Albanian Tourism Association opposes VAT increase on accommodation

The Albanian Tourism Association (ATA) is protesting a government proposal to increase the Value Added Tax (VAT) on accommodation services from 6% to 10%. The association warns that the hike will damage the competitiveness of Albania's tourism sector compared to regional rivals.

ATA argues the decision was made without prior consultation with interest groups or a thorough economic impact analysis. The association highlights that formal businesses are already struggling with rising costs, including doubled sector wages, increased raw material prices, and the impact of currency fluctuations.

According to the association, the current 6% VAT rate has been a key driver in tourism growth, which saw visitor numbers rise from 6 million to 12.6 million. ATA is calling for the suspension of the decision and urges the government to focus on combating informality in the market instead. They noted that approximately 78% of accommodation capacity consists of daily rental apartments, which they claim operate largely informally, whereas hotels represent only 22% of the market.