Will Albania be the new luxury tourism destination?

Albania is rapidly emerging as one of the most promising destinations for luxury tourism, thanks to a series of factors that make it attractive for investors and more demanding travelers. In recent years, the country has seen a significant increase in tourist arrivals and is working to consolidate its position as an exclusive and sustainable destination. Among the projects contributing to this growth is a series of luxury developments, including those promoted by US investor Jared Kushner, who has planned a massive luxury resort in the country's coastal and island regions. Last January, Kushner, through his investment company Affinity Partners, presented a proposal for a $1.1 billion luxury resort, which will cover an area of 1,100 acres with 6,000 hotel rooms and villas, as well as a shopping center, pools, marinas, and luxury boats. The project, as explained by the NY Times, aims to transform part of the Albanian coast into an exclusive destination for high-end tourism, featuring a shopping center, yachts, cruise ships, and other luxury facilities. Additionally, Kushner and his wife Ivanka Trump are planning another equally luxurious resort on an uninhabited island, Sazan, located six miles off the coast, in the heart of a national marine park – a project worth over $2 billion. This situation has reignited the debate over luxury tourism in the country, yet these projects are also the subject of controversy, particularly due to legislative changes that have allowed construction in protected areas, raising ecological concerns and questions about the benefits these developments will bring to local communities.

Albania has seen a rapid increase in tourist arrivals in recent years, with over 11.7 million visitors in 2024. The country has become an emerging luxury destination, with resorts like Kep Merli attracting celebrities and influencers, while the presence of international brands like Melia, Radisson, Marriott, and Hyatt, along with new infrastructure projects like the Vlora airport, helps to solidify Albania's position in the high-end tourism market. The Albanian government has invested heavily in the tourism sector, with over 3 billion euros allocated to strategic projects from 2016 to 2023. Its vision is to attract high-end tourists, focusing on quality rather than quantity. By 2030, Albania plans to significantly increase its tourism revenues, while also improving the protection of the country’s natural resources. But despite the economic potential of luxury tourism, there are concerns about its ecological and economic impact. Renowned ornithologist Joni Vorpsi, interviewed by the NY Times, raised concerns about the negative effects on the region’s delicate natural ecosystems, particularly in the Vjosa River delta area, which hosts a vast biodiversity, including numerous species of migratory birds. In fact, some critics fear that mass tourism development could lead to the deterioration of vital habitats and that the economic benefits of these projects may be concentrated in the hands of a few investors, rather than benefiting local communities.

As explained by Balkan Insight, local populations are facing challenges related to natural resource shortages, such as water, which are being diverted to meet the needs of luxury tourism developments. Laws allowing construction in protected areas and the approval of large projects by foreign investors are at the center of a political debate, with some accusing the government of favoring international economic interests at the expense of the well-being of local communities. The future of luxury tourism in Albania will depend on the country’s ability to balance economic development with environmental sustainability and social justice. Although the country is experiencing exponential growth in the tourism sector, with an increasingly developed infrastructure and a growing reputation as a luxury destination, ecological concerns and criticisms from some local communities could (or should) represent a more pressing issue to address. And much like in other parts of Europe, the country will need to balance environmental sustainability with economic benefits for both local communities and foreign investors.