While Albania has made significant economic progress in recent decades, poverty remains a challenge in many rural communities. Across the country, however, innovative development initiatives like eco- tourism are creating new opportunities for economic growth and poverty eradication in Albania.

Although Albania’s economy has steadily expanded over the past two decades, many rural residents still struggle with unemployment, limited infrastructure and unequal access to education and public services. According to Germany’s Federal Ministry for Economic Cooperation and Development, people living outside major urban centers often face reduced economic opportunities and limited access to jobs, housing and education. Older people and members of minority groups are particularly vulnerable to poverty and social exclusion.

These challenges have made tourism an increasingly important source of economic opportunity. Albania’s tourism industry now plays a major role in supporting employment, particularly in rural regions where other industries remain underdeveloped. According to the World Travel and Tourism Council, the tourism sector supported approximately 269,000 jobs in Albania in 2023, accounting for nearly one in five jobs nationwide. As Albania’s tourism industry expands, many leaders see sustainable tourism as a promising strategy for poverty eradication in Albania.

Tourism in Albania

Known for its rugged mountains, protected national parks and Adriatic coastline, Albania is quickly gaining international attention as an emerging Mediterranean destination — offering a quieter alternative to the region’s often crowded seaside hotspots. Albania ranked fourth globally in 2023 for the largest percentage increase in international tourist arrivals, recording growth of 56% since 2019. To protect these ecosystems and the economic opportunities they provide, Albania is looking towards eco-tourism.

The World Bank states that the Albanian government is currently prioritizing “sustainable growth with a special focus on tourism” as part of its broader economic development strategy. In recent years, international organizations and government agencies have invested heavily in sustainable tourism initiatives designed to strengthen local economies while protecting environmental and cultural resources.

Job creation in Albania’s Heritage Communities

In southern Albania, eco-tourism and heritage tourism are helping transform communities that once faced economic decline and population loss. According to the World Bank, “for years communities across Southern Albania experienced sluggish growth and an exodus of residents, especially youths, seeking opportunity elsewhere.” However, investments in sustainable tourism infrastructure and cultural preservation projects have helped towns such as Berat, Gjirokastër, Përmet and Sarandë are now experiencing significant economic growth. 

Through initiatives like the Integrated Urban and Tourism Development Project (PIUTD), the World Bank helped restore and improve access to historic sites including Gjirokastër Castle, the Sarandë promenade and the Qafa e Pazarit bazaar. Workers rehabilitated nearly 200,000 square meters of public space through projects that repaired cobblestone streets, expanded hiking trails and improved lighting, sidewalks and visitor centers. These investments helped fuel a tourism boom across southern Albania, where tourist arrivals in Berat nearly quadrupled between 2019 and 2024, while arrivals in Gjirokastër increased sixfold.

Family-Run Guesthouses

Unlike large-scale resort tourism, locally owned businesses heavily drive Albania’s eco-tourism industry. The rapid growth of tourism has created new economic opportunities for local residents. Families have converted historic homes into guesthouses and bed-and-breakfasts, while entrepreneurs have launched cultural tours, hiking excursions and outdoor recreation businesses. Importantly, the World Bank states that this growth remains inclusive: “over half of the thousands of the new jobs created are held by individuals who are often excluded from the labor market, such as women, youth, and persons with disabilities.”

Moreover, tourism growth has expanded Albania’s tourism season beyond the summer months, creating more stable year-round income for local businesses. This has also encouraged some Albanians who previously emigrated to return home and invest in tourism enterprises, contributing to long-term community revitalization and further supporting poverty eradication in Albania.

Balancing Tourism and Conservation

Rapid tourism growth also brings environmental pressures, including risks to natural landscapes and biodiversity loss. In response, the Albanian government established a combined Ministry of Tourism and Environment in 2017 to better align economic development with environmental protection, ensuring that tourism expansion does not come at the expense of natural ecosystems.

Building on this approach, Albania expanded its protected areas in 2022 to cover 21.4% of the country’s territory, up from 17.5%. This expansion included the creation of the Albanian Alps National Park. Encompassing dramatic mountain scenery and valleys, the park is designed to strengthen biodiversity conservation while also supporting sustainable rural development and eco-tourism in surrounding communities.

The Albanian Alps attract thousands of international hikers each year, and encourage local communities to invest in environmentally conscious tourism services. Many guesthouses and agritourism businesses in these regions use locally sourced food, traditional architecture and small-scale accommodations that minimize environmental impact while supporting local agriculture and family-run enterprises.

Looking Ahead

As Albania’s tourism industry continues to grow, eco-tourism is emerging as one of the country’s most promising strategies for poverty eradication in Albania. From family-run guesthouses in the Albanian Alps to heritage restoration projects in historic southern cities, sustainable tourism initiatives are creating jobs, supporting local businesses and strengthening rural economies. While challenges related to poverty and regional inequality remain, Albania’s investment in sustainable tourism demonstrates how community-based development can create new economic opportunities for some of the country’s most vulnerable populations.

– Lucy Alexander

Lucy is based in Montreal, Quebec, Canada and focuses on Technology and Solutions for The Borgen Project.

Photo: Unsplash