TIRANA, March 6
Tax incentives and the increased number of international tourist arrivals are directing the construction sector toward the hospitality industry.
The number of building permits for hotels throughout the country during 2017 reached 53 or five times more compared to the previous year. This is the highest number of constructing permits issued during the last five years. Based on the number of building permits, the total land that will be used for the construction of hotels and other accommodation facilities is 89,000 square meters. In the meantime, the investment value is Lek 3 billion more than the investments made in power and water supply networks in the country, Top Channel reports.
In the last stimulus package, the Albanian government decided that all the four and five-star hotels and resorts will be exempt from corporate income tax for a ten year period. Meanwhile, the Value Added Tax (VAT) for all the services supplied by five-star hotels was set at six percent. In the meantime, four-star hotels benefit the six percent VAT only for per night stay service. The purpose of the stimulus package is to attract strategic investors as well as to improve the quality and capacities offered by the hospitality industry.
This is not the first initiative in support to the tourism sector. Years ago, special status was offered to investments in tourist villages and resorts. However, the purpose of those investments changed from commercial to residential use.