive technologies which are highly recommended and indispensable in order to ensure the appropriate improvement of the region.

The first event took place in Durres on 18 February in collaboration with the Municipality of Durres and the Chamber of Commerce and Industry of Durres, further addressed cities are Vlora, Fier, Lezha, Korca and Elbassan.

Hungarian Eximbank opens a USD 370 million credit line in order to enhance successful relations of Hungarian businesses in the regions concerned.

The aim is to enhance the economic cooperation and to singe investor protection agreements and agreements on the avoidance of double taxation.

Hungarian-Albanian relations at a glance

As for the cultural part of the road-show, parallel with the Forum a photo exhibition: “Me and Budapest” takes place. The photos are made by the Albanian photographer Roland Tasho and the exhibition is sponsored by Budapest Water Works. The official opening photo exhibition is going to take place in April on the occasion of the visit of the President of Hungary to Albania.

Hungary and Albania already have a good economic cooperation however have the possibilities to further expand business and trade ties. In fact the countries have in place the agreements needed for the boosting of economic ties such as the agreements on double tax avoidance, investments protection and the agreement for the facilitation of the trade relations between the two countries.

According to the aims of Hungarian government, a new diplomatic post has been established at the Hungarian Embassy in Tirana: the commercial attaché helps Hungarian companies to learn the Albanian market and find partners and business opportunities.

In 2016 the Embassy of Hungary has launched a road show event titled “Hungarian Photos by Roland Tasho

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