ICT and Accommodation, Top Performing Services in Q3

TIRANA, December 16

The hospitality industry and the information and communication technology services had the best performance in terms of employment and wage index during the third quarter (Q3), 2019. The Institute of Statistics (INSTAT) confirmed that both sectors saw a growth in employment respectively by 24 percent and 17.5 percent.
These are the only two sectors among the services sector that saw a two-digit growth in the employment rate.
The hospitality industry has been growing during recent years. However, the third quarter of the year coincides with the peak season and with the anti-informality action by the tax administration. The need for seasonal workers and the need to comply with the law might have had an impact on the employment rate in the hospitality and accommodation sector.

Meanwhile, ICT seems like a rapidly growing sector in Albania. ICT services include software development, computer programing, and related activities, telecommunications, publishing activities, information center activities, motion picture, video and television program production, sound recording, and broadcasting activities.
Even though new in the sector compared to the region, Albania is the only country in the Western Balkans that offers the lowest corporate income tax for ICT companies at a five percent rate.

Read more: Albania has the Lowest Corporate Income Tax for ICT Companies among WB6

In early November, Albania Investment Council pointed out that the Information and Communication Technology Sector (ICT) in Albania has made progress in terms of market liberalization, expanding internet use, improvements in public electronic services and in the context of developing the Digital Agenda strategy. According to IC, a responsible policy-making institution for innovation and digitalization would further boost the sector.

The average wage in the ICT sector is about 50 percent higher compared to the average wage in Albania. Yet, the cost of the qualified labor force in Albania is less expensive compared to other countries in the European Union. This remains the main factor why international companies decide to expand or outsource to Albania.

Source: INSTAT